thanx to articsun for posting this on SH,

Dear VMS Followers,

Today, we have announced our long awaited deal with HudBay Minerals. To say that we are pleased is an understatement.

Those of you who follow the junior exploration space know how rare a discovery is, and how challenging getting that deposit to production can be. We had the good fortune of discovering the Reed deposit in HudBay's 'neighborhood', the Flin Flon-Snow Lake VMS belt. We did not have to look far to find a successful producer/operator partner and, although it has been a long wait, they were always the obvious and best choice to develop, grow and mine our Reed Lake discovery. VMS’s portion of the expenditures required to drill off and develop will be financed in total by HudBay which will maintain our 30% ownership in the Discovery Zone and any new deposits discovered and developed on this property. Now, finally, we will see just how big this very rich deposit will become.

As HudBay stated today, they expect to be on the Reed ground with drills shortly, and we all are looking forward to seeing Reed drill results, again. We expect HudBay will aggressively develop this deposit to feed their Flin Flon infrastructure, which lives and breathes on copper, and let’s hope the Reed Lake discovery will feed it for many years to come.

I want to also emphasize the four option agreements that cover what VMS has referred to as the Super Zone. Effectively, all the property surrounding the JV claim blocks will be explored and drilled over the next two to three years. Each includes the commitment by HudBay to develop all new deposits within a JV structure similar to the one we have with Reed, with HudBay financing VMS’s share of expenditures for the first $50 million for each deposit. What this means for VMS and its shareholders is that this very prospective area will be explored and drilled continuously over the next 24 to 36 months and new discoveries will move more quickly to development due to today’s option agreements.

Today, we have made a major step toward our goal of becoming a “junior producer". We expect to reach up to the institutional investor audience and have begun that process this morning. With the signing of this agreement, we will have approximately $15 million in our treasury. That cash gives us many options to grow VMS not available to smaller explorers. As you know our land position in this prolific belt is very substantial and many of our properties are at, or near, drill readiness, so we, too, expect to be drilling continuously over the next two to three years.

The opportunities in front of us are remarkable and exciting. We are busy building a stronger, more experienced team to help us take full advantage of our discovery and our agreements signed today.

Again, I'd like to thank you for your patience and as always, invite you to call or e-mail with any comments or questions.

Best Regards,

Rick Mark
CEO & Chair