Discovering High Grade Copper Deposits
in Manitoba, Canada
VMS:TSX.V
Explorer to Producer
NAN: TSX.V
The World’s Next Nickel Belt
New York Hard Assets Investment
Conference
May 14-15, 2012
FORWARD-LOOKING
STATEMENTS
NOTE:
Some of the statements contained herein may be forward-looking
statements which involve known and unknown risks and uncertainties.
Without limitation, statements regarding potential mineralization and
resources, exploration results, and future plans and objectives of the
Company are forward-looking statements that involve various risks. The
following are important factors that could cause the Company’s actual
results to differ materially from those expressed or implied by such
forward-looking statements: changes in the world wide price of mineral
commodities, general market conditions, risks inherent in mineral
exploration, risks associated with development, construction and mining
operations, the uncertainty of future profitability and the uncertainty of
access to additional capital. There can be no assurance that forward-looking
statements will prove to be accurate as actual results and future
events may differ materially from those anticipated in such statements.
VMS Ventures Inc. undertakes no obligation to update such forward-looking
statements if circumstances or management’s estimates or opinions
should change. The reader is cautioned not to place undue reliance on
such forward-looking statements.
VMS VENTURES INC.
VMS - TSX.V
QUICK FACTS
 Well funded junior with approximately
$10.8M in the treasury.
 Discovered the copper rich Reed Copper
deposit in Manitoba in 2007.
•
CAPITAL STRUCTURE
(as at April, 2012)
Issued & Outstanding: 129,168,399
Warrants:
163,333
Options:
9,909,850
Fully Diluted:
139,241,582
JV Partner HudBay Minerals (T.HBM) is
project operator; VMS costs carried to
production. Project ownership is 70% HBM
& 30% VMS.
 Reed Copper deposit Prefeasbility
announced in April 2012. Indicated
Reserve: 2.2M Tonnes of 3.83% Cu, 0.48
g/t Au, 6.02 g/t Ag
 Large, highly prospective land package in
the prolific Flin Flon – Snow Lake
Greenstone Belt of Manitoba
 VMS owns ~45% of North American Nickel
VMS/NAN MANAGEMENT
Rick Mark, M.Ed (Admin) - CEO & Chairman VMS & NAN: Rick has over 23 years experience in the public
market place. He is also the CEO & Chair of VMS Ventures Inc. (VMS:TSX.V), and Harvest Gold Corporation
(HVG-TSX.V), a December 2005 "spin off" from VMS, and is the President and CEO of Pancontinental Uranium
Corp. (PUC-TSX.V).
Neil Richardson P. Geo. COO, VMS, Advisor to NAN: Neil has a long history of mineral exploration and
mining experience with HudBay Minerals and others. Neil is the Chief Operating Officer for VMS Ventures
responsible for developing and implementing exploration programs .
Mark Fedikow, HBSc., M.Sc., Ph.D., P.Eng., P. Geo., C.P.G. - President and C.O.O., Director NAN, VP
Exploration VMS: Mark has 35 years of industry and government experience Chief Geologist of the Mineral
Deposits Section in Manitoba. Recipient of Canadian national award for outstanding geoscientific
achievement. He is President of NAN the Vice President of Exploration and Technical Services of VMS.
John Roozendaal B.Sc – President of VMS, Director of NAN: Founding director and President of VMS
Ventures Inc. 20 years of Mineral Exploration experience, directly involved in the Reed Copper discovery..
John Pattison, P. Geo., B.Sc. Chief Geologist VMS and NAN: John has extensive experience in base metal
exploration. John worked with Falconbridge Limited and associated companies for 19 years managing base
metal, PGE and gold exploration projects throughout Canada and southern Africa.
4
INDEPENDENT DIRECTORS &
ADVISORY BOARD
Independent Directors:
Don Whalen, VMS: Mr. Whalen was Executive Chairman and Director of High River Gold Mines.
Before joining High River, he held numerous marketing, technical and management positions over a 29 year career
with IBM Canada Ltd.
Jim Clucas, NAN: Jim was Chief Financial Officer of Inco’s Canadian operations and has been involved in the
development of several mineral deposits, including the Snow Lake Mine (High River Gold Mines), Montana
Tunnels (Pegasus Mining) and the Fenix Project in Guatemala. He was the founder of International Nickel Ventures
Inc. which acquired and developed the Santa Fe/Ipora Nickel Laterite deposit in Brazil. Jim is currently President
and CEO of Search Minerals
Advisory Board
Cashel Meagher B.Sc. P. Geo.: Cashel is currently Vice President South America Business Unit of Hudbay
Minerals. He has worked with the technical and management teams at VMS Ventures and North American Nickel
through the Reed Lake joint venture with VMS. Prior to joining Hudbay, Mr. Meagher held management positions
with Vale Inco in exploration, technical services, and mine operations.
Mike Muzylowski - Callinan Mines Ltd. (CAA-TSX.V) accomplished President and CEO, has played key roles in the
discovery of 15 Canadian mines, 13 in Manitoba, during his distinguished career as a geologist, geophysicist and
senior mining executive.
James M. Patterson B.A. D.I.C. Ph.D. P. Geo.: Jim a former VP Exploration for FNX Mining Company, has over 40
years experience in mineral exploration with major and junior exploration companies, government and
international development agencies.
5
REED COPPER DEPOSIT
VMS-HudBay JV
• VMS owns 30% and is
carried to production
• Prefeasibility report
indicates 2,157,000 tonnes of
3.83% Cu, 0.59% Zn and 0.48
g/t Au
• NPV 8% @ $3.75 Cu =
$191,361,000; IRR 68.40%
• Borehole Pulse
Electromagnetic targets
indicate the deposit is open
at depth
Open down plunge
ORE BODIES TEND TO GROW IN
THE FLIN FLON BELT
After K. Gilmore (Hudbay Minerals), 2007
REED COPPER DEPOSIT:
CASH FLOW WITHIN SIGHT
The high grade nature of the Reed Copper deposit gives the project strong leverage to copper prices.
The following table shows a copper price sensitivity analysis based on the operating parameters set out
in the prefeasibility.
Prefeasibility
3 Year Historical
Base Case (1)
Price and Exchange Averages
Copper
(USS/lb)
Average Price Case (2)
Cu = $3.75/lb USD (3)
$2.95
$3.20
$3.75
Gold (US$/oz)
$1,269.00
$1,235.00
$1,235.00
Silver (US$/oz)
$24.78
$22.85
$22.85
US$/CDN$
0.95
0.94
0.92
Cash Flow
NPV 8%
$102,426,000
$57,443,000
$182,975,000
$109,904,000
$300,964,000
$191,361,000
IRR
34.70%
46.60%
68.40%
Pre-tax
(1) Prefeasibility Base Case metal prices projections compiled by HudBay based on 11 wellknown financial institutions.
(2) Bloomberg three year historical average (December 1, 2008 to December 1,
2011)
(3) $3.75 copper price for perspective on valuation impact of copper price
VMS VENTURES – HUDBAY JV &
OPTIONS PROJECTS
VMS-Hudbay JV
Reed North zone
Reed Copper deposit
2012 HIGHLIGHTS
• 30-70 joint venture, VMS
carried to production.
• Hudbay is operator.
• NI 43-101 Geological
Resourced April, 2011
• PEA announced
December, 2011
• Permits in place for bulk
sample and surface,
announced Jan 2012
• Prefeasibility announced
April 2012
• Started portal entrance
4 Option Agreements
• HudBay is operator.
• $2.6 M in cumulative
expenditures to earn 70%.
Prefeasibility study completed on Reed Copper project
Bulk sample and underground development permits in place
Started portal entrance – milestone for underground development
VTEM COVERAGE OVER
VMS’ 100% OWNED PROJECTS
• Many recent
discoveries,
including VMS’s
Reed Lake
Deposit, were
made with VTEM
• VMS Ventures
has flown over
17,000 line-km of
VTEM over its
projects, majority
flown at 100 m
line spacing.
• 5 years and $13
million in work –
Targets ready to
drill.
VMS 2012 ACTIVITIES
HudBay JV: The Reed deposit, Manitoba’s next copper mine
•
•
•
•
Prefeasibility report announced April 2, 2012
Mine Portal entrance established
Mine Decline started; Hudbay crew to take over underground development in Q3
Production commences Q3 - 2013
VMS 100% Owned Properties
Sudbury Projects
• Golden Pine, Black Creek & Terra Incognita scheduled for prospecting/trenching
in Q2, auger drilling and diamond drilling in Q3 – Q4
North American Nickel (VMS owns 26M shares)
Maniitsoq project will be drilled; own VMS or NAN ahead of drilling
NORTH AMERICAN NICKEL INC.
NAN - TSX.V
QUICK FACTS
 Acquired the large, prospective Maniitsoq
property in Greenland in August, 2011
 High-grade nickel intercepts in historic drill
holes:
9.85 m at 2.67% Ni and 60% Cu at
Imiak Hill
12.89 m averaging 2.24% Ni and 0.63%
Cu at Fossilik
 Sudbury Ontario land position includes the
Post Creek, Halcyon and Wahnapitae
properties.
CAPITAL STRUCTURE
(as at April, 2012)
Issued & Outstanding:
Warrants:
Options:
Fully Diluted:
 VMS owns 26M shares
56,747,693
30,141,450
5,618,000
92,507,143
Slide 12
MANIITSOQ PROJECT, GREENLAND
Maniitsoq (looking east towards the project area)
100% interest in a giant property
covering 4,983 km2 of the highly
prospective, but underexplored,
Greenland Norite Belt.
Located on tide water (navigable yearround) on the southwest coast of
Greenland, near the village of
Maniitsoq.
THE GREENLAND NORITE BELT
- PLENTY OF ROOM FOR WORLD CLASS
NICKEL DEPOSIT(S)
Belt is J-shaped, 75 km
long by 15 km wide and
characterised by nickelbearing noritic intrusions.
Numerous significant
nickel showings with
consistently high nickel
tenor.
Voisey’s Bay Deposit
at map scale.
Plan view of the Voisey’s Bay intrusion (from Eckstrand
& Hulbert,
2007)2007
From Eckstrand
& Hulbert,
Nickel Tenor
• Presence of pyrite
means there is more
S for a given amount
of sulphide than in
typical magmatic
sulphide deposits
consisting mainly of
pyrrhotite-pentlandite
and chalcopyrite.
Ni vs. S for Maniitsoq Drill Core
Typical 100% sulphide mixture
of Po+Cp+Pn contains 35.7% S
Kerr, 2003
Nickel wt. %
• Maniitsoq sulphides
have a relatively
consistent nickel
tenor of 6 to 8% Ni
recalculated to 100%
sulphide.
DRILL CORE
Sulphur wt. %
After Shore, 2000
(Falconbridge Limited)
Slide 15
MANIITSOQ PROJECT
2011 SKYTEM RESULTS
NAN WORK (2011)
Helicopter EM surveys
by NAN in 2011 over
two small areas (<8%
of the project area)
successfully delineated
new targets.
Additional helicopter
EM surveys and drilling
planned for 2012.
HISTORICAL WORK
Almost all showings
were discovered in the
1960’s and early 70’s.
Average hole length
less than 55 meters.
3D EM Modeling Target B1-B
Target B1-B
700 m long, near surface
conductive zone.
No previous drilling.
Interpreted
Norite
Characteristics and
orientation of the
conductor vary
considerably along
strike suggesting it is
not formational.
Magnetic data suggests
that it is hosted in a
large (2.5 x 1.0 km)
norite body (shown in
light purple).
Slide 17
3D EM Modeling Target B1-J
TARGET B1-J (IMIAK HILL): 3D VIEW LOOKING WEST
170 m long by 16 m wide conductor that comes to surface
and is directly coincident with the Imiak Hill showing.
The model shows that the mineralization strikes parallel to
most of the historical drilling and therefore has not been
properly tested.
9.85m @ 2.67% Ni, 0.60% Cu
FOOTWALL
CONTACT
OF NORITE
The model has very limited dip extent (21 m) but the best
intersection on the showing (9.85 m averaging 2.67% Ni
and 0.60% Cu) occurs 130 m below surface indicating
that strong mineralization at surface is masking the EM
response from mineralization at depth.
TARGET B1-J:
3D VIEW
LOOKING DOWN
(PLAN)
9.85m @ 2.67% Ni, 0.60% Cu
Slide 18
3D EM Modeling Target B1-L
TARGET B1-L (SPOTTY HILL): 3D VIEW LOOKING NORTH
~ 160 m BELOW SURFACE
(i.e. 100 m BENEATH
PREVIOUS DRILLING)
Modeled as a 330 x 100 m flatlying conductor located 160 m
below surface within a norite
intrusion.
The conductor is untested but
shallow, historical drilling 100
m above intersected weakly
disseminated, nickeliferous
sulphides grading up to
0.52% Ni and 0.26% Cu over
12.94 m.
Clearly, mineralizing processes
were at work here as
indicated by the disseminated
near-surface mineralization
and the most logical location
to look for massive sulphides
is at depth.
Slide 19
Plans for 2012 & Beyond
2012
• Ground truth all 25 conductive target zones
identified by SkyTEM with emphasis on 3
highest priority zones (B1-B, B1-J and B1-L).
• Minimum 2,000 m of drilling to the three
highest priority targets.
• 3,000 line-km of helicopter TEM over
prospective norites in southern part of the
norite belt.
• Prospecting outside of main norite belt looking
for new showings and norites.
• Estimated cost $3.0 million
2013
• Minimum 6,000 m of follow-up drilling on
targets derived from 2012 work
• 3,000 line-km of helicopter TEM
• Estimated cost $ 7.5 million.
Slide 20
Investor Risk Mitigation

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100% ownership; Camp-sized land package (Sudbury)
Public Co management/financing experience
Technical team is deep
Secure political jurisdiction
Regional setting; year round exploration
Historic exploration data is remarkable ($10M plus)
Geology

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Abundance of Ni-Cu occurrences at surface & in drilling
Undeformed norite host rocks
Mineralization: inclusion-bearing sulphides
Nickel Tenor – consistent and economic grade
 New technologies in “old” camp work
– 25 EM targets in 8% of land package
Slide 21