GREY:VMSTF - Post by User
Post by
nopoo2on Dec 03, 2014 7:46pm
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Post# 23192613
Dear VMS Ventures followers
Dear VMS Ventures followers
In today’s release, we summarize highlights from the most recent quarterly Joint Venture management meeting held with our Reed Mine partner and mine operator Hudbay Minerals Inc. The release provides further details about the mine operations during the third quarter, as well as information related to the production and development activities now underway at the mine in the fourth quarter of 2014.
As anticipated in our pre-feasibility and mine plans, we were informed that the copper grade is starting to increase as we shift our mining from the lower grade 30 Zone to the higher grade 20 Zone.
I've been asked by a few shareholders how the recent decline in the price of copper might impact the economics of the mine. Metal prices and in particular the price of copper, are an important factor to the economics of the mine, but there are several other important variables such as the grade of ore mined and the exchange rate between the Canadian and US dollars, as outlined in our pre-feasibility study.
The importance of the exchange rate is often overlooked, but can be significant. Copper for example is a global commodity traded in US Dollars and VMS being a Canadian company is selling ore valued in US Dollars which are then exchanged into Canadian dollars. The exchange rate, along with the increasing grade will help to mitigate the effect that lower copper prices may have on the economics of the mine.
On behalf of the Board,
John Roozendaal B.Sc.
President, Director & Interim CEO
VMS Ventures Inc.