1. Discovering High Grade Copper Deposits
in Manitoba, Canada
VMS:TSX.V
Manitoba’s Next Copper Mine
NAN: TSX.V
Maniitsoq, Greenland:
Discovering The World’s Next Ni-
Cu-Co-PGM Belt
February, 2013
2. 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.
Slide 2
3. VMS VENTURES INC.
VMS - TSX.V QUICK FACTS
Well funded; over $10.4M in the treasury
Reed Copper deposit discovered in 2007.
June 2010: Joint Venture signed with HudBay
Minerals (T.HBM). HBM is project operator; VMS
project costs carried to production. Project
ownership is 70% HBM & 30% VMS.
Reed Copper Deposit Prefeasibility Mineral
Reserves: 2.16M tonnes of 3.83% Cu, 0.48 g/t Au,
6.02 g/t Ag
Underground development underway and
production to begin Q4 2013; cash flow in 2015
CAPITAL STRUCTURE
(as at February, 2013) Other assets :
Issued & Outstanding: 129,668,399 21M shares of North American Nickel
Warrants: 163,333 (NAN.TSX.V)
Options: 8,442,500 a large 100% owned land package in the
Fully Diluted: 138,274,232 Snow Lake-Flin Flon Greenstone Belt in
Manitoba, Canada; drilling planned for
winter 2013
Slide 3
4. VMS/NAN MANAGEMENT
Rick Mark, M.Ed (Admin) CEO & Chairman VMS & NAN: Rick has over 25 years experience in the public market
place. He is also CEO & Chairman of 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 & NAN: Neil has a long history of mineral exploration and mining experience
with HudBay Minerals and others. As the COO of both companies, Neil is responsible for developing and implementing
exploration programs .
Mark Fedikow, HBSc., M.Sc., Ph.D., P.Eng., P. Geo., C.P.G. : President & Director NAN, VP Exploration VMS: Mark
has 35 years of industry and government experience including Chief Geologist of the Mineral Deposits Section in
Manitoba. He is a recipient of the Canadian national award for outstanding geoscientific achievement.
John Roozendaal B.Sc, President of VMS, Director of NAN: John was the founding director of VMS Ventures Inc.
He has 20 years of Mineral Exploration experience and was directly involved in the Reed Copper discovery.
John Pattison, P. Geo., B.Sc. Chief Geologist VMS and NAN: John worked with Falconbridge Limited and
associated companies for 19 years managing base metal, PGE and gold exploration projects throughout Canada and
southern Africa. He is the lead project geologist for the Maniitsoq, Greenland nickel project.
Slide 4
4
5. INDEPENDENT DIRECTORS &
ADVISORY BOARDS Independent Directors:
Gilbert Clark, Director, NAN: Mr. Clark is a European based Geologist with more than 13 years of industry experience;
principally in mining and international resource developments. He is currently an Investment Advisor with The Sentient
Group, an independent private equity investment firm specializing in the global resources industry.
Don Whalen, Director & Audit Committee Chair, VMS: Don 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, Director & Audit Committee Member, 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, Cashel held management positions with Vale Inco in exploration, technical
services, and mine operations.
Mike Muzylowski: Mike 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.
Slide 5
5
6. REED COPPER DEPOSIT
VMS-HudBay Reed JV
• VMS owns 30% of the project
and is financed to production
• Prefeasibility Mineral
Reserves: 2,157,000 tonnes of
3.83% Cu, 0.59% Zn and 0.48
g/t Au
• NPV 8% @ $3.50 Cu =
$130,534,000; IRR 58%
• Borehole Pulse
Electromagnetic targets
indicate the deposit remains
open at depth.
• Underground drill stations will
explore for additional ore
bodies and further define the
size of the deposit.
Open Down Plunge Slide 6
8. REED COPPER PROJECT
CASH FLOW EXPECTED IN 2015
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 Study Published in May 2012.
VMS Ventures Inc. VMS Ventures Inc.
Cu = $3.50/lb USD Cu = $4.00/lb USD
Prices and Exchange Rate
Copper (USS/lb) $3.50 $4.00
Gold (US$/oz) $1,500.00 $1,500.00
Silver (US$/oz) $30.00 $30.00
US$/CDN$ 1 1
Pre‐tax
Reed Cash Flow $249,673,000 $331,608,000
NPV8 $130,534,000 $195,010,000
IRR 58% 74%
Slide 8
9. REED PROJECT OVERVIEW
• 1,300 tonne/day operation; Mine life 5 to 6 years
• 72,000 to 78,000 tonnes copper concentrate per annum
• Mining method is longhole open stoping
• Manpower : 77 employees at full production
• Power : 3 generators production up to 5,000 kwh
• Concentrating will be at HBM Mill in Flin Flon
Slide 9
16. VTEM COVERAGE OVER
VMS’ 100% OWNED PROJECTS
• Recent massive
sulphide
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.
• 20 targets to be
drilled this winter
Slide 16
17. VMS 2013: ASSETS AND
OPPOTUNITIES
The Reed Copper Project
• January: Completion of surface construction and commissioning of 1.6 MW generator
• August: First production and completion of main ventilation fan
• 2014: Continued underground development to the 260 m level and full production.
VMS 100% Owned Manitoba Properties
• $1.2M budgeted for winter 2013 drill program in the Snow Lake area. 3,000 m to 3,400 m
of drilling is scheduled to test VTEM targets.
$10M and cash flow coming = New Opportunities
• An important part of our Exploration Strategy
• We are actively seeking an advanced stage project and expect many to come available
this year, as Companies run out of money or cannot raise money.
North American Nickel (VMS owns ~21M shares)
• District wide drill program planned for Maniitsoq in 2013; own VMS or NAN for discovery
upside potential.
Slide 17
18. Maniitsoq Ni-Cu-Co-PGM Project
South West Greenland
NAN - TSX.V QUICK FACTS
Acquired the Sudbury sized Maniitsoq property in
Greenland in August, 2011; 100% owned.
Site of the world’s largest impact structure
High-grade nickel intercepts in historic drill holes:
9.85 m at 2.67% Ni and 0.60% Cu at
Imiak Hill
12.89 m averaging 2.24% Ni and 0.63% Cu
at Fossilik
2012 Drill program completed at Maniitsoq. 1,550
m of diamond drilling; 535 samples analyzed.
Over 3,500 line km flown in a VTEM Plus survey in
CAPITAL STRUCTURE July, 2012; 75 conductive zones identified
(as at February, 2013)
Sudbury Ontario land position includes the Post
Issued & Outstanding: 80,660,193 Creek, Halcyon and Wahnapitae properties.
Warrants: 22,960,000 VMS Ventures owns ~21M shares of NAN.
Options: 7,683,000
Fully Diluted: 111,303,193
Slide 18
19. Introduction
Maniitsoq Ni‐Cu‐Co‐PGM Project
South West Greenland
Project Location
100% interest in a giant property covering 4,983
km2 of the highly prospective, but underexplored,
Maniitsoq Impact structure.
Located on the south west coast of Greenland pack
ice free all year round due to the presence of the
Irminger Current, a tributary of the Gulf Stream.
Slide 19
20. Maniitsoq Ni‐Cu‐Co‐PGM Project
South West Greenland
Introduction
100% ownership of tenements covering the
Maniitsoq meteorite impact structure.
High grade and tenor sulphide hosted Ni‐Cu‐Co‐
PGM mineralisation defined at the surface and
along the length of the structure.
Located on the ice free southwest coast of
Greenland, deep water navigable by Panamax
vessels all year round. The best location in
Greenland for all year round mining & shipping of
concentrate.
Greenland’s capital, Nuuk, 30 minutes by helicopter
and provides European standard coastal re‐supply
and logistics facilities 4hrs shipping time.
Greenland is a pro‐mining country.
Slide 20
21. Maniitsoq Ni‐Cu‐Co‐PGM Project
South West Greenland
Project History MANIITSOQ IMPACT
MELT ZONE (APPROX.)
Danish explorers 1962 to 1973: extensive mapping and
shallow diamond drilling but wrongly orientated, smoke
but no fire.
Cominco & Falconbridge: 1993 to 2000 fixed wing (non
optimal) and small surface EM surveys completed plus
extensive high quality geo‐chemical analysis of historical
core.
2011 NAN acquires project reviews historical data and
then conducts first terrain hugging helicopter‐borne EM Davis
survey: 25 new conductors identified. Strait
2012 Geological Survey of Denmark and Greenland et al
identifies Maniitsoq meteorite impact site within NAN’s
tenements.
Maniitsoq impact interpreted to be larger than
the impact that produced the Sudbury Basin in
Ontario, Canada, a meteorite impact structure
with >1.3Bt of Ni‐Cu‐Co‐PGM mined and current
resources. Slide 21
22. Maniitsoq Ni‐Cu‐Co‐PGM Project
South West Greenland
Project Geology MANIITSOQ IMPACT GREENLAND
MELT ZONE (APPROX.) NORITE BELT
Centred on a giant, Archean‐age (~3.0 Ga) impact site ‐
possibly the largest yet identified on Earth (Garde et al.,
2012*).
Ni‐Cu‐Co‐PGM mineralization (red stars on adjacent
map) is hosted by norite intrusions (shown in purple on
the map). These intrusions represent contaminated,
mantle‐derived, nickel‐rich, ultramafic magma emplaced
in a conduit system as a result of the impact.
Norites are post kinematic (i.e. undeformed) and Davis
commonly contain exotic inclusions (xenoliths) of Strait
shocked gneissic country rock confirming that they were
emplaced after the impact in a dynamic flow system.
Norite intrusions range in size from several square
meters to 8 km2 and are concentrated in, but not
exclusive to, a 75 km long by 15 km wide belt known as
the Greenland Norite Belt.
*Garde , A.A., McDonald, I., Dyck, B. & Keulen, N. 2012: Searching
for giant, ancient impact structures on Earth: the Meso‐
archaean Maniitsoq structure, West Greenland. Earth and Slide 22
Planetary Science Letters 137–138, 197–210.
23. Maniitsoq Ni‐Cu‐Co‐PGM Project
South West Greenland
2012: The Confirmation & Discovery Year at Maniitsoq
NAN identifies an additional 54 new EM MANIITSOQ IMPACT
conductors; 79 detected to date. MELT ZONE (APPROX.)
Discovers new sulphide mineralisation at Spotty
Hill: 123.94m @ 1.00% Ni eq* including 24.2m @
2.12% Ni eq*
Confirms exploration model by successful drilling
at Imiak Hill: 26.98m @ 1.18% Ni eq* including
16.64m @ 1.60% Ni eq*
Davis
Discovery of PGM mineralisation at Spotty Hill, Strait
the Maniitsoq “game changer”
Established institutional investor support via non
brokered private placement with strategic partner
The Sentient Group
* Ni eq = Ni equivalent calculated based on spot prices for Ni, Cu, Co,
Pd and Pt on Jan. 27, 2013.
Slide 23
24. Maniitsoq Ni‐Cu‐Co‐PGM Project
South West Greenland
2012: Spotty Hill “Discovery” Drill Results
Cross section of 2012 EM
plates, historical & NAN drill
results at Spotty Hill
Highlights from Spotty Hill discovery hole MQ-12-005
123.94 m @ 0.81% Ni, 0.21% Cu, 0.03% Co, 0.26g/t PGM*
Incl. 24.20 m @ 1.75% Ni, 0.34% Cu, 0.06% Co, 0.52 g/t PGM
Incl. 8.20 m @ 2.39% Ni, 0.21% Cu, 0.07% Co, 0.60 g/t PGM
Significant 2012 Drill intersections from
Spotty Hill
OPEN
Slide 24
25. Maniitsoq Ni‐Cu‐Co‐PGM Project
South West Greenland
2012: Imiak Hill “Confirmation” Drill Results
Longitudinal section of EM plates, historical
& NAN drill results at Imiak Hill
Significant 2012 Drill intersections
from Imiak Hill
Deepest intersection
on trend
Slide 25
26. Plans for 2013
Maniitsoq Ni‐Cu‐Co‐PGM Project
South West Greenland
MANIITSOQ IMPACT
Exploration Plans for 2013/2014
MELT ZONE (APPROX.) Diamond Drilling
To expand mineralized zones along strike and down dip at
Spotty and Imiak Hill sulphide loads and test numerous other
VTEM conductors.
Helicopter TEM Surveys
To cover several showings and ultramafic intrusions not
previously flown.
Induced Polarization Surveys
To delineated disseminated sulphide mineralization at Spotty,
Davis Imiak Hill and other showings.
Strait
Field Mapping and Sampling
To ground truth and sample VTEM anomalies and zones of
disseminated mineralization exposed on surface.
Other Studies
Mineralogical, petrogaphic and preliminary metallurgical
(QEMScan) evaluation of Maniitsoq sulphides and host rocks.
Initiate environmental scoping plan in preparation for future
environmental baseline studies.
Slide 26 Slide 26
27. World Class Nickel
Maniitsoq Ni‐Cu‐Co‐PGM Project
Potential
South West Greenland
Investor Risk Mitigation
100% ownership; district-scale land package (>Sudbury)
Pub Co management/financing experience/Sentient Group
Technical team is deep
Secure political jurisdiction and no land claims issues
Accessible, along year-round pack ice free coast line
Historic exploration data is remarkable ($10M plus)
Geology
Abundance of Ni-Cu occurrences at surface & in drilling
High Nickel Tenor – consistent and economic grade
Major, long lived structures
Large-scale mafic igneous event associated with giant impact
New technologies in “old” camp work – 75 EM anomalies
Slide 27