Reed Copper, which is owned 30 percent by VMS Ventures and 70 percent by Hudbay Minerals (TSX:HBM,NYSE:HBM), was shifted into initial production after Hudbay received the necessary Environmental Act Licence for the project from the government of Manitoba. Under the terms of the licence, the companies are permitted a 1,300-tonnes-per-day underground copper mine, including its supporting infrastructure.
According to VMS, Hudbay holds a bulk sample of roughly 7,000 tonnes of ore mined under the Advanced Exploration Project permit, and a metallurgical batch test of 4,500 tonnes that was milled towards the end of September.
“The receipt of the Environment Act Licence and the successful extraction of the bulk sample are both significant milestones for the project.” Neil Richardson, VMS Ventures’ COO, said in a statement. “The Licence confirms the care and diligence taken by our JV partner and operator Hudbay in moving the project forward within mandated environmental guidelines while the extraction of the bulk sample project is the first step towards full production at Reed.”
Full production is still scheduled and on track to remain within budget starting in the first half of 2014.
Securities Disclosure: I, Vivien Diniz, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: VMS Ventures is a client of the Investing News Network. This article is not paid-for content.