Producing Mines

Reed Mine

The Reed Mine, which produces copper and gold, is located near Flin Flon, Manitoba. RNC owns a 30% interest in the Reed Mine through its acquisition of VMS Ventures Inc. (“VMS”), completed in April 2016. VMS announced the Reed discovery in 2007 and after follow-up drilling signed a joint venture agreement with Hudbay Minerals Inc. in 2010 whereby Hudbay became the 70% owner and operator of the Reed project and VMS retained a 30% participating interest. In December 2011, Hudbay approved the construction of the Reed Mine. The capital construction budget for Reed was CDN$72 million. Production at Reed commenced in September 2013 and the mine commenced commercial production on April 1, 2014. In April 2016, RNC closed a transaction to acquire VMS, including its 30% stake in the Reed Mine.

In an investor presentation dated February 29, 2016, Hudbay disclosed the following life-of-mine estimates for the Reed Mine on a 100% basis:

Daily Ore Throughput

1,300 tonnes

Average Annual Copper Production

15,000 tonnes

Cash Cost of Copper Production

US$1.64 per pound

Combined Mine and Mill Unit Operating Costs

CDN$90 per tonne

Mine Life

3 years

Source: Hudbay and VMS Venture Inc. company disclosure

  1. LOM as per NI 43-101 Pre-Feasibility Study Technical Report on the Reed Copper Deposit dated April 2, 2012 as filed on by VMS Ventures Inc., shown on 100% basis
  2. Average US$/CDN$ exchange rate assumption is 0.97
  3. Production represents contained metal in concentrate
  4. Cash costs per pound calculated using the life of mine model supporting the NI 43-101 report
  5. Mine life based on mineral reserves as of January 2016

For further information about the Reed Mine, including a description of the reserves thereunder and applicable data verification matters, please refer to the NI 43-101 technical report dated April 2, 2012, available on SEDAR under the profile of VMS Ventures Inc.


During 2016, VMS’s 30% share of metal contained in concentrate production from the Reed Mine was 5.0 kt of copper and 1.4 koz of gold.

2017 Guidance

The operator has not provided guidance for the Reed Mine.  The following information is RNC’s management estimate of production (metal contained in concentrate). In 2017, RNC’s 30% share of production from the Reed Mine is expected to be 4-5 kt of copper and 0.8-1.1 koz of gold.

Reed – Mineral Reserves – January 1, 2016 (1)(2)

Reed Mine


Cu (%)

Zn (%)

Au (g/t)

Ag (g/t)













Total Mineral Reserve 1,194,000 4.09 0.38 0.42 5.41

Reed – Inferred Mineral Resources – September 30, 2014 (3)


Cu (%)

Zn (%)

Au (g/t)

Ag (g/t)







  1. Hudbay four year average metal price and foreign exchange forecast were used to estimate mineral reserves at Reed mine. The zinc price was $1.16 per pound (includes premium), the copper price was $2.75 per pound, the gold price was $1,190 per ounce and the silver price was $16.50 per ounce using an exchange rate of 1.25 C$/US$.
  2. For additional details relating to the estimates of mineral reserves and resources at the Reed mine, including data verification and quality assurance/quality control processes refer to the pre-feasibility study filed on SEDAR on May 14, 2012 by VMS Ventures Inc. titled “Pre-Feasibility Study Technical Report on the Reed Copper Deposit, Central Manitoba, Canada” prepared by Trevor Allen, P. Geo., Cassandra Spence, P. Eng., Mark Hatton, P. Eng. and Brent Christensen, P. Eng. and dated effective April 2, 2012.
  3. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The above mineral resources are exclusive of reserves and were estimated using the same metals prices as were used for the estimate of mineral reserves at Reed.

Exploration Opportunities

The Reed Mine deposit remains poorly tested at depth. Drilling to test for new ore zones is expected to begin once underground development reaches an appropriate depth. 

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