What Makes VMS Deposits Attractive Targets?

Geological significance

Another advantage of VMS deposits is they tend to span large distances with stacked layers of mineralization. As such, these types of deposits can produce over a long period of time, some for more than 50 years.

This characteristic is partly due to how VMS deposits are formed. Most are found on old sea floors, the result of thousands of years of volcanic activity. Look for so-called “black smokers,” and you could find a growing VMS deposit. The dark, cloudy expulsions are hydrothermal fluids vented from the sea floor and they’re rife with both base- and precious metals-rich fluids, leached from the rock.

The plumes from black smokers precipitate the metals upon contact with seawater, settling the mineral-rich sediments over the ocean floor, eventually coming to form a high-density mineral deposit zoned around the vent.

Since black smokers occur in clusters around rifts in the ocean floor, so too do many VMS deposits. The discovery of one target can be followed by the discovery of several more in the surrounding area.

The distinctive shape of VMS deposits can lead to other economic benefits as well. Open-pit mining generally works well for these properties, and that can be a major draw for investors. After all, open pits are a cost-effective option compared to narrow-vein mining. That’s because bulk-mining methods can be employed effectively in an open pit, and transport of ore and waste rock is on surface as opposed to underground, where mining and development costs are generally much more expensive.

A global occurrence

The oldest VMS deposits date back to around 3 billion years, while new ones are developing even now.

VMS deposits are also distributed across the globe. In Japan, the Kuroko VMS deposits have delivered significant amounts of lead, copper, zinc, silver and gold. Mexico is also home to several clusters of VMS deposits, likely formed during the Mesozoic era (between 252 and 66 million years ago).

There are also VMS deposits in the US and even Australia. In fact, there are over 800 known VMS deposits distributed across the globe.

Canada, however, is the country perhaps best recognized for its VMS deposits, containing almost half of those known today. Significant production has been seen across numerous provinces and current exploration is often focused in the country’s northern arctic regions.

Québec’s Noranda district

One of Canada’s most famous VMS deposits is in the Noranda district in Québec, home to 20 past producers.

The Horne mine, for example, was operational between 1926 and 1976, producing some 2.5 billion pounds of copper and 11.6 million ounces of gold under the management of Noranda. Originally, operations were only scheduled to last a few years. However, the discovery of additional targets kept the mine in business for much longer.

And all indications are that the mine still has more life to give. Further exploration of mineralization beneath the Horne mine is currently underway. As a result of successfully producing mines like Horne, the Noranda district is among the most studied and documented regions for VMS deposits.

Other significant VMS deposits

Further west of the Noranda district lies Flin Flon, home to some of the world’s best-known VMS deposits.

Located in Manitoba, Canada, the Flin Flon mines began producing for their operator, Hudbay Minerals (TSX:HBM,NYSE:HBM), all the way back in 1930. Then there’s the Kidd mine, also in Canada. Work there began in the 1960s and its current operator, Glencore (LSE:GLEN,OTC Pink:GLCNF), is now mining at 9,600 feet, making it the deepest base metals mine below sea level in the world.

Both the Flin Flon and Kidd mines have produced significant quantities of copper and zinc, as well as some silver or gold. The 777 mine at Flin Flon, which ran for 18 years before completing its operations in 2022, had an average annual copper production of 25,000 metric tons (MT), while Kidd produced some 39,000 MT of the metal in 2017.

The numbers climb still higher when it comes to zinc. According to Hudbay Minerals, Flin Flon’s 777 mine produced about 51,000 MT of the metal annually. Kidd Operations reported producing over 72,000 MT of zinc in 2017.

Potential up and comers in the market

With several of these famous mines closed or projected to close in the near future, investors may want to consider some junior companies with promising VMS deposits.

One company of note is Silver47 Exploration (TSXV:AGA). Capitalizing on the rising global demand for silver, gold, copper, zinc, antimony, tin and graphite, Silver 47 makes a compelling investment story.

The diverse silver-polymetallic projects in Silver47's portfolio are located in mining-friendly and stable jurisdictions in Canada and the US. Its flagship Red Mountain project in Alaska has a combined open-pit and underground inferred mineral resource estimate of 15.6 million MT at 335.7 grams per MT (g/t) silver equivalent, containing 168.6 million ounces of silver equivalent (equivalent to 2 million ounces of gold equivalent at 4 g/t, or 1 million MT of zinc equivalent at 7 percent).

Initial results from its 2024 drill program at Red Mountain indicate strong potential for increased high-grade infill drilling within the Dry Creek resource area.

Exploration work at Silver47's Michelle project in Yukon, Canada, resulted in a significant new silver discovery with 7.68 meters of 1,577 g/t silver, 45 percent lead, 4 percent zinc within 15 meters of 907 g/t silver, 26 percent lead and 2.7 percent zinc.

Foran Mining (TSXV:FOM,OTCQX:FMCXF) is another company with VMS deposits in its project portfolio. The company counts the McIlvenna Bay deposit, for example, among its assets — and that property is located along the famous Paleoproterozoic Flin Flon greenstone belt.

Other potential up and comers include Callinex Mines (TSXV:CNX,OTCQX:CLLXF), which owns the Pine Bay project, located within the Flin Flon greenstone belt; and Falco Resources (TSX:FPC), which is developing the Horne 5 project polymetallic project.

Investor takeaway

With the potential for long-term production, it’s little wonder that VMS deposits have caught the eye of some resource investors. They present an opportunity to buy into both the base and precious metals markets.

Although several VMS mines seem to be approaching the end of their production run, many more are only just advancing to a promising stage. Investors would do well to keep an eye out for these future producers.

This INNSpired article is sponsored by Silver47 Exploration (TSXV:AGA). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by Silver47 Explorationin order to help investors learn more about the company. Silver47 Explorationis a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.

This INNSpired article was written according to INN editorial standards to educate investors.

INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.

The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Silver47 Exploration and seek advice from a qualified investment advisor.