| | | El Niño Ventures Inc. Announces an Initial NI 43-101 Mineral Resource Estimate for the Murray Brook Zn-Cu-Pb-Ag-Au Deposit, Bathurst Mining Camp, NB | 
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- Measured and Indicated
Resources
- 18,684,000 tonnes grading
2.61% zinc, 0.95% lead, 0.42% copper, 39.3 gpt silver and
0.51 gpt gold at a $20 per tonne NSR*cut-off
- Inferred Resources
- 3,021,000 tonnes grading
1.83% zinc, 0.75 % lead, 0.62% copper , 35.0 gpt silver and
0.75 gpt gold at a $20 per tonne NSR cut-off
- The Murray Brook deposit
remains open to the northwest and there is potential to increase
the size of the resource with continued drilling
- $3 million budgeted in 2012
for infill drilling and exploration
*NSR: Net Smelter Return
February 28, 2012, Vancouver, Canada. El Nino Ventures Inc.
("ELN" and the "Company") (TSX.V: ELN; OTCQX:ELNOF Frankfurt: E7Q) is
pleased to announce receipt of an initial NI 43-101 Mineral Resource
Estimate for the Murray Brook polymetallic massive sulfide deposit
in the Bathurst Mining camp, New Brunswick, Canada. The resource
estimate was prepared by P&E Mining Consultants Inc. and G.A.Harron
and Associates Inc. It is based on 60 vertical drill holes,
totalling 10,327.5 metres that were drilled during the 2011 drilling
program. A technical report will be posted on SEDAR within 45 days
of this news release.
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2012 Mineral Resource Estimate
The resource estimate, which includes explanatory footnotes, is
tabulated below in Table 1. The resource estimate is based on
various assumptions regarding mining methods, processing and metal
recoveries, payable metal NSR credits and metal prices. This
estimate makes no provision for capital costs to mine the deposit,
nor mill the material mined, as resources are not reserves and the
reader should not presume economic viability.
Table-1 Murray Brook Mineral Resource Estimate Summary
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Mineral resources
which are not mineral reserves do not have demonstrated economic
viability.
The estimate of mineral resources may be materially affected by
environmental, permitting, legal, title, taxation, socio-political,
marketing, or other relevant issues.
(1) The quantity and grade of reported Inferred resources in this
estimation are uncertain in nature and there has been insufficient
exploration to define these Inferred resources as an Indicated or
Measured mineral resource and it is uncertain if further exploration
will result in upgrading them to an Indicated or Measured mineral
resource category.(2)
The mineral resources in this news release were estimated using the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM
Standards on Mineral Resources and Reserves, Definitions and
Guidelines prepared by the CIM Standard Committee on Reserve
Definitions and adopted by CIM Council
(3) The Dec 31, 2011 two year
trailing average US metal prices used in this estimate were $3.71/lb
Cu, $1.03/lb Pb, $0.98/lb Zn, $1,397/oz Au, $27.63/oz Ag. The C$/US$
Exchange rate was 0.99.
(4) Overall payable metal in the
NSR calculation were 81% Cu, 72% Pb, 64% Zn, 71% Au and 56% Ag.
(5) Mineral resources were
determined within a Whittle pit shell with 45 degree slopes
utilizing mining costs of C$2.50/tonne for mineralized material and
waste rock, and C$1.75/tonne for overburden.
(6) Costs used to determine the
C$20/tonne NSR resource cut-off value were processing at C$15/tonne
and G&A C$5/tonne.
(7) The Murray Brook Mineral
Resource Estimate was undertaken by Eugene Puritch, P.Eng. of P&E
Mining Consultants Inc. |
As a further approximation the total metal content can be
recalculated as a zinc equivalent (ZnEq), which would equate to
8.17% ZnEq for the Measured plus Indicated resources and 8.47% ZnEq
for the Inferred resources, based on calculating the total NSR value
of the constituent metals in the table above plus the smelting and
shipping charges all divided by $14.05, which is the recovered value
of 1% Zn.
This initial NI43-101 compliant resource estimate, as provided above
in Table 1 including explanatory footnotes, supercedes previous
historic estimates which understated metal grades due to widely
spaced drilling and incomplete metal assays. The Murray Brook
Deposit remains open to the northwest and there is good potential to
increase both tonnes and grade with additional exploration and
infill drilling, respectively.
Contained metal contents as calculated by El Nino Ventures Inc. are
summarized below in Table 2. |
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Table-2 Murray Brook Contained Metal Content
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(1) The Contained
metal contents were calculated by Dr. William Stone, Ph.D., P.Geo.
Executive Vice President of Exploration
(2) The contained metal contents were calculated using the $20/t NSR
cut-off
2012 Exploration Plans
A $3 million budget has been proposed for the 2012-2013 exploration
program that includes $2.5 million budgeted for drilling measured
resources at the Murray Brook deposit and $500,000 exploration
program on Murray Brook and Camel Back exploration claims defined by
the option agreement with Murray Brook Minerals (Figure 1). The
objective of the exploration plan is to search for large VMS
deposits that might occur at depths of up to 150 metres below
surface. The area to be explorated is located between the Murray
Brook massive sulfide deposit, which is the 5th largest in the
Bathurst Mining Camp (BMC), and the nearby Caribou deposit, which
with total historic resources estimated to be 65 million tonnes, is
the camp's second largest massive sulfide deposit.
The Exploration Agreement
Votorantim is the Operator of the Murray Brook Project. In January
2011, ELN announced that it provided notice to Votorantim Metals
Canada Inc. (Votorantim) to enter into a Participation Agreement on
the Murray Brook polymetallic massive sulfide deposit situated in
the Bathurst Mining Camp in New Brunswick, Canada. (See news release
dated January 20, 2011).
Under Votorantimʹs Option and Joint Venture Agreement with Murray
Brook Minerals and Murray Brook Resources, both privately
held companies, Votorantim can earn a 50% interest in the
properties by funding $2,250,000 in exploration expenditures and
making payments totalling $300,000 over a three year period that
commenced November 1, 2010. Votorantim can earn an additional 20%
interest in the properties by funding an additional $2,250,000 in
exploration expenditures over an additional two year period. ELN has
elected to enter into a participation agreement wherein it can earn
50% of Votorantim's interest by paying 50% of the costs incurred by
Votorantim in the Option and Joint Venture Agreement. |
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Figure 1- Land
tenure map showing the location of the Murray Brook Project in the
Bathurst Mining Camp |
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The Murray Brook
Deposit
The Murray Brook deposit is a polymetallic, volcanic hosted
massive‐sulfide deposit in the Bathurst Mining Camp, New Brunswick.
The property is located approximately 60 km west of the town of
Bathurst. A gravel road links the property to a paved highway. An
electricity grid is nearby, as are communities with goods, services
and skilled labor. The Gossan Zone overlying the massive sulfide
deposit was mined for gold and silver during the open‐pit mining
operations carried out by Novagold Resources Inc. during the early
1990s. The hanging wall is moderately chloritic and is locally
intensely deformed. The foot wall consists of fine grained, felsic
tuff and tuffaceous sediments with moderate to strong chlorite and
sericite alteration. Sulfides are mainly fine grained, massive,
weakly laminated pyrite with disseminated and banded sphalerite,
chalcopyrite and galena.
The first phase of the 2011 drill program was completed in
spring/summer 2011 and significant intersections of zinc, copper,
lead, gold and silver were reported. The second phase of the
drilling program was initiated in September 2011 and the results
announced (please see news releases dated
August
30, 2011,
November
28, 2011,
January
16th and
January
23, 2012).
Qualified Persons Statement
Eugene Puritch, P.Eng., G.A.Harron, P.Eng, and Dr. William Stone
Ph.D., P.Geo are Qualified Persons ("QP") for purposes of NI 43-101.
Eugene Puritch and G.A.Harron are the Independent Qualified Persons
as defined by NI 43-101 responsible for preparing the Resource
Estimate presented above. Eugene Puritch and G.A.Harron are
principals of P&E Mining Consultants Inc. and G.A.Harron and
Associates Inc. respectively, and they are independent from the
Companies as described in section 1.5 of NI 43-101. Table 2 of this
press release has been reviewed and approved for technical content
by Dr. William Stone, Ph.D., P.Geo. Executive Vice President of
Exploration of El Nino Ventures. Eugene Puritch, P.Eng., G.A.Harron,
P.Eng., and William Stone, P.Geo. reviewed and approved the
technical contents of this press release.
About El Niño Ventures Inc. Bathurst Projects
1. Bathurst Mining Camp Project: (Tri-Party Agreement)
Consists of an initial 4,712
claims in the Tri‐Party Agreement with Xstrata & VM Canada
whereby VM Canada may incur exploration expenditures of $10
million over a period of 5 years to earn a 50% interest. VM
Canada may further increase its interest to 70% by spending an
additional $10 million over 2 years.
In February 2011, ELN
announced that a $5,000,000 exploration program on the Bathurst
Mining Camp Base Metals Project has begun consisting of airborne
and ground geophysics and will include a 10,000 metre drill
program which is currently underway. (See news release dated
February 23, 2011). Airborne geophysics survey has been
completed and survey results are pending.
2. Murray Brook Project:
Under Votorantimʹs Option and
Joint Venture Agreement with Murray Brook Minerals and Murray
Brook Resources, both privately held companies, Votorantim can
earn a 50% interest in the properties by funding $2,250,000 in
exploration expenditures and making payments totalling $300,000
over a three year period that commenced November 1, 2010.
Votorantim can earn an additional 20% interest in the properties
by funding an additional $2,250,000 in exploration expenditures
over an additional two year period. ELN has elected to enter
into a participation agreement wherein it can earn 50% of
Votorantim's interest by paying 50% of the costs incurred by
Votorantim in the Option and Joint Venture Agreement.
Votorantim Metals Canada
Statement:
Technical details in this news release were provided by VM Canada
whose professional geologists conduct operations consistent with
mineral industry best practices. VM Canada accepts no responsibility
for this news release or any inferences made from the technical
details provided herein.
About VM Canada (Votorantim Metals Canada Inc.)
Votorantim Metals Canada Inc. is a subsidiary of Votorantim Metais;
a company that is part of the Votorantim Group that was founded in
Brazil in 1918 operates in twenty countries and has over forty
thousand employees. Votorantim Metais is the largest
electrolytic-nickel producer in Latin America and one of the world's
leaders in the production of zinc, aluminum and nickel.
About El Nino Ventures Inc.
El Nino Ventures Inc. is an international exploration company,
focused on exploring for lead, zinc, copper, gold and silver in New
Brunswick, Canada and copper in the Democratic Republic of Congo
("DRC").
On Behalf of the Board of
Directors
Harry Barr
Chairman & CEO
El Nino Ventures Inc.
Further Information: Tel: +1 604 685
1870 Fax: +1 604 685 8045
Email: info@elninoventures.com or visit www.elninoventures.com
650-555 West 12th Avenue, City Square, West Tower, Vancouver, B.C.,
Canada, V5Z 3X7
Neither the TSX Venture Exchange
nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Cautionary Note Regarding Forward Looking Statements. Note: This
release contains forward-looking statements that involve risks and
uncertainties. These statements may differ materially from actual
future events or results and are based on current expectations or
beliefs. For this purpose, statements of historical fact may be
deemed to be forward-looking statements. In addition,
forward-looking statements include statements in which the Company
uses words such as "continue", "efforts", "expect", "believe",
"anticipate", "confident", "intend", "strategy", "plan", "will",
"estimate", "project", "goal", "target", "prospects", "optimistic"
or similar expressions. These statements by their nature involve
risks and uncertainties, and actual results may differ materially
depending on a variety of important factors, including, among
others, the Company's ability and continuation of efforts to timely
and completely make available adequate current public information,
additional or different regulatory and legal requirements and
restrictions that may be imposed, and other factors as may be
discussed in the documents filed by the Company on SEDAR (www.sedar.com),
including the most recent reports that identify important risk
factors that could cause actual results to differ from those
contained in the forward-looking statements. The Company does not
undertake any obligation to review or confirm analysts' expectations
or estimates or to release publicly any revisions to any
forward-looking statements to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated
events. Investors should not place undue reliance on forward-looking
statements.
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