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*NSR: Net Smelter Return
April 17, 2012, Vancouver,
Canada. El Niño Ventures Inc. ("ELN" and the "Company") (TSX.V: ELN;
OTCQX:ELNOF Frankfurt: E7Q) is pleased to announce the filing on
Sedar of an NI43‐101 Technical Report (the Report), including a new
Mineral Resource Estimate for the Murray Brook polymetallic massive
sulfide deposit in the Bathurst Mining camp, New Brunswick, Canada.
2012 Mineral Resource Estimate
The Mineral Resource Estimate was initially reported on February
28, 2012. The Report was prepared by P&E Mining Consultants Inc. and
G.A.Harron and Associates Inc. and incorporated 60 vertical drill
holes, totalling 10,327.5 metres that were drilled during the 2011
drilling program.
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.
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 Niño Ventures Inc. are
summarized below in Table 2.
Table-1
Murray Brook Mineral Resource Estimate Summary
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.
- 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.
- 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
- 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.
- Overall payable metal in the NSR
calculation were 81% Cu, 72% Pb, 64% Zn, 71% Au and 56% Ag.
- 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.
- 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.
- The Murray Brook Mineral
Resource Estimate was undertaken by Eugene Puritch, P.Eng. of
P&E Mining Consultants Inc.
Table-2 Murray Brook Contained Metal Content
- The Contained metal contents
were calculated by Dr. William Stone, Ph.D., P.Geo.
Executive Vice President of Exploration
- The contained metal contents
were calculated using the $20/t NSR cut-off
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.
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.
Figure 1- Land tenure map
showing the location of the Murray Brook Project in the
Bathurst Mining Camp
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 Niño 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
- 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.
-
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 Niño Ventures Inc.
El Niño 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. |
