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Three new gold projects acquired in
Q1 of 2018 in Newfoundland.
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The new land position contains
geology similar to that of White
Metal Resource's (TSX.V WHM) new
gold discovery, Gunners Cove.
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The company is presently planning a
program with follow up field work
planned for the summer/fall 2018
(see Jan 9th, 2018 Press Release)
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El Nino is now extra-provincially
registered in Newfoundland.
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This release contains an update and
progress on the sale of El Nino's
interest of the Murray Brook, New
Brunswick Polymetallic Project to
Puma Exploration.
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The company is currently evaluating
other mineral projects. Subject to
the completion of the sale of the
Murray Brook Project, management may
also consider investments outside of
the mining industry, which may
require shareholder, director, and
regulatory approval.
April 12, 2018 Vancouver, BC - El Niño
Ventures Inc. ("ELN" or the "Company") (TSXV:
ELN; OTC Pink: ELNOF; FSE: E7Q) is
pleased to update our shareholders on
the three recently acquired, 100% owned,
three gold projects in the Great
Northern Peninsula of Newfoundland
(Figure 1). The claims were staked to
follow up on the new Gunner Cove gold
discovery of White Metal Resources.
El Nino Ventures (ELN) Chairman and CEO
Harry Barr states; "The Company is
pleased to update its shareholders on
the gold potential of the Great Northern
Peninsula of Newfoundland and the
progress of the sale of our minority
interest in the Murray Brooke
Polymetallic Project. Management is
following the exploration and
development results closely from White
Metal Resources and our technical team
is finalizing a summer/fall 2018
exploration program in Newfoundland.
Newfoundland is a treasure chest of
mineral possibilities and is a mining
friendly jurisdiction."
Figure 1
(Left): El Nino Venture Gold Projects --
Great Northern Peninsula, Newfoundland
and Labrador
Figure 2 (Right): Claim Distribution map
in the St. Anthony's area of
Newfoundland and Labrador
El
Nino's three gold projects are situated
around the city of St. Anthony and
northward (Figure 2 above), covering
approximately 22 kilometers of favorable
geology, similar to that being
encountered on the Gunners Cove Project
to the east and north of the company's
three gold projects. The claim blocks
consist of 218 claim units for
approximately 18,980 hectares
(approximately 46,900 Acres).
White Metal Resources recently
announced (Newsfile Corp. -
November 20, 2017,
January 30th, 2018, and
March 20th,2018.) significant
amounts of highly anomalous gold assays
over an area of 15 kilometers in black
shale units of the Hare Bay and Goose
Tickle Formations. Michael Stares,
President of White Metal Resources
stated in the November 30th, 2017
news release that; "Of the 156 rock
samples, 99 were collected from the main
area of the black shale unit. On the
basis of the results from the 99
samples, the Company has expanded the
gold (Au) mineralization to the north by
approximately 3.75km, to the
east-northeast by approximately 3.2 km,
and to the south by about 1.3 km.
Approximately 50% of the grab samples
collected in the Gunners Cove area
assayed 100 ppb Au (0.1 g/t Au) or
greater, with a maximum of 2.14 g/t Au.
Silver assay results are also elevated,
ranging from less than 5 ppb Ag to a
maximum of 9.1 g/t Ag (note: grab
samples are selective by nature and are
unlikely to be representative of average
grades). Our recent work at the
Gunners Cove Property has highlighted a
large area of anomalous gold values and
extended the discovery area
substantially. Historically, this
Property has seen very little
exploration work (minor prospecting),
adding to the importance of this new
gold discovery. Precious metal
mineralization is associated with and
appears to be largely hosted by pyritic
nodules and stringers accompanied by
minor silicification and local
brecciation and hosted by an extensive
black shale unit." Management of ELN
are following the exploration results of
White Metal Resources (TSX. WHM), Benton
Resources (TSX.V BEX), and Metals Creek
Resources (TSX.V MEK) and in this newly
discovered Newfoundland gold district.
ELN's technical team is currently
completing a detailed exploration plan
for its Newfoundland projects and
further details will be forthcoming.
Sale of Murray Brook Interest
ELN signed an option to sell agreement
regarding the sale of its minority
interest on the Murray Brook
Polymetallic Project in New Brunswick
(News Release:
Oct 13th, 2016) with Puma
Explorations.
The terms of the sale agreement are:
- $3.1
million dollars cash;
- A
laddered Net Smelter Return (NSR) up
to 1.7%; and
- 2
million share purchase warrants of
Puma Exploration.
Recent revisions of the contract
(News Release:
Nov 6th,
2017) with regard to the Puma Exploration deal has the second
payment from Puma of $1,500,000 due for May 10th, 2018.
The 3rd and final payment of an
additional 1 million (total $3.1 million) is due by April 30th,
2019.
If production is achieved on the projects the life of the project,
the life of the project NSR will be paid as follows:
1) The NSR will start at 0.25% at a zinc price of
US$1.04/lb and will increase in increments of 0.25%, to a maximum of
1.75% above US$1.50/lb Zinc.
2) This NSR, which is in relation to approximately 32%
of the production from the Murray Brook Property, and includes the
Mining Lease and the Camel Back claims, for the life of the Murray
Brook deposit and any new discovery made on the total project.
3) On April 10th, 2018 the price of Zinc was
$1.47/lb USD according to
Kitco.
The terms of the warrant are as
follows: El Nino will be given the right to buy 2,000,000
warrants of Puma's ordinary shares (the warrants) expiring 3 years
after the closing of the transaction based on the following exercise
prices:
1) 0
to Year 1 (Nov 15, 2017): Equal to the price of the acquisition
equity financing;
2) Year 1 to Year 2 (Nov 15, 2018): a 20% premium
to the price indicated in 1) above; and
3) Year 2 to Year 3: a 20% premium to the price
indicated in 2) above.
In the event Puma does not
complete it option to acquire ELN's interest ELN will
receive its entire interest in the
Murray Brook project back.
Update
on Puma Exploration
On
March 2nd, 2018, Puma Exploration
announced that it had signed a Strategic
Development and Exploration Alliance
with Trevali Mining Corporation (TV). In
this release, Puma stated: "Under the
terms of the LOI, Trevali will provide
up to 7.5 million dollars funding to
finalize the acquisition of the Murray
Brook Deposit by Puma within the
timeframe negotiated with Votorantim
Metals Canada Inc. ("VMC") and El
Nino Ventures Inc. ("ELN") and to
repay the $2.0 million loan received by
Puma (see news release February 26th,
2018). Following the acquisition by Puma
of the VMC and ELN interest, the Murray
Brook Deposit (ML252) shall be owned by
TV and PUMA on a 75% and 25% basis
respectively." Management of ELN will
keep its shareholders up to date on the
progress of this transaction. Further
announcements will be forthcoming.
Stock Option Grant
In addition, the Company announces that
it has granted 150,000 incentive stock
options to a consultant of the Company
at an exercise price of $0.05 per share
for a period of five (5) years from the
date of grant in accordance with the
Company's Stock Option Plan. The Stock
Options granted will be subject to
vesting restrictions and will vest over
a period of one (1) year from the date
of grant. The options are subject to
acceptance by the TSX Venture Exchange
and will be subject to regulatory hold
periods in accordance with applicable
Canadian Securities Laws.
About
El Nino Ventures
El Nino
Ventures Inc. (ELN) has in the past
years been an international base metals
exploration company with its focus being
on the Murray Brook Project in the
Bathurst region of New Brunswick,
Canada. The Company also has an
Aggressive Mineral Acquisition Program
Underway with a focus on gold and base
metal projects that are a mix of grass
roots, brownfields and advanced stage
projects. The Company plans to use the
Prospector Generator Model which reduces
risk, share dilution and increases
discovery potential.
The company is currently evaluating
other mineral projects. Subject to the
completion of the sale of the Murray
Brook Project, management may also
consider investments outside of the
mining industry, which may require
shareholder, director, and regulatory
approval.
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Qualified Person
The contents contained herein that
relate to Exploration Results or Mineral
Resources is based on information
compiled, reviewed or prepared by Carey
Galeschuk, P.Geo, a consulting
geoscientist for El Nino Ventures. Mr.
Galeschuk is the Qualified Person as
defined by National Instrument 43-101
and has reviewed and approved the
technical content of this news release.
For more information on the Company
please go to
http://www.elninoventures.com/
On Behalf of the Board of Directors
"Harry Barr"
Harry Barr
Chairman & CEO
El Nino Ventures Inc.
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: 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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