ELN entered into an Option Agreement with MMG Limited to acquire 100% of
ELN's 70% interest in Infinity Resources Sprl, the joint venture
company that owns the Kasala permits.
USD$6,000,000.00; consisting of an initial payment of $250,000 on the
Satisfaction Date; Three annual payments of $916,666.00 for a total of
USD$3,000,000 and additional USD$3,000,000.00 to exercise the option to
acquire a 100% of ELN's 70% interest.
MMG to pay a non-refundable US$350,000 for the exclusive right to
acquire ELN's 70% interest
Over the three year period, MMG must incur a total of USD$15,000,000 in
ELN will retain a 1.5% NSR
MMG is one of the world`s largest producers of zinc and also produces
significant amounts of copper, lead, gold and silver.
MMG Limited owns and operates the Kinsevere high-grade copper mine
located approximately 30 km from ELN's Kasala project
Kasala is one of the newest copper discoveries in the Central African
Copper Belt. Kasala's mineralized zone is open to the North, South and
West and to depth; ~ 600m long/400m wide/30m thick
VANCOUVER, May 20, 2014 /CNW/ - El Niño Ventures Inc. ("ELN") (TSX.V: ELN) (OTCQX: ELNOF) (Frankfurt:
E7Q) is pleased to announce that it has entered into an Option Agreement (the
"Agreement") with MMG Limited ("MMG"), whereby MMG can acquire ELN`s 70% interest
in the Kasala copper project in the Democratic Republic of the Congo
(DRC) for a total consideration of USD$6,000,000.00.
As consideration for the exclusive right to acquire El Nino`s 70%
interest in Infinity Resources Sprl, the joint venture company that
owns the Kasala permits, MMG has agreed to pay a non-refundable
USD$350,000. Under the terms of the Agreement, once certain conditions
have been satisfied (the "Satisfaction Date"), in order to maintain the
Is required to make staged payments of up to a total USD$3,000,000
consisting of an initial payment of $250,000 on the Satisfaction Date
and three annual payments of $916,666; and
Must incur a total of USD$15,000,000 in exploration expenditures over
the three option year period.
If MMG exercises the option, the consideration payable by MMG to ELN is;
USD$6,000,000 less the amounts set out above to maintain the Option (up
to a total USD$3,000,000); plus
Harry Barr, Chairman and CEO, stated "We are very pleased to have concluded an agreement with MMG Limited that
will return immediate and long term value to our shareholders.
Management has fought long and hard to secure all of the assets of its
Joint Venture Company, Infinity Resources Sprl, and in particular the
Kasala Permits. The recent overwhelming success in winning our claims
against GCP Group in the International Arbitration hearing has provided
management with the opportunity to negotiate this Agreement with MMG.
We would like to thank all of our shareholders for their patience and
support over this very difficult period. With a commitment to an
extensive exploration program, your company will finally have the
opportunity to fully realize the potential for the Kasala project"
About MMG Limited:
MMG Limited, headquartered in Melbourne, Australia, is a global
resources company which explores, develops and mines base metal
deposits around the world (for more information please visit MMG's website). MMG is one of the world`s largest producers of zinc, copper, lead,
gold and silver. MMG's major shareholder is China Minmetals Nonferrous
Metals Co. Ltd. (CMN), a subsidiary of China Minmetals Corporation
(CMC). CMC is one of China's major multinational state-owned
enterprises. It is a diversified company with businesses in metals
trading, ferrous and non-ferrous metals production, finance, real
estate and logistics.
In Africa, MMG Limited owns and operates the Kinsevere high-grade copper
mine located in the Katanga Province of the Democratic Republic of
Congo (DRC). The Kinsevere Mine is approximately 30 km from ELN`s Kasala project with both located in a region renowned for copper and cobalt deposits
of exceptional quality. With the completion of the Stage 2 project in
2011 - a $400 million solvent-extraction and electro-winning (SX-EW)
plant - the Kinsevere Mine has a nameplate capacity of 60,000 tonnes of copper
cathode per year. In the first quarter 2014 Kinsevere achieved a quarterly production
record, producing 16,848 tonnes of copper cathode. The Kinsevere Mine
also achieved quarterly records in processing and sales in the first
quarter of 2014.
About the Kasala Project
One of the newest copper discoveries in the Central African Copper Belt,
El Niño Ventures' Kasala prospect is located approximately 70
kilometres northwest of Lubumbashi, Democratic Republic of Congo's
second largest city and the center of the country's massive
copper/cobalt mining industry. The Central African Copper Belt contains
over 10% of the world's copper and 34% of the world's cobalt. The
Kasala project permits are located close to the Kinsevere Mine, which
is expected to produce 60,000 tonnes of copper annually for the next 13
The Kasala Block A was the subject of the Company's 2008 drill campaign.
35 Reverse Circulation (R.C.) drill holes totaling 3,336 metres and 15
diamond drill holes totaling 2,584 metres were completed on the Kasala
Block (A) leading to the discovery of substantial copper
Significant Assay results for Kasala Block (A) are:
Hole MDB023: 80m @ 1.42% Cu from 17m downhole; includes 29m @ 2.82% Cu
and 5m @ 4.11% Cu
Hole MDB027: 91m @ 1.16% Cu from 9m downhole; includes 22m @ 3.28% Cu
and 5m @ 4.39% Cu
Hole MDBDD0011b: 91m @ 1.19% Cu from 54m downhole; includes 10m @ 6.7%
Hole MDBDD0019: 22m @ 3.28% Cu from 125m downhole; includes 7m @ 7.02%
The Kasala project has an excellent infrastructure and is ideally
situated within 20 km of the national highway (a hard-surfaced
all-weather road) and is also within 30 km of a rail line linking the
mining centers of the Copper Belt. A high-tension electrical
transmission line is located 12 km west of the projects' boundaries.
The assay results from the earlier drill programs confirm the presence
of significant mineralization within the Kasala Main Zone with the
potential for significant expansion of the mineralized zone, based on
the results from an IP Survey completed in early 2009 which identified
copper oxide mineralization at and near surface; sulphide
mineralization at depth.
Kasala Prospect mineralization zone is open to expansion by drilling to
the north, south and west, and to depth. As drilled, the Kasala
Prospect oxide zone measures about 600m long x 400m wide x 30m thick.
It is very important to note that many 2008 drill holes ended in copper
oxide mineralization and to note that adjacent blocks are
under‐explored (Figure 1).
A 4,071 soil geochemical sampling program was undertaken to test
numerous targets south and east of the Kasala Blocks A, B and C and
expand upon the area of soil geochemistry coverage on the exploration
permit. Sampling had commenced in December 2009 and was completed in
late January 2010; chemical analysis of the soil samples was completed
by late February 2010. The sampling utilized Quality Alliance and
Quality Control protocols established during previous soil geochemical
sampling programs on the project.
Figure 1. Plan view of drill collar locations in Kasala prospect area (adapted
from 2008 drill report by Allan Lines). The main mineralized zone
projected to surface is shaded red. Collar locations labelled MDB are
reverse circulation holes. Collar locations labelled MDBDD are diamond
drill holes. Note that the mineralized zone is open to expansion by drilling to the
north, south and west.
Figure 2. High grade oxide drill core Kasala Project & Sulfide drill core at
depth on Kasala
The sampling program identified three new copper-in-soil anomalies (Figure 3) which warrant additional investigation. The presence of a narrow (150
to 200 metres in width) anomalous zone exceeding 1,200 metres in length
was identified approximately 2 kilometres southeast of Kasala Block A.
This copper-in-soil anomaly corresponds to a Total Count radiometric
anomaly (identified during the Company's 2007 airborne geophysical
program), which is believed to result from potassic alteration of rocks
of the Roan Supergroup in contact with rocks of the Kundelungu
A second anomaly in the northeast of the survey area is of a lower order
of copper mineralization but, notably, shows a high degree of
correlation with the western terminus of a strong Total Count
radiometric anomaly which exceeds 3 kilometres in length (Block B). The
third new copper-in-soil anomaly is being referred to as the Kasala
Western Extension (Block C). It is immediately west and south of Kasala
Block A. Kasala Western Extension is a high order copper anomaly with a
known length of approximately 550 metres. It is felt that these
additional radiometric anomalies may represent important targets for
additional exploration programs.
Figure 3. Map showing copper-in-soil values for El Niño Ventures Inc's soil
geochemical sampling program. This program has identified three new
copper-in-soil anomalies which are considered significant targets for
About other ELN's Research Permits in the DRC:
El Nino currently holds a 70 % interest in four well located Research
Permits, accessible by road from the town of Lubumbashi in southern
Congo. Each Permit is partially underlain by the highly prospective
Roan Formation which hosts most of the important copper deposits in
this area. The accompanying map shows the general location of the
licences, as well as the location of the known principal targets
delineated on permit 5217 and the focus of the drilling to date.
Between 2007 and 2011, EL Nino Venture Inc., as operators of the
project carried out several phases of exploration on these permits.
Details of the exploration programs are demonstrated in table below;
Exploration Programs from 2007 to 2010
PR5215 (Copper Mountain)
PR5217 (Copper Mountain)
Airborne Gamma Ray
Spectrometer & magnetic
80 holes 6266 metres RC
2007-2008 Dec- June
2235 Soil Samples
1244 Soil Samples
4777 Soil Samples
2008 Jan- May
2068 Soil Samples
32 holes 1995
metres RC Drilling
3215 metres RC Drilling
2008 July to September
56 holes 5883
metres RC Drilling
20 Holes 3583.6
2009-2010 Dec - Jan
4071 Soil Samples
In 2007 ELN completed 6266 metres of RC drilling across 80 holes. One of
the highlights of the 2007 drilling program was the intersection of >
%3 copper over 10 metres (see below).
Three RC holes drilled on Location Anomaly 3 returned the following
Hole ANCU001: 10m @ 3.51% Cu from 12m below surface (including 4m @ 7.24% Cu from 15m)
Hole ANCU003: 10m @ 0.25% Cu from 20m below surface
Hole ANCU004: 5m @ 1.88% Cu from 20m below surface
Figure 4. Location of Permits in relation to Lubumbashi (PR 5214 is Kasala)
Figure 5. 2007 and 2008 Drill hole location map Kasala and PR-5217 Projects
El Nino would like to acknowledge our joint venture partner, Mr. Hassan
Sabra, who has worked continually within the framework of the Joint
Venture to advance the Kasala project and tirelessly with El Nino to
secure the assets of Infinity Resources Sprl.
About El Niño Ventures Inc. Bathurst Projects, New Brunswick, Canada
ELN has two active projects in the Bathurst Mining Camp: Murray Brook
and the Bathurst Option Joint Venture. A recent consolidation resulted
in the Company having 30.6 million shares Issued & Outstanding with a
current market capitalization of approx. $2.0 million.
Murray Brook Project
The Murray Brook Project is located 60 km west of Bathurst, in the
northwest part of the Bathurst Mining Camp (Figure 6). The Murray Brook deposit is a zinc-lead-copper-silver massive sulphide
which is the subject of a recently completed Preliminary Economic
Assessment. The project is supported by excellent infrastructure
including paved roads, grid electricity and communities to provide
goods, services and skilled labour. ELN and Votorantim Metals Canada
(VMC) currently own 100% of the Murray Brook Project with VMC acting as
the operator. VMC controls 65% and ELN controls 35%.
Figure 6 - Murray Brook Project and Camel Back property location map, Bathurst
Mining Camp, New Brunswick
To date, more than 28,000 metres of drilling has been completed on the
Murray Brook Project. The first NI43-101 mineral resource estimation
and the first metallurgical results were published in press releases
dated February 2012 and January 2013, respectively. On June 5, 2013 a positive Preliminary
Economic Assessment was announced (see news release). The results of the PEA demonstrate the potential technical and
economic viability of establishing a new mine and mill complex on the
Murray Brook property. The projected cash flows indicate an after-tax
NPV at a 5% discount rate of $96.4 million, an IRR of 11.4%, and a
payback period of 5.4 years (see news release). The NI43-101 Technical Report is filed on SEDAR and also available on
the ELN website (http://www.elninoventures.com).
Qualified Persons Statement
This news release has been reviewed and approved for technical contents
of the BOJV and Murray Brook projects by William Stone, Ph.D., P.Geo.
and a Qualified Person under the provisions of National Instrument
43-101. The information in this Press Release that relates to
Exploration Results for the Kasala Project is based on information
compiled and reviewed by Ali Hassanalizadeh Msc., P.Geo. and a
Qualified Person under the provisions of National Instrument 43-101.
Mr. Hassanalizadeh has relied on Mr. Benoit M. Violette, P. Geo.,
consulting geologist and the Qualified Person under NI‐43‐101.
On Behalf of the Board of Directors,
Chairman & CEO
El Niño 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.
SOURCE: El Nino Ventures Inc.
For further information:
Tel: +1 604 685 1870 Fax: +1 604 685 8045
Email: firstname.lastname@example.org or visit www.elninoventures.com
650-555 West 12th Avenue, City Square, West Tower, Vancouver, B.C., Canada, V5Z 3X7