Pre-production capital requirements $261 million
Mill throughput of 2 million tonnes of ore per annum - 6,000 tonnes per
Life of Mine 9.5 years
Life of Mine Production: 239,000 tonnes of copper concentrate, 122,000
tonnes of lead concentrate
and 770,000 tonnes of zinc concentrate
Total Net Smelter Return Revenue $1,246 million
Further metallurgical studies planned
Excellent exploration upside with additional drilling plans on adjacent
Camel Back Claims
VANCOUVER, July 23, 2013 /CNW/ - El Nino Ventures Inc. ("ELN" and the
"Company") (TSX.V: ELN) (OTCQX: ELNOF) (Frankfurt: E7Q) is pleased to
announce the SEDAR filing of the NI 43-101 Preliminary Economic Assessment ("PEA") for the Murray Brook polymetallic massive sulfide deposit, New Brunswick
(the "Project"). 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 table 1).
The PEA was prepared by P&E Mining Consultants Inc. under the
supervision of Eugene Puritch, P. Eng. of P&E Mining Consultants Inc.
Mr. Puritch is an independent QP in accordance with NI 43-101.
Qualified Persons Statement
The PEA was prepared under the supervision of Eugene Puritch, P. Eng. of
P&E Mining Consultants Inc. Mr. Puritch is an independent QP in
accordance with NI 43-101 and has reviewed and approved the technical
information in this release.
The information in this release was reviewed by Dr. William Stone,
Executive Vice President of Exploration of ELN and a QP as defined by
About El Niño Ventures Inc. Bathurst Projects
El Niño Ventures Inc. has two active projects in the Bathurst Mining
1. Murray Brook Project
The Murray Brook Project is located 60 km west of Bathurst, in the
northwest part of the Bathurst Mining Camp (Figure 1). 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 VMC currently own 100% of the Murray Brook Project and VMC is
the operator. Under a purchase agreement signed by VMC on August 28,
2012 with Murray Brook Minerals and Murray Brook Resources Inc.
(collectively the "Owners"), VMC acquired the right to purchase, in
addition to its 35% interest, the additional 30% of the Murray Brook
Project from the Owners. The purchase agreement between VMC and the
Owners provides for staged payments totaling $6 million over 5 years
and a 0.25% NSR payable to the Owners after one year of commercial
production. VMC provided ELN with the option to purchase an additional
15% in the Murray Brook Project as required by an underlying Amending
Agreement dated September 30, 2010 between Xstrata Zinc (now Glencore
Xstrata PLC), VMC and ELN (see reference to the BOJV Tri-Party
Agreement above). ELN did not elect to exercise the option and
consequently at this time the Joint Venture remains at VMC 65%: ELN
Figure 1. 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 now filed on SEDAR and is also
available on the ELN website (see www.elnventures.com).
2. Bathurst Option Joint Venture
The BOJV project is a Tri‐Party Agreement with Xstrata Zinc Canada (now
Glencore) and VMC covering much of the area of the Bathurst Mining Camp
in northeastern New Brunswick (Figure 1). The project commenced in July 2009. VMC can earn 50% by spending $10
million over 5 years. VMC can further increase its interest to 70% by
spending an additional $10 million over 2 more years. Exploration
expenditures to date by VMC total about $6.7 million.
BOJV project originally consisted of 4712 claims owned 50% ELN and 50%
Xstrata Zinc and 2907 claims owned 100% by Glencore, together with an
Area of Interest in which ELN and Glencore hold equal interest. Due to
the Area of Interest, the BOJV generates new projects for ELN at no
initial cost. An example of such project generation for ELN is the
Murray Brook Project.
Votorantim Metals Canada Inc. Statement
Technical details in this news release were provided by VMC whose
professional geologists conduct operations consistent with mineral
industry best practices. VMC accepts no responsibility for this news
release or any inferences made from the technical details provided
About Votorantim Metals Canada Inc.
VMC is a subsidiary of Votorantim Metais a company that is part of the
Votorantim Group that was founded in Brazil in 1918. The Votorantim
Group operates in twenty countries and has over 40,000 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. VMC in conjunction with Glencore and El Nino
Ventures is operator of the Bathurst Option and Joint Venture which is
actively exploring for base metal deposits within the Bathurst Mining
About El Nino Ventures Inc.
El Niño Ventures Inc. is an international exploration company, focused
on exploring for zinc, lead, copper, silver and gold in New Brunswick,
Canada and copper in the Democratic Republic of Congo ("DRC").
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. 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
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