VANCOUVER, Dec. 9 /CNW/ - El Nino Ventures Inc. ("ELN" and the "Company") (TSX.V: ELN; Frankfurt: E7Q) is pleased to announce a non-brokered private placement of up to 5,000,000 units at a price of $0.10 per unit ("Unit") for gross proceeds of up to $500,000.
Each Unit will consist of one common share (a "Common Share") and one share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one Common Share at a price of $0.15 per share for a period of 24 months. A finder's fee may be paid in relation to this financing, in accordance with regulatory policies. The foregoing is subject to regulatory approval.
The proceeds of this private placement will be used to advance the Democratic Republic of Congo ("DRC") projects, acquire new projects and for general working capital.
El Nino's immediate objective will be to finance the Company to a level which will secure the advancement of its properties in the DRC where the Company made a significant Copper discovery, which is now known as the Kasala Project. The Kasala Project has several intercepts of ore grade material with thickness varying from 50 to 90 meters. Please refer to press releases dated January 12, 2009 (http://www.elninoventures.com/s/NewsReleases.asp?ReportID=333849) and February 25, 2009 (http://www.elninoventures.com/s/NewsReleases.asp?ReportID=339249).
About El Nino Ventures Inc.
El Nino Ventures is a mineral exploration company, focused on Copper/Cobalt exploration in the Democratic Republic of Congo (DRC) See releases (Jan. 12 2009) (http://www.elninoventures.com/i/pdf/011209ELN.pdf), February 25, 2009) (http://www.elninoventures.com/s/NewsReleases.asp?ReportID=339249). The Company is aggressively negotiating to acquire additional projects throughout Africa that are in line with our corporate objectives. The Company holds a 50% interest in an extensive base metal project located within the Bathurst mining camp. El Nino recently entered into an option agreement with Votorantim Metals Canada Inc. and Xstrata Zinc Canada whereby Votorantim may earn a 50% interest in El Nino's landholdings by expending $10 million over 5 years and may further increase its interest in El Nino's landholdings to 70% by expending an additional $10 million over a further two years. Please see release (August 6, 2009) (http://www.elninoventures.com/s/NewsReleases.asp?ReportID=358793).
The Kasala project is one of the first new Greenfields copper discovery
in the last 10 years in the central African Copper belt
Please click on the link below to view maps/images/table attached to this
About Kasala Copper Project
One of the newest copper discoveries in the Central African Copperbelt, El Nino Ventures' Kasala prospect is located approximately 70 kilometers 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 Copperbelt contains over 10% of the worlds copper and 34% of the world's cobalt. The Kasala project permits are located adjacent to Anvil Mining's Kinsevere Mine, which is expected to produce 24,000 tonnes (52 million pounds) of copper annually for the next 20 years. It is also located approximately 10km east of Tiger Resources' Kipoi deposit. Other prominent companies active within this region are: Freeport-McMoran, Lundin Mining Corp, First Quantum Minerals, Katanga Mining Limited, Ivanhoe Nickel & Platinum Ltd. and Konkola Copper Mines.
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 Copperbelt. A high-tension electrical transmission line is located 12 km west of the projects' boundaries.
Highlights of the Drilling and Exploration to date
The recent drill program identified consistent mineralization over large widths, from 50m to 91m. Highlights included high-grade intercepts:
These results confirm the presence of significant mineralization within the Kasala Main Zone with the potential for expansion based on the results from an IP Survey completed in early 2009. See release (Jan. 12 2009) (http://www.elninoventures.com/i/pdf/011209ELN.pdf).
- 22 m @ 3.28% Cu
- 29 m @ 2.82% Cu
- 31 m @ 2.19% Cu
- 11 m @ 3.68% Cu
The 2008 drill campaign on the project was undertaken to test a number of priority targets identified from the interpretation of airborne geophysical data from a survey commissioned by the Company in late 2007.
The 50 drill hole, 5,920 metre 2008 drill program consisted of 35 Reverse Circulation ("RC") drill holes totaling 3,336 meters and 15 diamond drill ("DD") holes totaling 2,584 meters.
Since then, the Company has completed a soil geochemistry sampling program and an Induced Polarization ("IP") survey across the Kasala site and has found good correlation between mineralization identified in the drilling, soil anomalies identified from the geochemical sampling program and both the ground and airborne geophysical surveys.
The Company's technical team has compiled all of the available data (including drilling results, geophysical and geochemical data) into a geological model of the site, which has led to new interpretations of the geology. Previously, the Company had reported (press release of February 25, 2009 (http://www.elninoventures.com/s/NewsReleases.asp?ReportID=339249)) that a parallel zone had been identified east of "Kasala Main Zone" and was being referred to as "Kasala East". Further interpretation of the "Kasala East" zone has now found that this block is not one structure but is actually two discreet blocks. For this reason, and the possibility of discovery of additional blocks, "Kasala Main Zone" is now being referenced as Kasala Block "A", while what was previously referred to as "Kasala East" has been divided into Kasala Block "B" and Kasala Block "C" (Figure 1). The recent drill program focused exclusively on Kasala Block "A" - Blocks "B" and "C" are yet to be drill tested, but are considered as priority drill targets due to the strong copper-in-soil values identified over large areas on these blocks. Block "C" in particular has numerous multi-point anomalies of greater than 300 parts per million copper-in-soil and has an anomalous area of approximately 1,500 meters long by 1,500 meters wide - it represents a high priority for drilling.
All samples from the drilling program were collected following strict quality controls and were then dispatched to ALS Chemex Laboratories in Johannesburg, South Africa for assay.
Across Kasala Block "A" copper mineralization is found close to surface (some intercepts less than 10 meters from surface) and both oxide (malachite) and sulphide (chalcopyrite) copper mineralization have been identified.
Currently, the mineralized strike length of Kasala Block "A" stands at just over 750 meters with a width of as much as 250 meters. The thickness of mineralization has been found to be as great as 90 meters, but the mineralization is open in all directions, including at depth.
2010 Exploration Program
An infill diamond drilling program of at least 5,000 meters is planned to commence on Kasala Block "A" in late April, 2010, to determine the complete extent of the mineralization and to allow an NI 43-101 compliant resource estimate to be completed on Kasala Block "A" by the end of summer, 2011.
In advance of any additional drilling the Company has determined to undertake additional soil sampling, both across Kasala Blocks "A", "B" and "C" and regionally, to provide enhanced geochemical detail while selecting drill targets.
- Phase 1 objective - To define a inferred resource on block A with
5000 meters of diamond drilling
- Phase 2 objective - Step out and test geochemical and geophysical
anomalies on block B and block C with 5000 meters of diamond
- Phase 3 objective - Continue to develop inferred resource on blocks
A, B and C
This Enhanced Soil Geochemistry Survey is planned to decrease sample spacing from the current 100 m x 100 m coverage over Kasala Blocks "A" "B" and "C" to 100 m x 50 m spacing regionally and 50 m x 50 m spacing over priority target areas. The Enhanced Soil Survey will be started within the next week and will entail the collection of some 6,000 samples. All results are expected to be received within 8 weeks of commencing the program.
The high degree of correlation between the soil geochemistry and drill results on Block "A" indicates that detailed soil geochemistry will provide reliable information when targeting drill holes. The objective of the continuing exploration programs on Kasala Blocks "A", "B" and "C" is to define an aggregate minimum of 1 million tonnes of contained copper metal.
About the Bathurst Zinc Project, New Brunswick, Canada
The Company entered into an option agreement with Xstrata Zinc Canada ("Xstrata") to explore the Bathurst Mining Camp in New Brunswick and acquire a 50% interest. The Company has vested its 50% interest in the related mineral claims held by Xstrata by advancing the required $5.0 million.
On August 6, 2009 the Company entered into an option agreement with Votorantim Metals Canada Inc. ("Votorantim"). The tripartite agreement is between Votorantim, ELN and Xstrata Zinc whereby Votorantim may elect to earn up to a 70% interest in mineral claims (the "Property") comprised of 1805 claims owned 50% ELN and 50% Xstrata, 2907 claims owned 100% by Xstrata Zinc, together with an Area of interest in which ELN and Xstrata Zinc hold equal interests. Votorantim may earn a 50% interest in the Property by incurring exploration expenditures of $10 million over a period of 5 years and may further elect to increase its interest to 70% by spending another $10 million over an additional two years. Upon Votorantim vesting with 50% interest in the Property the Company will retain a 25% interest in the 1805 claims as well as a 25% interest in any mineral claims staked subsequently by the parties within the Area of interest. Should Votorantim increase its interest to 70% the Company's interest would be reduced to 15%.
Votorantim's first year commitment to the project is $750,000.
About Bancroft Uranium Properties, Ontario, Canada
The Company has earned a 100% interest in the Bancroft Uranium properties which comprise of the Halo Project and the Silver Crater Project and include certain claims east of the town of Bancroft, Ontario, Canada.
The Company is currently evaluating the properties and plan to seek joint venture partners who are active in the Uranium sector.
Allan Lines (P.Geo.) is the Qualified Person responsible for reviewing the technical results in this release.
This Company has strategically positioned several financial and recognized technical experts which will continue to allow the Company to complete its objectives in both Africa and its projects in Canada.
On Behalf of the Board of Directors,
Harry Barr, Chairman and CEO
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.
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.
SOURCE El Nino Ventures Inc.
For further information: For further information: Tel: (604) 685-1870, Toll Free: 1-800-667-1870, Fax: (604) 685-8045, Email: firstname.lastname@example.org, or visit: www.elninoventures.com