VANCOUVER, Jan. 20 /CNW/ - El Niño Ventures Inc. ("ELN" and the "Company") (TSX.V: ELN; Frankfurt:
E7Q) is pleased to announce that it has provided notice to Votorantim Metals
Canada Inc. (Votorantim) to enter into an Option Agreement on the
Murray Brook Deposit, situated in the Bathurst Mining Camp in New
On November 1st, 2010 Votorantim entered into an Option and Joint
Venture Agreement with Murray Brook Minerals Inc. (MBM) and Murray
Brook Resources Incorporated (MBR) concerning the Murray Brook Mining
Lease No. 252 and the Camel Back Claims Block No. 4925 (the
Properties). The properties are situated between the Caribou and
Restigouche mine sites about 60 km west-southwest of Bathurst, New
Brunswick (Figure 1 http://www.elninoventures.com/s/NewsReleases.asp?ReportID=438573).
Under Votoratim's Option and Joint Venture Agreement with MBM and MBR,
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 priod commencing November 1, 2011.
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.
Under the provisions set forth in the existing tri-party Joint Venture
agreement between Xstrata Canada Corporation - Xstrata Zinc Canada
Division (Xstrata Zinc), ELN and Votorantim, signed on May 4 2010, (see
May 4, 2010 press release), whereby Votorantim is earning a 50%
interest and has the option to earn an additional 20% interest in the
Bathurst Mining Camp (BMC) project. ELN is granted, together with
Xstrata Zinc, the option to acquire up to 50% of Votorantim's
acquisitions within the area of interest by funding 50% of the earn in
After reviewing drill results provided by Votorantim as part of a due diligence
exercise, El Nino Ventures has provided notice to both parties to enter
into an Option Agreement on the Murray Brook Deposit. The Company is planing to release these drill results over the
next 30 days. ELN believes that the addition of the Properties to the current
portfolio of projects under option and joint venture in the Bathurst
Mining Camp will increase the potential to add shareholder value. Votorantim continues to explore the region and therefore, the Company
has advised Votorantim that it has elected to exercise its right to
acquire 50% of Votorantim's interest in the Properties.
Votorantim is currently earning a 50% interest in the Bathurst Mining
Camp (BMC) tri-party Joint Venture project by incurring exploration
expenditures of $10 million over a period of five years. Votorantim can
increase its interest to 70% by spending another $10 million over an
additional two years thereafter ELN and Xstrata Zinc interests would be
reduced to 15% from 25% respectively.
About the Bathurst Mining Camp (BMC) Project
The BMC project is comprised of 1805 claims owned 50% ELN, 50% Xstrata Zinc, 2907
claims owned 100% by Xstrata Zinc, together with an Area of Interest in
which ELN and Xstrata Zinc hold equal interest. Earlier drilling
campaigns delineated several historical deposits of lead, zinc and
copper mineralization within the 1805 claims in which ELN currently
holds 50% interest (see June 4, 2008 press release).
Figure 2. Geology Map with outline of the Murray Brook and Camel Back
About the Murray Brook and Camel Back Properties
The 505 hectare Murray Brook mining lease (ML252) contains the Murray Brook deposit, discovered in 1956 and mined
by Novagold Resources from 1989 to 1992. Total production was 1,384 kg
of gold and 9,829 kg of silver from 2.7 Mt of oxide ore (Gossan). A
resource was defined below the open pit (Gossan) prior to the
implementation of NI 43-101 standards of disclosure and historically
reported by NovaGold in 1988 to be 20.2 Mt grading 1.4% Zn, 0.3% Cu,
0.6% Pb, 25 g/t Ag and 0.3 g/t Au. A copper rich zone within this
deposit contains an estimated 2.087 Mt grading 2.0% Cu, 1.1% Zn, 0.4%
Pb, 46 g/t Ag and 0.3 g/t Au. Under the provisions of NI 43-101,
insufficient work has been carried out to classify any of the historic
occurrences as current mineral resources and the historical estimates
should not be relied upon.
The Camel Back claim block consists of 215 claims covering 4100 hectares situated between the
Murray Brook mining lease and the Caribou mining lease (ML246). The
Caribou, Murray Brook and Restigouche deposits are all hosted within
the California Lake Group: the Caribou deposit within
volcano-sedimentary rocks of the Spruce Lake Formation while the Murray
Brook and Restigouche deposits within sedimentary rocks of the Mount
Britain Formation. According to geological and geophysical data, the
presence of favourable stratigraphic sequence and some untested EM
anomalies shows that the Camel Back block still merits further
exploration for discovering new deposits.
About Votorantim Metals Canada Inc.
Votorantim Metals Canada Inc. is a subsidiary of Votorantim Metals, a company that is part of the
Votorantim Group, which was founded in Brazil in 1918 and now operates
in twenty countries and has over sixty-five thousand employees.
Votorantim Metals is the largest electrolytic nickel producer in Latin
America and one of the world's leaders in production of zinc, aluminium
About El Niño Ventures Inc.
El Niño Ventures Inc. is an exploration company, focused on exploring for Copper/Cobalt in the
Democratic Republic of Congo ("DRC"). In addition the Company had
entered into an Option agreement with Votorantim and Xstrata Zinc
whereby Votorantim, by incurring exploration expenditures of $10
million over a period of 5 years. Votorantim may further elect to
increase its interest to 70% by spending another $10 million over an
additional two years. The Votorantim option is on an extensive land
package in the Bathurst Mining Camp that ELN currently shares 50/50
with Xstrata Zinc Canada.
In the DRC, the Kasala Copper Project gives the Company a bona fide
development project going forward. Exploration results on this project
are very consistent and demonstrate the potential for a world class
project over time.
On Behalf of the Board of Directors,
Harry Barr, Chairman & Acting 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:
Tel: + 1.604.685.1870 Toll Free: 1.800.667.1870 Fax: +1.604.685.8045 Email: firstname.lastname@example.org Or visit: www.elninoventures.com