VANCOUVER, Sept. 6, 2012 /CNW/ - El Niño Ventures Inc. ("ELN" and the "Company") (TSX.V: ELN) (Frankfurt: E7Q) (OTCQX: ELNOF) is pleased to announce that Murray Brook Minerals Inc. ("MBM") has been given formal notice by both ELN and Votorantim Metals Canada Inc. ("VMC") that a 70% earned interest in the Murray Brook polymetalic project, Bathurst, New Brunswick has been completed.
ELN and VMC currently own 70% of the project, of which 35% is held by each of the two parties.
Under a purchase agreement signed by VMC on August 28, 2012 with MBM and Murray Brook Resources Inc. (collectively the owners), VMC acquired the right to purchase the additional 30% of the Murray Brook Project from the owners. ELN has been provided the option to earn an additional 15% in the project for a combined total of 50% (35% +15%).
Management of ELN is currently evaluating the proposal of this option and the terms of the Purchase Agreement.
In order for ELN to earn its 35% it has provided VMC with a total of $2,250,000 as its share of 50% in expenditures costs. This amount consists of $1,125,000 for its initial 25% earn-in expenditures and a further $1,125,000 for the additional 10% earn-in.
Although the terms of the Participation Agreement provided for a three-year period to earn the initial 50% and two years to earn the additional 20%, ELN and VMC completed their earn-in in less than 18 months. Encouraging drill results and a very positive NI 43-101 resource estimation accelerated the exploration and development programs and is a testament to both ELN and Votorantim's commitment to aggressively advancing the project (see ELN press releases dated: February 28 and May 17, June 5, June 27, July 17, July 30, August 14 and August 28, 2012).
As a private Company, MBM has requested that the terms and conditions of the purchase agreement remain confidential until the option to purchase the additional 30% has been finalized.
On another matter, the Company further announces that it will not be proceeding with the current brokered private placement with Desjardins Securities Inc.
About The Murray Brook Project
The Murray Brook Project is historically the 5th largest massive sulfide deposit in the Bathurst Mining Camp and has excellent infrastructure (Figure 1).
During 2011 and 2012, ELN and VMC completed more than 28,000 metres of drilling with encouraging results. The 2012 drill program was completed in June.
A recently completed (February 2012) NI 43‐101 Mineral Resource Estimate for the Murray Brook Zn‐Cu‐Pb‐Ag‐Au deposit, which includes explanatory footnotes, is presented below. The resource estimate is based on various assumptions regarding mining methods, processing and metal recoveries, payable metal NSR credits and metal prices. This estimate makes no provision for capital costs to mine the deposit, nor mill the material mined, as resources are not reserves and the reader should not presume economic viability. The Technical Report on the 2012 NI 43-101 Mineral Resource Estimate is filed on SEDAR.com and is available on ELN's website.
Metallurgical test-work of bulk sample material from the Murray Brook deposit is currently underway at RPC Laboratories (Fredericton, New Brunswick), under the direction of Votorantim Metals Canada Inc., Operators of the Murray Brook Project. Three holes were drilled to provide sample materials for metallurgical tests. The test-work is focused on determining potential metal recoveries based on a recommended metals recovery process flowsheet which, subsequently, will form the basis for a small scale metallurgical pilot plant program. Metallurgical results, along with a revised resource estimate which will incorporate 2012 drill results, will form the basis of a Preliminary Economic Assessment (PEA or Scoping Study) study to be completed in Q1 2013.
Phase 2 of Metallurgical studies (Pilot Plant), Preliminary Economic Assessment Studies, Geotechnical drilling, detailed delineation of base of oxidation and Environmental assessment studies are slated for completion in 2013.
Votorantim Metals Canada Inc. Statement
Technical details in this news release were provided by Votorantim whose professional geologists conduct operations consistent with mineral industry best practices. Votorantim accepts no responsibility for this news release or any inferences made from the technical details provided herein.
Figure 1 - Land tenure map showing the location of the Murray Brook Project in the northwest part of the Bathurst Mining Camp, New Brunswick
Qualified Persons Statement
This news release has been reviewed and approved for technical content by Ali Hassanalizadeh M.Sc. P.Geo. MBA, a qualified Person under the provisions of National Instrument 43‐101.
About Murray Brook Minerals Inc.
Murray Brook Minerals Inc. is a privately owned mining exploration company which holds interests in properties in the Bathurst Mining Camp including the Murray Brook Project and Legacy Copper Deposit.
About Votorantim Metals Canada Inc.
Votorantim Metals Canada Inc. is a subsidiary of Votorantim Metais; a company that is part of the Votorantim Group that was founded in Brazil in 1918 operates in over twenty countries and has forty thousand employees. Votorantim Metais is one of the five main zinc manufacturers worldwide, the main electrolytic nickel manufacturer in Latin America, and the Brazilian leader in the production of primary aluminum.
About El Nino Ventures Inc.
El Niño Ventures Inc. is an international exploration company, focused on exploring for lead, zinc, copper, gold and silver in New Brunswick, Canada and copper in the Democratic Republic of Congo ("DRC").
On Behalf of the Board of Directors
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. 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.
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