Positive Preliminary Economic Assessment for Murray Brook Zn-Cu-Pb-Ag Deposit,
Bathurst Mining Camp, New Brunswick filed on SEDAR
-- Pre-production capital requirements $261 million
-- Mill throughput of 2 million tonnes of ore per annum - 6,000
tonnes per day
-- 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
byDr.WilliamStone, Executive Vice President of Exploration of ELN and
a QP as defined by NI43-101.
About El Niño Ventures Inc. Bathurst Projects
El Niño Ventures Inc. has two active projects in the Bathurst Mining Camp;
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 35%.
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 herein.
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 Camp.
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
Tel: +1 604 685 1870 Fax: +1 604 685 8045 Email:firstname.lastname@example.org or
visitwww.elninoventures.com 650-555 West 12th Avenue, City Square, West
Tower, Vancouver, B.C., Canada, V5Z 3X7
SOURCE: El Nino Ventures Inc.
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CO: El Nino Ventures Inc.
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-0- Jul/23/2013 12:30 GMT
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