- The BMC project initially comprised of 4,712 claims owned 50% ELN, 50% Xstrata, 2907 claims owned 100%by Xstrata Zinc, together with an Area of Interest in which ELN and Xstrata Zinc hold equal interest
- Votorantim Metals Canada (VMC) completed an $859,000 exploration program in H2-2011consisting of airborne and surface geophysical surveys, geological mapping, compilation of historical data and research into advanced exploration technologies suitable for application in the Bathurst Mining Camp
- VMC can earn 70% interest in the Bathurst Mining Camp (BMC) project by incurring exploration expenditures of $20 million over a period of seven years
- The aim of the JV partners is to use advanced exploration techniques to identify hitherto undiscovered mineral deposits
April 24, 2012, Vancouver, Canada; El Ni�o Ventures Inc. ("ELN" and the "Company") (TSX.V: ELN; OTCQX: ELNOF Frankfurt: E7Q) is pleased to provide an update of the exploration work performed during the period July 1 to December 31, 2011 for its Bathurst Mining Camp (BMC) Base Metals Tri-Party agreement between El Nino, Votorantim Canada (VMC) and Xstrata Zinc Joint venture project in Bathurst, New Brunswick.
VMC's work on the Xstrata-El Nino-Votorantim lands during this period included diamond drilling and ground EM surveys. A Time Domain EM survey was completed by Eastern Geophysics Ltd. on two third party optioned properties; and a combined borehole and surface TDEM survey was performed southeast of the BM&S No.6. The following table summarizes the work completed during the period July 1 to December 31, 2011.
Table-1 Exploration Activities Performed from July to December 31, 2011
Diamond Drilling:
As of December 31, 2011 a total of 16 holes, totaling 5,011 metres, have been completed on the Bathurst Mining Camp project (Figure 1). This Phase of exploration drilling campaign focused on geophysical and geochemical targets in the Brunswick Belt, two third party optioned properties in the Brunswick Belt and two optioned properties in the southwestern part of the BMC. The only hole drilled in the Camel Back project intersected widespread alteration with common traces of sphalerite.
Ground Geophysics- Large Loop Pulse EM:
A large grid was cut over the two third party optioned properties in Brunswick Belt and adjoining parts of Xstrata's claims. Four loops were laid out and readings were measured in-loop and out-of-loop. Only a few weak areas of low resistivity were detected. Deep drilling, which subsequently tested the at depth extent of a narrow zone of subeconomic base metal mineralization, did not intersect any significant sulphide or base-metal mineralization.
Borehole Geophysics:
Borehole and surface Pulse EM surveys were performed southeast of Nepisiguit Dam in and around two drill holes completed in 2010 that intersected stockwork style copper-iron. Only a small off-hole response was found from the Pulse EM survey at Nepisiguit Dam and no further work is planned.
Figure1 --Drill Holes Location Map
Airborne Geophysics -- Airborne Gravity Gradiometry (AGG):
Fugro Airborne Surveys completed the Phase 1 AGG survey over two large areas in the Bathurst Mining Camp in May 2011. This was the first ever commercial survey using the 'Falcon' Gravity Gradiometer in a helicopter platform. Figure 2 shows the outlines of the surveyed areas. A decision to proceed with Phase 2 and 3 will be contingent upon results obtained in Phase 1. Final results have now been received and are being interpreted in conjunction with Votorantim's HeliTEM magnetic and EM data and other historical data, with the objective of identifying targets for drill testing in 2012.
Figure 2 --Airborne Gravity Gradiometry Survey
2012-2013 Exploration Plans
2012-Q1: Three drill holes were completed on third party options, in the Brunswick Belt, for a total of 1975 metres to test for base metal mineralization at depth. No significant mineralization was intersected. These three drill holes as well as three holes completed in Q4 2011 were tested by borehole pulse EM, however no anomalies were detected.
2012-Q2 to Q4 and 2013 Q1: It is planned to drill-test airborne gravity gradiometer targets throughout the remainder of 2012. Ground geophysical surveys will be performed if necessary to refine some gravity targets.
Figure 3 - Land tenure map showing the location of optioned properties in the Bathurst Mining Camp
About Bathurst Mining Camp Project-Tri Party Agreement
Bathurst Mining Camp (BMC) project consists of an initial 4,712 claims in the Tri-Party Agreement with Xstrata & VM Canada. In January 2009, Votorantim Metals Canada Inc. (VMC) entered into a binding MOU with Xstrata Canada Corporation and El Nino Ventures Inc. to pursue an Option-Joint Venture Agreement, whereby VMC may earn up to a 70% interest in those properties by making exploration expenditures of $20,000,000 over a period of seven years. Following a six-month period of due diligence, the companies entered negotiations to reach a final Option-JV Agreement which was concluded in July 2010. Meanwhile, VMC commenced exploration in August 2009 with a program of airborne and surface geophysical surveys, geochemistry, geological mapping, compilation of historical data and research into advanced exploration technologies suitable for application in the Bathurst Mining Camp (BMC). In the early part of 2010, VMC made application to the Government of New Brunswick (GNB) for financial assistance in applying new exploration methods. An Advanced Exploration Agreement between the GNB and VMC was executed in late September, 2010 regarding the implementation of a program that would match VMC's exploration expenditures with GNB contributions. These expenditures are to be no less than $1,000,000 and no more than $2,500,000 per year for three years, for a maximum, total, GNB contribution of up to $7,500,000. GNB expenditures together with VMC's expenditures would therefore result in exploration expenditures of up to $15,000,000 over the life of the Agreement. The effective date for this agreement is April 1, 2010.
Qualified Persons Statement
This news release has been reviewed and approved for technical content by Ali Hassanalizadeh M.Sc. P.Geo a qualified Person under the provisions of National Instrument 43-101.
About El Ni�o Ventures Inc. Bathurst Projects
- Bathurst Mining Camp Project: (Tri-Party Agreement)
Consists of an initial 4,712 claims in the Tri-Party Agreement with Xstrata & VM Canada whereby VM Canada may incur exploration expenditures of $10 million over a period of 5 years to earn a 50% interest. VM Canada may further increase its interest to 70% by spending an additional $10 million over 2 years.
- Murray Brook Project:
The Murray Brook project, which has an excellent infrastructure, is the fifth largest, massive-sulfide deposit in the Bathurst Mining Camp. VMC can earn up to a 50% interest in the Murray Brook Project by funding $2,250,000 of exploration expenditures over a period of 3 years. ELN has elected to participate by paying 50% of VMC's exploration costs. VMC and ELN have a second option to acquire a further 20% by incurring an additional $2.5 million in exploration costs.
In 2011, ELN and VMC spent $2.1 million on exploration; and completed 10,000 meters of drilling. Drill results to date have been very encouraging.
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.
Table-1 Murray Brook Mineral Resource Estimate Summary
Mineral resources which are not mineral reserves do not have demonstrated economic viability.
The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
- The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.
- The mineral resources in this news release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standard Committee on Reserve Definitions and adopted by CIM Council
- The Dec 31, 2011 two year trailing average US metal prices used in this estimate were $3.71/lb Cu, $1.03/lb Pb, $0.98/lb Zn, $1,397/oz Au, $27.63/oz Ag. The C$/US$ Exchange rate was 0.99.
- Overall payable metal in the NSR calculation were 81% Cu, 72% Pb, 64% Zn, 71% Au and 56% Ag.
- Mineral resources were determined within a Whittle pit shell with 45 degree slopes utilizing mining costs of C$2.50/tonne for mineralized material and waste rock, and C$1.75/tonne for overburden.
- Costs used to determine the C$20/tonne NSR resource cut-off value were processing at C$15/tonne and G&A C$5/tonne.
- The Murray Brook Mineral Resource Estimate was undertaken by Eugene Puritch, P.Eng. of P&E Mining Consultants Inc.
Votorantim Metals Canada Statement:
Technical details in this news release were provided by VM Canada whose professional geologists conduct operations consistent with mineral industry best practices. VM Canada accepts no responsibility for this news release or any inferences made from the technical details provided herein.
About VM Canada (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 twenty countries and has over forty thousand 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.
About El Ni�o Ventures Inc.
El Ni�o 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
"Harry Barr"
Harry Barr
Chairman & CEO
El Nino Ventures Inc.
Further Information: Tel: +1 604 685 1870 Fax: +1 604 685 8045
Email: info@elninoventures.com or visit www.elninoventures.com
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