Exploration Update: On Gold Projects, Great Northern Peninsula of Newfoundland and Labrador
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Exploration Update: On Gold Projects,
Great Northern Peninsula of Newfoundland and Labrador
September 19, 2018 Rockport, Canada – El Nino Ventures., (ELN or the Company) (TSX.V: ELN;
OTCQB: ELNOF; FSE: E7Q).
Mr. Harry Barr Chairman/CEO stated: “We are pleased to be in the field conducting phase 1 of
our prospecting, and surface mapping program on our 3 gold properties in the Great Northern
Peninsula in Newfoundland Labrador. Fred Keats, a well-known Canadian prospector, is heading
up this program on our three 100% Newfoundland projects.
Fall Prospecting Program:
The main focus of our summer/fall program is to complete the following:
1. Review of historical government records and geological occurrences on the projects,
2. Ground proof existing and newly identified mineral occurrences.
3. Prospect, sample and/or channel sample the occurrences.
4. Identify stream sediment anomalies. Once the stream sediments are identified
prospecting will focus in these areas.
5. The second phase of exploration after identifying metal targets will involve soil
geochemistry, channel sampling and/or ground geophysics.
6. The overall objective of the above program is to identify precious metal drill targets.
Newfoundland Gold Projects
In the first quarter of 2018 ELN acquired three gold projects in the Great Northern Peninsula of
Newfoundland (Figure 1). The claims were staked to follow up on the new Gunner Cove gold
discovery of White Metal Resources. For more information on the Gunner Cover gold discovery
please see news releases from White Metal Resources dated September 5, 2018 and August 24,
2018.
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Figure 1 (Left): El Nino Venture Gold Projects – Great Northern Peninsula, Newfoundland and
Labrador.
Figure 2 (Right): Claim Distribution map in the St. Anthony’s area of Newfoundland and
Labrador.
El Nino’s three gold projects are situated around the city of St. Anthony and northward (Figure
2 above), covering approximately 22 kilometers of favorable geology, similar to that being
encountered on the Gunners Cove Project to the east and north of the company’s three gold
projects. The projects consist of 218 claim units for approximately 18,980 hectares
(approximately 46,900 Acres). ELN is currently seeking option/joint venture partners on one
or more of the above-mentioned projects.
El Nino Go-Forward Plan
Mr. Harry Barr, Chairman and CEO, stated:
“Outside of the exploration and development activities on our existing projects, El Nino’s
management team is working on a plan which would include innovative ways to move the
Company forward. To that end, the Company plans to add to its director base and form an
advisory committee with individuals that have diversified backgrounds in multiple industries
including mining, oil and gas, alternative energy, diversified industrial projects, real estate,
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technology, alternative medicine and communications. The Company is currently evaluating
additional investments and projects within the mining industry and management may also
consider investments outside of the mining industry, which may or may not require
shareholder, director, and regulatory approval.”
About El Nino Ventures
El Nino Ventures Inc. (ELN) has in the past years been an International Base Metals exploration
company with its focus being on the Murray Brook Project in the Bathurst region of New
Brunswick, Canada. ELN signed an option to purchase agreement regarding the sale of its
interest on this project (News Release: Oct 13th, 2016) with Puma Explorations for $3.1 million
dollars. In May 2018 ELN received the second cash payment of $1,500,000 from Trevali Mining
Corporation, a mid-tier zinc, base metal company who Puma signed a funding agreement
with and El Nino acknowledged that agreement.
The 3rd and final payment of an additional 1 million (total 3.1 million) is due by May 10, 2019.
In addition, a royalty, net smelter return (NSR) for the life of the project will be paid to ELN as
outlined below.
1) The NSR will start at 0.25% at a zinc price of US$1.04/lb and will increase in increments of
0.25%, to a maximum of 1.75% above US$1.50/lb Zinc.
2) This NSR, which is in relation to approximately 32% of the production from the Murray Brook
Property, and includes the Mining Lease and the Camel Back claims, for the life of the Murray
Brook deposit and any new discovery made on the total project.
3) On September 13, 2018 the price of Zinc was $1.07/lb USD according to Kitco.
El Nino has 2,000,000 warrants of Puma and the terms of the warrant are as follows: El Nino
will be given the right to buy 2,000,000 warrants of Puma’s ordinary shares (the warrants)
expiring 3 years after the closing of the transaction based on the following exercise prices:
1) 0 to Year 1 (Nov 15, 2017): Equal to the price of the acquisition equity financing;
2) Year 1 to Year 2 (Nov 15, 2018): a 20% premium to the price indicated in 1) above; and
3) Year 2 to Year 3: a 20% premium to the price indicated in 2) above.
In the event Puma/Trevali do not complete the final option payment to acquire ELN’s interest, ELN
will receive its entire interest in the Murray Brook project, back in good standing. Outside of
investigating new innovative ways to move ELN’s business plan forward, the Company also has an
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aggressive mineral acquisition program underway with a focus on gold and base metal projects that are
a mix of grass roots, brownfields and advanced stage projects as previously outlined in this release. The
Company plans to use the Prospector Generator Model which reduces risk, share dilution and
increases discovery potential.
QUALIFIED PERSON
The contents contained herein that relate to Exploration Results or Mineral Resources is based
on information compiled, reviewed or prepared by Carey Galeschuk, a consulting geoscientist for
New Age Metals. Mr. Galeschuk is the Qualified Person as defined by National Instrument 43 -
101 and has reviewed and approved the technical content of this news release with regard to
technical aspects of the 3 Gold projects.
On behalf of the board of director I would like to thank you our shareholders and other
interested parties for your ongoing support. For further info on the company please go to our
website www.elninoventures.com to opt-in.
Harry Barr
Chairman & CEO
El Nino Ventures