Positive Preliminary Economic Assessment for Murray Brook Zn‐Cu‐Pb‐Ag Deposit, Bathurst Mining Camp, New Brunswick filed on SEDAR
NEWS RELEASE
Positive Preliminary Economic Assessment for Murray Brook Zn‐Cu‐Pb‐Ag Deposit, Bathurst Mining Camp, New Brunswick filed on SEDAR
Highlights:
- 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
July 23, 2013 Vancouver, BC; 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 release. The information in this release was reviewed by Dr. William Stone, 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 News Release Page 1 of 3 July 23, 2013
EL LN and VMC C currently own 100% of the Murray y Brook Proje ect and VMC C is the operator. Under r a purchase ag greement sig gned by VMC C on August 28, 2012 wi ith Murray B Brook Minera als and Murr ray Brook Re esources Inc. (c collectively th he “Owners”), , VMC acquir red the right to purchase, in addition t to its 35% int terest, the ad dditional 30% wners. The purchase agre d the Owners provides for of f the Murray Brook Projec ct from the Ow eement betwe een VMC and ble to the Owners after one year of st taged payments totaling $6 million o over 5 years and a 0.25% % NSR payab co ommercial pr roduction. VM MC provided ELN with the option to purchase an additional 1 15% in the M Murray Brook eement dated September etween Xstrata Zinc (now Pr roject as requ uired by an u underlying Am mending Agre r 30, 2010 be Glencore Xstra ata PLC), VMC C and ELN (se ee reference to the BOJV Tri‐Party Agr reement above). ELN did d not elect to ex xercise the op ption and con nsequently at this time the e Joint Ventur re remains at VMC 65%: ELN 35%.
melter 1‐ Belledune Sm e & Mill (Trevali)
2‐Caribou Mine 3‐ Brunswick #12 Mine and Mill: Xstrata 4‐Stratmat Project (Trevali)
5‐Halfmile Mine (Trevali)
Figure 1. M Murray Broo ok Project an nd Camel Ba ack property y location map, Bathurst Mining Camp, New Bruns swick.
To
- date, more than 28,000 metres of dr rilling has bee en completed d on the Mur rray Brook Pr roject. The fi irst NI43‐101
m mineral resour rce estimation n and the firs st metallurgic cal results were published in press relea ases dated Fe ebruary 2012 an nd January 20 013, respectively. On June e 5, 2013 a p positive Prelim minary Econo omic Assessm ment was ann nounced (see ne ews release). The results of the PEA d demonstrate the potential technical an nd economic viability of e establishing a x on the Murray Brook pro ew mine and mill complex ne operty. The p projected cas sh flows indic cate an after‐ ‐tax NPV at a 5% % discount ra ate of $96.4 m million, an IRR R of 11.4%, and a payback k period of 5.4 years (see news release e). The NI43‐ DAR and is also available on the ELN we 01 Technical R Report is now w filed on SED ebsite (see ww ww.elnventur res.com).
EL LN News Release Page 2 of 3 P July 23, 2013
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
Further Information: Tel: +1 604 685 1870 Fax: +1 604 685 8045
Email: [email protected] or visit www.elninoventures.com 650‐555 West 12th Avenue, City Square, West Tower, Vancouver, B.C., Canada, V5Z 3X7
Harry Barr
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 forward‐looking statements.
ELN News Release Page 3 of 3 July 23, 2013