Option/Joint Venture Agreement
El Nino Ventures, along with its joint venture partners,
Xstrata Zinc and Votorantim are currently carrying out an extensive exploration
program within the Bathurst Mining Camp. The Camp consists of billion dollar
infrastructure located in the world class mining district of New Brunswick. It
is home to the largest underground zinc mine in North America the Brunswick
Number 12 deposit, which contained nearly 295 million tonnes of massive sulphides
and is currently operating at 10,000 tonnes per day. The Bathurst Camp is host to
a number of past and present mines that contained zinc, lead and silver in
volcanogenic massive sulphide deposits of varying sizes.
Joint Venture with two of the largest base metals
producers in the world; Xstrata Zinc & Votorantim Metals
ELN has a second agreement in Bathurst Mining Camp, known as the Tri-Party Agreement. In this agreement El Nino Ventures and Xstrata Zinc Canada each hold a 50% interest in a large base metal project. This area has had several historic polymetallic (zinc, copper, lead, gold and silver) occurrences within an area that encompasses 1,805 claims.
El Nino and Xstrata subsequently entered into the Tri-Party Option Agreement with Votorantim Metals Canada, whereby Votorantim can earn a 50% interest in the land holdings by incurring exploration expenditures of $10 million over 5 years. Votorantim may increase its interest to 70% by incurring expenditures of an additional $10 million over 2 years.
Bathurst Mining Camp (click HERE to view in larger image)
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'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
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.
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.
2012-2013 Exploration Plans
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.
Figure1 --Drill Holes Location Map
Figure 2 --Airborne Gravity Gradiometry Survey
About Xstrata Zinc
Xstrata Zinc is one of the world's largest producers of zinc and one of the commodity business units within the major global diversified mining group Xstrata plc. Xstrata's zinc and lead operations and exploration projects are located in Australia, Canada, Germany, Peru, Spain and the United Kingdom.
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 Niņo Ventures Inc.
El Niņo 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").