On behalf of the Board of Directors, I am pleased to
update you on the business plan for the company and
progress of El Niņo Ventures Inc. ("ELN", the "Company")
(TSX.V:ELN, OTCQX:ELNOF, FSE:E7QN) for 2013 thus far as
well as our goals and objectives for the balance of this
year and beyond.
El Niņo Ventures Inc. is an international exploration
company, focused on exploring for zinc, silver, gold,
copper and lead in New Brunswick, Canada and
copper/cobalt in the Democratic Republic of Congo (DRC).
Chairman & CEO
El Niņo Ventures entered into a
Participation Agreement on the Murray Brook Massive Sulphide/Polymetallic
Deposit situated in the Bathurst Mining Camp in New Brunswick,
Canada, with Votorantim Metals Canada (see press release dated
January 20, 2011)
Completed 2011, 2012 and 2013
exploration programs including more than 28,000 metres of
drilling on Murray Brook.
Completed first NI 43-101 Mineral
Resource Estimate for Murray Brook Zn-Cu-Pb-Ag-Au deposit. The
resource estimate, which includes explanatory footnotes, is
tabulated in Table 1 below.
First Phase Metallurgical testing
completed, Second Phase in progress on Murray Brook (see press
January 16th, 2013).
Preliminary Economic Assessment
slated for H1 2013.
ELN and Votorantim Metals each
currently hold 35% of Murray Brook. In the fall of 2012 ELN was
provided an option to purchase an additional 15% of Murray
In 2012, Votorantim Metals completed
exploration work in the Bathurst Option Joint Venture (BOJV)
project, our second project in the Bathurst Mining Camp. The
work totalled approximately $1 million to the end of Q3. Work in
2013 is to continue identifying targets within the area of
influence for drill testing (see press release dated
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
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
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
The Murray Brook Mineral Resource
Estimate was undertaken by Eugene Puritch, P.Eng. of P&E Mining
El Niņo is
involved in two major exploration programs in New Brunswick, Canada:
1. The Murray Brook Deposit
The Murray Brook deposit is a polymetallic, volcanic hosted
massive‐sulfide deposit in the Bathurst Mining Camp, New Brunswick.
The property is located approximately 60 km west of Bathurst with
excellent infrastructure including a mine mill and smelter complex
owned by Xstrata Zinc Canada, paved roads, grid electricity and
communities serving as sources of goods, services and skilled labor
Under Votorantimʹs Option and Joint Venture Agreement with Murray
Brook Minerals and Murray Brook Resources, both privately held
companies, Votorantim can earn a 50% interest in the properties
by funding $2,250,000 in exploration expenditures and making
payments totalling $300,000 over a three year period that commenced
November 1, 2010. Votorantim can earn an additional 20% interest in
the properties by funding an additional $2,250,000 in exploration
expenditures over an additional two year period. ELN has elected
to enter into a participation agreement wherein it can earn 50% of
Votorantim's interest by paying 50% of the costs incurred by
Votorantim in the Option and Joint Venture Agreement.
Figure 1 Murray Brook General Location map
The 2012 summer program of surface
exploration including ground geophysics and property wide
geological mapping, prospecting and sampling outlined further
targets. A full drill program on our Camel Back claims, adjacent
to Murray Brook, is slated for 2013. The presence of favorable
stratigraphy and some untested EM anomalies shows that the Camel
Back block, which is part of the participation agreement between
Votorantim and ELN merits further exploration with the objective
of discovering new deposits in this area.
Figure 2 below illustrates significant composite drill
intercepts from the 2012 drilling program.
On the basis of work completed to date, several important
observations and conclusions can be made:
The program was successful in
confirming the strike and dip of the massive sulfide
mineralization and associated stratigraphy at the Murray Brook
Results of the 2011/2012 programs to
date have been successful in confirming the nature of the
mineralization, with the majority of holes returning higher than
anticipated metal grades; and
Results to date warrant the
completion of a Preliminary Economic Assessment (PEA) study
slated for H1 2013.
Figure 2: Significant Composite
Drill Intercepts from the 2012 Drilling Program
Figure 3- Murray Brook Open Pit
2. Bathurst Option Joint Venture
In May 2010 Xstrata Zinc and El Nino Ventures optioned their large
land position in the Bathurst Mining District to Votorantim Metals
Canada Inc. The BOJV Agreement provided ELN the option to
participate in the Murray Brook Project, and in any new property
acquisition in the Area of Interest.
Under the terms of the agreement Votorantim must expend $10 million
to earn 50% and have an additional option to go to 70% by spending a
total of $20 million. This is an early-stage exploration project and
Votorantim are using leading-edge exploration technologies to
identify new drill targets in a world class VMS mining camp.
Drilling is planned for 2013.
Kasala Copper-Cobalt Project-Democratic Republic of Congo (DRC)
The Company has been focused on the development of several
exploration permits in the Democratic Republic of Congo (DRC). In
2007, 2008 and 2009, the Company completed approximately 12,000
metres of reverse circulation drilling and 5,500 metres of diamond
drill holes on three of the Company's exploration permits.
Management believes that a significant new copper discovery was made
on the Kasala Project with the known mineralized strike length being
traced to 800 metres. Exploration to date has outlined two major
parallel zones east of Kasala which have a combined strike length of
over 3 km. The Kasala project is located only 26km NW from Anvil's
Kinsevere mine, which was sold to Minmetals in Feb. 21, 2012 for
El Niņo's previous drilling discovered high grade mineralization
over mineable widths including:
22 m at 3.28% Cu
29 m at 2.82% Cu
31 m at 2.19% Cu
11 m at 3.68% Cu
In addition, two major parallel zones
identified to the east of Kasala, which together have a combined
strike length of over 3 km.
Unfortunately the Company has been unable to advance its exploration
programs for the past three years as it was forced to respond to a
series of spurious and unsubstantiated claims in the DRC. As well,
the company has filed a series of specific claims against the
previous manager and is proceeding with arbitration in British
Columbia, scheduled for July 2013.
Figure 4- Kasala Project Location Map
The junior exploration sector had
suffered considerably from the recent global economic crisis and
now, a significant downturn specifically in the sectors' ability to
raise exploration funding. However, in 2012 Management was able to
raise sufficient financing to achieve its objectives. To date metal
prices have remained relatively strong and demand is expected to
increase over the next few years We have made significant progress
on both of our Bathurst, New Brunswick projects and would like to
acknowledge the technical assistance we have received from our
partner Votorantim Metals.
For further information on
your Company, please visit our website at
or email us at
On behalf of the Board of
Directors, and your Company's management, I wish to thank you for
your continued support.
Chairman & CEO