Chairman's Message

ELN Chairman's Message April 2013

April 2013

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).
 

Accomplishments

 

Harry Barr
Chairman & CEO

  1. 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)

  2. Completed 2011, 2012 and 2013 exploration programs including more than 28,000 metres of drilling on Murray Brook.

  3. 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.

  4. First Phase Metallurgical testing completed, Second Phase in progress on Murray Brook (see press release January 16th, 2013).

  5. Preliminary Economic Assessment slated for H1 2013.

  6. 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 Brook.

  7. 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 October 23, 2012)

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.

  1. 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.

  2. 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

  3. 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.

  4. Overall payable metal in the NSR calculation were 81% Cu, 72% Pb, 64% Zn, 71% Au and 56% Ag.

  5. 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.

  6. 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.

  7. The Murray Brook Mineral Resource Estimate was undertaken by Eugene Puritch, P.Eng. of P&E Mining Consultants Inc.

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 pools.

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:

  1. The program was successful in confirming the strike and dip of the massive sulfide mineralization and associated stratigraphy at the Murray Brook deposit; and

  2. 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

  3. 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 Agreement (BOJV)

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 $1.3 Billion.

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 www.elniņoventures.com or email us at info@elninoventures.com.

 On behalf of the Board of Directors, and your Company's management, I wish to thank you for your continued support.

Yours sincerely,

 "Harry Barr'"

Harry Barr
Chairman & CEO