tenure map showing the location of the Murray Brook Project in the
Bathurst Mining Camp, New Brunswick
A new NI 43-101 Mineral Resource Estimate for the Murray Brook polymetallic
massive sulfide deposit was announce on February 28, 2012. The resource estimate
was prepared by P&E Mining Consultants Inc. and G.A.Harron and Associates Inc.
It is based on 60 vertical drill holes, totalling 10,327.5 metres that were
drilled during the 2011 drilling program.
2012 Mineral Resource Estimate
The mineral resources at a US$20 NSR cutoff and explanatory notes are tabulated
in Table 1. The resource estimate is based on various assumptions regarding
mining methods, processing and metal recoveries, payable metal NSR credits and
metal prices. This estimate makes no provision for capital or operating costs to
mine and mill the deposit as resources are not reserves and the reader should
not presume economic viability.
As a further approximation the total metal content can be recalculated as a zinc
equivalent (ZnEq) which would equate to 8.31% ZnEq for the measured plus
indicated resources, and 8.47% ZnEq for the inferred resources, based on the
total NSR value plus the smelting and shipping charges all divided by $14.05
which is the recovered value of 1% Zn.
This new NI43-101 compliant resource estimate, as provided in Table 1 above,
supercedes previous estimates which understated metal grades due to widely
spaced drilling and incomplete metal assays.
The Murray Brook Deposit remains open to the northwest and there is good
potential to increase both tonnes and grade with additional exploration and
infill drilling, respectively.
Contained metal contents as calculated by El Nino Ventures Inc. is summarized
below in Table 2.
Murray Brook Mineral Resource Estimate Summary
Mineral resources which
are not mineral reserves do not have demonstrated
The estimate of mineral resources may be materially
affected by environmental, permitting, legal, title,
taxation, socio-political, marketing, or other relevant
(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
(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
(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
(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.
Table-2 Murray Brook Contained Metal
The Contained metal contents were calculated by Dr.
William Stone, Ph.D., P.Geo. Executive Vice President of
(2) The contained metal contents were calculated using
the $20/t NSR cut-off
Although it was discovered
in 1956, the deposit was not developed until 1989, when
Murray Brook Resources commenced processing of gossan
containing precious metals Au-Ag.
(Not-compliant with NI43-101) of the copper zone were
calculated to 20 Mt grading, 1.4% Zn, 0.3% Cu, 0.6% Pb,
25 g/t Ag and 0.3 g/t Au ( NovaGold Resources Inc.;
Annual report, 1989).
Mine production commenced in
September 1989. From September 1989 to November 1992,
2.7 million tonnes of gossan had been mined. This ore
produced 45,000 ounces of gold and 315,000 ounces of
silver with an average recovery of 85%. The gossan
exploitation ended in 1996.
Figure2 Plan view showing outline of the massive sulphide
deposit (red) projected to surface.
Note the road access and power line.
Votorantim Metals Canada Inc. (Votorantim) is the Operator of the
Murray Brook Project. In January 2011, ELN announced that it
provided notice Votorantim to enter into a Participation Agreement
on the Murray Brook polymetallic massive sulfide deposit situated in
the Bathurst Mining Camp in New Brunswick, Canada. (See news release
dated January 20, 2011).
Under Votorantimʹs Option and Joint Venture
Agreement with Murray Brook Minerals and Murray Brook
Resources, both privately held companies; Votorantim
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
Votorantim and El Nino spent $2.1 million to date
(in 2010-2011) and 2012 budget $3 million with 18,000 meter drill
program under way.
On May 10, 2012 ELN announced that Murray Brook Minerals Inc. has
been given formal notice by ELN and Votorantim Metals Canada
("Votorantim") of a 50% earned interest in the Murray Brook,
polymetalic project, Bathurst, New Brunswick. MBM has also been
provided with a valid notice that ELN and Votorantim are exercising
their option to acquire and become owner of an additional 20% (for a
total of 70%) beneficial interest in the Murray Brook mining claims.
2010-2011 Exploration Programs
The entire program consisted of 60 vertical drill holes, totalling
10,327.5 metres with the ultimate objective of updating the mineral
resources at Murray Brook. Data from the 2011 drilling program has
been delivered to P&E Mining Consultants Inc. (Brampton) Engineering
for an NI43-101 mineral resource update in Q1 2012. Table 1 below
illustrates significant composite drill intercepts from the
2010-2011 drilling program.
On the basis of work completed to date, several important
observations and conclusions can be made:
program was successful in confirming the strike and
dip of the massive sulfide mineralization and
associated stratigraphy at the Murray Brook deposit;
Results of the 2011 drilling program have been
successful in confirming the nature of the
mineralization, with the majority of holes returning
higher than anticipated metal grades; and
deposit remains open to the northwest and there is
good potential to add additional resources with
first phase of the 2011 drill program was completed in
spring/summer 2011 and significant intersections of
zinc, copper, lead, gold and silver were reported. The
second phase of the drilling program was initiated in
September 2011 and the results announced (please see
news releases dated August 30, 2011, November 28, 2011,
January 16th and January 23, 2012).
Significant composited drill intercepts
2012 Exploration Plans
A $3 million budget has been proposed for the
2012-2013 exploration program that includes $2.5 million
budgeted for drilling measured resources at the Murray
Brook deposit and $500,000 exploration program on Murray
Brook and Camel Back exploration claims defined by the
option agreement with Murray Brook Minerals (Figure 3).
The objective of the exploration plan is to search for
large VMS deposits that might occur at depths of up to
150 metres below surface. The area to be explored is
located between the Murray Brook massive sulfide
deposit, which with historic (not NI 43-101 compliant)
resources at 25 million tonnes was the 5th largest in
the Bathurst Mining Camp (BMC), and the nearby Caribou
deposit with total historic resources estimated at 65
2012-2013 Exploration Program is summarized below:
The Murray Brook
Property outside the immediate area of the deposit and Camel Back Property
remain to be explored