Ownership, Project Stage,
Location, Metals
- The Murray Brook Project is a
large near-surface Copper-Lead-Zinc
PEA stage Project located
approximately 60 kilometres west of
Bathurst, New Brunswick in the
Bathurst Mining Camp
- Murray Brook is road and power
accessible and is within 10
kilometres of the producing Caribou
Mine, owned by Trevali Mining Corp
- ELN owns a 32.1%interest in the
project
- In October 2016, ELN
announced that it was optioning
its minority interest in the
project by entering into an
asset sale agreement with Puma
Exploration in which ELN would
relinquish its 32.1% interest in
the project
ELN/Puma Agreement
- In April 2019, ELN and Puma
amended the terms of the asset sale
agreement described above
- As of April 1, 2019 ELN, had
received $2.1M of the total $3.1 M
owed as per the agreement and is
expecting the final $1M payment on
or before June 30, 2019.
- If Puma does not satisfy the
conditions set forth in the amended
and restated asset purchase
agreement, then ELN shall retain its
32.1% interest in the Murray Brook
Project as well, it will receive the
geological information, reports,
metallurgical tests and the surface
copper zone drill sampling which
represent about $2.4M in exploration
work completed on the Murray Brook
Project since ELN entered into the
original sale agreement with Puma.
Resources/ 2017 Mineral Resource
Estimate Summary
An updated technical report and
Mineral Resource Estimate (MRE) was
completed in 2016. The study evaluated
the viability of an underground mining
operation for the Project.


Based on the results of the 2016 MRE, it
is recommended that the project be
advanced to an underground Preliminary
Economic Assessment study level.

Table 1: Results from the 2017 updated
Mineral Resource Estimate by P&E Mining
Consultants.
2013 PEA Summary
- Murray Brook Project PEA
effective June 4, 2013 by P&E Mining
Consultants
- The PEA evaluated the
feasibility of a conceptual open pit
mining operation. The results of the
study show that Murray Brook has
economic potential for producing
copper, lead and zinc concentrates.
- The study was based on the MRE
below:

Table 2: Results from the 2013
updated Mineral Resource Estimate which
was used in the 2013 PEA.
Unless otherwise noted, all amounts
in this press release are expressed in
Canadian currency. The PEA is prepared
for 100% ownership of the project
revenues and expenditures. As noted
below, ELN holds a 32.1% interest in the
project. The PEA includes Inferred
mineral resources that are considered
too speculative geologically to have the
economic considerations applied to them
that would enable them to be categorized
as mineral reserves, and there is no
certainty that the PEA will be realized.

Table 3: 2013 Murray Brook Project
PEA financial results summary table.
*Total LOM Capital
combines capital for pre-stripping, mine
equipment, surface facility
construction, environmental and
sustaining costs
Metal prices used in the PEA are
based on the April 30,2013 three-year
trailing prices which are listed in
Table 4 below. 2018 trailing average
metal prices have been included in the
table below for illustrative purposes.

Table 4:Metal prices used in the 2013
PEA.
2018 3-year trailing average prices have
been included in this table.
Table 5 below comes from the 2013 PEA
and shows a sensitivity analysis of the
project to zinc price. It shows that the
project performance is very sensitive to
zinc prices.

Table 5:
Sensitivity analysis of the project to
zinc price from the 2013 PEA report by
P&E.
The operation was designed as a 6,000
tpd 10-year life single open pit
operation that would produce
approximately 18.9 million tonnes of
mill feed over the life of mine.
Financial Assumptions and Results

Table 6:Projection of total
operating costs during the Life of Mine,
Murray Brook Project
Capital costs are categorized as
Initial Project Capital and Sustaining
Capital. Initial Project Capital
consists primarily of mining equipment,
process plant and ancillary plant
construction, initial tailing storage,
facility construction, an allowance for
water treatment, and local
infrastructure. Sustaining capital
consists of further additions to mining
equipment during production and
environmental and closure costs.

Table 7:Initial Project and
Sustaining Capital of Murray Brook
Project.
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 and has reviewed and approved the
technical information in this release.
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
Qualified Person as defined by NI43-101.
Murray Brook technical information
and figures on this page were derived
from the news releases titled "Positive
Preliminary Economic Assessment for
Murray Brook Zn-Cu-Pb-Ag Deposit,
Bathurst Mining Camp, New Brunswick
filed on SEDAR" released on June 5,
2013. To access the news release
click here. |