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Exploration Update: On Gold Projects, Great Northern Peninsula of Newfoundland and Labrador
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ELN News Sep 19 2018
 


September 19, 2018 Rockport, Canada -- El Nino Ventures (ELN or the Company) (TSX.V: ELN; OTCQB: ELNOF; FSE: E7Q).

Mr. Harry Barr Chairman/CEO stated: "We are pleased to be in the field conducting phase 1 of our prospecting, and surface mapping program on our 3 gold properties in the Great Northern Peninsula in Newfoundland Labrador. Fred Keats, a well-known Canadian prospector, is heading up this program on our three 100% Newfoundland projects.

Fall Prospecting Program:

The main focus of our summer/fall program is to complete the following:

  1. Review of historical government records and geological occurrences on the projects,
  2. Ground proof existing and newly identified mineral occurrences.
  3. Prospect, sample and/or channel sample the occurrences.
  4. Identify stream sediment anomalies. Once the stream sediments are identified prospecting will focus in these areas.
  5. The second phase of exploration after identifying metal targets will involve soil geochemistry, channel sampling and/or ground geophysics.
  6. The overall objective of the above program is to identify precious metal drill targets.


Newfoundland Gold Projects

In the first quarter of 2018 ELN acquired three gold projects in the Great Northern Peninsula of Newfoundland (Figure 1). The claims were staked to follow up on the new Gunner Cove gold discovery of White Metal Resources. For more information on the Gunner Cover gold discovery please see news releases from White Metal Resources dated September 5, 2018 and August 24, 2018.

Figure 1 (Left): El Nino Venture Gold Projects -- Great Northern Peninsula, Newfoundland and Labrador.
Figure 2 (Right): Claim Distribution map in the St. Anthony's area of Newfoundland and Labrador.
 

El Nino's three gold projects are situated around the city of St. Anthony and northward (Figure 2 above), covering approximately 22 kilometers of favorable geology, similar to that being encountered on the Gunners Cove Project to the east and north of the company's three gold projects. The projects consist of 218 claim units for approximately 18,980 hectares (approximately 46,900 Acres). ELN is currently seeking option/joint venture partners on one or more of the above-mentioned projects.

El Nino Go-Forward Plan

Mr. Harry Barr, Chairman and CEO, stated:
"Outside of the exploration and development activities on our existing projects, El Nino's management team is working on a plan which would include innovative ways to move the Company forward. To that end, the Company plans to add to its director base and form an advisory committee with individuals that have diversified backgrounds in multiple industries including mining, oil and gas, alternative energy, diversified industrial projects, real estate, technology, alternative medicine and communications. The Company is currently evaluating additional investments and projects within the mining industry and management may also consider investments outside of the mining industry, which may or may not require shareholder, director, and regulatory approval."

About El Nino Ventures Inc.

El Nino Ventures Inc. (ELN) has in the past years been an International Base Metals exploration company with its focus being on the Murray Brook Project in the Bathurst region of New Brunswick, Canada. ELN signed an option to purchase agreement regarding the sale of its interest on this project (News Release: Oct 13th, 2016) with Puma Explorations for $3.1 million dollars. In May 2018 ELN received the second cash payment of $1,500,000 from Trevali Mining Corporation, a mid-tier zinc, base metal company who Puma signed a funding agreement with and El Nino acknowledged that agreement.

The 3rd and final payment of an additional 1 million (total 3.1 million) is due by May 10, 2019. In addition, a royalty, net smelter return (NSR) for the life of the project will be paid to ELN as outlined below.

  1. The NSR will start at 0.25% at a zinc price of US$1.04/lb and will increase in increments of 0.25%, to a maximum of 1.75% above US$1.50/lb Zinc.
  2. This NSR, which is in relation to approximately 32% of the production from the Murray Brook Property, and includes the Mining Lease and the Camel Back claims, for the life of the Murray Brook deposit and any new discovery made on the total project.
  3. On September 13, 2018 the price of Zinc was $1.07/lb USD according to Kitco.

El Nino has 2,000,000 warrants of Puma and the terms of the warrant are as follows: El Nino will be given the right to buy 2,000,000 warrants of Puma's ordinary shares (the warrants) expiring 3 years after the closing of the transaction based on the following exercise prices:

  1. 0 to Year 1 (Nov 15, 2017): Equal to the price of the acquisition equity financing;
  2. Year 1 to Year 2 (Nov 15, 2018): a 20% premium to the price indicated in 1) above; and
  3. Year 2 to Year 3: a 20% premium to the price indicated in 2) above.

In the event Puma/Trevali do not complete the final option payment to acquire ELN's interest, ELN will receive its entire interest in the Murray Brook project, back in good standing. Outside of investigating new innovative ways to move ELN's business plan forward, the Company also has an aggressive mineral acquisition program underway with a focus on gold and base metal projects that are a mix of grass roots, brownfields and advanced stage projects as previously outlined in this release. The Company plans to use the Prospector Generator Model which reduces risk, share dilution and increases discovery potential.

QUALIFIED PERSON

The contents contained herein that relate to Exploration Results or Mineral Resources is based on information compiled, reviewed or prepared by Carey Galeschuk, a consulting geoscientist for New Age Metals. Mr. Galeschuk is the Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical content of this news release with regard to technical aspects of the 3 Gold projects.

On behalf of the board of director I would like to thank you our shareholders and other interested parties for your ongoing support.

For more information on the Company please go to http://www.elninoventures.com/ to opt-in.


On Behalf of the Board of Directors

"Harry Barr"

Harry Barr
Chairman & CEO
El Nino Ventures Inc.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward Looking Statements: This release contains forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results and are based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. In addition, forward looking statements include statements in which the Company uses words such as "continue", "efforts", "expect", "believe", "anticipate", "confident", "intend", "strategy", "plan", "will", "estimate", "project", "goal", "target", "prospects", "optimistic" or similar expressions. These statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the Company's ability and continuation of efforts to timely and completely make available adequate current public information, additional or different regulatory and legal requirements and restrictions that may be imposed, and other factors as may be discussed in the documents filed by the Company on SEDAR (www.sedar.com), including the most recent reports that identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The Company does not undertake any obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Investors should not place undue reliance on forward looking statements.
 



 

 
 

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