February 7, 2005: Vancouver, BC -- El Nino Ventures Inc. (TSX.H: ELN, OTCBB: ELNOF) is pleased to announce that it has recently entered into an Option Agreement whereby it may earn a 100% interest in the Anderson Lake molybdenum property, located in McTavish Township approximately 40 km northeast of Thunder Bay, Ontario. The property comprises 32 mineral claim units and is accessible by paved road and then 3km of ATV trail, and is close to power lines.
Under the terms of the Agreement, El Nino may earn 100% interest in the property by expending $150,000 on exploration and making cash payments of $125,000 over four years, and by issuing a total of 125,000 shares over four years. Cash payments of $20,000 per annum are payable thereafter, to be treated as advance royalty payments deductible from future net smelter royalty (NSR) payments. The agreement is subject to regulatory approval. The vendors retain a three (3%) NSR from future production from the property. El Nino may purchase 2% NSR from the existing royalty for $1 million.
A 1966 report by consulting geologist W.N. Ingham, Ph.D. for Briar Court Mines Limited describes a 1958 -- 59 trenching and bulk sampling program carried out on the property by Lindsay Explorations to evaluate molybdenite showings extending for more than 2000 feet, followed by 18 diamond drill holes (2114 feet). "A 2000 lb bulk sample comprised of twenty bags of 100 lbs of hand cobbed material assayed from 1.41% Mo to 4.63%Mo and average 2.85% Mo. Results of preliminary metallurgical tests on the bulk sample produced a concentrate carrying 94% molybdenite." Molybdenite was intersected in many of the holes and one hole intersected a high grade zone that assayed 16.63% molybdenite for a core length of 7.0 feet. Ingham describes the property as being underlain by " early Precambrian schists and granites---forming a north south contact zone---which is intruded by dykes of pegmatite, one of which is mineralized with molybdenite." The molybdenum mineralization is described as being "opened up by surface pits over a length of 2600 feet." The mineralization occurs mainly as localized high grade concentrations associated with quartz enrichment and as sporadic veins filling zones of fracturing in the pegmatite. These figures have not been verified by El Nino, should not be relied on, and are presented for disclosure purposes only.
No significant exploration has been carried out on the property since this early work, and with the recent substantial increase in the price of molybdenum oxide to more than US$30 pound, El Nino believes this is a very promising property to pursue at this time. The company is currently reviewing the known data relating to the property and plans to carry out a comprehensive field program at the earliest opportunity. This program will include detailed trenching and sampling of the known showings as well as geochemical and geophysical surveys, followed by diamond drilling where warranted, to delineate and expand the previously known mineralized zones and to test the downward extent of the mineralization. The qualified person for this release is John Royall, P.Eng., Business Consultant, El Nino Ventures Inc.
About El Nino Ventures Inc.
El Nino is an exploration stage company engaged in the acquisitions, exploration and development of mineral properties of merit in Canada and the United States with the aim of developing them to a stage where they can be exploited at a profit or to arrange joint ventures whereby other companies provide funding for development and exploitation.
On behalf of the board of directors
Harry Barr, President
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release
This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the British Columbia Securities Commission and the United States Securities & Exchange Commission. This email should not be construed as an offer to buy or sell securities of this company.
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