El Nino (ELN) is a gold and base metals exploration company
The Murray Brook Project is the largest NI43-101 compliant mineral resources in the Bathurst Mining Camp. Murray Brook is a joint venture project owned 32.1% by ELN and 67.9% by Votorantim Metals Canada (VMC), the Canadian subsidiary of Votorantim (2nd largest mineral resource company in Brazil, with business interests in more than 20 countries). VMC is the Project Operator.
To date, ELN has invested approximately $3.5 million in exploration expenditures since 2010. In 2011, ELN and VMC spent $2.1 million on exploration and completed 10,000 metres of drilling. Drill results formed the basis of the first NI43-101 compliant mineral resource estimation for the Murray Brook deposit, which was announced on February 28, 2012. The exploration and development program for 2012 consisted of an additional 18,500 meters of drilling on the Murray Brook deposit, metallurgical studies of drill core material from the deposit, and exploration on the adjacent Camel Back property, which is included in the Murray Brook Joint Venture. VMC and ELN released a positive Preliminary Economic Assessment (PEA or Scoping Study) in June 2013. The PEA was prepared by P&E Mining Consultants Inc., a leading independent consulting firm based in Brampton, Ontario. The results (see Table 1 below) demonstrate the potential technical and economic viability of establishing a new open pit mine and mill complex on the Murray Brook property.
Table 1 -- Murray Brook After-Tax Financial Results Summary
The financial summary is based on a mill throughput of 6000 tonnes of ore per
day (or 2Mt/year) and a Life of Mine of 9.5 years.
The PEA is based on an updated NI 43-101 Mineral Resource Estimation (see Table 2 below).
|Chairman's Message Fall 2020|
|Slide Presentation Summer 2020|
Murray Brook NI
Preliminary Economic Assessment July 2013
Murray Brook Metallurgical
The PEA is based on an updated NI 43-101 Mineral Resource Estimation (see Table
Table 2 - Murray Brook In-Pit Mineral Resource Estimate at C$21/T NSR Cut-Off -- Effective June 4, 2013
* Murray Brook's 2013 PEA is preliminary in nature and its mineable tonnage includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the preliminary assessment will be realized. Mineral Resources that are not mineral reserves do not have demonstrated economic viability.
The mineral resource estimation incorporates metal price, foreign exchange and NSR calculation as follows:
• 3-year trailing average metal prices (US$) as of January 31, 2013: Copper $3.68/lb, Lead $1/lb, Zinc $0.95/lb, Gold $1500/oz, Silver $29/oz.
• Exchange Rate (US$/C$): 1.00
• NSR = (Cu% x 38.54 + Pb% x9.13 + Zn% x 15.81 + Ag g/t x 0.44 + Au g/t x 0.0) -- 11.43
Option-Sale Agreement with Puma Exploration
The Company decided to sell, by way of option, the Company's Minority Interest, in our Joint Venture, with Votorantim Metals Canada Inc., more specifically our interest in the Murray Brook Polymetallic Project.
By mutual agreement on July 31, 2020 El Niño Ventures Inc. and Puma Exploration Inc. ("Puma") agreed to terminate the asset purchase agreement. Over the term of the asset purchase agreement, ELN received approximately C$2.1M, 1.1 million shares of Puma (+500,000 warrants), and a 0.67% NSR Royalty Interest in the entire Murray Brook Project.
ELN also received the value of approximately C$2.4M worth of exploration expenditures spent by Puma during the term of the asset purchase agreement on the project, and all of its 32.1% interest in the Murray Brook Project was returned to ELN.
ELN had an existing NSR Royalty Interest in the project which is a laddered Net Smelter Return on Production (NSR), starting at 0.25%, at a Zinc price of US$1.04/lb. and increasing, in increments of 0.25%, to a maximum of 1.75% above US$1.50/lb. Zn, in relation to 32.1% of the production from the Murray Brook Property, which 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. As of August 6, 2020, the price of zinc was US$1.08 per pound.
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