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One of the most
interesting companies within the International Metals
Group (IMG) is Vancouver-based El Nino Ventures
with its widely diversified roster of projects
including the polymetallic Bathurst Mining Camp
properties in New Brunswick, Canada and their
copper/cobalt development-stage holdings in the
Democratic Republic of Congo (DRC) in Africa.
IMG itself is an
‘umbrella’ organization under which several companies
operate with the chief benefits coming from a sharing of
expertise relating to project acquisition, exploration
and development of resource properties. IMG’s staff
includes CEOs, geologists, corporate finance and
investor relations experts, corporate managers, public
company administrators, as well as regulatory and
government affairs specialists. By being able to share
these resources, El Nino is able to obtain a significant
advantage in terms of resources, costs and expertise
when compared to individual public companies.
El Nino’s focus
has been divided over the past year between aggressively
advancing their interests in the New Brunswick projects
while at the same time carrying on legal actions to
protect their interests in the DRC in relation to the
Kasala Project. As a result of these efforts, in late
February 2012 El Nino was able to publish an Initial NI
43-101 Mineral Resource Estimate for the Murray Brook
Zn-Cu-Pb-Ag-Au Deposit (see below).
BATHURST MINING CAMP PROJECTS
The Bathurst
Mining Camp (BMC) zinc project is a joint venture
project comprised of 1,805 claims of which 50% are owned
by El Nino and 50% owned by mining giant, Xstrata; plus
another 2,907 claims owned 100% by Xstrata. In
addition, there is yet another Area of Interest where
ELN and Xstrata hold equal interest.
A third entity,
Votorantim Metals, Inc., can earn a 50% interest in the
joint venture by expending $10 million over a five-year
period and is entitled to earn an additional 20%,
thereby raising its interest to 70%, by spending an
additional $10 million over two further years.
Earlier drill
programs at the BMC Zinc project delineated historical
deposits of lead, zinc and copper mineralization located
within the 1805 claims in which ELN holds their shared
interest with Xstrata.
A $5 million
exploration/works program was completed during 2011
which included a HeliTEM geophysical survey looking for
conductors; ground EM and ground gravity surveys; soil
geochemistry surveys (MMI); drilling and borehole
surveys and a Falcon airborne gravity survey (AGG).
Based on the
interpretation of results from this work, drill programs
are in the planning stage to test key compelling targets
in 2012.
It is also worth
noting that the BMC itself consists of an area which has
witnessed the building of a $1 billion infrastructure
and is home to the largest underground zinc mining
operation in North America, the “Number 12” deposit
containing nearly 295 million tons of massive sulphides
and which is operating at the rate of 10,000 tons per
day.
El Nino’s other
area of interest in New Brunswick is a joint venture
with Votorantim Metals (VM), known as the Murray
Brook Project where past production by previous
owner Nova Gold from 1989 through 1992 included 1,384
kgs of gold and 9,829 kgs of silver. Nova Gold also
completed a non-compliant historic resource estimate at
Murray Brook which included 20.2 million tons grading
1.4% Zn, 0.3% Cu. 0.6% Pb, 25 g/t Ag and 0.3 g/t Au. A
copper-rich zone within this deposit contains an
estimated 2.087 million tons grading 2.0% Cu, 1.1% Zn,
0.4% Pb, 46 g/t Ag, and 0.3 g/t Au. Under the
provisions of NI 43-101 insufficient work has been
carried out to classify any of the historic occurrences
as current mineral resources and these historic
references should not be relied upon.
El Nino's new
Resource Estimate shows "Measured and Indicated (M&I)
resources of 18,684,000 tonnes grading 0.42% Cu; 0.95%
Pb; 2.61% Zn; 0.51 g/t Au and 39.3 g/t Ag. In addition,
the Resource Estimate also identified Inferred resources
of 3,021,000 tonnes grading 0.62% Cu; 0.75% Pb; 1.83%
Zn; 0.75 g/t Au and 35.0 g/t Ag.
Assays from a
three-hole 595 meter due diligence drill program
designed to verify historic information showed results
including 9.56% zinc, 3.39% lead, 122.1 g/t Ag, 0.10 g/t
au and 0.47% Cu over 27.00 meters (88.56 feet) at Hole
MB-10-16.
That initial 'due
diligence'; program was followed up in 2011 by a 60
hole, 10,327 meter in-fill drill program designed to
discover higher grades and also to upgrade resources
from 'Inferred' to 'Indicated'. Another goal of the
drill program was to complete a new NI 43-101 Resource
Estimate in early 2012. Assays from the 2011 program
included Hole MB-2011-09 which returned 0.12% Cu; 3.07%
Pb; 9.06% Zn; 0.55 g/t Au and 129 g/t Ag over 14.35
meters.
Plans for 2012 at
Murray Brook include completion the new NI 43-101
Resource Estimate; additional drill programs to move
resources into the "Measured" category plus additional
mapping, prospecting, ground gravity geophysics,
metallurgical studies and a 2000 meter borehole EM
survey program. Later goals include a Preliminary
Economic Assessment (PEA) in 2013 and completion of a
Feasibility Study in 2015.
Murray Brook is
located approximately 60 Km west of Bathurst, NB and
infrastructure includes a gravel road leading into the
property, nearby electricity grid plus goods as well as
services and personnel located in nearby communities.
KASALA COPPER PROJECT, DRC
At long last, ELN
was able to report in April 2011 that courts in the DRC
had ruled in favour of the company in its dispute to
gain clear rights to its Kasala Copper project.
However, the defendants in the case have appealed the
court's judgement and the company anticipates that
appeal will be dismissed in early 2012. In the
meantime, El Nino is using a legal technique known as
"Force Majeure" to protect its Kasala permits.
Kasala is located
in Katanga Province of the DRC, approximately 70 Km NW
of Lubumbashi, the country’s 2nd largest
city, lying at the heart of their massive cobalt/copper
mining industry. The Central African Copperbelt
contains over 10% of the world’s copper and 34% of the
world’s cobalt. Kasala is located adjacent to Anvil
Mining’s Kinsevere Mine which is expected to produce 52
million pounds of copper annually over the next 20
years.
Major mining
companies active in the area include Tiger Resources,
Freeport-McMoran, Lundin Mining, Quantum Minerals,
Katanga Mining, Ivanhoe Nickel & Platinum and Konkola
Copper Mines. Project infrastructure includes lying
within20 Km of the national highway, within 30 Km of
railway services and nearby high-tension electric
transmission lines.
A recent drill
program identified consistent mineralization over large
widths from 50 to 91 meters and highlighted high-grade
intercepts which included 22 m @ 3.28% Cu; 29 M @ 2.82%
Cu; 31 m @ 2.19% Cu and 11 m @ 3.68% Cu.
Once all legal
issues are finally resolved, the company plans a
geophysics and geochemistry program for 2012 involving
data and geological map searching; a new high-resolution
geophysics survey and new geochemistry surveys to be
followed by analysis of assay data, drill target
definition and follow-up drill programs and, ultimately,
resource drilling, project development and eventual mine
production.
El Nino’s
management team is headed by Harry Barr, Chairman and
CEO; Jay Oness, COO; Dr. Bill Stone, Executive VP -
Exploration; Ali H. Alizadeh, Senior Geologist and Scott
Donaldson, VP - Business Development..
Additional
information is available at the company website,
www.elninoventures.com or
by contacting Investor Relations at
info@elninoventures.com.
Interview of Mr. Harry Barr by
Dale Jackson of Corporate Profile Minute
NOTE: This report will be updated as new
information is provided and also
following a property visit which
will be scheduled at the earliest
opportunity.
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