There was a good article by Peter Kennedy in today's Stockhouse "Movers and Shakers" focussing on El Nino. The article summarizes El Nino's JV exploration operations in New Brunswick. Of note, it states that results from the Bathurst Mining Camp Project are due as early as next week.
Have a good evening.
The Bathurst area is seeing a flurry of activity as El Nino, Trevali and others move to take advantage of established smelting facilities and related infrastructure.
The fabled Bathurst mining camp in New Brunswick continues to attract attention, even as Xstrata Inc. of Switzerland prepares to close its Brunswick No. 12 zinc mine after 48 years of production.
El Nino Ventures Inc. (TSX: V.ELN, Stock Forum) kicked off its marketing campaign Monday for a $3 million financing that aims to fund base metals exploration in the Bathurst region.
Speaking to brokers in Vancouver, El Nino Chairman and Chief Executive Officer Harry Barr said the company has already closed the first $1.39 million tranche and will seek to raise the balance over the next few weeks by speaking to potential investors in western Canada and Europe.
Proceeds will be used to fund part of the 2012 and 2013 exploration budget at the Murray Brook base metals property, which El Nino is exploring in a joint venture with project operator Votorantim Metals Canada Inc., a subsidiary of Brazilian metals giant Votorantim Metais.
By the time the program is complete, it will have cost $6 million, a company official said.
Murray Brook is a polymetallic massive sulphide project
located about 60 kilometres west of Bathurst in an area that is being revived as new players move in to replace established operations, such as Brunswick No. 12, which came into production in 1964.
After starting up the Halfmile polymetallic mine earlier this year, Trevali Mining Corp. (TSX: T.TV, Stock Forum), is working to reactivate the nearby Caribou mill and mine complex, in a move to confirm its status as an up-and-coming zinc producer.
The Caribou mine operated for approximately 13 months prior to going into receivership in 2008 as a result of depressed commodity prices and adverse financial conditions.
Last month, Trevali said it had arranged US$60 million in debt financing, with part of the proceeds earmarked for underground development at Caribou.
An 8%-owned affiliate of Swiss metals giant Glencore International Plc, Trevali is taking advantage of local infrastructure, including roads and railways, which is available as a result of decades of mining and processing activity.
For its part, El Nino is hoping that Murray Brook can also be revived as an open pit mine.
The junior and Votorantim (VMC) currently own 70% of the project and have the right to acquire the remaining 30%, a move that would leave the companies as equal partners.
In late February, El Nino released a 43-101-compliant resource estimate for the project.
It said measured and indicated resources currently stand at 18.6 million tonnes, grading 2.61% lead, 0.42% copper, 39.3 grams per tonne silver and 0.51 gpt gold at a $20 per-tonne net smelter return cutoff.
In addition, inferred resources stand at 3 million tonnes grading 1.83% zinc, 0.75% lead, 0.62% copper, 35 gpt silver and 0.75 gpt gold at a $20 per tonne NSR cutoff.
The company said the Murray Brook deposit remains open to the northwest and resources outlined so far can be increased with continued drilling.
Exploration planned for 2012 and 2013 includes $2.5 million worth of drilling, and a further $500,000 for exploration, comprised of mapping, geophysics, metallurgical studies and a Preliminary Economic Assessment (PEA).
The company said an updated 43-101-compliant resource estimate, combined with 2012 drill results will form the basis of the PEA, which is scheduled for completion in the first quarter of 2013.
Should the PEA prove positive, it is expected that the project will enter the prefeasibility stage soon after.
Aside from Murray Brook, El Nino is part of a tri-party agreement with Votorantim and Xstrata on another Bathurst area project covering 4,712 claims.
Exploration on the Bathurst Mining Camp Project is being funded by Votorantim, which is spending $10 million in a bid to earn a 50% project stake. The aim of the partnership is to use advanced exploration techniques to identify previously undiscovered mineral deposits.
Exploration results are due to be released as early as next week.
Meanwhile, El Nino issued an early warning release on October 5, 2012 saying that when the first tranche of the financing closed, Pacific North West Capital Corp. (TSX: T.PFN, Stock Forum) had scooped up 2.2 million shares and 1.1 million warrants at 9 cents and 10 cents per unit respectively.
The company also announced that as a result of being a director of PFN, Harry Barr and the board now exercise voting control over 5.5 million El Nino shares that are held by PFN.
Due to the extent of Barr’s personal holdings and those of PFN’s, Barr maintains ownership of, and/or control and direction over 9.3 million shares or 12.8% of El Nino’s outstanding shares, and 13.9 million or 14.8% of the 94 million fully diluted shares.
Trading at 7.5 cents, El Nino has a market cap of $5.5 million, based on 73.4 million shares outstanding. The 52-week range is 18 cents and 7 cents.
Readers please note: in the picture above is Harry Barr (right) with Brian Windatt, head of investor relations at International Metals Group.
Read more at http://www.stockhouse.com/natural-resources-news/2012/oct/15/el-nino-puts-focus-on-new-brunswick-camp--movers--.aspx#1ZL6oWZKslHDHWWt.99