NEW BRUNSWICK – El Nino Ventures of Vancouver is in possession of the preliminary economic assessment for its Murray Brook copper-lead-zinc project in the Bathurst mining camp, and the company says not only is it positive but there may be more potential to the property.
The PEA looked at developing an open pit and new 6,000-t/d flotation plant at the site to produce copper-silver, lead-silver and zinc-silver concentrates. The pre-production capital requirement will be $261 million, and over a life of 9.5 years, the total net smelter return revenue is estimated to be $1.25 billion. The projected cash flows indicate an after tax net present value at a 5% discount rate of $96.4 million, an IRR of 11.4%, and a payback period of 5.4 years.
Resources at Murray Brook include 18.71 million measured and indicated tonnes grading 2.48% Zn, 0.42% Cu, 0.90% Pb, 37.9 g/t Ag and 0.53 g/t Au. There is also an inferred portion of 240,000 tonnes grading 1.18% Zn, 1.46% Cu, 0.41% Pb, 24.7 g/t Ag and 0.39 g/t Au.
As for future potential, Harry Barr, El Nino's chairman and CEO, said, "There is excellent potential to further enhance the projected economics of the project, through continued refinements in metal recoveries as well as the potential to augment existing resources by achieving an exploration success on the adjacent Camel Back claims."
The Murray Brook project is owned 35% by El Nino, 35% by Votorantim Metals of Brazil, and 30% by Murray Brook Minerals. Votorantim has agreed to buyout the latter's share for $6 million.
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