Victoria, British Columbia CANADA, February 21, 2012 /FSC/ - Erin Ventures Inc. (EV - TSX Venture),is pleased to announce positive assay results from the first two drill holes of its current exploration program on the Piskanja boron project in Serbia. A complete sample package from the next seven drill holes is currently at SGS laboratories, with assay results expected shortly.
Holes EVP2011-100 and 101 are in-fill holes designed to help establish a compliant resource estimate, sufficient to qualify for a mining license. Both holes returned substantial results, intersecting the two known main borate beds containing high-grade borate.
Hole #101 returned a total of 18.9 metres of high-grade borates within the two main beds, including intersections of: 11 metres of 44% B2O3; 2.9 metres of 48.9% B2O3; and 2.8 metres of 43.7% B2O3.
Hole #100 intersected a total of 8.4 metres of high-grade borates within the two main beds, including a 5.7 metre section of 32.7% B2O3 in the lower bed, containing a 1.95 metre interval with 43.6% B2O3.
These results continue to confirm the continuity and extension of the upper and lower borate beds, with bed thicknesses varying from 2 to 6-plus metres. B2O3 values and bed thickness are proving to be consistent with historical drill results. These results continue to support the potential for an economically viable resource. While boundaries of the deposit have been partially defined to the north and east, the deposit remains open to the south and west, indicating a potential to expand the tonnage.
Current Exploration Program Update
Erin is conducting a diamond drill program at Piskanja of HQ and larger diameter vertical core drilling. The program consists of in-fill drilling and the twinning of certain historical holes. Engineering, geohydrology, environmental and other required studies are also underway in conjunction with this drill program, in the anticipation of a mining license application.
The data collected from this ongoing exploration program will be compiled into a geological elaborate that Erin expects to use as the basis for a mining license application, as soon as prudently possible. According to Serbian law, the current "B" and "C1" categorization of the Piskanja resource (the Serbian equivalent of "measured" and "indicated", according to 43-101/CRIRSCO standards) already qualifies the project for a mining license application. However, under Serbian law, the granting of an exploitation license prohibits the continuation of exploration on the licensed area. Therefore, if Erin were to apply for, and be granted a mining license based solely upon the current data, Erin would not be allowed to conduct the addition exploration required in order to develop the project to internationally accepted 43-101 standards.
As the result, management has decided that, prior to submitting a mining license application, it is both prudent and necessary to: upgrade the resource through additional drilling; collect additional essential technical data; and complete required studies prior to mine development, as per 43-101 requirements. By doing so, Erin is assured that its mine development planning and implementation will conform to the highest standards expected by both the international community, and potential strategic partners.
This decision effects the timing of a mining license application, only. Some exploration and development phases will now be conducted prior to the mining license application, instead of after, as originally planned. This decision ultimately does not increase the number of drill holes that Erin was intending to drill, nor does it alter the mine development strategy, cost, or timing, as these events were planned as the logical and required next phases of project development, in any event.
Nine drill holes are currently complete in this phase of exploration, with chemical analysis expected to be completed in the near term. It is anticipated that Erin will drill approximately 20 additional holes in tandem with other exploration works, before proceeding with a mining license application. Erin expects that an application for a mining license will be made during the second half of 2012. Currently, 3 drilling rigs are on site. However, extreme and persistent winter weather has hit the region for nearly a month, causing the suspension of drilling. Barring any further setback due to adverse weather conditions, drilling is expected to re-commence imminently.
Chemical analyses are as follows:
> Results are stated as a percentage concentration
> All measurements are metric
> Chemical analysis was conducted by the SGS Canada Inc in Lakefield, Ontario
> Analytical Methodology: standard chemical analysis using ICP mass spectrometer and X-ray Diffraction
> Location: Piskanja Project, Baljevac, Serbia
> Sample type: HQ size diamond core drilling
> Azimuth/dip: vertical hole, 90 degree dip
> Sample interval is 0.5 metres
Hole Id Interval Thickness B2O3 %
EVP2011-100 123.3-126 2.7 18.6 Average: 2.7m of
234.8-236 1.2 48.0 Average: 5.75m of
236-237 1 48.9 46.3% B2O3
237-237.75 0.75 49.9 Including: 2.95m
239.3-240 0.7 46.4 of 48.9% B2O3 and
240-241 1 44.8 2.8m of
241-242.1 1.1 39.9 43.7% B2O3
Historical data (prepared by, and to, the standards of the Serbian government) states that the Piskanja property has a historical estimate of approximately 7.5 million tonnes, averaging 36 - 39 percent B2O3 (boron). A recently commissioned historical resource calculation by Erin estimated 6,360,369 tonnes, with an average grade of 36.4 percent B2O3 per tonne, based upon 45 drill holes (15,400 metres of core and cuttings). This report classifies the deposit in a "B" and "C1" resource category (the Serbian equivalent of "measured" and "indicated", according to 43-101/CRIRSCO standards), and states the strong likelihood that the resource is larger than the stated estimate.
Lithology is typical of sedimentary basins, (primarily shales, marls and limestone) with two primary gently undulating borate beds. Mineralization is primarily dense, compact colemanite with some ulexite. The Piskanja deposit has the potential of hosting additional significant borate tonnage beyond the historical estimates, based on the ongoing compilation of assay data showing other zones of possible borate mineralization. A Qualified Person has not done sufficient work to classify the historical estimate as a current mineral resource. Erin is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.
Piskanja is located in a historical mining region that has good infrastructure for mining including roads, rail, electric power, experienced miners, and support services. The site is approximately 250 km south of Belgrade, Serbia by good paved roads.
* Boron is a critically important industrial mineral. World production of boron minerals reached an estimated 4.5 million tons in 2010.
* Consumption of borates is expected to increase, spurred by strong demand in the Asian and South American agriculture, ceramic and glass markets.
* Borate minerals and refined borate products are used extensively worldwide in the manufacture of vitreous products such as fiberglass insulation, textile fiberglass, borosilicate glass (e.g. LCD screens), ceramic glazes and porcelain enamels. These applications account for approximately 60 percent of borate consumption, with detergents, fire retardants, metallurgy, agriculture, insecticides, wood preservatives and specialty products accounting for the remainder.
Sources: US Geological Survey, Minerals Yearbook - Boron, 2010
* Market prices reflect both the relative scarcity of borates and strengthening demand, with current prices for new South American contracts reaching highs of: US$730/tonne for colemanite (40 percent B2O3); US$697/tonne for ulexite (40 percent B2O3); US$1309/tonne for boric acid.
Source: Industrial Minerals Online. February, 2012
On behalf of the Board of Directors,
Blake Fallis, General Manager
The technical information in this release was prepared and approved by James E Wallis, M.Sc. (Eng), P. Eng., a consultant to the company, who is a Qualified Person under National Instrument 43-101.
For further information, please contact: Erin's Public Quotations
Erin Ventures Inc. Canada
Blake Fallis, General Manager TSX Venture: EV
Phone: 1-250- 384-1999 or 1-888-289-3746 USA
www.erinventures.com SEC 12G3-2(B) #82-4432
Berlin Stock Exchange: EKV
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements: This release contains forward looking statements. The words "believe," "expect," "feel," "plan," "anticipate," "project," "could," "should" and other similar expressions generally identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties including, without limitation, variations in estimated costs, the failure to discover or recover economic grades of minerals, and the inability to raise the funds necessary, changes in external market factors including commodity prices, and other risks and uncertainties. Actual results could differ materially from the results referred to in the forward-looking statements.
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