Victoria, British Columbia CANADA, March 20, 2012 /FSC/ - Erin Ventures Inc. (EV - TSX Venture),announces continuing positive assay results from the next three drill holes from its Piskanja boron project in Serbia.
Holes EVP2011-102 through 104 are in-fill holes designed to help establish a compliant resource estimate, sufficient to qualify for a mining license. The three holes returned significant results, intersecting the two known main borate beds containing high-grade borate.
Hole #102 returned a total of 14.3 metres of high-grade borates averaging 36.2 percent B2O3 within the two main beds, including a 5.8 metre intersection (the upper bed) averaging 39.6 percent B2O3, and a mineralized zone of 8.5 metres (the lower bed) averaging 34 percent B2O3, including a 5 metre section of 42.7 percent B2O3.
Hole #103 intersected a continuous layer of 8.4 metres of high-grade borates averaging 35.5 percent B2O3, including a 6.6 metre section of 42 percent B2O3.
Hole #104 intersected a total of 19 metres of high-grade borates averaging 39.7 percent B2O3 within three beds, including a 9.5 metre section of 41.9 percent B2O3, and a 6.5 metre section of 43.9 percent B2O3.
These results continue to confirm the continuity 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. The deposit remains open to the south and west, indicating a potential to expand the known mineralized zone.
"These results are significant. To put them in perspective, the Turkish borate reserves (the world's largest and most commercially successful) average about 26% to 31% B2O3*, and have a comparable mineral composition to Piskanja" said Jim Wallis, Project Manager for Erin Ventures.
*Source: U.S. Geological Survey Minerals Yearbook - 2010
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. Twelve drill holes (approx 4,000 metres) are complete to date, in this phase of exploration, with three drilling rigs on site working 'around the clock', capable of drilling approximately 3,000 metres per month collectively. The data collected from this 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. Engineering, geohydrology, petrology, geotechnics, environmental and other required studies are also underway in conjunction with this drill program, to ensure that the mine development planning and implementation will conform to 43-101 requirements.
A complete sample package from the next four drill holes (#105 to 108, inclusive) is currently at SGS Canada Inc for analysis, and the company awaits the results. Additionally, holes #109, 110 and 111 are complete, with cores being prepared for delivery to SGS in Lakefield Ontario. Drilling is presently underway on holes #112, 113 and 114.
Chemical analyses are conducted 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 (Aqua Regia and KOH Fusion and/or Titration)
> 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
Two recent studies, based upon 45 historical drill holes (15,400 metres of core and cuttings), estimate the historical resource at approximately 6.4 million tonnes with an average grade of 36 percent B2O3 per tonne. These reports classified the resource in a "B" and "C1" resource category (the Serbian equivalent of "measured" and "indicated", according to 43-101/CRIRSCO standards), and state the potential for the resource to exceed the current known size. This is a 'historical resource estimate' by definition, that does not comply with NI 43-101. Erin considers this estimate to be reliable partly because: it is based, in part, on work previously conducted by Erin itself; because it is based, in part, on work recently conducted (2006 to 2009) by Rio Tinto for which all relevant data including all drill core is available to Erin; and it is considered to be highly relevant to current operations. A Qualified Person has not done sufficient work to classify the estimate as current mineral resources or reserves. Erin is not treating this historical estimate as such, and the historical estimate should not be relied upon.
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.
Source: 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. Feb. 2012
* Due to healthy demand (particularly in Asia) and a tightening supply by 2013, boron prices are expected to increase by 40-45% by 2014-15
Source: Asian Ceramics, Feb. 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 Ventures Inc.
Blake Fallis, General Manager
Phone: 1-250- 384-1999 or 1-888-289-3746
Erin's Public Quotations
TSX Venture: EV 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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Source: Erin Ventures Inc. (EV - TSX-V) http://www.erinventures.com
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