TORONTO, ONTARIO -- (Marketwire) -- 06/07/11 -- Eurotin Inc. ("Eurotin" or the "Company") (TSX VENTURE: TIN), is pleased to provide the following progress report on its Oropesa tin project, located in southern Spain.
Status of Earn In
The Company's wholly owned subsidiary Minas de Estano de Espana SL ("MESPA") has now satisfied the initial earn in conditions for the Oropesa tin Property (the "Property") by making expenditures of EUR1.5 million (approx.C$2.2 million), thereby earning a 50% interest in the Property. A further 50% interest can be acquired by MESPA by:
(a) either granting the Property owner a 1.35% net smelter royalty; or
paying the Property owner 0.90% of the value of the metal reserves at
the time of feasibility; and
(b) at the time of commercial production, issuing to the Property owner a 4%
equity ownership in MESPA.
Exploration Drilling Campaign
The latest phase of the Oropesa drill campaign has now been completed. This recent phase targeted: i) IP chargeability anomalies (see the Company's press release dated April 18, 2011) outside the known areas of tin mineralisation, and ii) potential strike extensions of the currently known tin mineralisation to the NW and SE.
Within the next 6-10 weeks, the Company expects the arrival at the Property of two reverse circulation drills. The three core drills currently in operation will be used for continuing exploration and the investigation of the deeper sulphide zones. The two reverse circulation drills will be primarily used to investigate the shallower oxide zones. These drills are expected to obtain more representative samples than the core drills in the fractured, often friable, oxide zones.
The arrival of the reverse circulation drills will allow the Company to start the process of resource and reserve definition within the Property's known areas of tin mineralisation while still continuing its planned exploration programs.
The following assay results have been received since the publication of Eurotin's April 18 press release referred to above.
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From Length Est. True
Hole Number Dip & Azimuth (m) To (m) (m) Width (m)
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ORPC-2a 45 degrees @ 005 degrees 12.8 15.6 2.8 approx.1.4
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50.4 52.7 2.1 approx.1.0
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ORPC-B 60 degrees @ 220 degrees 82.7 93.6 10.9 approx.8.3
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101.9 105.6 3.7 approx.2.8
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122.4 138.8 5.6 approx.4.0
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164.0 170.6 7.3 approx.5.6
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184.5 195.6 11.1 approx.8.5
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ORPC-C
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ORPD-2 50 degrees @ 216 degrees 108.0 109.1 1.1 approx. 1.0
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195.0 209.5 14.5 approx.12.6
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215.8 222.4 6.7 approx.5.8
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231.2 237.7 6.5 approx.5.6
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ORPD-3 60 degrees @ 200 degrees 256.8 260.2 3.4 approx.2.6
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ORPD-4 60 degrees @ 200 degrees
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ORPD-5 60 degrees @ 200 degrees 184.0 190.4 6.4 approx.4.9
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ORPD-7 60 degrees @ 200 degrees
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ORPD-11 61 degrees @ 231 degrees 18.4 22.8 4.4 approx.3.3
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183.3 194.2 10.9 approx.8.2
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199.5 213.4 13.9 approx.10.5
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ORPD-12 65 degrees @ 190 degrees 76.3 82.7 6.4 approx.4.5
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95.0 102.6 7.6 approx.5.4
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Copper Silver
Hole Number Tin - Sn (%) Cu (%) Ag (g/t) Comment
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ORPC-2a 0.59% See Note 1
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0.35% See Note 1
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ORPC-B 0.84% 0.44% 16
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0.31%
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0.50%
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0.50%
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0.56%
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ORPC-C NSV
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ORPD-2 1.85% 0.56% 23
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0.67%
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0.23%
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0.23%
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ORPD-3 0.05% 1.04% 44
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ORPD-4 NSV
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ORPD-5 1.03%
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ORPD-7 NSV
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ORPD-11 1.75% See Note 1
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0.32% 0.83% 41
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1.08% 0.33% 22
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ORPD-12 0.23% 0.70% 139 See Note 1
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0.69% 0.15% 15 See Note 1
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Note 1: Oxide Zones - tin mineralisation losses from the drill core in the
oxide zones are often significant.
Note 2: A cut off grade of 0.20% tin has been used, except where there are
significant copper values.
Note 3: There appears to be a reasonably strong association between copper
and silver values.
Note 4: There are currently a further 15 sets of drill core in the assay
pipeline.
Interpretation of the Drill Results
The recent drilling program has determined that sulphide mineralisation, associated with potentially economic tin values, is located within: i) steeply dipping (approx.70 degrees - 75 degrees to the NNE) mineralised structures, ii) the central IP anomalies along a WNW/ESE trend, and iii) host rocks consisting of poorly sorted conglomerates (pebble bands) and lesser amounts of coarse quartzites. There appear to be two principal mineralised zones:
(a) The 'North Zone' - consisting of a single (occasionally two) mineralised
structure, usually with a true thickness of 5-20 metres and containing
potentially economic copper and silver values, in addition to the tin
mineralisation. This zone can be traced WNW-ESE along the entire 1,600
metre strike length of known tin mineralisation.
(b) The 'South Zone' - usually found between 50 and 100 metres SW of the
North Zone and consisting of two to four mineralised structures. The
true thickness of the individual structures varies between 5 and 15
metres, occasionally up to 35 metres. Copper and silver values are
normally low in this zone.
To view the first map pertaining to this release, please visit the following link: http://media3.marketwire.com/docs/TINmap1.jpg
It should be noted that due to the deep weathering profile and a thin cover of soil and screen, no mineralised outcrops have yet been found in the main area of tin mineralisation.
The drilling undertaken over the past few weeks has indicated only the "inner" anomalies, shown on the IP chargeability map (see the Company's April 18th 2011 press release), were significantly mineralised; these inner anomalies are represented by the North and South Zones. Ten of the drill holes, which tested targets with strong IP anomalies similar to those found along the North and South Zones, intersected almost no tin or associated sulphide mineralisation.
Geological Interpretation
MESPA's and IGME's (El Instituto Geologico y Minero de Espana - the equivalent of the Spanish Geological Survey) drills have repeatedly intersected wide tin mineralised structures at Oropesa. The mineralised structures are located within a favourable geological environment (see ensuing schematic) comprising a 2km wide graben, or downthrown block, creating a 'pull apart' structure above a deeply buried granite intrusion that was the likely source of the tin mineralisation. Brittle fracture of the host rocks has provided excellent sites for mineralisation to occur.
Core drilling will continue along the trend of the North and South Zones until the 'boundary faults' are reached. The Company estimates this to be a distance of approximately 400-500 metres to the west and less than 100 metres to the SE.
To view the second map pertaining to this release, please visit the following link: http://media3.marketwire.com/docs/TINmap2.jpg
No evidence of the nearby presence of the granite tin source has yet been found in any drill core. Consequently, the Company believes the tin mineralisation will continue to a vertical depth of many hundreds of metres.
There is evidence of mineralisation to both the east and west of the 'boundary faults', including anomalous tin values in gossans and stream sediment samples.
Peter Miller, President & CEO, commented: "We are very pleased with how Oropesa is developing. It is a highly mineralised and geologically complex property. Drilling will continue to add to the development of a sound geological model with a view to completing a preliminary economic study as soon as possible."
Assay and QA/QC Methodology for Oropesa Drill Core
All core produced is taken daily from each drill site to the Company's secure facility in Fuente Obejuna (previously the IGME facility in Penarroya), where it is logged by the Company's geologists. This process takes place under the supervision of Qualified Person Victor Guerrero Merino, Euro.Geol.
The core, usually of one metre length, which is chosen by the Company's geologists for assaying, is then sent by secure sealed transport to either the IGME facility in Penarroya or ALS Chemex's facility in Seville, where it is cut in half.
At the ALS Chemex facility in Seville the cut core is logged into the in house LIMS tracking system, after which each sample is prepared using procedure code 'Prep 31'. This procedure involves the drying, weighing and fine crushing to 70% passing -2mm. A 250g split of the crushed material is then pulverised to greater than 85% passing 75 microns. Samples are then shipped by bonded courier to Vancouver for analysis.
In Vancouver, ALS Chemex procedure ME-XRF10 is used for tin analysis and ME-ICP61 for multi-element (33) analysis. The ME-XRF10 procedure uses 0.9g of calcined sample pulp, which is mixed with 4.5g of lithium tetraborate and 4.5g of lithium metaborate. This mixture is then fused at 1,100 degrees C to produce a flat molten disc, which is subsequently analysed by XRF spectrometry. ALS Chemex analyses its own standard samples and blanks, plus duplicates, within each set of samples provided by the Company. The Company has recently introduced its own blanks and standards as a further means of checking the accuracy of the assay results. One in every ten samples analysed by ALS Chemex is then sent to SGS Lakefield's laboratories in Canada for check assaying for tin. The Company keeps all its sample pulps and rejects in locked steel containers in its secure storage facility in Fuente Obejuna.
In 2008, the Company conducted a check assay program on a statistically large sample of the IGME drill core and found previous results to be acceptably accurate.
Mr Victor Guerrero Merino, an independent geological consultant and a Qualified Person pursuant to NI 43-101, has reviewed and approved the technical information in this news release on behalf of the Company.
Forward-Looking Statements
Results presented in this press release are exploratory in nature. Historical data, if mentioned, should not be relied upon, as they are not admissible under NI 43-101 rules and the Company has not conducted sufficient testing to verify this type of information. In addition, this press release includes certain forward-looking statements within the meaning of Canadian securities laws that are based on expectations, estimates and projections as of the date of this press release. There can be no assurance that such statements will prove accurate, and actual results and developments are likely to differ, in some case materially, from those expressed or implied by the forward-looking statements contained in this press release. Readers of this press release are cautioned not to place undue reliance on any such forward-looking statements.
Forward-looking statements contained in this press release are based on a number of assumptions that may prove to be incorrect, including, but not limited to: timely implementation of anticipated drilling and exploration programs; the successful completion of new development projects, planned expansions or other projects within the timelines anticipated and at anticipated production levels; the accuracy of reserve and resource estimates, grades, mine life and cash cost estimates; whether mineral resources can be developed; title to mineral properties; financing requirements, general market conditions, and the uncertainty of access to additional capital; changes in the world-wide price of mineral commodities; general economic conditions; the timing of the closing of the Transaction and changes in laws, rules and regulations applicable to the Company. In addition to being subject to a number of assumptions, forward-looking statements in this press release involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to be materially different from those expressed or implied by such forward-looking statements. The Company has no intention, nor obligation, to update the forward-looking statements contained in this press release.
The TSX Venture Exchange Inc. has neither approved, nor disapproved, of the contents of this press release.
Contacts:
Eurotin Inc.
David Danziger
Director
(416) 626-6000
