Victoria, British Columbia (FSCwire) - Erin Ventures Inc. [TSXV: EV] is pleased to report that it has received exploration license extensions for its wholly-owned Piskanja boron project (3 km2), and for its wholly-owned Jarandol Basin boron property (35 km2), located adjacent to each other in southern Serbia. As a result, Erin is now readying plans to continue the exploration works required to advance its Piskanja project towards feasibility.
Serbia enacted new mining laws in December 2015 to help create a positive environment for future investment in its mining sector. Erin was given the choice to renew its exploration licenses according to the terms of the previous version of the law, or alternatively, renew under the terms of the new version of the mining law. Erin opted to renew under the new version of the law, as there are several significant improvements in it, including:
- Exploration licenses are now issued for an initial 3-year period, followed by 2 extensions of 2 years each (for a total allowed exploration period of 7 years, versus 5 years under the old law).
- The new law repealed an old provision that required a compulsory 25 percent reduction of exploration area during each license extension (now, no reduction in licensed area occurs).
- Exploration license holders are now entitled to submit a request for the preservation of their priority rights for exploitation of the licensed exploration area, in order to prepare the documentation necessary for the government to issue a decision on the approval of an exploitation license. Such a preservation of rights can be for up to three years in the case of boron projects. This is an important change, which is aimed at securing the continuity of rights for the license holders to prospective mining areas through all stages of exploration, development and exploitation.
- In cases of strategic mineral resources such as boron, expropriation of the land required for mining is now permitted.
As a result of Erin opting for its license renewals under the new mining law, Erin’s Piskanja exploration license has now been extended until July 2018 with a further extension permissible at Erin’s option until July 2020, and Erin’s Jarandol license has been extended until April 2018 with a further extension permissible at Erin’s option until April 2020.
In accordance with Serbian law, Erin was required to suspend all exploration activities on both project sites while its license extension applications were being processed. Unfortunately, due to a Serbian national election having been called in December of 2015 when Erin’s licenses were to be renewed, the review process was delayed, setting back Erin’s exploration schedule by approximately six months.
In spite of this unforeseen and unavoidable delay, Erin has been able to continue with certain other required and ongoing studies that will form a part of the Geological Elaborate and Feasibility Study data base for use in an exploitation license application for Piskanja. Such studies include an updated National Instrument 43-101 compliant Mineral Resource Estimate (MRE), which is currently being authored by SRK (UK) Exploration Services Ltd., expected to be published shortly, and is based upon Erin’s 2015 in-fill drill program conducted at Piskanja.
Erin is now readying future exploration plans at Piskanja and Jarandol including: drilling of the final 3 planned infill holes on a 50 by 50 meter grid at Piskanja; several exploratory drill holes to evaluate the potential propagation of ore bodies in the direction of some positive historical Rio Tinto drill results to the western and southern extremities of the Piskanja property; structural drilling with 2 inclined drill holes to aid in a better understanding of the complexities of the tectonics of the deposit; twinning of 7 historical drill holes for reserve calculation and compilation of a metallurgical bulk sample; drill holes along the alignment of the planned decline and main ventilation shaft for geotechnical purposes; ongoing hydrological study; environmental baseline study; seismic testing along 10 to 12 profiles; and, additional exploration drilling at Jarandol.
The ongoing work program at Piskanja and Jarandol is designed to ensure that the project complies with both the Canadian Institute of Mining "Best Practice Guidelines" and Serbian mine licensing and mine development regulations, as well as complying with recommendations made by Erin’s geological consulting firm - SRK Exploration Services Ltd.
On behalf of the Board of Directors, Blake Fallis, General Manager
About Erin Ventures Inc.
Erin Ventures Inc. is an international mineral exploration and development company with boron assets in Serbia and gold assets in North America. Headquartered in Victoria, B.C., Canada, Erin's shares are traded on the TSX Venture Exchange under the symbol "EV". For detailed information please see Erin's website at www.erinventures.com or the Company's filed documents at www.sedar.com.
Erin’s wholly owned Piskanja project is a high-grade boron deposit with a NI 43-101 compliant mineral resource of 5.6 million indicated tonnes (averaging 30.8% B2O3), and 6.2 million inferred tonnes (averaging 28.8% B2O3).
About Boron
- Boron is used in hundreds of products that shape modern life, with new applications developed regularly.
- Commercial deposits of boron are extremely rare with 2 regions containing 80% of the world supply.
- World boron consumption by end-use in 2014: glass 51%; agriculture 14%; ceramics 13%; detergents 3%; other 19%
- A lack of competition in supply helps keep prices stable.
- Boron market is valued at US$2.4B per year (2015), with world production at 2.4 million tons B2O3/yr.
- Boron is an oligopoly with a small group of producers, and two major producers controlling 83% of the market.
- Global consumption is currently matching production, with growth in demand outpacing production growth.
- Price, 2015: US$691 boric acid; US$505 colemanite (Source: Stormcrow – Borate Industry Report 21.04.2015).
The technical information in this release was prepared and approved by James E Wallis, M.Sc. (Eng), P. Eng., a director of the company, who is a Qualified Person under National Instrument 43-101.
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 press release contains or refers to forward-looking information under Canadian securities legislation, including statements regarding the timing of future mineral resource estimates and the PEA, estimation of mineral resources, exploration results, potential mineralization, exploration and mine development plans, timing of the commencement of operations and future production and is based on current expectations that involve a number of business risks and uncertainties. The words "believe," "expect," “feel,” "plan," "anticipate," “project,” “could,” “should” and other similar expressions generally identify forward-looking statements. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to convert estimated mineral resources to reserves, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry, as well as those factors discussed in the section entitled "Risks of the Business" in the Company's most recent regulatory filings which are posted on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by applicable securities law. These and other factors made in public disclosures and filings by the Company should be considered carefully.
