Erin Ventures Inc.
TSX VENTURE : EV

Erin Ventures Inc.

August 31, 2010 08:30 ET

Erin Granted License for Serbian Boron Property

VICTORIA, BRITISH COLUMBIA--(Marketwire - Aug. 31, 2010) - Erin Ventures Inc. (TSX VENTURE:EV) is pleased to report that it has been granted an exploration license for the Piskanja boron deposit in Serbia, by the Serbian Ministry of Mining and Energy. The license covers an area of approximately 3 square kilometres, and includes the entire known historical mineralized area along with a substantial amount of previously unexplored ground. This development signals the return of the entire license area previously held by Erin Ventures.

Under Serbian law, a mineral exploration license is granted exclusively, for a 3 year period (extendable at the request of the license holder). Upon successful completion of the exploration program, the license holder has the sole right to apply for an exploitation (mining) license.

Erin is planning an exploration program on the Piskanja deposit, which has a historical estimate of approximately seven million tonnes grading 39 per cent B2O3 (boron), with a goal of establishing a NI43-101 compliant resource. A Qualified Person has not done sufficient work to classify the historical estimate as a current mineral resource. Additional drilling will be required before this historical estimate could be raised to a resource status. Erin is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.

Discussions are underway with interested potential strategic partners regarding both the development of the project and the eventual sale of boron.

Additionally, Erin is continuing with its US$15 million legal action against EPS (the National Power Corporation of Serbia) regarding alleged breaches by EPS in the now defunct joint venture it formed with Erin in 1997, for the development of the Piskanja property (as reported by Erin in its news release dated June 22, 2009).

Summary of the Piskanja boron property

The Piskanja property has a historical estimate of approximately seven million tonnes of 39 per cent B2O3 (boron) as colemanite and ulexite, based upon historic drill data (some of which was completed by Erin). Evaluation of the drill-hole data by Erin's technical advisers indicates that the Piskanja deposit has the potential of hosting additional significant borate tonnage beyond the historical estimate, based on their observations that the deposit is open both to the south and the east, as the last drill holes ended in mineralization.

Piskanja is located in a historical mining region that has good infrastructure for mining including roads, rail, electric power, experienced miners, support services, etc., 250 km south of Belgrade, Serbia by good paved roads.

About boron

  • Boron is a critically important industrial mineral. World production of boron minerals reached an estimated 4.35 million metric tons in 2008.

  • Market prices reflect the relative scarcity of borates with prices averaging: US$280/t for colemanite concentrate (40-42 percent B2O3); US$500/t for ulexite (40 percent B2O3); US$550/t for boric acid; and US$50/kg for anhydrous borax.

  • Consumption of borates used in high- technical applications is expected to increase by 10% in North America and 13% in Europe by 2012. China is the largest consumer of boron, where consumption has risen by 15 percent per year from 2000 to 2010.

  • 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 per cent of borate consumption, with detergents, fire retardants, metallurgy, agriculture, insecticides, wood preservatives and specialty products accounting for the remainder. 

Source: US Geological Survey, Report on Boron - 2008.

On behalf of the Board of Directors,

Blake Fallis, General Manager

Erin's Public Quotations:
Canada
TSX Venture: EV
USA
SEC 12G3-2(B) #82-4432
OTCBB: ERVFF
Europe
Berlin Stock Exchange: EKV

The technical information in this release was prepared by James E Wallis, M.Sc. (Eng), P. Eng. a consultant to the Corporation, who is a Qualified Person under National Instrument 43-101.

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, which speak only as of their dates. 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 for the continued operations of the Company, 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.

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.

Contact Information

  • Erin Ventures Inc.
    Blake Fallis
    General Manager
    1-250-384-1999 or 1-888-289-3746
    www.erinventures.com