Eurotin Inc.
TSX VENTURE : TIN

Eurotin Inc.

February 20, 2013 08:00 ET

Eurotin Announces Positive New Geological Interpretation at Its Oropesa Tin Project in Spain

TORONTO, ONTARIO--(Marketwire - Feb. 20, 2013) - Eurotin Inc. ("Eurotin" or the "Company") (TSX VENTURE:TIN), is pleased to provide the following update for its Oropesa tin project located in southern Spain, which includes an important new geological interpretation of its mineralized zones. The new interpretation was developed subsequent to the Company's first mineral resource estimate (prepared in accordance with National Instrument 43-101) discussed below.

The 2011/2012 Oropesa Drill Program

By the end of 2012, the Company had completed Phase 1 of its drill program of 211 core holes at Oropesa, totalling 45,466 metres. A summary of the drill results is shown below:

Phase 1: Averages of All Drill Intercepts - See Appendix for Full Details*

Cutoff Grade No. of
Intercepts
Av.
Thickness (m)
Total
Length (m)
Av. Tin
Grade (%)
0.20% Sn 229 11.2 2,553.4 0.59 %
0.35% Sn 191 5.9 1,016.3 0.97 %
0.50% Sn 192 4.5 866.0 1.17 %
* The above results exclude 5 holes which were drilled NNE 'down structure', including ORPC 2, which reported an intercept of 106.1m @ 1.73% Sn.

Approximately 95% of the above intercepts occurred at vertical depths of less than 180 metres and represent tin mineralization that can potentially be mined through the use of low cost, open pit methods.

The Company reported its first resource on October 9, 2012 (the "2012 Resource Estimate"), as shown below:

Indicated Inferred
Cutoff
(Sn%)
Tonnes Av Grade
(Sn%)
Tonnes
Sn
Tonnes Av Grade
(Sn%)
Tonnes
Sn
0.00 9,618,659 0.30 28,856 9,404,765 0.25 23,512
0.10 8,988,898 0.32 28,764 8,796,510 0.26 22,871
0.20 6,391,691 0.38 24,288 5,348,616 0.34 18,185
0.30 3,246,953 0.51 16,559 2,539,685 0.43 10,921
0.40 1,837,934 0.64 11,763 1,134,454 0.54 6,126
0.50 1,199,010 0.75 8,993 524,825 0.65 3,411
0.60 757,148 0.86 6,511 303,845 0.72 2,188
0.70 510,289 0.97 4,950 126,388 0.82 1,036
0.80 339,296 1.08 3,664 62,736 0.90 565
0.90 229,159 1.19 2,727 17,521 1.05 184
1.00 153,141 1.31 2,006 8,449 1.18 100
* The Mineral Resource excludes all drill results obtained by IGME (Instituto Geologico y Minero de España) during its Oropesa exploration program undertaken in the mid-1980s.
* The Mineral Resource was prepared under the direction of Howard Baker BSc, MSc, MAusIMM(CP) of SRK Exploration Services Ltd. ("SRK"), Cardiff, UK and is compliant with the regulatory requirements of Canada's NI 43-101.

The highest tin grades are found in five distinct mineralised zones along a 1,500 metre long, continually mineralized structure. A further three new mineralized zones were found subsequent to the 2012 Resource Estimate; evidence for these three new zones is provided by the discovery drill intercepts shown below:

Hole No. Dip & Azimuth From
(m)
To
(m)
Width
(m)
Est. True
Width (m)
Tin
Grade (%)
ORPDM 4 60° @ 200° 120.2 142.2 22.0 19.3 1.07 %
146.3 156.3 10.0 9.0 0.80 %
ORPD 159 60° @ 282° 178.0 209.2 31.2 18.0 0.99 %
ORPD 167* 80° @ 200° 173.6 182.6 9.0 7.0 0.70 %
193.6 209.7 16.1 13.7 0.60 %
ORC 7 60° @ 205° 147.5 159.2 11.7 10.5 1.74 %
* Denotes previously unannounced drill intercepts.

Oropesa's Tin Deposits

In its October 9, 2012 press release, the Company revealed that it had not been possible to demonstrate continuity of mineralization between many of the high grade intercepts at Oropesa and therefore they had to be treated as isolated intercepts, which made a negligible contribution to both the tonnage and the tin content in the 2012 Resource Estimate.

A re-assessment of the geology at Oropesa was undertaken during the final quarter of 2012, which resulted in the following conclusions:

  1. Oropesa's style of tin mineralization is probably unique.
  2. The tin mineralization at Oropesa is typically found in recumbent folds - see Schematic 1.

To view Schematic 1 - Oropesa: Line 3 Cross Section, please visit the following link: http://media3.marketwire.com/docs/854432fig1.pdf.

  1. The best tin mineralization at Oropesa is usually found as large, crescent shaped structures at the closed end of the recumbent folds - See Schematic 2.

To view Schematic 2 - Oropesa: Cross Section Through a Typical Mineralized Structure, please visit the following link: http://media3.marketwire.com/docs/854432fig2.pdf.

  1. The tin mineralization so far found is almost exclusively hosted in the transition zone between coarse, feldspar rich, quartzites and pebble conglomerates.
  2. Tin mineralization is sometimes found in multiple, cross cutting (anastomosing) structures.
  3. The 1,500 metre long, WNW/ESE trending, zone of mineralization is cut by modest N/S faults, approximately once every 150-200 metres.

Tin mineralization, other than in metallurgically complex skarns, is typically found following a fault, or fracture system, down to its original granite tin source. As the schematics demonstrate, Oropesa's unusual mineralization zones are found in large, intensely folded, structures. These zones may represent part of a stacked sequence of structures continuing down to a hidden granite located at depth.

Not surprisingly, problems were often encountered in demonstrating continuity of high grade mineralization in the wireframe model used for the 2012 Resource Estimate. This was mainly due to: i) relatively wide drill spacings, ii) the irregular crescent shape of the mineralization, and iii) difficulties in interpreting the continuation of the tin bearing structures across oblique N/S faults.

Demonstrating continuity of mineralization is an essential pre-requisite for an accurate resource calculation. Based on the new interpretation, a new wireframe model is now close to completion, which demonstrates better continuity of the high grade drill intercepts, and has formed the basis for a proposed 30 hole infill drilling program.

2013's Exploration Targets

In addition to the comprehensive infill drilling program designed for 2013, the Company is also planning the following:

  1. A modest drill program to test for the eastern and western extensions of the known tin deposits at Oropesa.
  2. An as yet undetermined number of drill holes to test the tin anomalies encountered in the recently completed 6.75km2 (542 samples) soil sampling program.
  3. Three deep (+300 metres) holes to test for the presence of stacked deposits of 'Oropesa-style' tin mineralization at depth.
  4. Anomalous tin values have been located in stream sediment sampling over an area exceeding 25km2 around Oropesa. The Company intends follow up soil sampling programs in areas of potential tin promise.

Conclusion

Peter Miller, Eurotin's President & CEO comments: "The results of the successful 2011/12 drill program are shown below and clearly demonstrate the Oropesa district hosts a major tin mineralization event. Now that we understand its geology, a major and significant milestone has been achieved in our plans to develop a major, open pit, mining operation by mid-2016. The next step, planned for third quarter 2013, will be to prepare a new resource estimate, which should more accurately reflect Oropesa's unusual geological structures."

Appendix: Phase 1 Oropesa's Drill Results

Cutoff Grade: 0.50% Sn Cutoff Grade: 0.35% Sn Cutoff Grade: 0.20% Sn
Hole # Intercepts Total (m) Sn (%) Intercepts Total (m) Sn (%) Intercepts Total (m) Sn (%) Dip & Azimuth
ORPC A 2 18.1 1.12 % 2 18.1 1.12 % 1 28.8 0.77 % 60° @ 213°
ORPC B 5 21.4 0.88 % 4 25.4 0.73 % 4 38.2 0.61 % 60° @ 220°
ORPC 1A 5 16.8 1.36 % 3 26.8 0.97 % 3 49.0 0.66 % 60° @ 215°
ORPC 2B 7 39.3 1.34 % 8 51.9 1.12 % 6 84.3 0.80 % Vertical
ORP 3 1 3.1 1.14 % 1 3.1 1.14 % 1 4.1 0.93 % 50° @ 190°
ORP 4 1 13.4 0.92 % 1 22.5 0.79 % 1 22.5 0.79 % 50° @ 200°
ORPDM 4 2 30.0 1.21 % 2 30.0 1.21 % 2 30.0 1.21 % 60° @ 200°
ORC 5 2 5.1 0.95 % 2 9.1 0.71 % 2 16.0 0.55 % 60° @ 200°
ORC 6 1 3.0 1.36 % 2 8.1 0.78 % 3 13.1 0.58 % 60° @ 200°
ORC 7 3 10.3 2.08 % 3 13.9 1.67 % 2 18.8 1.26 % 60° @ 205°
ORC 9 1 6.0 0.48 % 2 10.0 0.44 % 60° @ 200°
ORPD 1 3 7.0 1.04 % 2 17.6 0.62 % 4 33.3 0.45 % 60° @ 222°
ORPD 2 3 7.8 1.24 % 2 10.0 1.01 % 3 21.3 0.62 % 50° @ 216°
ORPD 5 1 1.4 3.82 % 1 4.2 1.46 % 1 4.2 1.46 % 60° @ 200°
ORPD 11 3 10.8 1.90 % 3 12.7 1.66 % 3 27.3 0.95 % 60° @ 232°
ORPD 12 1 3.5 1.15 % 1 3.5 1.15 % 1 7.6 0.69 % 65° @ 190°
ORPD 14 1 2.0 0.51 % 1 6.2 0.28 % 70° @ 230°
ORPD 15 1 5.3 1.61 % 1 9.4 1.18 % 1 18.6 0.72 % 65° @ 201°
ORPD 21 1 2.0 0.63 % 1 2.0 0.63 % 1 8.8 0.33 % 60° @ 187°
ORPD 25 1 3.4 0.96 % 1 3.4 0.96 % 1 7.0 0.64 % 60° @ 201°
ORPD 27 1 1.9 2.02 % 1 1.9 2.02 % 1 9.9 0.60 % 65° @ 192°
ORPD 28 3 18.5 0.97 % 3 20.5 0.92 % 2 33.6 0.62 % 45° @ 218°
ORPD 32 1 5.9 0.38 % 60° @ 200°
ORPD 33 3 3.1 0.62 % 3 3.1 0.62 % 1 23.8 0.35 % 60° @ 200°
ORPD 34 1 3.0 0.69 % 1 7.0 0.51 % 2 19.8 0.34 % 60° @ 200°
ORPD 36 1 20.0 0.36 % 60° @ 200°
ORPD 37 1 2.0 0.89 % 1 2.0 0.89 % 1 3.1 0.70 % 60° @ 200°
ORPD 38 1 1.0 1.09 % 1 1.0 1.09 % 1 92.6 0.29 % 65° @ 200°
ORPD 45 1 4.8 2.03 % 1 4.8 2.03 % 1 10.4 1.06 % 60° @ 200°
ORPD 47 1 4.0 0.36 % 60° @ 200°
ORPD 48 6 22.1 1.07 % 4 34.3 0.81 % 4 46.1 0.64 % 60° @ 200°
ORPD 49 3 6.6 0.83 % 2 10.6 0.59 % 3 13.9 0.58 % 60° @ 200°
ORPD 50 1 3.4 0.54 % 1 6.4 0.49 % 1 20.5 0.33 % 60° @ 200°
ORPD 51 1 10.2 2.36 % 1 10.2 2.36 % 1 10.2 2.36 % 60° @ 200°
ORPD 54 5 17.3 1.93 % 5 20.6 1.68 % 5 35.4 1.12 % 60° @ 200°
ORPD 55 3 6.5 0.89 % 3 12.4 0.66 % 4 54.5 0.36 % 60° @ 200°
ORPD 56 2 2.2 0.82 % 2 2.2 0.82 % 2 7.1 0.48 % 60° @ 200°
ORPD 57 7 21.5 0.98 % 7 26.1 0.86 % 6 35.0 0.74 % 60° @ 200°
ORPD 59 4 9.7 0.82 % 3 25.6 0.53 % 3 30.7 0.48 % 60° @ 200°
ORPD 60 3 16.2 1.74 % 3 16.2 1.74 % 3 49.3 0.76 % 60° @ 200°
ORPD 61 6 25.7 1.28 % 6 28.7 1.18 % 6 50.9 0.81 % 60° @ 200°
ORPD 63 5 13.5 0.88 % 5 15.5 0.83 % 2 35.4 0.45 % 60° @ 200°
ORPD 65 3 4.0 1.12 % 3 5.6 0.93 % 2 14.0 0.62 % 60° @ 200°
ORPD 66 1 5.2 0.91 % 1 5.2 0.91 % 2 14.4 0.48 % 60° @ 200°
ORPD 68 3 20.2 1.14 % 3 22.1 1.08 % 3 22.1 1.08 % 60° @ 200°
ORPD 71 2 6.0 1.06 % 1 13.7 0.62 % 1 13.7 0.62 % 60° @ 200°
ORPD 73 3 9.0 0.74 % 3 9.0 0.74 % 6 50.9 0.34 % 60° @ 200°
ORPD 74 3 12.4 1.01 % 2 19.9 0.94 % 2 19.9 0.94 % 60° @ 200°
ORPD 75 2 4.3 2.11 % 2 6.3 1.54 % 2 11.5 0.94 % 60° @ 200°
ORPD 76 1 20.3 1.48 % 1 20.3 1.48 % 1 20.3 1.48 % 60° @ 200°
ORPD 78 4 14.3 0.93 % 4 14.3 0.93 % 4 19.5 0.76 % 60° @ 200°
ORPD 79 4 24.5 1.13 % 6 30.6 0.98 % 6 47.9 0.74 % 60° @ 200°
ORPD 80 1 1.6 2.35 % 2 11.9 0.71 % 3 13.3 0.66 % 60° @ 200°
ORPD 81 1 18.1 1.85 % 1 18.1 1.85 % 1 23.4 1.50 % 60° @ 200°
ORPD 82 2 9.3 1.00 % 2 14.4 0.80 % 2 17.2 0.71 % 60° @ 200°
ORPD 84 1 2.1 0.90 % 1 2.1 0.90 % 1 3.1 0.69 % 60° @ 200°
ORPD 85 1 12.1 0.23 % 60° @ 200°
ORPD 86 3 13.0 0.97 % 3 15.0 0.90 % 5 35.1 0.54 % 60° @ 200°
ORPD 87 3 8.0 1.03 % 2 12.6 0.69 % 2 23.0 0.48 % 60° @ 200°
ORPD 88 1 4.4 0.44 % 60° @ 200°
ORPD 89 10.7 0.27 % 60° @ 200°
ORPD 90 2 3.8 0.79 % 2 9.5 0.53 % 3 48.6 0.33 % 60° @ 200°
ORPD 92 2 7.0 0.73 % 2 7.0 0.73 % 2 57.6 0.31 % 60° @ 200°
ORPD 94 1 1.1 1.15 % 2 3.1 0.73 % 2 14.9 0.38 % 60° @ 200°
ORPD 95 2 3.0 1.71 % 2 3.0 1.71 % 2 15.9 0.54 % 60° @ 200°
ORPD 97 1 1.5 0.77 % 1 1.5 0.77 % 1 6.4 0.41 % 60° @ 200°
ORPD 98 1 4.0 0.39 % 60° @ 200°
ORPD 99 1 1.9 1.35 % 1 1.9 1.35 % 1 3.9 0.81 % 60° @ 200°
ORPD 100 3 4.0 1.01 % 4 13.4 0.57 % 4 37.5 0.36 % 60° @ 200°
ORPD 101 1 1.0 2.06 % 1 4.0 0.72 % 1 4.0 0.72 % 60° @ 200°
ORPD 102 2 5.7 0.78 % 2 5.7 0.78 % 3 11.8 0.54 % 60° @ 200°
ORPD 103 2 4.5 0.91 % 2 4.5 0.91 % 3 24.7 0.42 % 60° @ 200°
ORPD 104 1 11.4 0.25 % 60° @ 200°
ORPD 105 2 11.2 1.85 % 2 12.1 1.74 % 2 12.9 1.66 % 60° @ 200°
ORPD 106 2 5.9 0.71 % 2 5.9 0.71 % 5 85.4 0.25 % 60° @ 200°
ORPD 107 2 8.1 1.17 % 2 10.0 0.89 % 2 13.2 0.81 % 60° @ 200°
ORPD 108 2 10.5 0.76 % 2 10.5 0.76 % 2 23.0 0.49 % 60° @ 200°
ORPD 109 2 5.9 0.93 % 2 5.9 0.93 % 2 18.9 0.49 % 60° @ 200°
ORPD 110 2 6.2 1.51 % 2 10.5 1.08 % 2 12.3 0.96 % 60° @ 200°
ORPD 111 3 7.3 0.83 % 3 7.3 0.83 % 4 35.9 0.37 % 60° @ 200°
ORPD 113 1 1.4 0.62 % 1 1.4 0.62 % 2 9.0 0.29 % 60° @ 200°
ORPD 115 2 7.4 0.97 % 2 10.4 0.84 % 2 17.4 0.60 % 60° @ 200°
ORPD 117 2 8.0 1.03 % 2 8.0 1.03 % 1 14.7 0.69 % 60° @ 200°
ORPD 118 2 4.0 0.73 % 2 13.7 0.50 % 3 24.7 0.42 % 60° @ 200°
ORPD 119 2 5.2 1.01 % 2 7.2 0.84 % 2 12.1 0.59 % 60° @ 200°
ORPD 120 2 8.1 0.65 % 2 13.9 0.56 % 3 35.0 0.39 % 60° @ 200°
ORPD 121 2 10.9 1.62 % 2 18.2 1.08 % 4 92.3 0.44 % 60° @ 200°
ORPD 122 1 4.0 0.51 % 1 9.1 0.36 % 60° @ 200°
ORPD 123 3 7.1 1.10 % 1 9.1 0.95 % 2 21.6 0.57 % 60° @ 200°
ORPD 124 2 17.2 0.29 % 60° @ 200°
ORPD 125 2 7.4 0.65 % 2 7.4 0.65 % 6 47.5 0.32 % 60° @ 200°
ORPD 126 1 3.0 0.70 % 1 3.0 0.70 % 2 13.0 0.41 % 60° @ 200°
ORPD 128 2 11.9 1.50 % 2 18.5 1.13 % 2 34.6 0.74 % 60° @ 200°
ORPD 129 3 9.4 0.85 % 3 10.4 0.80 % 5 23.5 0.55 % 60° @ 200°
ORPD 130 2 5.3 0.72 % 3 7.2 0.67 % 3 9.2 0.57 % 60° @ 200°
ORPD 131 1 3.0 0.77 % 1 3.0 0.77 % 2 8.7 0.45 % 60° @ 200°
ORPD 132 2 4.3 0.91 % 2 4.3 0.91 % 2 21.3 0.32 % 60° @ 200°
ORPD 133 1 2.0 0.64 % 2 4.0 0.59 % 2 19.0 0.32 % 60° @ 200°
ORPD 136 2 7.9 1.05 % 2 7.9 1.05 % 2 10.9 0.82 % 60° @ 200°
ORPD 142 3 27.5 1.18 % 3 27.5 1.18 % 2 34.1 1.00 % 60° @ 200°
ORPD 144 2 5.1 0.93 % 2 8.1 0.72 % 2 26.2 0.44 % 60° @ 200°
ORPD 146 1 4.0 1.70 % 1 4.0 1.70 % 1 4.0 1.70 % 60° @ 200°
ORPD 147 5 18.0 1.00 % 5 29.0 0.77 % 4 48.6 0.56 % 60° @ 200°
ORPD 149 1 3.0 0.86 % 1 3.0 0.86 % 1 7.3 0.54 % 60° @ 155°
ORPD 150 1 7.6 0.38 % 60° @ 200°
ORPD 152 1 2.9 0.91 % 1 6.4 0.66 % 1 6.4 0.66 % 47° @ 110°
ORPD 153 1 1.0 1.01 % 1 6.0 0.58 % 2 14.3 0.45 % 50° @ 110°
ORPD 154 3 11.8 1.01 % 3 13.6 0.75 % 2 19.6 0.58 % 50° @ 110°
ORPD 158 3 27.0 1.10 % 3 29.1 1.04 % 1 37.2 0.89 % 60° @ 254°
ORPD 167 3 11.0 1.02 % 3 12.0 0.96 % 2 25.1 0.60 % 80° @ 200°
Weighted Intercepts Av. Width Sn (%) Intercepts Av. Width Sn (%) Intercepts Av. Width Sn (%)
Averages 192 4.5m 1.17 % 191 5.9m 0.97 % 229 11.2m 0.59 %
Other Drill Holes
Hole # Intercepts Total (m) Sn (%) Intercepts Total (m) Sn (%) Intercept Total (m) Sn (%) Dip & Azimuth
ORPC 2 5 88.6 2.15 % 5 88.6 2.15 % 1 106.1 1.73 % 60° @ 005°
ORPC 4 2 27.6 0.26 % 80° @ 020°
ORPC 5 2 12.1 1.57 % 3 32.9 0.84 % 1 55.4 0.59 % 60° @ 020°
ORP 1 2 42.3 0.31 % 60° @ 015°
ORP 2 1 10.0 0.7 % 2 21.0 1.01 % 2 39.0 0.46 % 60° @ 015°

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, 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 around one metre length, which is chosen by the Company's geologists for assaying, is then cut in half either at the Company's own facilities at Fuente Obejuna or at ALS Chemex's sample preparation facility in Seville in southern Spain.

At the ALS Chemex facility, 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°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 15 samples analysed by ALS Chemex is then sent to SGS's laboratories in Cornwall, UK, for check assaying for tin. The Company keeps all its sample pulps and rejects in locked steel containers at its secure storage facility in Fuente Obejuna.

The Company recently completed a new check assay program using five certified laboratories. The pulp sample composites used had varying tin grades; the accuracy of the results obtained was within acceptable parameters.

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; 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 or obligation to update the forward-looking statements contained in this press release.

Neither 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.

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