Eurotin Inc.

April 18, 2011 17:47 ET

Eurotin Inc. Announces Closing of Its Qualifying Transaction

TORONTO, ONTARIO--(Marketwire - April 18, 2011) - Eurotin Inc. ("Eurotin" or the "Company") (TSX VENTURE:ERT.P) is pleased to announce the completion of its acquisition of all of the issued and outstanding securities of Stannico Resources Inc. ("Stannico"). Stannico is a junior exploration and development company that holds, or is earning into, tin projects in southern and central Spain.

Prior to the completion of its Qualifying Transaction with Stannico (the "QT"), Eurotin was a Capital Pool Company as defined under the policies of the TSX Venture Exchange (the "Exchange").

The Company has now received its Final Exchange Bulletin from the Exchange in respect of the closing of the QT. The common shares of the Company will recommence trading on the Exchange at the open on Wednesday, April 20, 2011 under the stock symbol "TIN". The new symbol will only become active on the day that trading recommences.

The QT

Pursuant to the QT and in exchange for obtaining all of the issued and outstanding securities of Stannico, Eurotin issued the following securities to the former Stannico security holders: 45,677,384 common shares, 12,968,565 warrants, 3,831,250 options (with each warrant and each option entitling the holder to acquire one common share of Eurotin) and 624,500 compensation options (with each option entitling the holder to acquire one common and one- half warrant of Eurotin and each whole warrant entitling the holder to acquire one common share of Eurotin).

The following individuals were appointed to the Company's board of directors: Peter Miller, David Danziger, Colin Jones and John Hick. At the Company's next annual meeting, the Board of Directors intends to expand the Board to six people and, in addition to the current Board members, it is anticipated that Francisco Fimbres and John David Trapman will be elected to the Board. Minhas Mohamed and Paul Pathak have resigned as directors of the Company following completion of the QT. The Board has appointed Mr. Peter Miller as President and Chief Executive Office and Mr. Harvey McKenzie as Chief Financial Officer.

Concurrent with the closing of the QT, Stannico received exercise notices for approximately $1.25 million of warrant exercises pursuant to which warrant holders were issued one common share for each whole warrant exercised. The common shares were then immediately exchanged for common shares of Eurotin.

Oropesa Project

The Company is pleased to provide an update on the activities of its wholly owned Spanish subsidiary Minas de Estano de Espana, since the receipt of the National Instrument 43-101 report on the Oropesa project, written by a Qualified Person, James G. Burns, and dated January 24, 2011.

First Quarter 2011

Until late 2010, the Company's geologists believed – as did the Company's predecessors IGME (El Instituto Geolologico y Minero de España - the equivalent of the Spanish Geological Survey) – that there was one, southward dipping, 1,250 metre long 'significantly mineralised structure'* at Oropesa. By mid-December 2010, the Company's drilling activities at Oropesa had demonstrated the existence of another 'significantly mineralised structure', with both structures dipping northwards, not southwards, as previously believed.

By early April 2011, the Company's continuing drilling programs, using targets generated by its Phase 1 ground IP (Induced Polarisation) program, had confirmed the existence of a further two 'significantly mineralised structures'. In addition, the indicated strike length of these structures had increased from 1,250 metres to almost 2,000 metres.

From the limited information currently available from: i) the 34 core holes drilled at Oropesa by the Company, and ii) the 32 core holes drilled by IGME in the mid-1980s, the 'significantly mineralised structures' have so far been shown to have an approximate true thickness varying between 5 and 40 metres. Several other less significant zones of mineralisation, with varying thicknesses and tin grades, have also been encountered in the drill holes.

In addition to tin, all the Oropesa cores are subjected to a 33 multi-element assay analysis. There are minor amounts of copper, zinc, silver and tungsten present, however, the Company does not consider these metals to offer any potentially economic value at this time.

Early in January 2011, the Company acquired its own secure core storage facilities in Fuente Obejuna, which is being equipped with its own core cutting and specific gravity measuring equipment.

On April 11, 2011, the Consejeria de Economia, Innovacion y Ciencia of the Delegacion Provincial de Cordoba of the Junta de Andalucia renewed the Oropesa Investigation Permit (No.13050) for a further three years.

*In this instance, the term 'significantly mineralised structure' means a mineral zone visually containing 20% or more sulphides, mainly in the form of pyrite (FeS2). At Oropesa, drill logs consistently show that where 20% or more sulphides are visible it is reasonable to expect a tin grade of 0.5% or better.

Drilling program – First Quarter 2011

22 HQ core holes were drilled on the Oropesa property in the 14 week period up to April 8, 2011, representing a total length of approximately 5,000 metres. The table below shows all of the Company's own drill results from Oropesa, including the assays for four of the holes drilled this year.

Hole No.Dip &
Tin - Sn(%)Comment
ORP-160° @ 015°64.284.820.6~6.50.27%Oxide
107.5129.221.7~6.90.35%Oxide – severe core losses
ORP-260° @ 015° – modest core losses
ORP-350° @ 015°87.593.34.8~1.50.82%Oxide – barren quartz vein mayhave replaced main structure
ORP-450° @ 200°122.2144.722.5~15.20.73%Sulphide
ORP-565° @ 180°No significant values
ORPC-160° @ 015°No significant values
ORPC-260° @ 005°29.3136.8107.5~34.11.71%Oxide, mixed & sulphide
Inc.29.357.328.0~8.94.28%Oxide & mixed
Inc., mixed & sulphide
ORPC-360° @ 020°No significant values
ORPC-460° @ 020°78.899.520.7~6.60.21%Mixed
ORPC-560° @ 020°88.3138.655.3~17.50.59%Sulphide
ORPC-660° @ 020°No significant values
ORPC-760° @ 020°188.7193.85.1~1.60.36%Sulphide
ORPC-1A60° @ 215°25.137.712.6~8.51.21%Oxide
ORPC-2BVertical7.173.266.1~14.30.58%Oxide & mixed
ORPC-3A45° @ 000°
73.0113.040.0~21.50.81%Mixed & sulphide
ORPC-A60° @ 213°96.7130.734.0~23.00.65%Sulphide

* The mineralised structures are believed to dip at a steep angle of approximately 70-85° to the NNE. In order to calculate the approximate true widths shown above, an average dip of 77.5° was assumed. In addition, the mineralisation is known to 'pinch and swell' further adding to the difficulties of making accurate estimates of true dip. Additional drilling will be required to confirm the average angle of dip, which may vary over the property; consequently these true width estimates should be treated with caution and not be relied upon.

Note: A detailed explanation of the assay and QA/QC processes are provided at the end of this report.

Note: for all the above mineralized intercepts, a cutoff grade of 0.2% tin was used.

In addition to the above, there are 14 drill holes, where the core is in the process of being cut and assayed:

Hole #Depth of HoleVisible
ORPC-2A97.2Possibly in oxide zone
ORPC-9156.3Possibly in oxide zone
ORBD-7185.3Possibly in oxide zone
ORBD-8210.0Possibly in oxide zone
*Refers to sulphide mineralisation normally associated with tin values.

The Company's drilling has so far found no indication (aplite dykes, pegmatites, or elevated tungsten values) of the nearby presence of the granite source of the tin mineralisation. The Oropesa tin deposits are found within a 50km long, 2km wide graben, a downward displaced block of ground often referred to by geologists as a 'pull apart structure'. The downward displacement in the graben is believed to exceed 2,000 metres. A map showing the location of the holes drilled by the Company at Oropesa up until April 7, 2011 is provided below.

To view an image of the map, please visit the following link:

The Company currently has two core drills operational at Oropesa. The Company had originally planned to bring in two reverse circulation drills for resource and reserve definition later this month. However, the arrival of these rigs has been deferred for two months so that the core drills can better determine the exact positions of the 'significantly mineralised structures'.

Geophysics Program

During first quarter of 2011, the Company completed Phase 1 of a ground geophysics program over a WNW/ESE length strike length of 1,800 metres, using approximately 100 metre wide spacings. The initial lines (NNE/SSW) of induced polarisation (IP) were 1,000 metres in length. As a result of finding more anomalies than originally anticipated, these lines were eventually extended to 2,000 metres in length. A simplified map showing the location and trend of the IP chargeability anomalies at Oropesa is shown below:

To view an image of the map, please visit the following link:

Note: The IP geophysical program (Phase 1) referred to above was undertaken by International Geophysical Technology SL of Madrid, Spain.

The Company is currently conducting a drill program to test the various IP chargeability anomalies in all parts of the Oropesa property to determine how many represent 'significantly mineralised structures'. The first five drills holes to specifically target IP chargeability anomalies all contained sulphide mineralisation (assays pending) over varying thicknesses.

The IP chargeability anomalies also indicated the following:

  1. The amount of apparent displacement by faulting was less than previously anticipated, and
  1. Assuming the anomalies accurately reflect the presence of sulphide mineralisation (the exception being where co-incident IP resistivity anomalies indicate faults), then the depth of oxidation at Oropesa should vary between 50 and 125 metres.

A limited IP exploration program, previously undertaken by IGME (Instituto Geolologico y Minero de España) in the middle of the 1980s had indicated the presence of only one mineralised structure, approximately 1,250 metres in length. Up until early March this year, all of IGME's drill holes, and most of those of the Company were aimed at intersecting this one 'significantly mineralised structure'.

A second ground IP program is now planned, which will consist of:

  1. Three infill lines of ~1,500 metres length,
  2. Three 1,500 metre long lines intended to extend the area of interest a further 300 metres to the west,
  3. Two 1,500 metre long lines intended to extend the area of interest a further 200 metres to the east, and
  4. Two 1,000 metre long lines to further investigate two strong anomalies located on a single previous 'greenfields' IP line, located approximately 1,500 metres east of the area of interest.

The Company believes geophysics, analyzing IP chargeability anomalies, has shown itself to be an excellent means of locating 'semi-massive' and stockwork sulphide mineralisation at Oropesa.

The ground magnetic program, conducted along the same lines as the IP survey, produced no useful information.

Metallurgical Testwork

In late 2010, a mineral train of gossanous boulders, mostly consisting of medium to high grade (mostly 2-10%) tin was located by surface exploration on eastern Oropesa. Visual analysis of these small boulders indicated the presence of relative coarse crystals of the tin mineral cassiterite (SnO2), which had not been seen previously at Oropesa.

These gossanous boulders are now interpreted as having been derived from a hitherto undrilled 'significantly mineralised structure'. In early April of 2011, a drill hole – designed to intersect a co-incident IP chargeability anomaly in the vicinity of the gossanous boulders – encountered ~30 metres of strong sulphide mineralisation.

Three gossanous samples were shipped to SGS Mineral Services UK Ltd (SGS) in Cornwall, England for pre-concentration testwork. These three iron rich (35-56% Fe) samples* were reported by SGS to contain tin values of 5.00%, 2.52% and 0.87%.

Preliminary testwork on these surface samples indicated much coarser tin mineralisation than that of the two IGME core samples, previously analyzed by the Company at the SGS laboratory in Cornwall, England.

*Due to their manner of collection, these samples should not be considered as being representative of the 'significantly mineralised structure' from which they are believed to have been derived. The results obtained should be considered as being indicative, as opposed to definitive.

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 a Qualified Person, Victor Guerrero Merino, Euro.Geol.

The core, usually of one metre length, which is chosen by the Company's geologists for assay 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°C to produce a flat molten disc, which is subsequently analyzed by XRF spectrometry. ALS Chemex analyzes 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 analyzed 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.

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

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed QT and has neither approved nor disapproved the contents of this press release.

Contact Information

  • Eurotin Inc.
    David Danziger
    (416) 626- 6000