Eurotin Inc.
TSX VENTURE : TIN

April 17, 2012 16:31 ET

Eurotin's Oropesa Commences First Mineral Resource Calculation

TORONTO, ONTARIO--(Marketwire - April 17, 2012) - Eurotin Inc. ("Eurotin" or the "Company") (TSX VENTURE:TIN), is pleased to provide the following drill results and update on its Oropesa tin project, located in SW Spain.

Highlights:

  • Extensional drilling outside the main ore zones at Oropesa encountered high grade mineralization with key intercepts of 11.1m @ 0.78% Sn from 170.0m (ORPD-82), 8.0m @ 1.13% Sn from 141.3m (OROP-86) and 5.2m @ 0.98% Sn from 116.4m (ORPD-87).
  • Preparation for the calculation of the first mineral resource has commenced and the initial National Instrument 43-101-Standards of Disclosure for Mineral Projects ("NI 43-101") compliant resource is expected to be published by the end of Eurotin's first fiscal quarter of 2013 (ending June 30, 2012).
  • New structural interpretation reveals probable location of Oropesa's granite tin source.
Drilling summary:
Drilling in western Oropesa has now been completed. The new drill grid (50m x 50m) in central Oropesa is expected to provide the bulk of the first mineral resource.
Oropesa's first RC drill rig has become fully operational.
The drill results reported in the table below should not be considered as being representative as:
  1. They were deliberately drilled on the periphery of the main tin zones to define the limits of mineralization for mineral resource calculation purposes, or
  2. Were drilled in a 100 metre wide upthrown block, where the higher grade primary zones have been mostly removed by erosion.
Drilling is now underway to the east of the upthrown block and is regularly intersecting mineralized zones up to 60-80 metres thick. The primary mineralized zones appear to thicken significantly to the east. There are currently around 45 holes with assays pending.
The most recent drill results are shown below:
Hole No. Dip & Azimuth From (m) To (m) Length (m) Est. True Width (m) Tin - Sn (%) Comment
ORPD-82 60° @ 200° 96.3 123.6 27.5 0.27%
170.0 181.1 11.1 0.78% Primary Zone
226.4 227.3 0.9 0.73%
ORPD-83 60° @ 200° NSV Beyond Northern Fault
ORPD-84 60° @ 200° 82.3 85.4 3.1 0.69% Fault
ORPD-85 60° @ 200° 157.7 169.9 12.2 0.22% South of Primary Zones
ORPD-86 60° @ 200° 114.1 119.3 5.2 0.34%
141.3 152.8 11.5 0.86%
Inc. 141.3 149.3 8.0 1.13% Primary Structure
210.8 216.8 6.0 0.54%
232.8 236.8 4.0 0.47%
ORPD-87 60° @ 200° 89.5 94.2 4.7 0.54%
97.7 99.5 1.8 1.04%
108.6 121.6 13.0 0.51% Primary Structure
Inc. 116.4 121.6 5.2 0.98%
ORPD-88 60° @ 200° 12.8 16.9 4.1 0.44% Upthrown Block
116.3 125.9 9.6 0.21%
ORPD-89 60° @ 200° 155.5 165.5 10.0 0.27% Upthrown Block
ORPD-90 60° @ 200° 20.4 23.4 3.0 0.59% Upthrown Block
37.5 39.3 7.5 0.46%
107.4 145.5 38.1 0.28%
ORPD-91 60° @ 200° 63.2 67.1 3.9 0.81% Top of Primary Structure
ORPD-92 60° @ 200° 0.0 29.7 29.7 0.27% Upthrown Block
33.7 58.6 22.9 0.24%
135.2 140.2 5.0 0.58%
221.0 223.0 2.0 1.11%
ORPD-93 60° @ 200° NSV Beyond Northern Fault
ORPD-94 60° @ 200° 66.3 79.2 12.9 0.32% South of Primary Zones
ORPD-95 60° @ 200° 63.0 70.1 7.1 0.40%
197.2 202.1 4.9 0.34%
204.1 206.1 2.0 2.01% Top of Primary Structure
ORPD-97 60° @ 200° 94.5 100.9 6.4 0.41% South of Primary Zones
Note 1: A cut-off grade of 0.20% tin has been used.
Note 2: Figures shown in bold represent significant tin results of Width (m) x Grade (%) exceeding a value of 6.
Calculation of Oropesa's First Mineral Resource
The Company has determined a cut-off date for drilling for the calculation of Oropesa's first mineral resource as being April 12, 2012.
The resource calculation is expected by the end of the Company's first quarter and will be prepared under the supervision of SRK Consulting (UK) Ltd of Cardiff, UK, who will be responsible for its completion in accordance with NI 43-101.
The new resource will be calculated using approximately 120 core holes and 15 RC drill holes. The resource will be primarily directed towards that mineralization.
Latest Developments at Oropesa
  1. A recent study undertaken of the Oropesa district's structural geology has indicated the presence of a large, circular structure with a diameter of approximately 7.0kms - see below. This structure is currently interpreted as potentially representing the outline of the original, deep seated, granite tin source.
  2. The Company's geologists considered if this circular structure did represent the original granite tin source, it should mean there would be more 'primary', high grade, NW/SE trending, mineralised structures to the south of the Oropesa deposits. These structures are mineralized regional fault and shears of the Ossa Morena Zone, which appear to be repeated every 150-250 metres.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/Figure1Eurotin.pdf.

  1. As a result of 1 and 2 above, one drill hole, ORPD 111, was extended 150 metres beyond original target and encountered a third 'primary' mineralized structure, consisting of three bands of semi-massive sulphides.
  2. Four areas containing tin bearing gossan (weathered sulphide rich material) float have recently been discovered south of the Oropesa deposits. These areas will shortly be subjected to a soil geochemistry survey to identify new drill targets.
  3. The airborne VTEM survey undertaken over the area around Oropesa in late 2011 provides further support for the proposed position of the granite tin source. The non-blue coloured areas represent the locations of potential sulphide mineralization.

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/Figure2Eurotin.pdf.

  1. Oropesa's two 'primary' mineralized structures are located in a 1,800 metre long wedge shape - see below. Tin mineralization, which is cut off by a fault of unknown displacement to the north, can be followed down dip approximately 150-200 metres in western Oropesa and by an estimated 500-700 metres in the east. The eastern side of Oropesa is cut by a major fault, which is currently interpreted as having displaced the mineralized structures by around 500-700 metres to the south.

To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/Figure3Eurotin.pdf.

  1. Drilling in central Oropesa has recently encountered a hitherto unknown, thick, mineralised 'replacement' structure, believed to contain modest tin values.
  2. Base line studies for a future Feasibility Study have commenced at Oropesa, including the installation of an automatic weather station.
  3. There are currently four core drills and one reverse circulation (RC) drill at Oropesa.
Current Structural Interpretations
  1. Western Half of the Known Oropesa Tin Deposits
  1. A significant fault (the "Northern Fault") appears to cut off the tin mineralization at increasing depths going eastwards. This has the effect of increasing the length of mineralization, located down dip by drilling, on moving to the east.
  2. The tin deposits are displaced every 100-250 metres by a series of oblique faults, trending north/south - see below.
  3. The mineralization consists of relatively steep (60°-70 and high grade (~0.7-2.0% Sn) 'primary' zones and relatively shallow dipping (0°-20 and lower grade (~0.2-0.6% Sn) 'replacement' zones, hosted in coarse, feldspar-rich, greywacke lenses.

To view Figure 4, please visit the following link: http://media3.marketwire.com/docs/EurotinFigure4.pdf.

To view Figure 5, please visit the following link: http://media3.marketwire.com/docs/EurotinFigure5.pdf.

2. Proposed NE/SW Cross Section Across the Oropesa Graben Structure

To view Figure 6, please visit the following link: http://media3.marketwire.com/docs/EurotinFig6.pdf.

The Ossa Morena Zone, which hosts the Oropesa tin deposits, is a large, geologically complex, area crossed by numerous NW/SE trending fault and shear structures. The tin mineralization entered these structures from a deep-seated granite of unknown depth. The Company believes there is increasing evidence to indicate these sub-parallel structures occur at ~100-200 metre intervals at Oropesa.

Conclusion

Peter Miller, Eurotin's President & CEO, comments: "Recent developments have reconfirmed our belief that Oropesa is an exceptional tin deposit. The forthcoming mineral resource estimate will be a significant milestone towards our goal of becoming a major tin producer."

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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