Eurotin Inc.
TSX VENTURE : TIN

December 08, 2011 08:00 ET

Eurotin's Oropesa Drill Program Continues Intercepting High Grade Tin Mineralization Over Significant Widths

TORONTO, ONTARIO--(Marketwire - Dec. 8, 2011) - 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:

  • Drilling continues to intersect zones containing strong tin mineralization:
    ORPD-61: 12.2m @ 1.80% Sn from 44.0m
    ORPD-63: 10.6m @ 0.81% Sn from 180.8m
    ORPD-65: 27.3m @ 0.88% Sn from 123.7m
  • The Company has so far drilled 94 holes of an estimated 500 hole program at Oropesa and has received assay results from ~5,000 metres of drilling. Mineralization has been defined in a number of structures over a 1,300 metre strike length.
  • The recently completed airborne geophysical survey has identified four additional exploration targets highlighted by moderate to strong VTEM anomalies.
  • A mineralised gossan* has been discovered 1.5 kilometres to the east of the current drill area. The gossan contains high grade tin values and is thought to represent an additional mineralized structure.

* A gossan is intensely oxidized, weathered or decomposed rock, usually the upper and exposed part of strong sulphide mineralisation.

Two types of tin mineralization have now been identified by the drilling completed to date at Oropesa:

  1. 'Primary' Structures: Generally 6-10 metres thick, grading 0.8-2.0% tin. The primary structures are shear zones.
  2. 'Replacement' Structures: Up to 25 metres thick, grading 0.3-0.8% tin. The replacement structures comprise disseminated tin mineralization in greywacke host rocks within thick bands of conglomerates (the 'favourable horizon').

The most recent results from the current drill grid are shown below:

Hole No. Dip &
Azimuth
From
(m)
To
(m)
Length
(m)
Est.
True
Width
(m)
Tin -
Sn
(%)
Comment
ORPD-58 60° @ 200° NSV North of fault
ORPD-61 60° @ 200° 44.0 56.2 12.2 ~11.6 1.80% Primary Structure
78.2 81.3 3.1 0.65%
92.4 95.2 2.8 0.23%
121.9 130.2 8.3 0.65%
133.4 141.7 8.3 0.65%
ORPD-62 60° @ 200° Stopped short of target
ORPD-63 60° @ 200° 180.8 191.4 10.6 ~10.1 0.81% Primary Structure
194.5 204.8 10.3 0.41%
211.2 214.2 3.0 0.25%
ORPD-64 60° @ 200° NSV Stopped short of target
ORPD-65 60° @ 200° 61.9 64.5 2.6 0.84%
187.3 198.7 11.4 ~10.8 0.57% Primary Structure
ORPD-66 60° @ 200° 61.6 67.6 5.0 0.33%
74.3 79.5 5.2 0.91%
ORPD-67 60° @ 200° NSV South of mineralization
ORPD-68 60° @ 200° 123.7 151.0 27.3 ~25.9 0.88% Primary Structure
Inc. 127.8 132.7 4.9 ~4.7 1.56% Primary Structure
Inc. 140.4 151.0 10.6 ~10.1 1.18% Primary Structure
ORPD-69 60° @ 200° NSV South of mineralization
ORPD-71 60° @ 200° 164.3 172.1 7.8 ~7.4 0.75% Primary Structure
176.5 178.0 1.5 1.34%
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.

Map of Current Drill Grid

To view accompanying map, visit the following link: http://media3.marketwire.com/docs/TINmapDrillholes.jpg

Drill availability during most of October and November was less than anticipated, which negatively affected the amount of drilling completed. This problem has now been resolved by the arrival of a new core drill. In addition, the RC drill program has been delayed until a sufficiently powerful machine is available. This rig is expected to arrive on site in the first half of January. As a result, the tempo of drilling should increase significantly early in 2012.

Drilling of this first grid is now almost complete. This area has been found to contain two 'primary' structures and two 'replacement' mineralized structures within a modestly downfaulted block of ground. The 'primary' structures have been dispaced northwards on either side of the faulted area. Tin mineralization appears to increase with depth and eastwards within the grid area.

The following cross section is along Line 4 of the drill grid, and shows the two 'primary' and the two 'replacement' structures.

To view accompanying map, visit the following link: http://media3.marketwire.com/docs/TINcrossSection.jpg

Airborne Geophysics Survey

During November, Geotech Airborne Ltd of Canada conducted a 520 line kilometre VTEM and magnetics survey of the three Oropesa investigation permits.

The magnetic signature was generally flat, however the VTEM data resulted in an updated structural interpretation and has identified four new target areas. The Company has since conducted a modest surface reconnaissance program over three of the indicated target areas, which were found to be co-incident with the ~1.0km wide favourable horizon that hosts tin mineralization at Oropesa.

The favourable horizon is now known to exceed 7kms in length and is interpreted as being cut by three major faults.

The 'Deep' Structure

In early 2011, the Company's geologists located a NE/SW trending tin rich gossan on the eastern side of the original Oropesa investigation permit, approximately 1.5 kilometres east of the current drill grid. Assay values obtained from an extensive grab sample program averaged 3-7% tin, occasionally up to 19% tin. The gossan is approximately 300m long and is oriented in a NE/SW direction.

A recently received report on the petrology of this gossan by the Company's consultant Dr. Roger Taylor indicates that the gossan is very different from typical Oropesa tin mineralization:

Item Typical Oropesa 'Deep' Structure
Host Rock Conglomerates & Greywackes Fine grained quartzite
Tin Grades Averaging ~0.7-1.2% Averaging ~3.0-7.0%
Crystal Size Medium Large
Direction WNW/ESE NE/SW

This mineralization is interpreted as coming from deep within the Oropesa tin system and represents much older material faulted up from depths of probably greater than 1,000 metres and has therefore been named the 'Deep Structure'. The 'Deep Structure' is thought to represent a third type of tin mineralization on the project, in addition to the 'primary' and 'replacement' structures. Access to this area is restricted until late February, when the Company will undertake a trenching program to help determine the extent of this mineralization.

This find may be significant as much of the Oropesa investigation permits are covered with these older, fine grained, quartzites. In the limited areas where soil geochemistry surveys were undertaken by the Spanish Geological Survey in the past, they sometimes contained highly anomalous tin values also trending NE/SW. In addition, the main geochemical anomalies at the adjacent La Grana Project also trend NE\SW. It is therefore likely that a number of these mineralized structures exist on the Company's properties.

The Company has engaged a structural geology expert from Australia (Dr. Brett Davis) to commence a detailed structural study in January 2012 with a view to: i) accurately determining the controls over tin mineralization in the region around Oropesa, and ii) identifying new drill targets.

Other - Potential By Products

The Oropesa drill cores are routinely assayed for other potentially economic minerals, which may be recoverable in a future mining operation. The average grades of copper, zinc and silver from significant tin intercepts, selected from 32 core holes drilled by the Company, are shown in the ensuing table:

Tin Cut Off Grade
(%)
Tin Grade
(%)
Silver Grade
(g/t)
Copper Grade
(%)
Zinc Grade
(%)
0.20% 0.72% 9.73 0.11% 0.40%
0.40% 0.96% 12.32 0.14% 0.36%
0.60% 1.16% 14.96 0.16% 0.19%

There appears to be a loose relationship between copper, silver and tin grades and a negative correlation between tin and zinc grades. Tungsten and gold grades are generally very low.

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.

Other Developments

The Company also announces that it has delivered to Minas de Aguas Tenidas, S.A ("MATSA") a notice advising MATSA of its intent to terminate the option agreement pursuant to which MATSA has the right to purchase a 25% interest in the Company's Oropesa property. By providing the notice, the option agreement will terminate on its anniversary date, being March 13, 2012.

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.

Contact Information

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