ERIN VENTURES INC. (“Erin”)
NEWS RELEASE – For Immediate Distribution
The Piskanja Property
The company wishes to correct information disclosed in Erin’s previous news releases dated February 13, 2012 and February 27, 2012, its MD&A for the 6-month period ended December 31, 2011, and the Investor Presentation “Jarandol – Piskanja 2010/2013”. In the above noted documents, Erin reported “historical” and other estimates of resources at its Piskanja property in Serbia that did not comply with disclosure rules for resource and reserves of National Instrument 43-101.
Retraction of the Company’s recent Piskanja Resource disclosure
The company acknowledges that neither the February 13, 2012 or the February 27, 2012 news release nor the related report by Dr. Toljic, previously posted on Erin’s website, conform to the regulations for a historic resource, and do not meet the requirements for a new (current) resource.
Additionally and specifically:
- Neither author represents a Qualified Person for preparing a resource or 43-101 report, as defined by 43-101.
- The resource does not conform to the reporting standards of CIM resource guidelines.
- There is no discussion of accepted Quality Assurance/Quality Control standards and procedures, or methods and parameters used for calculation of resource.
- Dr Toljic (the author of the report disclosed in the news release dated 2-13-12) is not considered independent of Erin, and there is no statement of either author’s experience or qualifications in resource statements or borate resource calculations.
The company is unable to restate these two estimates such that they are compliant with 43-101 requirements, as each estimate was prepared after the acquisition of the property by the company, thereby disqualifying the estimates from being considered “historical” according to 43-101 regulations. Consequently, Erin hereby retracts both the estimate prepared by Dr Toljic, as well as the estimate prepared by Mr Podunavac.
Restatement of the historical resource estimate at Piskanja
In earlier news releases of Erin (dated Feb. 28 and 21, 2012; Nov. 21, 2011; Oct. 27, 2011; Aug. 8, 2011; July 19, 2011; April 27, 2011; Dec. 7, 2010; Aug. 31, 2010; May 18 and 11, 2010), the historical estimate quoted meets the criteria for historic in that it was prepared prior to Erin’s acquisition of the property and was prepared by a third party (Republic of Serbia).
- This is a “historical estimate” by definition, that cannot be treated as a current resource. A Qualified Person has not done sufficient work to classify this historical estimate as current. Erin is not treating this historical estimate as such, and the historical estimate should not be relied upon.
- In 2005, a public tender offer was prepared by the government of the Republic of Serbia (Ministry of Mining and Energy) for the Granting of a Concession for the Exploration and Development of the Boron Deposit in the Jarandol Tertiary Basin. The report cites a resource of “more than 7,500,000 tons with the useful component of 36.39% B203.” No author or source are cited for this resource and no statement is issued on the resource classification used. The list of references of this report lists possible original government reports from 1996 to 2003 that may be the source of this resource estimate, but the exact reference and parameters used cannot be verified.
- Details on the number of drill holes and sampling parameters are presented in the Tender Offer, and are as follows: “…core sampling of the initial diameter of 116 mm and a final one of 86 to 76 mm.” “Within the boundaries of Piskanja exploration area deep boreholes were drilled in two phases. The first phase in the period of 1987-1992 included 21 boreholes in a total length of 6,508 m; the second one in 1997 included 10 boreholes in the total length of 2,823 m. They varied in depth from 250 m to 400m, 300.1 m on average.” “The initial grid of boreholes was 800X800 m, then 400X200 m, while the 1997 drilling was performed on a grid of 200X300 m, then 200X100 m. The majority of boreholes penetrated through two layers lying at 50 m to 260 m. The thickness of the first ore layer (closer to the surface) varied from 2.8 m to 14 m, and the second – deeper from 1.5 m to 7.5 m. Vertical distance between them was 80-120 m.” “Samples from the extracted core were cut in 1.0 m lengths and chemically analyzed for boron oxide (B2O3), and oxides of detrimental components of iron (Fe2O3), magnesium (MgO), silicium (SiO2), etc. The mean B2O3 content for the whole deposit amounted to 36.39%, while the contents of detrimental components generally were so low that it did not cause any undesirable effect upon the conventional method of obtaining borate and boric acid concentrate.”
- Other references to resources refer to this same resource figure, but they less formal and are not considered valid historic resource estimates.
- Erin considers this historic estimate to be relevant based in part upon the Company’s own experience on the property.
- The tender offer containing the historical estimate does not state the key assumptions, parameters and methods used to prepare the estimate, nor the does it state the categories for the resource.
- After the above retractions, no more recent, valid estimates are known to Erin.
- Erin is conducting a diamond drill program at Piskanja of HQ and larger diameter vertical core drilling. The program consists of in-fill drilling and the twinning of certain historical holes. Fourteen drill holes (approx 4,500 metres) have been completed to date. The drilling being conducted by Erin is to bring this resource into the compliant category within a 43-101 technical report.
As a result of its recent disclosure of non-compliant resource estimates, Erin is preparing a NI 43-101 technical report for its Piskanja Property, which it expects to complete within 45 days from the date of this news release.
Volujski Kljuc, Serbia
The Company is also retracting the previous historical gold resource estimate on the Volujski Kljuc Property, originally reported in its news release of November 30, 2009 and in its MD&A disclosure beginning in the 6 month period ended December 31, 2009 through to its MD&A for the 6-month period ended December 31, 2011.
This gold resource estimate is unsupported by a compliant NI 43-101 technical report, contrary to NI 43-101. The resource estimate is retracted and should not be used or cited or relied upon.
The company is retracting the estimate rather than re-stating it in compliance with s.2.4 of NI 43-101 as the Company has been unable to secure adequate surface rights on reasonable economic terms from the numerous land owners in the region to permit a personal inspection necessary to prepare a technical report the company triggered by disclosing the retracted estimates, or to develop the property. As a result of the company’s inability to secure surface access rights, it is reconsidering possible development of this property. However, at the present time, there are no costs associated with maintaining its interest in its present state.
Deep River, North Carolina
The British Columbia Securities Commission has made technical comments regarding the Deep River gold resource estimate as cited in a 43-101 report dated December 24, 2010. Consequently, the Deep River gold resource estimate is unsupported by a compliant NI 43-101 technical report, contrary to NI 43-101. These technical comments require a revision of the current 43-101 report. The independent author of this report is not currently available due to other project time commitments. Until such time as the BCSC comments can be addressed, and a new technical report filed, the resource estimate should not be relied on. The company will promptly announce any material changes to its Deep River estimates or other information that results from preparation of a new Deep River Report. The company expects to prepare a compliant report within 45 days from the date of this news release.
The technical information in this release was prepared and approved by Dennis J. LaPoint, a Registered Member of SME, a director of the Corporation, who is a Qualified Person under National Instrument 43-101. Dr LaPoint has determined that the above noted retractions are compliant with NI 43-101.
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.
For further information, please contact:
Erin Ventures Inc. Canada
Blake Fallis, General Manager TSX Venture: EV
Phone: 1-250- 384-1999 or 1-888-289-3746 USA
Erin’s Public Quotations:
TSX Venture: EV
SEC 12G3-2(B) #82-4432
Berlin Stock Exchange: EKV