As a result of a review by the British Columbia Securities Commission, we are issuing the following news release to clarify our disclosure on the Deep River Project in North Carolina. A review by Gibbs and Associates dated July 31, 2012 on the inferred resource presented in the December 24, 2010 technical report states:
The database was supplied in a spreadsheet and included drill hole locations and assays. All the drill holes are vertical. The 12 drill holes have a total length of 5962 feet (1654 meters). The average depth is 497 feet (166 meters); the minimum depth is 303 feet (101 meters) and the maximum depth for one hole is 773 feet (258 meters). The maximum difference in collar elevation is about 40 feet (14 meters).
Information provided included twelve Erin Ventures drill holes. Rockworks grade block models prepared in 2010 were provided and used to compare to the models re-estimated from the drilling. General statistics were prepared for the drill holes and plots were made of the distribution of the data. The Micromine software was used for the statistics as well as for estimating the grade models.
The IPD-25 model generated was compared to the 2010 model and significant differences were noted in the amounts of tonnages in each established grade range. The differences could not be resolved and were quite large. The 2010 model could not be replicated with the information available in a short time frame, but the issues could likely be resolved with additional time and work.
Erin Ventures feels this additional work is not justified at this time and is retracting the previous disclosure of the Deep River project resource estimate and filing an amended report with no inferred resource presented.
The amended report is summarized as follows:
The project area is located in central North Carolina about 60 straight-line miles southwest of Raleigh, North Carolina and roughly equidistant from the nearby communities of Asheboro and Carthage, North Carolina.
The gold mineralization at Deep River prospect is within the lithocap of a large high level gold-copper-molybdenum porphyry system. The mineralization is centered on more than a 1,000-foot (335 meters) diameter and greater than 400-foot (135 meters) thick lithocap based on the 12 vertical core holes drilled by Erin Ventures. This lithocap is composed of intensely leached, silicified, and mineralized hypabyssal intrusive, volcanic, and sedimentary rocks. Lithocaps are large masses of pyritic, advanced argillic and silicic alteration that are located between the subvolcanic intrusive porphyry and the paleosurface and, based on exploration to date, this is the most likely environment for gold mineralization at Deep River.
The Deep River gold prospect is both lithologically and structurally controlled and shows unusual relationships relative to other Carolina Slate Belt prospects. Gold exploration at the Deep River has concentrated on a north-northwest striking zone of well disseminated, nearly horizontal, stratabound mineralization paralleling intense quartz-sericite-pyrite alteration within the lithocap. The gold mineralization is not closed in any direction, including depth and may overlie a gold-copper-molybdenum porphyry based on anomalous copper and molybdenum results in drill, soil, and rock chip sampling.
The gold mineralization drilled by Erin Ventures at Deep River is within and centered on an asymmetric doubly-plunging antiform. At the level of exposure and drilling, much of the mineralization is within two stratabound horizons and centered on a steeply dipping mineralized zone. The mineralized horizons apparently dip more steeply in the northern and southern portions of the antiform and grade and thickness may increase to the southwest. The deeper steeply dipping mineralized zone is richer in potassium and fluorine in the southern-most drill holes and has a more igneous trace element signature.
A possible analog to Deep River might be the Hemlo Gold deposit at Hemlo, Ontario which is a molybdenum-bearing gold deposit hosted within submarine volcanic rocks and exhalites and one of Canada’s largest gold camps. Historically mineralization at Hemlo has been variously modeled as porphyry gold-molybdenum, synvolcanic exhalative, epithermal replacement, orogenic, and/or hybrids of these models.
The Deep River assays range up to 5,170 ppb and the average is 204 ppb for all assays of core. Cumulative frequency plots of these data show that most assays are between about 340 ppb (0.3 g) and 680 ppb (0.6 g) and, excluding the highest assay of 5170 ppb, the assays are log normally distributed. Gold concentrations above 300 ppb are common in the Deep River drill samples.
Based on the current high price for gold, comparison with cutoff grades from producing high tonnage gold operations, and other inferred resource calculations cited in technical reports, further drilling at the Deep River prospect may identify significant gold and base metal mineralization. There are currently no comparable gold operations in the region, and prior to any calculation of a measured or indicated resource, further economic, metallurgic and mining studies are required in addition to additional drilling that includes deeper drilling and angle drilling that may intersect higher grade mineralized structures. The report notes that gold mineralization is not closed in any direction including depth and more drilling is essential to establish geologic boundaries and their relationship to gold grade.
On behalf of the Board of Directors,
Blake Fallis, General Manager
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.
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
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.
Forward Looking Statements
This release contains forward looking statements. The words “believe,” “expect,” “feel,” “plan,” “anticipate,” “project,” “could,” “should” and other similar expressions generally identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties including, without limitation, variations in estimated costs, the failure to discover or recover economic grades of minerals, and the inability to raise the funds necessary, changes in external market factors including commodity prices, and other risks and uncertainties. Actual results could differ materially from the results referred to in the forward-looking statements.