Eurotin Reports A Significant Increase in Indicated Resources at the Oropesa Tin Project Including Increase to 7.44 Mt at 0.5...
June 10 2014 - 12:41PM
Marketwired Canada
Eurotin Inc. ("Eurotin" or the "Company") (TSX VENTURE:TIN), is pleased to
provide the following resource update on its Oropesa tin ("Sn") project, located
in SW Spain.
Highlights
-- At a 0.3% cut-off, the updated Mineral Resource contains 7.44 million
tonnes at 0.52% Sn (38,430 tonnes of contained tin) and 2.14 million
tonnes at 0.53% Sn (22,261 tonnes of contained tin) in the Indicated and
Inferred classification categories, respectively.
-- At a 0.1% Sn cut off, the updated Mineral Resource contains 54,690 and
16,078 tonnes of contained tin in the Indicated and Inferred
classification categories, respectively, compared to 28,764 and 22,871
tonnes of contained tin in the Indicated and Inferred classification
categories, respectively, in the October 2012 Mineral Resource. This
represents an aggregate increase of 37% in contained tin.
-- At a 0.1% cut-off, the average grade has increased to 0.37% Sn from
0.32% Sn and 0.26% Sn in each of the Indicated and Inferred
classification categories, respectively.
-- Resource confirms the positive open pit potential of the Oropesa tin
deposit.
The updated Oropesa Mineral Resource Estimate was completed by SRK Consulting
(UK) Ltd ("SRK") and has been restricted to all classified material within 200
metres from the topographic surface and above a marginal cut-off grade of 0.1%
Sn. This represents the material which has a reasonable prospect for eventual
economic extraction by open pit mining methods. The Mineral Resource statement
has been prepared by SRK in accordance with Canadian Securities Administrators'
National Instrument 43-101 "Standards of Disclosure for Mineral Projects" ("NI
43-101").
The table below shows the resulting Mineral Resource Statement for Oropesa at a
marginal cut-off grade of 0.1% Sn. The statement is based on calculations to
derive sub-totals, totals and weighted averages. Such calculations inherently
involve a degree of rounding and consequently introduce a margin of error. Where
these occur, SRK does not consider them to be material. The Mineral Resource
Estimation methodology and accompanying Mineral Resource Statement is included
in Appendix 1.
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MATERIAL TYPE CATEGORY TONNES (Mt) Sn% CONTAINED TIN (t)
----------------------------------------------------------------------------
OXIDE INDICATED 3.3 0.35 11,447
------------------------------------------------------
INFERRED 1.1 0.35 3,948
----------------------------------------------------------------------------
FRESH INDICATED 11.6 0.37 43,243
------------------------------------------------------
INFERRED 3.2 0.38 12,130
----------------------------------------------------------------------------
Notes:
(1) Mineral Resources which are not Mineral Reserves have no demonstrated
economic viability.
(2) The effective date of the Mineral Resource is June 5, 2014.
(3) The Mineral Resource Estimate for the Oropesa project was constrained
within grade based solids and above an elevation of 200m below the
topographic surface.
(4) The incremental cut-off grade is based on a Sn price of US$23,000/t and
a process recovery of 76%. For incremental material, mining costs were
ignored and a combined processing and G&A cost of US$12/t were assumed.
The geological model, statistical and geostatistical analysis, selection of
resource estimation parameters, construction of the block model and estimation
of grade was undertaken by Mr. Oliver Jones, FGS, under the guidance of Mr.
Howard Baker, FAusIMM(CP), both employees of SRK. By virtue of his education,
work experience that is relevant to the style of mineralization and deposit type
under consideration and to the activity undertaken, and membership to a
recognized professional organization, Mr. Baker is considered a Qualified Person
pursuant to National Instrument 43-101 and is wholly independent from Eurotin.
Mr. Baker has verified the technical data contained in this news release and has
reviewed and approved the contents of this news release with respect to the
Mineral Resource Estimation.
A comparison between the updated Mineral Resource Estimate and the previous
Mineral Resource Estimate, reported in October 2012, at incremental cut off
grades is illustrated in the tables below.
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Indicated Resource - 2014 Indicated Resource - 2012
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Tin
Sn Cut Off Tonnes Grade Contained Tin Grade Contained
Grade (Mt) (%) Sn (t) Tonnes (Mt) (%) Tin (t)
----------------------------------------------------------------------------
0.00% 14.96 0.37 54,733 9.62 0.30 28,856
----------------------------------------------------------------------------
0.10% 14.87 0.37 54,690 9.00 0.32 28,764
----------------------------------------------------------------------------
0.20% 12.30 0.41 50,436 6.39 0.38 24,288
----------------------------------------------------------------------------
0.30% 7.44 0.52 38,430 3.25 0.51 16,559
----------------------------------------------------------------------------
0.40% 4.90 0.61 29,683 1.84 0.64 11,763
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Inferred Resource - 2014 Inferred Resource - 2012
----------------------------------------------------------------------------
Tin Tin
Tonnes Grade Contained Tonnes Grade Contained
Sn Cut Off Grade (Mt) (%) Sn (t) (Mt) (%) Tin (t)
----------------------------------------------------------------------------
0.00% 4.36 0.37 16,089 9.40 0.25 23,512
----------------------------------------------------------------------------
0.10% 4.34 0.37 16,078 8.80 0.26 22,871
----------------------------------------------------------------------------
0.20% 3.59 0.41 14,839 5.35 0.34 18,185
----------------------------------------------------------------------------
0.30% 2.14 0.53 11,261 2.54 0.43 10,921
----------------------------------------------------------------------------
0.40% 1.30 0.64 8,374 1.13 0.54 6,126
----------------------------------------------------------------------------
At a 0.1% Sn cut off, the updated Mineral Resource contains 70,768 tonnes of
contained tin in the combined Indicated and Inferred classification categories,
compared to 51,635 tonnes of contained tin in the combined Indicated and
Inferred classification categories in the October 2012 Mineral Resource. This
represents an increase of 37% in contained tin. The principal reasons for the
significant increase of contained tin, plus the increase in the amount of
material in the Indicated Resource category in the new resource, are:
1. The inclusion of results from an additional 36 holes drilled in 2012 and
2013; and
2. A re-interpretation of the lithological and structural controls on the
tin mineralisation that has resulted in a more selective and tighter
control on the mineralisation domains created. This has resulted in a
reduction in the amount of diluting material from within the
mineralisation domains and has improved the overall continuity of the
interpretation.
Comments
-- The updated Mineral Resource Estimate is currently being used in the
production of a Preliminary Economic Assessment ("PEA") for the Oropesa
project.
-- The resource figures are reported only for a potential open pit with a
maximum depth of 200 metres and exclude all drill intercepts of
mineralisation below that depth.
-- The Oropesa resource has been estimated from within a zone of tin
mineralisation with the following approximate parameters: i) a length of
1,500 metres, ii) a width of 250 metres, and iii) a vertical depth of
270 metres. Mineralisation remains open to the west, east and at depth.
-- The combined resource figures demonstrate some 30,000 tonnes of
contained tin within the first 100 metres from surface and 40,000 tonnes
of contained tin between 100 metres and 200 metres from surface.
-- SRK has modelled a high grade, vertically dipping domain averaging 0.6%
Sn in the western part of the project. Due to the low waste : ore
stripping ratio and the presence of near surface mineralisation within
this domain, the opportunity for a starter pit operation will be tested
as part of the on-going PEA.
-- Further information on the updated resource figures is given in Appendix
1 at the end of this release.
Conclusion
David Danziger, interim President & CEO, comments: "This new resource is a major
step forward in our goal of developing Oropesa into a significant tin producer.
We anticipate finding additional surface resources for a potential open pit
operation, however due to the type of tin mineralisation at Oropesa, we also
recognise that the project's greatest potential probably lies at depths greater
than 200 metres."
SRK's Oropesa Mineral Resource Technical Report will be filed on SEDAR
(www.sedar.com) within 45 days.
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.
Appendix 1
Geology and Mineralisation
The Oropesa property lies within the "West European Tin Belt", which is
approximately 200 km wide and trends in a northerly direction cutting across
western Spain, northeastern Portugal, western France and terminating in Cornwall
and Devon in the southwest of the United Kingdom.
The Oropesa property is situated at the west-northwestern end of the
Penarroya-Belmez-Espiel basin. The basin is a 50 km long and 1 km wide graben
which formed during the Mid to Late Carboniferous, it is bounded by a normal
fault to the north and a thrust fault to the south.
The dominant lithologies that comprise the Oropesa property are a series of NE
dipping greywackes, conglomerates and shales that terminate against the NW-SE
trending Escondida Fault. To the north of the fault lies an unmineralised coarse
conglomerate unit.
Mineralisation at Oropesa has been interpreted to occur as a multistage system,
with the main vein structures following major lithological contacts and
structures. Some six to seven mineralising events have been recognised, starting
with an early cassiterite bearing phase followed by a lower temperature mixed
base metal sulphide phase.
Along the southern boundary of the project area a granitic intrusion of unknown
age has been identified. It is currently not known whether this granite is
related to or the source of the Sn mineralisation.
Geological Model
Geological modelling was conducted using Leapfrog Mining Software. Lithological
logging files were received from the client and used to create a lithological
model of the main greywacke, conglomerate and shale units as well as a number of
faults and a shallow layer of overburden. A base of oxidation surface was also
generated.
Given the strong lithological control on mineralisation, the geological model
was then used to inform the creation of mineralised wireframe domains. Based on
preliminary mining and metallurgical input, SRK has used an approximate Sn cut
off of 0.1% to define the limits of potentially economic mineralisation using
manually digitised wireframe solids.
During the course of constructing the mineralisation wireframes, two broad
mineralisation styles were identified at Oropesa. The first style is
characterised by steeply dipping zones of relatively high grade Sn
mineralisation. The zones are considered to be litho-structurally controlled and
likely related to E-W sinistral faulting. The second mineralisation type relates
to a broad group of shallow NE dipping zones which follow the lithological
contacts between greywacke, shale and conglomerate units.
A total of 23 mineralisation domains were created, these were then subdivided
into two mineralisation styles and further split by oxidation state.
Mineral Resource Estimate
A 2 m composite file was used in a geostatistical study (variography and
Quantitative Kriging Neighbourhood Analysis - "QKNA") that enabled Ordinary
Kriging ("OK") to be used as the main interpolation method. The interpolation
used an elliptical search following the predominant dip and dip direction of the
mineralized domains and utilising the dynamic anisotropy function in CAE
Datamine Studio 3 to guide the ellipse in areas of gentle undulations to the
mineralized domains. The results of the variography and the QKNA were utilised
to determine the most appropriate search parameters.
The interpolated block model was validated through visual checks and a
comparison of the mean input composite and output model grades. SRK is confident
that the interpolated block grades are a reasonable reflection of the available
sample data.
The Oropesa grade estimate was classified as a combination of Indicated and
Inferred. This classification was completed based on the quality of the input
data, the geological understanding and the robustness of the grade
interpolation.
To determine the final Mineral Resource Statement, and so as to comply with the
NI 43-101 guidelines, the resulting blocks have been subjected to a Whittle pit
optimization exercise to determine the proportion of the material defined that
has a reasonable prospect of economic extraction. This exercise is not intended
to generate a Mineral Reserve and is purely used to assist in determining the
possible down dip extent of the Mineral Resource. The optimization was
undertaken to assist in determining the potential depth extent that an open pit
operation could support and in the determination of a suitable cut-off grade for
resource reporting. SRK notes that some of the assumptions used in the
optimization are high level estimates based on the data available at the time,
and in particular to the quantity of representative metallurgical testwork
results that have been undertaken on the project to date.
The optimization study showed that an open pit operation could be supported to a
potential depth extent of the 200 m below the current topographic surface and
that a lower cut-off grade of 0.1% Sn is appropriate.
The Mineral Resource Statement generated by SRK has been restricted to all
classified material within 200 m from the topographic surface and above a
marginal cut-off grade of 0.1% Sn. This represents the material which SRK
considers has reasonable prospect for eventual economic extraction potential.
Table shows the resulting Mineral Resource Statement for Oropesa.
The statement has been classified by a Qualified Person, Howard Baker
(FAusIMM(CP)) in accordance with the Guidelines of NI 43-101 and accompanying
documents 43-101.F1 and 43-101.CP. It has an effective date of 5 June 2014.
Mineral Resources that are not Mineral Reserves have no demonstrated economic
viability. SRK and Eurotin are not aware of any factors (environmental,
permitting, legal, title, taxation, socio-economic, marketing, political, or
other relevant factors) that have materially affected the Mineral Resource
Estimate. The Oropesa project is a greenfield site and therefore is not affected
by any mining, metallurgical or infrastructure factors.
The quantity and grade of reported Inferred Mineral Resources in this estimation
are uncertain in nature and there has been insufficient exploration to define
these Inferred Mineral Resources as an Indicated or Measured Mineral Resource;
and it is uncertain if further exploration will result in upgrading them to an
Indicated or Measured Mineral Resource category.
Table 1: Mineral Resource Statement for the Oropesa Sn project - reported to a
depth of 200 m and above a 0.1% Sn cut-off grade
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CLASSIFICATION Contained Sn
MATERIAL CATEGORY TONNES (Mt) Sn% (Tonnes)
----------------------------------------------------------------------------
Oxide (0.1COG) MEASURED - - -
------------------------------------------------------
INDICATED 3.3 0.35 11,447
------------------------------------------------------
MEAS + IND 3.3 0.35 11,447
------------------------------------------------------
INFERRED 1.1 0.35 3,948
----------------------------------------------------------------------------
Fresh (0.1 COG) MEASURED - - -
------------------------------------------------------
INDICATED 11.6 0.37 43,243
------------------------------------------------------
MEAS + IND 11.6 0.37 43,243
------------------------------------------------------
INFERRED 3.2 0.38 12,130
----------------------------------------------------------------------------
Notes:
(1) Mineral Resources which are not Mineral Reserves have no demonstrated
economic viability.
(2) The effective date of the Mineral Resource is 5 June 2014.
(3) The Mineral Resource Estimate for the Oropesa project was constrained
within grade based solids and above an elevation of 200m below the
topographic surface.
(4) The incremental cut-off grade is based on a Sn price of US$23,000/t and
a process recovery of 76%. For incremental material, mining costs were
ignored and a combined processing and G&A cost of US$12/t were assumed.
In total, SRK has derived an Oxide Indicated Mineral Resource of 3.3 Mt grading
0.35% Sn and a Fresh Indicated Mineral Resource of 11.6 Mt grading 0.37% Sn.
Additionally, SRK has derived an Oxide Inferred Mineral Resource of 1.1 Mt
grading 0.35% Sn and a Fresh Inferred Mineral Resource of 3.2 Mt grading 0.38%
Sn.
FOR FURTHER INFORMATION PLEASE CONTACT:
Eurotin Inc.
David Danziger
CEO and President
(416) 641-4940
www.eurotin.ca
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