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Erin Ventures Inc
Piskanja Borate Project, Serbia Updated - March 2016
The technical information in this presentation was approved by James E Wallis, M.Sc. (Eng), P. Eng., a director of the company, who is a Qualified Person under National Instrument 43-101.
Cautionary Statement This presentation has been prepared by Erin Ventures Inc. (“Erin”) and consists of the slides for a presentation concerning Erin. By reviewing/attending this presentation you agree to be bound by the following conditions. Forward-Looking Statements This presentation includes forward-looking statements. All statements other than statements of historical facts included in this presentation including, without limitation, those regarding Erin’s financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to Erin’s products, production forecasts and reserve and resource positions), are forward-looking statements. Forward-looking statements can generally be identified by terms such as “expect”, “intend”, “plan” , “objective” and other terms indicating a future intention or expectation. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Erin, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Such forward-looking statements are based on numerous assumptions regarding Erin’s present and future business strategies and the environment in which Erin will operate in the future. Among the important factors that could cause Erin’s actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, actual amounts of recoverable resources, levels of actual production during any period, levels of demand and market prices, the ability to produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, operational problems, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or regulation including environmental and such other risk factors identified in Erin's most recent MD&A. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this presentation. Information contained in this document is for informational purposes only, is subject to change, and does not constitute an offer or solicitation.
Erin Ventures Inc.
High-grade boron deposit Projected long life (20+ years), low cost mining operation 100% owned by Erin Project advancing towards Feasibility Study
The deposit remains unbounded in two directions (good
potential for resource expansion)
Piskanja boron project highlights
Erin Ventures Inc.
Piskanja boron project highlights
Exclusive license covering 35 km2
Potential to find additional deposits in remainder of the licensed area, with positive results to date
Located in a historical mining region of Serbia with existing mining infrastructure including good paved roads, rail, power, ports, experienced miners, etc.
Erin is actively developing several strategic partnerships
Erin Ventures Inc.
Mineral Resource Estimate (NI43-101 compliant)
Mineral Resource
Category
Tonnage,
Mt
B2O3
Grade, %
Contained
B2O3, Mt
Indicated 7.8 31.0 2.4
Inferred 3.4 28.6 1.0
*Source: NI43-101 compliant Technical Report And Preliminary Economic Assessment (PEA) For The Piskanja Borate Project, Serbia – SRK Consulting (UK) Ltd., 1- 9-2014. The Technical Report is available at: http://www.erinventures.com/pdf/U6467_Piskanja_MRE_2016_Final_Report.pdf
MRE cautionary statement: Mineral resources that are not mineral reserves do not have demonstrated economic viability. The quantity and grade of reported Indicated and Inferred Mineral Resources in this estimation are uncertain in nature. There has been insufficient exploration to report these Mineral Resources in the Measured category and it is uncertain if further exploration will result in upgrading a part of these to this category in due course or if further technical work will enable them to reported as Mineral Reserves.
APPROACH: cost effective international standards of ore reserves smart mine planning and development apply environmental and safety standards minimize the social and environmental issues.
OBJECTIVE: Rapidly develop the Piskanja deposit
Development Plans
The next phase of work comprises further data collection, inclusive of drilling and metallurgical testwork, followed by a feasibility study. This work is anticipated to take 12 months to complete.
Item USD 000
Exploration/Resource Drilling 500
Bulk Sampling/Metallurgical Testwork 800
Decline Drilling 450
Environmental Studies 150
Geotechnical Testwork 60
Hydrological and Hydrogeological Analysis 150
Feasibility Study 550
Office Costs 540
Contingency 300
Total 3,500
Erin Ventures Inc.
Timelines for Piskanja development after receipt of exploitation license
Feasibility Study
Month 1 Month 24
Development drilling
Mine planning
Driving decline & development mining
Order mining & benefitation equipment
Construction & installation of services
Production
Uses for boron
Used in hundreds of products that shape modern life, with new applications developed regularly. Primary use is in the manufacture of fiberglass insulation, textile fiberglass, borosilicate glass (LCD screens, solar panels and more), ceramic glazes and porcelain enamels (64% of borate consumption) Detergents, fire retardants, metallurgy, agriculture, insecticides, wood preservatives and many specialty products account for most of the remainder of consumption
World Boron Consumption by End-Use in 2014
Source: Eti Mine
Uses for boron
Borates are safe. Used for centuries, borates pose no risk to people, animals or the environment under normal handling and use. Second, they’re versatile. In many applications, there is simply no substitute for borates.
Boron market is valued at US$2.4B per year (2015)
An oligopoly with a small group of producers and two major
producers controlling 83% of the market
Global consumption is currently matching production with growth in demand outpacing production growth (Source: RTM)
A lack of competition in supply helps to keep prices stable
Economic deposits of borates are extremely rare
Boron Market Characteristics
Erin Ventures Inc.
World production reached 2.4 million tons B2O3 (>5 million tons mine run) in 2015 and is growing at a controlled pace (Source: RTM) China is the largest consumer of boron, where consumption has risen by 15% per year from 2000 to 2010 and is currently growing at their GDP growth rate of 7% (Source: US Geological Survey). The US market is the second largest, growing at a rate in excess of GDP growth, driven by housing recovery.
Supply/demand of boron
Over the next decade, the industry will need increased capacity that is equivalent to another 1.5 Boron-sized operations (Rio Tinto’s California mine) to meet demand. (Source: Rio Tinto)
Current Suppliers of Borates
An oligopoly exists with 2 dominate players supplying 83% of the market. This keeps prices stable and growing.
Source: Rio Tinto
Erin Ventures Inc.
Boron prices
$200
$400
$600
$800
$1,000
$1,200
$1,400
Jun
-09
Sep
-09
De
c-0
9
Mar
-10
Jun
-10
Sep
-10
De
c-1
0
Mar
-11
Jun
-11
Sep
-11
De
c-1
1
Mar
-12
Jun
-12
Sep
-12
De
c-1
2
Mar
-13
Jun
-13
Sep
-13
De
c-1
3
Mar
-14
Jun
-14
Sep
-14
De
c-1
4
Mar
-15
Jun
-15
Sep
-15
US
Do
llars
Borate Prices
boric acid high
boric acid low
colemanite high
colemanite low
Price range
Source: IM Industrial Minerals
Erin Ventures Inc.
Economic borate occurrences are very rare, 2 regions are currently supplying +80% of world production today (Rio Tinto’s US Borax in California, and Eti Mine in Turkey)
The majority of other producers are from high-cost, low-grade deposits in South America
Scarcity of borates
European Commission Press Release – 26.5.2014 20 critical raw materials - major challenge for EU industry
“The European Commission’s 2014 list of Critical Raw Materials includes borates. The list should help to incentivise the European production of critical raw materials and facilitate the launching of new mining and recycling activities.”
Market penetration strategy
Erin’s planned production: 200,000 t/yr, which is a market penetration of < 5%
Room exists in the market for additional high quality producers, especially in competition with the inferior producers from South America (who have a 20% market share today)
Erin’s competitive advantages include: large deposit; high quality, low arsenic; good proximity to markets; excellent infrastructure; relationships with industry leaders; ability to add value by creating specialty products
Colemanite market – only 1 current world supplier (Eti Mine). Buyers welcome an additional supplier
Our colemanite has much lower arsenic content that that from Turkey, which is a growing concern for most countries
Strategic relationships with leading boron industry participants who provide us with ready market share, value-add product expertise, marketing capabilities, etc
The market is growing faster than production
Market penetration strategy
About Serbia
Erin Ventures Inc.
Serbia has formally entered the process for EU membership
The government has committed to stimulating and encouraging foreign investments within the mining industry. Their stated aim: “to increase the mining industry’s contribution to GDP from its current 2% to 5% by 2020 and that Serbia becomes the leader in the mining industry in southeast Europe”
No restrictions on foreign ownership
15% corporate tax rate and 5% NSR
10 year tax holiday available (Erin will qualify)
Canada and Serbia have signed a Foreign Investment Protection Agreement to ensure a more secure business environment for Canadian companies in Serbia
Additional data Erin Ventures Inc.
Geological data: Regional geology Lithology Piskanja deposit geology Mineralization zones Exploration history
General information: Local community Access Infrastructure
Jarandol basin – general features
Structural basin of
Miocene age
Sediments deposited in
a lake setting
Presumably structurally
active throughout its
existence
Concession area Piskanja – Erin Ventures Inc.
35 km sq
Jarandol basin – borates distribution & resource
Pobrdje deposit
3 km to the west of Piskanja
small, two-bed resource
Piskanja deposit
two primary beds about 90m vertical
separation
the upper bed thickness: 3 -14m
(starts at a depth of 120m)
the lower bed thickness 1.5 - 6m
(starts at a depth of 210m)
Basement: Pz/Mz serpentinites and dolomites
Neogene: tectonic shallow lacustrine basin was formed, followed by
deposition
Miocene: outpourings of andesitic lava flows, breccias and
agglomerates affected the sedimentation; solutions borates were
precipitated from HT
Result: claystone mixed with tuffaceous and calcareous sediments, coal
seams and magnesite and borate beds and lenses.
Jarandol cross section - lithology
Piskanja borate deposit geology
Borates are
inter-bedded within
volcano-sedimentary
lacustrine series of clastic-
carbonaceous-tuffaceous
sediments, tuffs, volcanics
and inter-series breccias.
Sedimentary series
extends in NNE - SSW
direction and dips toward
E - SE at an angle of
about 30°.
source: RIO TINTO
Yugoslavian Geo Survey
1967 the presence of boron mineral first detected
1979 first geochemical investigation of boron dissemination conducted
1987 colemanite first noted in structural borehole
1987 – 1992 21 boreholes; total 6,508 m - partial delineation of the deposit
Erin Ventures Inc.
1997 10 boreholes; total 2,823 m - further delineation of the deposit
Rio Tinto
2006 - 2009 5 boreholes; total 2,415.5 m - twinning of historic drill holes
9 boreholes; total 3,552.5 m - drilling outside of the known deposit
Erin Ventures Inc.
2011 -2012 37 boreholes; total 13,569 m - within mineralized area on a 100m x 100m grid
2013 -2015 11 - 50m X 50m boreholes; MRE and PEA completed
Exploration history
Piskanja deposit promising
• positive exploration results
• possibility of increasing resource
• well located for shipping the minerals to destinations by road, rail and water
• good infrastructure
• work force trained in underground mining
“the Piskanja Project and the western part of Jarandol Basin have significant potential to host multiple horizons of high-grade boron mineralisation. SRK considers the Piskanja Project to be an exploration project of merit and that there is potential to increase the current Mineral Resources” - SRK Exploration 1.12.16 colemanite
General information - local community
Adjacent to the small town
of Baljevac (3000 inhabitants)
Strong mining tradition and
culture (coal mine)
Borates perceived as the
future of local mining
Region of strategic
importance to
Serbian Government
General information - access
Highway access from
Belgrade to property
Transportation on standard
gauge rail serving Greece
(south), the Danube at
Belgrade (north) and the
Adriatic (south west)
Good paved local roads
Well located for shipping
the ore to destinations by
road, rail and boat
General information - infrastructure
3-phase power
generation and
independent sourcing of
energy available onsite
Good accommodations;
adequate
communication (phone,
internet); supplies and
services available
Summary & conclusions
Valuable and scarce mineral with growing uses and demand
Good potential to expand resource size
Good mining infrastructure in place
Competitive advantages exist for Erin
Very small current market capitalization ($15 M)
Board of Directors Tim Daniels, B Comm. (Finance) has a decade of experience in sales, management and corp. finance with Canadian based brokerage firms. He has raised many tens of millions of dollars and assisted companies in their IPO process. He has 20 years experience in the areas of management, financing, strategic planning, business development, and corporate finance of natural resource companies, and has been president of Erin since 1996. James Wallis, M.Sc. (Eng), P. Eng. has 40 years of experience in all phases of mineral exploration and mine development. He has held senior mine management and consulting positions throughout the world with companies such as Noranda, Kerr Addison, U.S. Borax, and Amax. Jim lead a team at The Allan Potash Mine key to the development of the mine - from shaft sinking to the design and selection of underground mining equipment for a large-scale trackless mining operation. Additionally, he spent time at U.S. Borax operations evaluating the economics of their mining operations, while gaining experience in boron production. Dr. Dragoljub Jujic, M. Eng., has over 35 years experience in mining, engineering and research. Dr. Jujic previously served as the Director of the Yugoslavian National Mining Institute for 8 years. He also served as General Manager for the Tomasica and Mokra Gora iron ore mines, Chief Engineer on several projects, and consulted to mining companies located in Central Europe, Asia and Africa.
Dr. Vladan Milosevic, PhD Eng. Since 1997, Vladan has held the position of Department Chief for Mineral Processing, at the "Institute for Technology of Nuclear and Other Mineral Raw Materials“ in Belgrade, Serbia. He has successfully served as Project Manager on numerous commercial mining projects in Serbia including: the reconstruction of the Veliki Krivelj Floatation Plant to increase capacity to 10,000,000 tonnes of ore per year; increasing the copper recovery from the Cerovo, Cementacija 1- South deposit; and processing optimization of the Majdanpek Copper Mine.
Key Management Dusan Podunavac, B.Sc P.Geo. Dusan served as Senior Geologist and Technical Director of the Geological Institute of Serbia for 23 years. His expertise and duties at the Institute included: management of the engineering divisions within the Institute, with supervision of 250 staff members; mining feasibility studies; cash flow analysis; international project-specific financing; mine planning, construction and remediation supervision; environmental engineering; and, evaluation of mining operations, companies and policies on behalf of governments. Dusan now serves as Project Manager for the development of Erin’s Piskanja project.
Erin Ventures Inc Quick facts:
Symbol: EV TSX-V OTCBB: ERVFF
Berlin Stock Exchange: EKV Shares outstanding: 280 Million
Year High Low $0.09 - .04
For further information:
Website: www.erinventures.com Email: info@erinventures.com Tel: (1) 250 384 1999 Toll free: (1) 888 289 3746 Fax: (1) 250 384 6761 645 Fort Street, Suite 203 Victoria BC V8W 1G2 CANADA
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