Erin Ventures Commences Process to Secure Exploitation License for Piskanja Project
There are many important steps along the path for a junior mining company with ambitions to achieve the development of an operating mine. The establishment of an attractive mineral deposit is just the first step in a long process. The few companies that make it past this stage, must then shift their focus to economic studies, permitting and assembling the working capital to fund mine construction. As each stage is achieved, the overall project status advances along the value curve. Investors may be willing to pay a higher share price for the prospective mining company as the potential to commence operations – and as such generate income – draws closer. In Erin Ventures case they have made a significant step towards that end.
Erin Ventures Inc (CA:EV – $0.06 & US:ERVFF – $0.04 & GER:EKV1 – €0.03) has now emerged as a legitimate candidate to make the transition from an advanced explorer to a mine developer. This week the Company reported that it has begun the exploitation licensing process for its Piskanja Boron Project. Located in Serbia, Piskanja is host to a large tonnage of alteration enriched minerals that are commonly processed to recover boron.
The market for boron is growing and new industrial applications continue to be developed using this element as a raw material. A diverse range of products, including high strength glass products, fiberglass insulation and even technologically advanced ceramics, require boron in the manufacturing process. Yet only a handful of mines worldwide are currently in production. This has created a very appealing scenario for Erin to continue moving forward towards establishing a mine at Piskanja.
Embarking on the Clearly Defined Process to Secure Approval for Mine Development
The Serbian Mining Ministry has mandated standards for resource companies that aspire to build a producing mine. An exploitation license must be granted prior to commencing development. Specific milestones must be successfully achieved as part of this process.
The first stage is to commission an Elaborate of Reserves (the Elaborate) for the project. This involves presentation of a Mineral Resource Calculation, along with a Technical Economic Assessment. These studies document that a mineral resource has been established with the potential for economic extraction. A review and approval process is then completed by the Mining Ministry, with the assistance of independent geological and mining experts.
Once the Elaborate has been granted, a Certificate of Reserves will be issued by the Mining Ministry. Erin may then proceed to prepare and submit additional documentation in support of the project. A Serbian compliant Feasibility Study must be submitted for the project, along with an Environmental Impact Assessment. If these are approved, the Company will be issued with an “Approval of Exploitation Field”. Erin will have up to 3 years to complete these important stages, once the exploration license for Piskanja expires in September of this year.
The final stage thereafter will be to secure the Serbian “Approval for the Construction and Operation of Mining Facilities” permitting. Erin will have up to 2 years from the date the Approval of Exploitation is issued to complete this final step in the process.
Focus Shifts from Exploration to Longer Term Strategic Planning
Erin also reported that previously announced plans for additional fieldwork at Piskanja have been suspended. This proposed work would have included infill drilling, metallurgical testing and hydrological studies.
The Company stated that it has already completed sufficient fieldwork and related studies necessary to file for the Elaborate and therefore the timing is appropriate to move forward in pursuit of the approval to build a mine. Erin anticipates it will have the Elaborate application ready to submit within 3 months.
In addition, Erin will continue to pursue strategic partnership opportunities and engage in discussions with potential financiers. There is also the potential to consider off-take agreements as the project advances towards a platform for construction of a mine.
Formally commencing the process to gain approval for mine construction will build confidence in the project, and establish a timeline for the remaining milestones ahead. This will make Piskanja more attractive as a late stage development candidate, and will contribute to greater shareholder value for the Company.
Geology is not confined by national borders, although the business of mining is variable from one country to another. Serbia is considered a mining-friendly country, and the regulatory process to establish a mine is clearly defined. Erin has successfully defined a large mineral deposit that is a candidate for development. The Company is now advancing along the path to enable that longer term objective to be realized.
Erin has made a statement that Piskanja is ready for development, and has now formally embarked on the process to secure Serbian approval. There are several important milestones ahead that must be achieved in order to gain a mining license in Serbia. As each of these formal steps is completed, the project will gain in stature as a legitimate development candidate. The intrinsic value of the deposit will also rise as it becomes more likely that a mining scenario may become the reality. The objective to attract a development partner will also be enhanced by the process.
Erin is now positioned among the top junior project development companies worldwide. It has advanced Piskanja to the stature of a select handful of boron deposits worldwide that may support profitable mining for many years to come. The process to gain Serbian permitting and approvals will add further value to this project. As each stage of the approval process is successfully navigated, expect the share price for the Company to increase accordingly. Smallcaps Recommendation: BUY.
|For important disclosures, please read our disclaimer.|