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ECR Minerals plc (ECR) – High Gold and Antimony Results from Soil Sampling, Victoria, Australia
HIGH GOLD AND ANTIMONY RESULTS FROM SOIL SAMPLING, VICTORIA, AUSTRALIA
EXPLORATION AT HR3 BAILIESTON PROJECT HIGHLIGHTS POTENTIAL UNDEVELOPED REEF LINES
ECR Minerals plc (LON: ECR), the gold exploration and development company focused on Australia, is pleased to announce results from recent soil sampling undertaken within the Historic Reserve #3 (HR3) Bailieston in Victoria, Australia and 100%-owned by ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”).
Craig Brown, Chief Executive Officer, commented:
“I am delighted to announce further positive exploration news, this time from the implementation of a soil sampling programme utilising an innovative exploration methodology (see below) at HR3 that has revealed particularly high gold grades in soils and therefore identified a new target for drilling.
The significance of these findings means we have now submitted a request for consent to undertake additional exploration drilling at the location, which is over and above initial planned drill holes in the area.
As the momentum of our two rig drill programmes continues to build, additional findings such as those announced today further demonstrate the geological prospectivity of our licence areas. I look forward to providing further updates as material exploration data is received and reviewed by the Company.”
HIGHLIGHTS
- Soil sampling has revealed high gold anomalies (up to 3.75 g/t Au) along with spatially associated antimony which is thought to be from the mineral stibnite which forms a close association with gold mineralisation.
- A total of 720 B-horizon soil samples were taken across the central and eastern part of the Bailieston Historic Reserve # 3 (HR3) between February and March 2021.
The samples were tested by portable X-ray fluorescence (“pXRF”) for anomalous pathfinder elements for gold and a selected sub-set of 229 samples have been sent for trace element analysis (TL) for Au, Ag, As, Sb, Zn, Cu and Pb.
- Results of this work show a strong spatial relationship between Au (gold), Sb (antimony) and to a lesser extent As (arsenic). Plotting of spatial Au-Sb elemental maps reveals trends which may correspond to the weathering of high grade gold shoots under shallow cover (fig. 1).
- Field mapping shows sub-cropping quartz with little to no historical workings associated with these anomalies. Plans have been submitted for approval to drill along strike to test these quartz reefs at depth.
METHODOLOGY
Soils grids were designed over known and the possible strike extensions of gold-bearing quartz reefs. A 10m x 10m spaced grid was chosen as it is known that narrow high-grade gold reefs will erode over a small spatial area into the adjacent soil.
Metal detector prospectors in central Victoria know this phenomenon creating what are known as ‘patches’ and often contain visible coarse gold. Soils have been taken from the B-horizon, often at the gravel-clay interface at a depth around 10cm. This is where the gravels have not transported too far from their source rocks.
Soils located within gullies and adjacent mullock dumps were removed due to contamination. All soils were sieved on site to < 2mm and bagged, producing a sample around 300g in weight. A total of 720 samples have been taken to date (June 2021).
All soils were systematically analysed in-house using ECR’s owned Olympus pXRF. Analysis is undertaken using three sequential beams with a 15 second count attributing to each beam. Results are evaluated for traditional pathfinder elements such as As, Ag, Pb, Zn, Cu and Sb.
Soil with moderate arsenic content (generally > 40 ppm) and soils spatially close to extensions to known reef lines were selected for further trace elemental analysis for Au, Ag, As, Pb, Zn, Cu and Sb. A total of 229 sub-samples have been selected and sent to ALS laboratories, Adelaide, South Australia. Method Au-TL44/ME-ICP44 was chosen for analysis.
A detection limit in ppm is sufficient given the proximity to possible gold sources. Any Au-TL44 results greater than 1 ppm was analysed by Au-AROR44 which is used for ‘ore grade’ analysis. A 50g charge from a 95% passing 75µm pulverise was chosen due to the likely presence of coarse gold.
RESULTS
Thirteen samples returned gold values above 0.1 g/t Au. Silver, Copper, lead and Zinc results are low within the soils.
Arsenic is traditionally used as a pathfinder element for gold mineralisation and occurs at moderate levels within soils at HR3 and is fairly distributed which will mask blind gold deposits.
Antimony (Sb) results are variable with high results correlating spatially with high gold assays (fig1)
Figure 1: https://www.ecrminerals.com/images/fig1_HR3_Au-Sb_Soils_210608.jpg
Rock chips taken during 2018 along strike of the main soil anomaly showed a visible speck of coarse gold (fig. 2). Assays for these rock chips were analysed using a small charge fire assay resulting in variable results (up to 0.32 g/t Au) reflecting how coarse gold can be missed using traditional assay methods. Furthermore, non-executive director (Adam Jones) in February 2019 has found coarse gold by using a metal detector within the shallow soils in the vicinity of the reported soil anomalies (fig 3).
Figure 2: https://www.ecrminerals.com/images/fig2_LX0819_vg__2018.jpg
Figure 3: https://www.ecrminerals.com/images/fig3_036g_nugget_HR3.jpg
Table 1 Summary of results for analysis of a 229 selected soil samples using method Au-TL44/ME-ICP44.
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Au-PREF ppm |
Ag-T L44 ppm |
As-TL44 ppm |
Cu-TL44 ppm |
Pb-TL44 ppm |
Sb-TL44 ppm |
Zn-TL44 ppm |
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Number |
229 |
229 |
229 |
229 |
229 |
229 |
229 |
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Minimum |
0 |
0.1 |
7.5 |
1.8 |
4.8 |
3 |
3 |
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Maximum |
3.75 |
0.1 |
124 |
14.9 |
28.6 |
386 |
44 |
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Mean |
0.05 |
0.1 |
46.78 |
6.68 |
10.52 |
43.47 |
9.99 |
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Lower Quartile |
0.01 |
0.1 |
33.7 |
4.7 |
8.5 |
14 |
6 |
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Median |
0.01 |
0.1 |
45.1 |
6.5 |
10.4 |
24 |
9 |
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Upper Quartile |
0.02 |
0.1 |
56.8 |
8.25 |
12.2 |
51 |
12 |
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STD-deviation |
0.26 |
0 |
21.61 |
2.52 |
3.17 |
54.96 |
5.99 |
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CV |
5.53 |
0 |
0.46 |
0.38 |
0.3 |
1.26 |
0.6 |
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Range |
3.75 |
0 |
116.5 |
13.1 |
23.8 |
383 |
41 |
LOOKING FORWARD STATEMENT
Results from the undertaking of this work reflect a close gold-antimony spatial relationship with a low to moderate arsenic undertone within the Bailieston goldfield. Further soil analysis for pathfinder elements will be undertaken on other tenements now under increased exploration activity within central Victoria such as Creswick, near Ballarat.
The outcome of this work will greatly increase the chances of finding blind sub-surface gold bearing reefs that have been missed by previous explorers.
To our current knowledge, this is the first-time geochemical analysis has been undertaken at such a high standard within these tenements.
Plans have been submitted for approval to drill underneath and along strike of these anomalous soils. Once approved, this drilling will be a continuation of the current drilling program that is underway on nearby HR4, Cherry Tree.
REVIEW OF ANNOUNCEMENT BY QUALIFIED PERSON
This announcement has been reviewed by Adam Jones, a director of ECR Minerals plc. Adam Jones is a professional geologist and is a Member of the Australian Institute of Geoscientists (MAIG). He is a qualified person as that term is defined by the AIM Note for Mining, Oil and Gas Companies.
MARKET ABUSE REGULATIONS (EU) No. 596/2014
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (MAR). Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information is now considered to be in the public domain.
FOR FURTHER INFORMATION, PLEASE CONTACT:
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ECR Minerals plc |
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Tel: +44 (0)20 7929 1010 |
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David Tang, Non-Executive Chairman |
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Craig Brown, Director & CEO |
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Email: |
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Website: www.ecrminerals.com |
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WH Ireland Ltd |
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Tel: +44 (0)161 832 2174 |
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Nominated Adviser |
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Novum Securities Limited Broker Jon Belliss |
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Tel: +44 (0)20 7399 9425 |
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SI Capital Ltd |
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Tel: +44 (0)1483 413500 |
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Broker |
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Nick Emerson
The West Australian: Big fall coming for gold as miners post stellar results – ECR Minerals #ECR
Stuart McKinnon – The West Australian
Australia’s gold production is tipped to slump to a “generational low” by 2022 despite it being on track for a 26-year high of 10.2 million ounces next year.
S&P Global Market Intelligence attributed the rapidly slowing production to short mine lives of recent start-ups and other significant mines approaching the end of their lives.
“We are forecasting a 9 per cent fall year-over-year in 2020 and we expect the country’s production to reach a generational low of 6.8Moz by 2022, a 33 per cent drop within only three years,” S&P analyst Chris Galbraith said.
“Many smaller mines are also expected to start winding down, such as Cracow, Mungari, South Kalgoorlie and Paulsens.”
The prediction comes as a trio of Aussie gold miners yesterday reported stellar full-year results from their respective operations.
Saracen Mineral Holdings posted a 100 per cent surge in underlying profit to $67.3 million on the back of a 16 per cent rise in production to a record 316,453oz.
The Raleigh Finlayson-led miner said it would more than triple its exploration budget from $17 million last year to $60 million over the next five years.
St Barbara announced underlying profit of $202 million, up 26 per cent on the previous year, after producing a record 403,089oz in the period at record low all-in sustaining costs of $891/oz.
The Bob Vassie-headed company declared a final dividend of 8¢ a share fully franked, up from 6¢ last year.
Silver Lake Resources posted a net profit of $16.2 million, up from $2 million the previous year. The result was achieved on the back of a 16 per cent increase in gold production to 157,936oz and a 5 per cent reduction in all-in sustaining costs to $1289/oz.
Newcrest Mining’s underlying profit rose 16 per cent to $US459 million. Australia’s biggest gold miner declared a final fully franked dividend of US11¢, up from a partially franked US7.5¢ the previous year.
Find the original article by The West Australian here
Strong performance helps Australian gold miners turn competitive in global M&As -DealStreetAsia
Article by DealStreetAsia
Gold producers in Australia are outperforming their global competitors, prompting investors to encourage them to expand their horizons and acquire struggling North American rivals.
Boosted by some of the sector’s best margins, low debt and swelling cash piles, miners in the world’s No. 2 producer are defying a wider lull in gold equities. Saracen Mineral Holdings Ltd. and Northern Star Resources Ltd. have surged in the past year as rivals in Canada, the U.S. and South Africa faltered.
“Australian gold miners currently enjoy some of the highest margins in the world,” said Stephen Land, San Mateo, California-based portfolio manager at the $1.1 billion Franklin Gold and Precious Metals Fund. The producers are being supported by cuts to operating costs and stronger prices of bullion in Australian dollar terms.
Miners in Australia and New Zealand account for about 20 percent of the Franklin fund’s holdings, which last year added positions in Dacian Gold Ltd. and Gascoyne Resources Ltd. Australian companies are now valued more equitably against North American peers “allowing them to be competitive in global M&A,” Land said.
Newcrest Mining Ltd., Australia’s top producer, invested $250 million in Canada’s Lundin Gold Inc. this year, while St. Barbara Ltd. is examining potential deals that could include the U.S. Evolution Mining Ltd. and Northern Star are among other companies with the firepower to move on poorly performing North American miners in the short-to-medium term, Argonaut Securities Ltd. said in a note last month.
“We will consider adding overseas assets to our Australian portfolio,” Evolution’s Executive Chairman Jake Klein said in an emailed statement. The producer has a “preference for first world jurisdictions and hence North America is on the radar.” Northern Star didn’t immediately respond to a request for comment.
Valuations of Australian producers are on par with North American companies for “the first time in memory,” according to Joe Foster, New York-based portfolio manager for the $675 million VanEck International Investors Gold Fund. Australian and U.S. producers currently trade on a similar price-to-cash flow ratio, a metric favored by investors to compare companies in the same industry.
“Australia is a mature gold jurisdiction and companies will have to go abroad for opportunities,” Foster said. “‘If Australian investors won’t support international M&A, then the companies will have to look for support from investors abroad.”
Newcrest and Evolution are among the miners scheduled to address the three-day Diggers and Dealers forum starting Monday in Kalgoorlie, Western Australia. About 50 companies, including BHP Billiton Ltd., Fortescue Metals Group Ltd. and other producers of gold, base metals and battery raw materials will make presentations to more than 2,100 delegates.
Smaller producers including Dacian Gold, Gascoyne and Red 5 Ltd. all have room to grow with “interesting opportunities to deploy cash” on exploration, according to Franklin Templeton’s Land, whose fund holds all three companies. VanEck’s list of junior companies with potential includes West African Resources Ltd., Cardinal Resources Ltd. and Gold Road Resources Ltd., Foster said.
“The North American investors like what they see,” said Rohan Williams, executive chairman and chief executive officer of Perth-based Dacian, which poured a first gold bar in March at the Mount Morgans mine in Western Australia. Miners in the nation are winning attention by “aggressively exploring and finding more gold.” he said. Dacian raised almost A$50 million ($37 million) in share sales last month.
Australia’s gold producers can continue to outperform competitors — and woo global investors — by using strong cash flows to fund exploration at medium-sized mines that have historically lacked detailed studies, Melbourne-based RBC Capital Markets analyst Paul Hissey said in a note last month.