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ECR Minerals #ECR – Drilling at Victoria Goldfields reveals visible gold in first drill
ECR Minerals plc (LON: ECR), the gold exploration and development company focussed on Australia
is pleased to announce a drilling update from the HR3 area (“HR3”) of the Company’s 100% owned Bailieston Project in the Victoria Goldfields, Australia.
Craig Brown, Chief Executive Officer of ECR Minerals plc, commented: “I am pleased to announce the completion of our first diamond drill hole utilising the Company’s in-house drilling equipment, which is a notable event for the Company.
The hole was completed efficiently and safely and we are now pushing on with further drilling with the commencement of the second hole. We intend to continue drilling across various target areas within ECR license areas in the coming weeks and months.
The presence of a 5.3 metre wide reef (drilled thickness) with visible gold in the first drill hole core is a positive development and we look forward to receipt of assay results from the laboratory as soon as possible.”
HIGHLIGHTS:
This first diamond drill hole at HR3 was undertaken utilising the Company’s recently acquired drill rig and has reach a total depth of 300 metres. The drill rig has now commenced a second hole in the same location. The hole intersected the Byron Main Reef at 110 m and the information from this hole will allow us to establish the structural architecture and controls for the obvious gold mineralisation in this reef (and adjacent reefs) and in the wider HR3 prospect. The Byron Main Reef is 5.3 m wide (drilled thickness, true thickness unknown) and is milky, vuggy quartz with laminated margins. 1.3 m of core was lost drilling through the reef.
The current exploration drill programme was originally announced on 12 January 2021 and this announcement may be viewed through the following link:
https://polaris.brighterir.com/public/ecr_minerals_plc/news/rns/story/wvp81vw
The drill core from the first hole was transferred to the Company’s processing shed in Bendigo, Australia where the core was cut and analysed following which samples have been delivered to the laboratory today for assay analysis. The samples will be processed by the Gekko’s Assay Laboratory facilities in Ballarat, Australia and the assay results are expected in the coming weeks.
https://www.gekkos.com/en/solutions/lab-testwork/assay-lab
Preliminary core inspection has identified visible gold in the core and the Company has been utilising a portable x-ray fluorescence (“pXRF”) as part of the preliminary examination process. The pXRF has confirmed the gold content of a small speck seen in the core at 111.0 m.
https://www.ecrminerals.com/images/2021/BH3DD001_Byron_Main_Reef.pdf
Review of Announcement by Qualified Person
This announcement has been reviewed by Dr Rodney Boucher of Linex Pty Ltd. Linex Pty Ltd provides geological services to Mercator Gold Australia Pty Ltd, including the services of Dr Boucher, who has a PhD in geology, is a Member and RPGeo of the Australian Institute of Geoscientists and is a Member of the Australasian Institute of Mining and Metallurgy. Dr Boucher 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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Katy Mitchell/James Sinclair-Ford |
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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 |
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ABOUT ECR MINERALS PLC
ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd has 100% ownership of the Bailieston and Creswick gold projects in central Victoria, Australia. ECR is currently drilling high priority targets on the Bailieston gold project using the Company’s own diamond drill rig. ECR has an experienced exploration team with significant local knowledge in the Victoria Goldfields.
Following the sale of the Avoca, Moormbool and Timor gold projects in Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX), ECR has the right to receive up to A$2 million in payments subject to future resource estimation or production at those projects.
ECR has earned a 25% interest in the Danglay gold project, an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines, and holds a royalty on the SLM gold project in La Rioja Province, Argentina.
ECR Minerals #ECR CEO Craig Brown interviewed by StockBox Media
ECR Minerals #ECR CEO Craig Brown is interviewed by StockBox Media. Craig discusses the recent purchases, including the Midas drill rig, and how the company plans to set up its own laboratory to analyse drill samples and geo data.
Craig explains the drilling process and how owning the equipment and resource has improved efficiency of operations and ultimately a speeding up of the process.
With £4m in the bank, sufficient funding to take the company through to 2023, Craig says the quartz cores extracted are looking very positive, although the detailed analysis needs to be undertaken.
Craig explains how the team at the new broker will conduct site visits and prepare detailed analysis notes, plus the Shenyang Xinliaoan Machinery Co major shareholding, (first invested in 2017). The company, which has approaching $1bn in assets, supplies mining equipment, plus equipment for industrial and earth moving equipment.
As major shareholders, Shenyang will also provide operational support and equipment for ECR going forward.
In regard to JV interest, short term Craig sees the greatest potential at Bailieston and HR3, Bryron, Blue Moon, Black Cat, Cherry Tree South and other areas. HR3 mineralisation looks v similar to Fosterville.
There is still serious interest at Creswick. Technical due diligence has been completed, so currently the JV partners are awaiting the final legal documentation. The partners are well known in the industry, having worked with a number of billion pound listed companies.
Craig ends by saying he’s not so much interested in corporate deals, rathermore he wants to discover something ‘on the ground’.
“It’s incredible when you discover something from nothing, and discover there is $8bn of gold sitting there. That’s what we hope to do for ECR..”
Proactive’s Andrew Scott talks to ECR Minerals #ECR CEO Craig Brown
ECR Minerals’ (LON:ECR) Craig Brown caught up with Proactive’s Andrew Scott following the news their newly acquired drill rig, Midas, is now in operation at its inaugural drill site at the Bailieston Project in Victoria, Australia. It’s the first of a number of drill locations which will be coordinated from ECR’s central exploration facility compound in the Victoria Goldfields. Brown says the work will be funded from ECR’s existing cash resources, which amount to around £2.95 million.
ECR Minerals #ECR – Drilling kicks off at Bailieston in Victoria Goldfields
ECR Minerals plc (LON: ECR), the gold exploration and development company focussed on Australia, is pleased to provide the following update on its activities in the Victoria Goldfields, Australia, which are carried out through the Company’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”).
Craig Brown, Chief Executive Officer of ECR Minerals plc, commented:
“ECR’s wholly owned Australian subsidiary MGA has built a strategic portfolio of exploration ground in the Victoria Goldfields with granted and application licences totalling some 1,175 square kilometres.
Our newly acquired drill rig, named “Midas”, is now in operation at its inaugural drill site the Byron prospect in the HR3 area of the Bailieston Project. This is the first of numerous planned drill locations which will be coordinated from ECR’s central exploration facility compound in the Victoria Goldfields.
The extensive drilling we plan to undertake will be funded from ECR’s existing cash resources and the Company can confirm that cash resources currently amount to circa £2.95 million providing a considerable forward cash runway for operational and corporate activities.
We expect to provide regular drilling updates to the market including results from assay testing of drilling samples.”
ECR Minerals Victoria Goldfields Footprint
Please see the following link for a map showing all MGA’s current exploration licences and applications in Victoria:
https://www.ecrminerals.com/images/2021/Location_map-1.jpg
Commencement of Drilling – Bailieston Gold Project
The drill rig has been set up on a site adjacent to the Byron shaft in the HR3 area of the Bailieston project. Please see the following links for plans and sections of the planned drilling from the first site:
https://www.ecrminerals.com/images/2021/BH3DD001-006_Plan.jpg
https://www.ecrminerals.com/images/2021/BH3DD001-004_Section-A.jpg
https://www.ecrminerals.com/images/2021/BH3DD005-006_Section-B.jpg
There are two possible drill sections from this first site, labelled A and B. The first planned hole (HR3DDH001) is highlighted in purple. The plans and sections are based on assumptions largely derived from historical data compilations/reports. They are provided for guidance purposes only and no reliance should be placed on them. As work proceeds, the planned drill holes are open to modification as the geology becomes clearer.
HR3DDH001 will aim to follow the continuation of the reef below the depth of the historic workings of the Byron mine. Subject to favourable results from the first hole, several follow-up holes have been designed to test extensions of the reefs. Section B holes have been designed to target the vein at similar depths as Section A, but to the south side of the Byron shaft.
After Byron, drilling will continue at HR3 to test the Maori, Dan Genders, Scoulars and Hard-Up reefs and will aim to provide for the first time a framework of the geological structures hosting the reefs, which will be used to attempt to target coalescing reef intersections.
From HR3, it is currently planned that the rig would be moved to test the Cherry Tree prospect, or for further drilling at the Blue Moon discovery. Cherry Tree and Blue Moon are also within the Bailieston project. The results of 2019 drilling at Blue Moon by MGA included intersections of 15 metres at 3.81 g/t gold and 11 metres at 2.42 g/t gold (announced on 14 March 2019).
A map of the eastern Bailieston project area showing some of the prospects and features referred to in this announcement can be viewed at:
https://www.ecrminerals.com/images/2020/09/09/prospectsreefs-eastern-bailieston-tenement-area.jpg
Creswick Gold Project
MGA is also keen to follow up on previous drilling results at Creswick, where individual samples returned assays as high as 80.97 g/t gold over one metre (announced on 5 November 2019). Drill sites have been determined and approval has been received from the relevant government authorities. . In Q4 2020, MGA completed a soil geochemistry survey of the Jackass Reef prospect at Creswick, the results of which will be of significant value for drill targeting in that area at the appropriate time. Alongside exploration work at Creswick, ECR is continuing discussions in respect of potential corporate transactions including potential joint venture arrangements. There can, however, be no certainty that any transaction or agreement will occur.
Exploration Licence Application Surrounding the Ballarat Gold Mine
MGA’s exploration licence application EL007537 is for an area which surrounds mining licences MIN5396 and MIN4847 (which in turn contain the operating Ballarat gold mine). The application area includes the southern extension of the Dimocks Main Shale, which is the principal target of exploration at MGA’s Creswick gold project located a short distance to the north, the northern extension of the Ballarat East line and the depth extensions of the Ballarat West line. EL007537 is a competitive bid with three other applicants. Further information on EL007537 will be announced if MGA’s application is successful.
Review of Announcement by Qualified Person
This announcement has been reviewed by Dr Rodney Boucher of Linex Pty Ltd. Linex Pty Ltd provides geological services to Mercator Gold Australia Pty Ltd, including the services of Dr Boucher, who has a PhD in geology, is a Member and RPGeo of the Australian Institute of Geoscientists and is a Member of the Australasian Institute of Mining and Metallurgy. Dr Boucher 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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Katy Mitchell/James Sinclair-Ford |
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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 |
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ABOUT ECR MINERALS PLC
ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd has 100% ownership of the Bailieston and Creswick gold projects in central Victoria, Australia.
Following the sale of the Avoca, Moormbool and Timor gold projects in Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX), ECR has the right to receive up to A$2 million in payments subject to future resource estimation or production at those projects.
ECR has earned a 25% interest in the Danglay gold project, an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines, and holds a royalty on the SLM gold project in La Rioja Province, Argentina.
ECR Minerals #ECR – Exercise of Warrants by Director, Exercise of Options & Issue of Share Options
ECR Minerals plc (LON: ECR), the gold exploration and development company focussed on Australia, is pleased to announce the following.
Exercise of warrants (“Warrant Shares”)
ECR has received notice from Craig Brown, director & CEO of the Company, to exercise warrants over 1,428,571 new ordinary shares at 1.125 pence in the Company. Following such exercise Craig Brown will hold 4,406,413 ordinary shares representing approximately 0.68% of the Company’s enlarged issued share capital.
Notice from another party to exercise warrants over a further 2,767,820 new ordinary shares at an exercise price of 1 penny in the Company has also been received.
Funds totalling £43,749.62 have been received by the Company in relation to these Warrant Shares.
Exercise of options (“Option Shares”)
In addition, notices to exercise options over 5,000,000 shares at 1.125 pence has been received. Funds of £56,250 have been received by the Company in relation to these Option Shares.
Issue of options
Further to its announcements dated 11 July 2018 and 23 October 2020, the Company has allocated an aggregate of 13,200,000 share options (“Options”) from the management and consultant option pool to certain key management and staff, including 10,000,000 options which have been issued to Craig Brown, director & CEO of the Company as part of his normal remuneration and in recognition of his contribution to the Company. This completes the allocation of options from the management and consultant option pool announced in July 2018. The Options have been issued with an exercise price of 1.125 pence per share.
Admission of shares
Application has been made for the Option Shares and the Warrant Shares to be admitted to trading on AIM (“Admission”). Admission is expected to occur on or around 22 December 2020. Upon Admission, ECR’s issued ordinary share capital will comprise 650,150,304 ordinary shares of 0.001p. This number will represent the total voting rights in the Company, and following Admission may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules. The Option Shares and the Warrant Shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.
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 |
Tel: +44 (0)161 832 2174 |
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Nominated Adviser |
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Katy Mitchell/James Sinclair-Ford |
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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 |
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ABOUT ECR MINERALS PLC
ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd has 100% ownership of the Bailieston and Creswick gold projects in central Victoria, Australia.
Following the sale of the Avoca, Moormbool and Timor gold projects in Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX), ECR has the right to receive up to A$2 million in payments subject to future resource estimation or production at those projects.
ECR has earned a 25% interest in the Danglay gold project, an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines, and holds a royalty on the SLM gold project in La Rioja Province, Argentina.
NOTIFICATION AND PUBLIC DISCLOSURE OF TRANSACTIONS BY PERSONS DISCHARGING MANAGERIAL RESPONSIBILITIES AND PERSONS CLOSELY ASSOCIATED WITH THEM
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Details of the person discharging managerial responsibilities/person closely associated |
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Name |
Craig Brown |
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Reason for the notification |
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a) |
Position/status |
Chief Executive Officer |
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b) |
Initial notification/ Amendment |
Initial |
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Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor |
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a) |
Name |
ECR Minerals PLC |
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b) |
LEI |
213800PBXY96KXHISJ17 |
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Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted |
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a) |
Description of the financial instrument, type of instrument
Identification code |
Ordinary Shares
GB00BYYDKX57 |
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b) |
Nature of the transaction |
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c) |
Price(s) and volume(s) |
Price(s) Volume(s) (a) GBP£0.01125 (a) 1,428,571
(a) GBP£0.01125 (b) 10,000,000 |
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d) |
Aggregated information – Aggregated volume – Price |
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e) |
Date of the transaction |
16/12/2020 |
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f) |
Place of the transaction |
London, off market |
ECR Minerals #ECR appoints Adam Jones as Non-Exec Director
ECR Minerals plc (LON: ECR), the gold exploration and development company focussed on Australia, is pleased to announce the appointment of Adam Jones as a Non-executive Director of the Company with immediate effect.
Adam Jones (aged 38) holds a Bachelor of Science degree from Ballarat University and First Class Honours from Adelaide University. Adam has over 10 years of experience as a professional geologist in Australia, including significant experience of gold exploration and production, and lives in Victoria within easy reach of ECR’s Bailieston and Creswick gold projects.
Adam is a member of the Australian Institute of Geoscientists (AIG) and has worked as an independent consulting geologist since 2015. His clients include or have included the A1 gold mine, Dart Mining and Nagambie Resources in Victoria and Vendetta Mining in Queensland.
Adam has provided consultancy services to ECR’s Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) since April 2018 and has been involved in the supervision of previous drilling programmes, carried out geochemical and rock chip sampling as well as geological mapping, and in 2019 prepared a 3D geological model for the HR3 area at the Bailieston project. He will continue to provide consultancy services to MGA alongside his duties as a non-executive director of the Company.
Adam is experienced in planning and supervising resource drill programmes, geological interpretation, geotechnical and fault modelling, geological mapping and sampling, turbidite sequence-structural interpretations, wireframing and 3D modelling using Vulcan Software.
Craig Brown, Chief Executive Officer of ECR Minerals plc, commented:
“I am delighted to announce the appointment of Adam Jones to the board of ECR bringing extensive and relevant geological experience onto the board. Adam’s specific knowledge of our licences, prospects and his wider local knowledge of Victoria will be of great value as we move ahead with exploration.
Adam will be directly involved in the step up in ECR’s exploration activities and notably at the Bailieston gold project where drill programmes using our new diamond drill rig are expected to commence soon.”
Adam Jones holds no other directorships and has confirmed that there is no further information to be disclosed pursuant to paragraph (g) of Schedule 2 of the AIM Rules.
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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Katy Mitchell/James Sinclair-Ford |
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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 |
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ABOUT ECR MINERALS PLC
ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd has 100% ownership of the Bailieston and Creswick gold projects in central Victoria, Australia.
Following the sale of the Avoca, Moormbool and Timor gold projects in Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX), ECR has the right to receive up to A$2 million in payments subject to future resource estimation or production at those projects.
ECR has earned a 25% interest in the Danglay gold project, an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines, and holds a royalty on the SLM gold project in La Rioja Province, Argentina.
ECR Minerals #ECR CEO Craig Brown talks to StockBox Media
ECR Minerals #ECR CEO Craig Brown talks to StockBox Media about the latest developments at the Creswick and Bailieston projects in Victoria, Australia.
Money Guide interview ECR Minerals #ECR CEO Craig Brown
ECR Minerals #ECR CEO Craig Brown is interviewed by Money Guide. In the interview Craig discusses:
- ECR now owns its own diamond drilling rig that can drill as deep as 1300 metres.
- Tambo Gold Project, easy access, low costs. Principal geologist and Bruthen local boy Dr Rod Boucher is currently out conducting fieldwork
- There are currently two parties interested in the Creswick project. One party is undertaking due diligence, although as Craig explains the progress has been hampered by the Victoria lockdown quarantine measures.
- Drilling will shortly commence at the Bailieston project. This is located close to the Fosterville Gold mine, which has v low operating costs, producing 500,000oz a year and is ‘printing money’. Craig says that some ‘big players’ have moved into the region recently, and one is interested in Bailieston (HR3, Blue Moon, Cherry Tree).
- ECR is very undervalued vs. peers – Craig looks at Fosterville South (TSX-FSX), which acquired ECR’s Avoca, Timor & Moormbool licenses earlier this year. The company currently has a value some 12 times that of ECR, and while the Golden Mountain project is progressing, Craig argues that ECR has ‘better projects’.
USD28tn COVID bill keeps the Gold bull case intact for ECR Minerals #ECR and the new Victoria Gold rush.
In October 2020 IMF economic counselor *Gita Gopinath described coronavirus as the worst crisis since the Great Depression, adding that the pandemic would leave deep and enduring scars from job losses, weaker investment and children being deprived of education.
In its flagship world economic outlook, the IMF said stronger than expected Q2 and Q3 performances would see global output fall by 4.4% in 2020 compared with the 5.2% drop forecast during the summer.
The groundbreaking news of a vaccine with high efficacy rates from both Pfizer and Moderna triggered strong rallies in global stock markets, and while this led to a downward correction in the gold price, most market analysts remained bullish on gold over the longer term.
US Investment Group Energy & Capital are of the view that gold remains in a bull market super cycle. Energy & Capital editor, Gold bug, and investment analyst Luke Burgess said “The historic gold run of 2011 actually began in 2001, when gold was trading around $300 per ounce.”
“The same exact gold super-cycle happened in 1971–1980, when gold ran from $50 per ounce to almost $700,” Burgess added. “The value of the U.S. dollar is being weakened every day and there is nothing that the Federal Reserve or politicians can do to stop it. This will continue to have a tremendous effect on gold prices and the gold market in general.”
Energy & Capital are ultra bullish in outlook, with a $6500oz target price for the yellow metal within 2 years. While other commentators are more circumspect, the view on the longer-term trend is clear.**
“It is worth recalling that the driver of investment flows into precious metals has ultimately been sourced from a powerful impulse lower in real rates,” TD Securities said in a note.
“The U.S. Federal Reserve’s continued attempt to spark higher inflation expectations should suppress real rates deeper into negative territory. This will continue to drive investment appetite for precious metals, as capital seeks to shelter itself from increasingly negative real rates.”
Junior Gold Miners Flourish
It has been an extraordinary year for junior gold miners. Despite the recent gold correction to $1860oz, global gold producers are under more pressure than ever to replace their depleting reserves. The major gold producing conglomerates face declines in production, shrinking reserves and a potential increase in production costs, which means it is cheaper (and faster) for these companies to buy developed or developing gold projects.
As a result, there has been a rush to develop and fast track quality assets, which for some junior miners has meant revisiting dormant mining projects. The latest tools, survey techniques and desktop assets available to mining engineers have proved invaluable in the search for precious metals within existing dormant assets and mines around the world.
As gold prospecting continues apace in far flung and remote areas, this year has seen the goldfields in Victoria, South Australia thrust into the limelight once again.
A major mining centre since the 19th century gold rush, modern technology has today has paved the way for another gold rush in the region.
Indeed the Geological Survey of Victoria estimates that some 75 million ounces of high-grade gold is currently awaiting discovery, and with grants available to mining companies operating in the region, it is no exaggeration to say that companies are literally queuing up for licenses.
As an incumbent operator owning some of the most fertile territory in Victoria, London listed ECR Minerals (LSE: ECR) is already at the front of the queue, with its 100% owned Bailieston and Creswick Victoria gold projects, plus the recently acquired Tambo Gold project.
ECR also has financial interests in the Avoca, Moormbool and Timor projects following the sale of those licenses to Fosterville South Exploration Ltd (TSX.V:FSX), raising $500,000 plus $1 for every ounce of gold discovered. ECR also has interests in projects in the Philippines and Argentina.
Creswick
Creswick is situated within the Dimocks Main Shale, a geological feature considered to be highly prospective for gold, and which extends to the Ballarat gold mine centre and further south. ECR’s exploration licenses cover approximately 7km of this region, and along with several other mining companies with licenses in the region, has applied for a further license covering a further 140 sq km between Creswick and Ballarat.
A recent study by pre-eminent consulting geochemist Dr Dennis Arne, whose experience includes extensive consultancy at the Fosterville mine, (now the largest gold producer in Victoria), underlined the significant gold exploration potential at Creswick, and ‘nuggety gold mineralisation’. Joint venture / earn-in talks are continuing at Creswick.
Bailieston
Bailieston is also at the centre of the current gold exploration boom in Victoria, sited as it is a few km east of the world class Fosterville mine. Fosterville has delivered spectacular investment returns over recent years for owner Kirkland Lake Gold, not to mention some of it’s now millionaire shareholders.
The Bailieston license areas include a raft of prospects, including HR3, Black Cat, Cherry Tree, Red Moon and Yellow Moon, and with drilling permissions now received, the company reported last Friday that its newly acquired drilling rig will shortly be en route to the HR3 prospect from ECR’s new operational base at Bendigo. Work also continues apace at the Cherry Tree prospect, with soil geochemistry and geological mapping recently completed.
ECR’s Baillieston project also has a high profile neighbour in the form of mining giant Newmont, which has a license application in for ground immediately to the north of ECR’s Black Cat prospect.
Tambo Gold Project – Local Knowledge
One of the key advantages lies in the fact that ECR’s principal geologist Dr Rodney Boucher was born and raised in Bruthen, East Victoria, and therefore has an intimate knowledge of the region. In September 2020, this area knowledge was further employed by ECR when it lodged two new license applications for the new Tambo gold project in eastern Victoria. ECR CEO Craig Brown highlighted Dr Boucher’s knowledge in the stock exchange press release.
“Good quality exploration ground available for direct application is very difficult to find in Victoria, so we are very pleased to have identified and applied for the Tambo project, which covers a sizeable area of prospective geology near historic goldfields and has received little contemporary exploration.”
Brown added “Our principal geologist, Dr Rod Boucher, was born and raised nearby in Bruthen. He grew up gold prospecting with his father throughout the application areas and has an in-depth knowledge of the gold potential in the small streams and gullies. He is a descendant of gold miners from a locality once known as Boucher Town between Cassilis and Swifts Creek and completed his third-year undergraduate thesis on the geology of the Tambo Crossing area.”
Untapped Potential
There is a sense that despite the rush of license applications in the region, the current day Victoria gold rush is still very much in its infancy.
As other leading mining companies, including Newmont Corporation (NYSE: NEM), Power Metal Resources (LSE:POW), Red Rock Resources (LSE:RRR), Fosterville South and a host of other smaller mining groups queue for licenses, their respective CEO’s will no doubt be harbouring ambitions for a Kirkland Gold–esque share price explosion. Indeed, Kirkland’s share price has rocketed over 2,200% in the past few years thanks to its ownership of the Fosterville Gold Mine and a 315% jump in annual gold production between 2014 and 2018 .
Despite movement restrictions in the Victoria region due to Covid-19, the foresight of the ECR board and CEO in securing the key licenses has not been lost on investors.
Following a further £600,000 fundraise in July, and further £400,000 from warrant exercises, ECR took the decision to acquire it’s own diamond drilling rig to press on with exploration Bailieston and Creswick. Investor bulletin boards are agog with anticipation, but despite the share price having nearly trebled between June and September 2020, in November the stock still trades on a ridiculously modest £13m market cap.
If, as all the pundits seem to be saying, we are at the start of a new Victoria Gold rush, then expectations that shares in small, incumbent explorers like ECR will deliver spectacular Kirkland-style increases in value may not be so far fetched after all.
*Source The Guardian: https://www.theguardian.com/business/2020/oct/13/imf-covid-cost-world-economic-outlook
**Source Reuters:
ECR Minerals #ECR Victoria Goldfields Operational Update
ECR Minerals plc (LON: ECR), the gold exploration and development company focussed on Australia, is pleased to provide the following update on its activities in Victoria, Australia, which are carried out through the Company’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”).
HIGHLIGHTS
- MGA has taken delivery of its new Cortech CSD1300G diamond drill rig and a new operational base is being established in Bendigo, Victoria.
- All necessary permissions are in place for drilling at the HR3 prospect within the Bailieston project area, where drilling operations will commence as soon as the drill rig is ready.
- Soil geochemistry and geological mapping completed at the Cherry Tree prospect in the Baillieston project area.
Craig Brown, Chief Executive Officer of ECR commented:
“With the arrival of the ECR owned drill rig in Victoria we are now in a position to accelerate our exploration work and significantly, drilling of key targets. Our initial target HR3 is already permitted for drilling and therefore we anticipate an expeditious start to operations.
Alongside the new drill rig we have also been undertaking a range of operational work including the soil geochemistry and mapping at Cherry Tree, the results of which have provided valuable information to guide our ongoing exploration.
I look forward to providing further information from Victoria in the near term as our operational activities continue.”
DRILL RIG AND NEW OPERATIONAL BASE
Further to the Company’s announcement dated 14 September 2020, the new drill rig has been delivered and is now being set up for work under the supervision of MGA’s highly experienced drilling manager Graeme Noble.
MGA is establishing a new operational facility in Bendigo, Victoria, where the rig will be based. The facility includes more than 1,000 square metres of shed, office and storage space. MGA intends to carry out cutting and sampling of diamond drill core on site as well as using the facility for maintenance and storage of the new drill rig and other equipment. The facility is within easy driving distance of both the Bailieston and Creswick projects.
DRILLING PLANS – BAILIESTON HISTORIC RESERVE #3 (HR3)
All necessary permissions are in place for drilling at the HR3 prospect, which comprises at least four closely-spaced lines of reef, including the Byron, Dan Genders, Scoulars and Maori Reefs, plus numerous cross-structures. This provides a number of drill-ready targets, and it is planned that drilling will commence at HR3 as soon as the new drill rig has been made ready for operations.
RESULTS OF GEOCHEMISTRY AND FIELD MAPPING AT CHERRY TREE
The Cherry Tree prospect lies on the Bailieston Trend within Historic Reserve #4 (HR4) and is located 1.5 kilometres south of HR3 (Fig. 1). The workings at Cherry Tree continue to the south to the Cherry Tree South workings. Cherry Tree and Cherry Tree South are separated by an alluvial gully. Some 30 large and numerous small shafts were sunk by the historic miners at Cherry Tree. The main zone of workings at Cherry Tree is surrounded by alluvial cover and there may be some scope for shallow extensions under the cover.
Cherry Tree geochemistry and field mapping results:
Fig. 1
Fig. 2
Detailed portable XRF (pXRF) geochemical sampling was conducted to better define the surface expression of the mineralisation and to seek extension to shoots. Some 920 readings were taken, on average 10 metres apart but sometimes as close as 2 metres to attempt to follow and define trends.
The Cherry Tree workings mostly lie on the westerly limb of a N-S elongate anticlinal dome (Fig. 2). The pXRF results show numerous zones of anomalism, mostly close to the historic workings. The anomalism increases towards the top of the dome and towards the northwest. The increasing anomalism towards the northwest is lost under cover indicating there may be some potential for remanent mineralisation at shallow depths. Overall, the programme has provided MGA with new insight into the controls on mineralisation at Cherry Tree, which is relevant to the selection of drill targets at Cherry Tree itself and potentially to other parts of the Bailieston Trend including HR3.
Review of Announcement by Qualified Person
This announcement has been reviewed by Dr Rodney Boucher of Linex Pty Ltd. Linex Pty Ltd provides geological services to Mercator Gold Australia Pty Ltd, including the services of Dr Boucher, who has a PhD in geology, is a Member and RPGeo of the Australian Institute of Geoscientists and is a Member of the Australasian Institute of Mining and Metallurgy. Dr Boucher 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:
| ECR Minerals plc | Tel: +44 (0)20 7929 1010 | ||
| David Tang, Non-Executive Chairman | |||
| Craig Brown, Director & CEO | |||
| Email: | |||
| Website: www.ecrminerals.com | |||
| WH Ireland Ltd | Tel: +44 (0)161 832 2174 | ||
| Nominated Adviser | |||
| Katy Mitchell/James Sinclair-Ford | |||
| SI Capital Ltd | Tel: +44 (0)1483 413500 | ||
| Broker | |||
| Nick Emerson |
ABOUT ECR MINERALS PLC
ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd has 100% ownership of the Bailieston and Creswick gold projects in central Victoria, Australia.
Following the sale of the Avoca, Moormbool and Timor gold projects in Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX), ECR has the right to receive up to A$2 million in payments subject to future resource estimation or production at those projects.
ECR has earned a 25% interest in the Danglay gold project, an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines, and holds a royalty on the SLM gold project in La Rioja Province, Argentina.