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ECR Minerals #ECR – Operational Update – Tambo Gold Project, Victoria
ECR Minerals plc (LON: ECR), the exploration and development company focused on gold in Australia, is pleased to provide an update on its recently concluded diamond drilling campaign at the Duke of Cornwall Prospect within the Tambo Gold Project in Victoria, Australia (the “Tambo Gold Project”), including the results from Drill Holes DOCD001 and DOCD005.
Summary Of Drilling Results
• Drill Hole DOCD005 returned 1 metre @ 0.72 g/t Au from 108 metres
• Drill Hole DOCD001 returned no significant intercepts
• Best results from the overall programme include 0.4 metres @ 8.51 g/t Au from Drill Hole
DOCD002 and 0.15 metres at 10.6 g/t Au from Drill Hole DOC004
Tambo Gold Project
The diamond drilling campaign consisted of five diamond drill holes (DOCD001 – DOCD005) over a total depth of 428 metres. The campaign’s objective was to investigate the structural controls on gold mineralisation and associated geochemical haloes, particularly beneath and adjacent to the historical Duke of Cornwall mine workings.
Drilling Program Overview (see figure 1 below)
DOCD005 – Northern Extension
DOCD005 was drilled to a total depth of 117.8 metres and intersected two quartz veins at the northern extremities of the Duke of Cornwall Lode system, approximately 70 metres below the historical mine workings. Mineralisation was encountered at one interval (1 metre @ 0.72 g/t Au from 108 metres), with no significant gold intercepts reported from the other intervals tested. Geochemical analysis suggests that the DOCD005 mineralisation area lies outside the primary gold-bearing system which indicates a secondary control plunging the mineralisation along strike. The results are considered to indicate the potential for mineralisation in untested areas which are now better understood from this drilling campaign.
DOCD002 – High-Grade Opportunity
As announced on 20 November 2024, Drill hole DOCD002 was drilled to a total depth of 84.35 metres at the southern end of the Lode and returned a significant best intercept of 0.4 metres @ 8.51 g/t Au, indicating the potential for high-grade zones at depth. This area remains a high-priority target for follow-up drilling to test for continuity and extensions at depth.
DOCD001
No significant gold intercepts have been reported from the intervals tested from drill hole DOCD001 which was drilled to a total depth of 69.7 metres.
Structural Insights
The campaign provided valuable structural data, confirming the association of gold mineralisation with quartz veining adjacent to the main shear zone. A secondary control, possibly plunging concentrations of mineralisation along strike, is starting to be evidenced by the drilling and will be studied in more detail. The Duke of Cornwall Lode system remains largely untested, with approximately 80% of its strike length unexplored.
Programme Summary
The drilling campaign successfully demonstrated that mineralisation continues at depth below the old mine workings in key areas and considerably enhanced the Company’s geological understanding of the prospect. The structural insights gained will inform the design of future campaigns aimed at targeting high-grade zones and testing the unexamined central portions of the Lode. Even holes that encountered no gold mineralisation, DOCD001 and DOCD003, are considered to have added valuable insights, including in the case of DOCD003, delineating the location of the shear zone and controls on mineralisation. It is noted that at surface the rock chip channel sample from the Eastern Cut (0.25 metres @ c. 25 g/t Au as illustrated in Figure 1 in the announcement on 20 November 2024) plots only 10 metres east of the trace of DOCD003, showing the likely secondary controls that have been partially discovered by this first pass drilling programme.
Next Steps
ECR intends to design a follow-up drilling campaign focusing on deeper exploration beneath the high- grade zones identified in DOCD002 and DOCD004 as well as incorporating the structural and geochemical insights gained to explore central portions of the Lode, which remain prospective for gold mineralisation. The Company remains committed to advancing its exploration assets at the Tambo Gold Project while continuing to evaluate potential corporate opportunities. Further updates will be provided in due course.
Lolworth Project update
A number of additional rock chip samples from Lolworth have been sent for laboratory analysis, with the results expected in January 2025. The results from geochemical analysis on samples taken from the Oaky Creek prospect in the central-north area of the Lolworth Project will be announced in due course once received.
The Directors are optimistic regarding the potential of the Lolworth Project and, as announced on 25 November 2024, part of the net proceeds of the Company’s recent fundraise are intended to be used to re-start the field campaign in Lolworth in the second quarter of 2025, drawing on the Company’s partnership with the Geological Survey of Queensland to further investigate the critical minerals potential at the project. On 29 November 2024, the Company announced a collaboration with James Cook University in relation to analysing and interpreting the mineral data from the Lolworth Project area to enhance the understanding of its rare earth elements potential.
Update on potential sale of non-core assets
Further to the Company’s announcement on 26 November 2024 and previously, discussions with the potential buyer of ECR’s subsidiary, Mercator Gold Australia Pty Ltd (“MGA”), in order to effect a sale of the Company’s A$75 million of tax losses continue to progress and the Company expects to reach an agreement in principle on the proposed transaction structure in the coming weeks. Thereafter, it is anticipated that the parties’ respective legal advisers will prepare the formal sale documentation with completion expected within the exclusivity timeframe to 31 January 2025, as previously announced.
As previously announced, the proposed transaction is likely to necessitate a restructuring of MGA as such that it comprises only non-core assets. There can be no certainty that final binding terms will be agreed, nor as to the timings or final terms, structure or quantum of the potential disposal. Depending on the final terms that are agreed for any transaction to realise the tax losses, as well as the structure of the transaction, it is possible, but not guaranteed, that the potential disposal of MGA may be a fundamental change of business pursuant to Rule 15 of the AIM Rules for Companies. If applicable, this would require, amongst other items, the transaction to be conditional on the consent of shareholders being given in a general meeting; a shareholders circular detailing the terms of the transaction and certain other disclosures as set out in the AIM Rules. Further updates on the way forward will be provided in due course as matters are progressed.
Adam Jones, ECR’s Chief Geologist, said: “The initial drilling at Duke of Cornwall has provided valuable structural insights, confirming that mineralisation extends 70 metres below the old workings, though outside the main Lode. The standout result from DOCD002, with 0.4 metres @ 8.51 g/t Au, highlights the potential for high-grade zones at depth, making it a key target for follow-up drilling. Coupled with the promising earlier rock chip results, the Tambo Gold Project demonstrates the significant potential within ECR’s portfolio. The structural and geochemical data from this campaign will play a vital role in advancing our exploration strategy, and we look forward to updating shareholders as we progress.”
Review of Announcement by Qualified Person
This announcement has been reviewed by Adam Jones, Chief Geologist at 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.
All sampling and drilling were conducted in accordance with industry best practice, and all assays were performed by an independent, accredited laboratory.
Figure 1: Plan View of Drilling Locations At Duke Of Cornwall Lode
FOR FURTHER INFORMATION, PLEASE CONTACT:
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ECR Minerals Plc |
Tel: +44 (0) 1738 317 693 |
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Nick Tulloch, Chairman Andrew Scott, Director |
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Email: info@ecrminerals.com |
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Website: www.ecrminerals.com |
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Allenby Capital Limited |
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Tel: +44 (0) 3328 5656 |
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Nominated Adviser Nick Naylor / Alex Brearley / Vivek Bhardwaj |
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Axis Capital Markets Limited |
Tel: +44 (0) 203 026 0320 |
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Broker |
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Ben Tadd / Lewis Jones |
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|
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SI Capital Ltd |
Tel: +44 (0) 1483 413500 |
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Broker |
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Nick Emerson
|
|||
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Brand Communications |
Tel: +44 (0) 7976 431608 |
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Public & Investor Relations |
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Alan Green |
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Glossary
Au: Gold
g/t: Grammes per Tonne (Metric)
km: Kilometres (Metric)
km2: Kilometre squared (Metric)
Lode: A deposit of metalliferous ore that fills a fissure
ABOUT ECR MINERALS PLC
ECR Minerals is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) has 100% ownership of the Bailieston and Creswick gold projects in central Victoria, Australia, has six licence applications outstanding which includes one licence application lodged in eastern Victoria (Tambo gold project).
ECR also owns 100% of an Australian subsidiary LUX Exploration Pty Ltd (“LUX”) which has three approved exploration permits covering 946 km2 over a relatively unexplored area in Lolworth Range, Queensland, Australia. The Company has also submitted a license application at Kondaparinga which is approximately 120km2 in area and located within the Hodgkinson Gold Province, 80km NW of Mareeba, North Queensland.
Following the sale of the Avoca, Moormbool and Timor gold projects in Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX) and the subsequent spin-out of the Avoca and Timor projects to Leviathan Gold Ltd (TSX-V: LVX), MGA has the right to receive up to A$2 million in payments subject to future resource estimation or production from projects sold to Fosterville South Exploration Limited.
MGA also has approximately A$75 million of unutilised tax losses incurred during previous operations.
ECR Minerals #ECR – Tambo Gold Project Diamond Drilling Update
ECR Minerals plc (LON: ECR), the exploration and development company focused on gold in Australia, is pleased to announce an update on drilling at the Duke of Cornwall prospect within the Company’s Tambo Gold Project in Victoria, Australia (the “Tambo Gold Project”) where results have been received for an additional 90 core samples submitted from diamond drill holes DOCD003 and DOCD004.
HIGHLIGHTS
● Best results from hole DOCD004 include 0.15 metres @ 10.6 g/t Au, 0.35 metres @ 1.47 g/t Au and 0.15 metres @ 1.42 g/t Au
● DOCD004 successfully intercepts Main Lode at a depth of 62.3 metres
● Hole DOCD003 delineates shear zone’s location
Tambo Gold Project
As announced on 20 November 2024, a maiden diamond drilling campaign was completed at the Tambo Gold Project. The diamond drilling campaign targeted beneath the historic workings of the Duke of Cornwall Mine, Swifts Creek. The campaign consisted of five diamond core drill holes, totalling approximately 439 metres in aggregate.
Drilling Programme Overview
Drilling at the Project’s Duke of Cornwall prospect aimed to demonstrate grade continuity and refine initial geological interpretations. Results to date confirm that these objectives have been achieved, with diamond drilling providing high-accuracy structural and mineralisation data.
· Main Lode Gold Continuity: Results from DOCD002 (0.4 metres @ 8.51 g/t Au) and DOCD004 confirm vertical gold continuity extending at least 70 metres below the Adit workings.
· Historical Continuity: Historical records report average grades of approximately 10 g/t Au from lodes up to 4 metres wide. Several of the best drilling results to date closely align with this average (see Table 1 and Table 2 of highlighted recent results below).
Geological mapping and structural data suggest potential for high-grade zones where cleavage veins intersect the Main Lode. These intersections may represent historical wider lode sections.
Drill hole DOCD004 (see Table 1)
Hole DOCD004 was drilled to test for grade continuity vertically below previous high-grade results obtained from the Adit workings and DOCD002. The target Main Lode was successfully intercepted at a depth of 62.3 metres with gold values of 0.15 metres @ 10.6 g/t Au. This hole was drilled to a final depth of 86.4 metres. Two additional intercepts of 0.15 metres @ 1.42 g/t and 0.35 metres @ 1.47 g/t Au were from two distinct quartz veins located in the footwall and hanging wall of the Main Lode. The Board believes that these two veins show the potential for the development of undiscovered veins within the system. The overall average grade across all reported intervals was 4.50 g/t Au (see Table 1).
Drill hole DOCD003
No significant gold intercepts have been reported from the intervals tested from drill hole DOCD003, although the Board considers that this result provides valuable geological insights into delineating the location of the shear zone and controls on mineralisation. Hole DOCD003 was drilled to a total depth of 69.7 metres.
Next Steps
The Company is awaiting the assay results from drill hole DOCD005 which was designed to test for mineralisation under the extreme northern strike of the system and also for drill hole DOCD001. Results for both remaining holes are expected before the end of the year. Geological logging of DOCD005 thus far has identified two distinct quartz veins, aligning with historical reports of similar lodes.
Adam Jones, ECR’s Chief Geologist, said: “The results from drill hole DOCD004 mark another positive step forward in our exploration of the Duke of Cornwall prospect. While DOCD003 provides valuable geological insights into the location of the shear zone, DOCD004 has confirmed gold continuity within the Main Lode and highlights the potential for additional undiscovered veins within the system. I’m highly encouraged by how the best findings from DOCD002 and DOCD004 match up with historical records and the Board is optimistic about the potential for high-grade gold mineralisation as we continue to explore the strike and depth of the system. We eagerly await the assay results from DOCD005, which will provide further insight into the mineralisation potential at the northern end of the Duke of Cornwall system.”
Technical Disclosure
All sampling and drilling were conducted in accordance with industry best practice, and all assays were performed by an independent, accredited laboratory.
Review of Announcement by Qualified Person
This announcement has been reviewed by Adam Jones, Chief Geologist at 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.
Table 1: Reportable Drill Intercepts For Hole DOCD004 (=> 0.1 g/t Au)
|
DRILLHOLE |
DOMAIN |
SAMPLE |
FROM |
TO |
INTERVAL (metres) |
Au (g/t) |
|
DOCD004 |
FootwallVein |
BTD097 |
22.15 |
22.3 |
0.15 |
1.42 |
|
DOCD004 |
Main Lode |
BTD120 |
62.3 |
62.45 |
0.15 |
10.6 |
|
DOCD004 |
Hanging Wall Vein |
BTD136 |
78.8 |
79.15 |
0.35 |
1.47 |
Table 2: Highlighted Gold Sampling to Date from Duke of Cornwall (DOCD002 Drill Results And Rock Chip Channel Samples, as announced on 20 November 2024)
|
SAMPLE TYPE |
DOMAIN |
SAMPLE |
FROM |
TO |
INTERVAL (metres) |
Au (g/t) |
|
Drilling |
Cleavage vein |
BTD037 |
44.6 |
45 |
0.4 |
8.51 |
|
Drilling |
Cleavage vein |
BTD041 |
45.6 |
46.2 |
0.6 |
0.68 |
|
Drilling |
Cleavage vein |
BTD042 |
46.2 |
46.4 |
0.2 |
0.19 |
|
Drilling |
Main Lode |
BTD045 |
48.15 |
48.6 |
0.45 |
0.88 |
|
Drilling |
Main Lode |
BTD048 |
50 |
50.3 |
0.3 |
3.00 |
|
Drilling |
Main Lode |
BTD049 |
50.3 |
50.65 |
0.35 |
0.37 |
|
Drilling |
Main Lode |
BTD050 |
50.65 |
51.05 |
0.4 |
0.01 |
|
Drilling |
Main Lode |
BTD051 |
51.05 |
51.2 |
0.15 |
24.1 |
|
Drilling |
Main Lode |
BTD052 |
51.2 |
52.05 |
0.85 |
0.58 |
|
Rockchip (Channel) |
Main Lode |
BTR064 |
0 |
0.25 |
0.25 |
27.80 |
|
Rockchip (Channel) |
Main Lode |
BTR065 |
0 |
0.2 |
0.2 |
180.00 |
Figure 1: Plan View Of Duke Of Cornwall – DOCD004 And Best Sampling Results To Date
FOR FURTHER INFORMATION, PLEASE CONTACT:
|
ECR Minerals Plc |
Tel: +44 (0) 1738 317 693 |
||
|
Nick Tulloch, Chairman Andrew Scott, Director |
|||
|
Email: |
|||
|
Website: www.ecrminerals.com |
|||
|
Allenby Capital Limited |
|
Tel: +44 (0) 3328 5656 |
|
|
Nominated Adviser Nick Naylor / Alex Brearley / Vivek Bhardwaj |
|
||
|
Axis Capital Markets Limited |
Tel: +44 (0) 203 026 0320 |
||
|
Broker |
|||
|
Ben Tadd / Lewis Jones |
|||
|
|
|||
|
SI Capital Ltd |
Tel: +44 (0) 1483 413500 |
||
|
Broker |
|||
|
Nick Emerson
|
|||
|
Brand Communications |
Tel: +44 (0) 7976 431608 |
||
|
Public & Investor Relations |
|||
|
Alan Green |
|||
Glossary
|
Au: |
Gold |
|
g/t: |
Grammes per Tonne (Metric) |
|
km: |
Kilometres (Metric) |
|
km²: |
Kilometre squared (Metric) |
|
Lode: |
A deposit of metalliferous ore that fills a fissure |
ABOUT ECR MINERALS PLC
ECR Minerals is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) has 100% ownership of the Bailieston and Creswick gold projects in central Victoria, Australia, has six licence applications outstanding which includes one licence application lodged in eastern Victoria (Tambo gold project).
ECR also owns 100% of an Australian subsidiary LUX Exploration Pty Ltd (“LUX”) which has three approved exploration permits covering 946 km2 over a relatively unexplored area in Lolworth Range, Queensland, Australia. The Company has also submitted a license application at Kondaparinga which is approximately 120km2 in area and located within the Hodgkinson Gold Province, 80km NW of Mareeba, North Queensland.
Following the sale of the Avoca, Moormbool and Timor gold projects in Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX) and the subsequent spin-out of the Avoca and Timor projects to Leviathan Gold Ltd (TSX-V: LVX), MGA has the right to receive up to A$2 million in payments subject to future resource estimation or production from projects sold to Fosterville South Exploration Limited.
MGA also has approximately A$75 million of unutilised tax losses incurred during previous operations.
ECR Minerals #ECR – Initial Diamond Drilling Results indicating up to 24 g/t Au From Duke of Cornwall Lode at Tambo Gold Project, Victoria
ECR Minerals plc (LON: ECR), the exploration and development company focused on gold in Australia, is pleased to announce highly encouraging initial results from its maiden diamond drilling campaign at the Duke of Cornwall Lode system as well as further high-grade surface channel (chip) sampling from the Main Lode within the Company’s Tambo Gold Project in Victoria, Australia (the “Tambo Gold Project”).
HIGHLIGHTS
· Best drill intercepts from Hole DOCD002 include 0.15 metres @ 24.10 g/t Au and 0.40 metres @ 8.51 g/t Au
· Supporting surface channel (chip) sampling from the Main Lode returned exceptional results including 0.2 metres @ 180 g/t Au and 0.25 metres @ 27.80 g/t Au.
Tambo Gold Project
Further to the Company’s announcement on 17 October 2024, a maiden diamond drilling campaign has now been completed at the Tambo Gold Project. The diamond drilling campaign targeted beneath the historic workings of the Duke of Cornwall Mine, Swifts Creek. The first complete results have now been received for hole DOCD002. Assay results have also been received for additional channel (chip) samples from the in-situMain Lode near surface.
High-grade surface channel sampling
Main Lode sampling has revealed further high-grade gold surface channel (chip) sampling results of 27.80 g/t to 180 g/t Au (See Table 1). These results support previous photon analysis of rock chip sampling of the same vein material, including 55.5, 24.0 and 19.7 g/t Au (See announcements of 12 July 2024 and 10 June 2024).
Drilling Summary
The campaign utilised a diamond drill rig and has provided high-definition structural data that enhances geological understanding and improves confidence in interpreting vein orientations and continuity. The campaign consisted of five diamond core drill holes, totalling approximately 439 metres in aggregate, to test strike and depth continuity of gold mineralisation from the Company’s previous surface rock chip results and to refine the structural model. The board of directors of ECR (the “Board” or the “Directors”) are confident that both objectives have been successfully achieved.
These first results from the diamond drilling campaign confirm that the Duke of Cornwall Lode system is comprised of quartz veins propagating from a mapped shear zone (Figures 1 and 2). Strong visual indicator minerals have been identified in the drill core including sulphides such as Chalcopyrite, Tungsten and Arsenopyrite, with assay values correlating strongly to elevated Bismuth.
Drill hole DOCD002
Best individual drill intercepts from hole DOCD002 include 0.15 metres @ 24.10 g/t Au and 0.40 metres @ 8.51 g/t Au. Geological logging and assay values show two ‘zones’ of mineralisation. The first zone is veining parallel to the regional cleavage. The average grade across the cleavage vein zone is 3.13 g/t Au over 1.2 metres drilled. The second Main Lode zone averages 5.61 g/t Au over the drilled interval of 2.05m. (see Table 1). The overall average grade across all reported intervals was 4.26 g/t Au (see Table 1).
Hole DOCD002 was drilled to a total depth of 84.35m. A total of 19.95m of core has been sampled. Mineralised intercepts greater than 0.1 g/t Au are reported in Table 1 below. Hole DOCD002 also encountered strong pathfinder elements associated with high gold values, including best grades of Bismuth (883 ppm), Arsenic (63.8 ppm) and Silver (3.8 ppm). The overall average Bismuth, Arsenic and Silver grades across all reported intervals were 152.24 ppm Bi, 9.86 ppm As, and 0.98 ppm Ag (see Table 1).
Geological logging and sampling of the remaining holes will conclude this week with assay results expected by early December 2024.
Adam Jones, ECR’s Chief Geologist, said: ”These first diamond drilling campaign results are highly promising, corresponding with our earlier rock chip sampling and demonstrating consistency of results across our exploration programmes at the Tambo Gold Project. All core samples have revealed strong visual indicators, including the presence of chalcopyrite and arsenopyrite sulphides, which are encouraging signs of mineralisation. We have drilled approximately 75 metres vertically beneath the old Duke of Cornwall mine workings, aiming to see results similar to those obtained nearer to surface. Despite this being a relatively focused drilling program, the initial findings suggest there is significant potential for further exploration.”
Mike Whitlow, ECR’s Managing Director added: ”These early results from the Duke of Cornwall Lode system are outstanding and validate the geological potential of this area. The high-grade gold intercepts, consistent mineralisation across the Main Lode, and the promising visual indicators in the core give us confidence in the continuity and potential scale of the system. We look forward to receiving the remaining results and the valuable insights they will provide as we work towards defining the scope of this exciting opportunity.”
Technical Disclosure
All sampling and drilling were conducted in accordance with industry best practice, and all assays were performed by an independent, accredited laboratory. Further technical details and assay results for the remaining drill holes will be reported once received.
Review of Announcement by Qualified Person
This announcement has been reviewed by Adam Jones, Chief Geologist at 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.
Table 1: DOCD002 Drill Results And Rock Chip Channel Samples (including matching pathfinder elements (Bi, As and Ag).
Drilling Intercepts (DOCD002). (intercepts => 0.1 g/t Au)
|
SAMPLE ID |
FROM |
TO |
INTERVAL (metres) |
Au (g/t) |
Au_(R) g/t |
Bismuth (ppm) |
Arsenic (ppm) |
Silver (ppm) |
DOMAIN |
|
BTD037 |
44.6 |
45 |
0.40 |
8.51 |
8.43 |
129.0 |
3.0 |
1.10 |
Cleavage vein |
|
BTD041 |
45.6 |
46.2 |
0.60 |
0.68 |
0.63 |
5.6 |
2.5 |
0.50 |
Cleavage vein |
|
BTD042 |
46.2 |
46.4 |
0.20 |
0.19 |
2.0 |
3.6 |
0.50 |
Cleavage vein |
|
|
BTD045 |
48.15 |
48.6 |
0.45 |
0.88 |
|
22.5 |
3.7 |
0.50 |
|
|
BTD048 |
50 |
50.3 |
0.30 |
3.00 |
3.54 |
283.0 |
3.0 |
0.93 |
Main Lode |
|
BTD049 |
50.3 |
50.65 |
0.35 |
0.37 |
24.4 |
63.8 |
0.50 |
Main Lode |
|
|
BTD050 |
50.65 |
51.05 |
0.40 |
0.01 |
2.0 |
3.5 |
0.50 |
Main Lode |
|
|
BTD051 |
51.05 |
51.2 |
0.15 |
24.10 |
24.4 |
883.0 |
2.6 |
3.80 |
Main Lode |
|
BTD052 |
51.2 |
52.05 |
0.85 |
0.58 |
18.7 |
3.0 |
0.50 |
Main Lode |
Rock Chip (Channel Samples)
|
SAMPLE ID |
FROM |
TO |
INTERVAL (metres) |
Au (g/t) |
Au_(R) g/t |
Bismuth (ppm) |
Arsenic (ppm) |
Silver (ppm) |
DOMAIN |
|
BTR064 |
0 |
0.25 |
0.25 |
27.80 |
25.2 |
3.59 |
2260 |
7.20 |
Main Lode |
|
BTR065 |
0 |
0.20 |
0.20 |
180.00 |
3.15 |
2690 |
4.00 |
Main Lode |
* (R) Laboratory repeat analysis
Figure 1: Plan View Of Duke Of Cornwall Lode – First Diamond Drill Results and new Channel Samples
Figure 2: Section View Of Duke Of Cornwall Lode – First Diamond Drill Results and new Channel Samples
FOR FURTHER INFORMATION, PLEASE CONTACT:
|
ECR Minerals Plc |
Tel: +44 (0) 1738 317 693 |
|
Nick Tulloch, Chairman Andrew Scott, Director |
|
|
Email: |
|
|
Website: www.ecrminerals.com |
|
|
Allenby Capital Limited |
Tel: +44 (0) 20 3328 5656 |
|
Nominated Adviser Nick Naylor / Alex Brearley / Vivek Bhardwaj |
|
|
Axis Capital Markets Limited |
Tel: +44 (0) 203 026 0320 |
|
Broker |
|
|
Ben Tadd / Lewis Jones |
|
|
|
|
|
SI Capital Ltd |
Tel: +44 (0) 1483 413500 |
|
Broker |
|
|
Nick Emerson
|
|
|
Brand Communications |
Tel: +44 (0) 7976 431608 |
|
Public & Investor Relations |
|
|
Alan Green |
Glossary
|
Ag: |
Silver |
|
As: |
Arsenic |
|
Au: |
Gold |
|
Bi: |
Bismuth |
|
g/t: |
Grammes per Tonne (Metric) |
|
km: |
Kilometres (Metric) |
|
km²: |
Kilometre squared (Metric) |
|
Lode: |
A deposit of metalliferous ore that fills a fissure |
|
ppm: |
Parts per million (Metric) |
ABOUT ECR MINERALS PLC
ECR Minerals is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) has 100% ownership of the Bailieston and Creswick gold projects in central Victoria, Australia, has six licence applications outstanding which includes one licence application lodged in eastern Victoria (Tambo gold project).
ECR also owns 100% of an Australian subsidiary LUX Exploration Pty Ltd (“LUX”) which has three approved exploration permits covering 946 km2 over a relatively unexplored area in Lolworth Range, Queensland, Australia. The Company has also submitted a license application at Kondaparinga which is approximately 120km2 in area and located within the Hodgkinson Gold Province, 80km NW of Mareeba, North Queensland.
Following the sale of the Avoca, Moormbool and Timor gold projects in Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX) and the subsequent spin-out of the Avoca and Timor projects to Leviathan Gold Ltd (TSX-V: LVX), MGA has the right to receive up to A$2 million in payments subject to future resource estimation or production from projects sold to Fosterville South Exploration Limited.
MGA also has approximately A$75 million of unutilised tax losses incurred during previous operations.
ECR Minerals #ECR – Results from Rock Chip Sampling and Exploration Update at Lolworth Project, Queensland
ECR Minerals plc (LON: ECR), the exploration and development company focused on gold in Australia, is pleased to announce the results of rock chip sampling and trenching activities completed at the Lolworth Project, Queensland, focusing on gold and base metals exploration. ECR also provides an interim update in relation to the diamond drilling programme at its Tambo Gold Project in Victoria.
HIGHLIGHTS
- 378 rock chip samples analysed
- Highest-grade gold results include 11.05, 14.15 and 14.7 g/t Au
- 23 rock chips returned silver grades greater than 10 g/t Ag with six samples exceeding 50 g/t Ag
- Trenching at the Gorge Creek West Prospect has identified broader zones of gold mineralisation, including best grades of 11.05, 3.72 and 4.82 g/t Au within a quartz shear zone
- Newly-discovered gold-bearing veins identified near Gorge Creek West and Uncle Terry prospects
Results (See Tables 1&2)
Gorge Creek West (See Figure 1)
Stream sampling has delineated the ridgeline as a potential gold source, and trenching has revealed a North-South trending quartz sulphide shear zone traced along a 40m strike. A secondary shear was located 12.5 metres west of the main zone. Highlights include:
- Best trenching results: 11.05, 4.82 and 3.45 g/t Au.
- Broader zones of low-grade gold mineralisation (0.2-0.5 g/t Au) found within three metres of the shear zones.
- Reconnaissance rock chips show further potential, with best results of 6.97, 2.59 and 3.72 g/t Au.
- Significant silver mineralisation with best results of 54.4, 50.2 and 24.9 g/t Ag.
An additional shear zone located 350 metres northeast has returned high-grade gold, including 14.7, 14.15 and 8.81 g/t Au. The results indicate that the gold bearing portion of this structure can so far been traced for 40 metres along the surface.
Gorge Creek West (Figure 1)
Uncle Terry (see Figure 2)
Reconnaissance rock chip sampling has previously revealed the highest-grade gold assay to date (75.6 g/t Au) from a quartz-sulphide subcrop. Further mapping in the vicinity revealed a quartz-sulphide blow measuring 20 metres x 10 metres at surface. Best results from this quartz blow include:
- Gold assays of 7.59, 6.92, 6.3 and 2.12 g/t Au.
- In addition, high silver values of 78.8, 66.2 and 65.6 g/t Ag have also been discovered. Soil sampling is ongoing to identify potential mineralised extensions.
Uncle Terry (Figure 2)
Geochemical pathfinders
Soil sampling is three-quarters complete, with ongoing analysis aimed at identifying pathfinder elements associated with gold mineralisation. Preliminary results show the following prospect geochemical pathfinders
- Butterfly Creek: Arsenic and lead
- Dagwood: Weak silver and lead
- Gorge Creek West: Strong lead and silver
- Uncle Terry: Strong lead and zinc with low arsenic.
- Silver-to-gold ratios are highest at Gorge Creek West and Uncle Terry.
Next Steps
A further update on the Lolworth Project will be provided before the end of this calendar year, including management’s proposed next exploration steps.
Tambo Drilling Update
The first diamond drill hole has reached 85 metres and encountered quartz and sulphide mineralisation at a 38 metre depth. A second hole is currently underway, with two or three more holes planned for a total planned aggregate depth of 450-550 metres. Further announcements will be made in relation to drilling at Tambo in due course.
Adam Jones, ECR Chief Geologist said: ‘’These rock chip and trenching results from Lolworth further validate the significant potential that the Board sees in this substantial acreage Project. Not only are we uncovering gold, but we are now seeing significant traces of silver. As previously announced, we believe that there are also exciting prospects for rare earths and other critical minerals and we expect both our own exploration programmes, as well as the recent sampling by the Geological Society of Queensland, will provide us with valuable insights and guide our next steps. The geological resemblance of the Lolworth region to the well-known Charters Towers and Ravenswood goldfields is giving us a glimpse of what may lie within these mountain ranges.”
| Table 1: Top 10 Gold Results | ||||||
| Prospect | SampleID | Easting | Northing | Au g/t | Ag g/t | Au:Ag Ratio |
| Gorge Creek West | LWC892 | 313687.1 | 7751609.8 | 14.7 | 50.2 | 1:3 |
| Gorge Creek West | LWC890 | 313683.9 | 7751607.9 | 14.15 | 54.4 | 1:4 |
| Gorge Creek West | LWC636 | 313358.1 | 7751435.4 | 11.05 | 68.8 | 1:6 |
| Gorge Creek West | LWC887 | 313688.7 | 7751597.1 | 8.81 | 24.90 | 1:3 |
| Uncle Terry | LWC935 | 312161.1 | 7752183.7 | 7.59 | 65.60 | 1:6 |
| Gorge Creek West | LWC657 | 313364.3 | 7751418.8 | 6.97 | 31.30 | 1:4 |
| Uncle Terry | LWC948 | 312161.8 | 7752186.9 | 6.92 | 66.20 | 1:10 |
| Gorge Creek West | LWC889 | 313685.0 | 7751607.1 | 6.34 | 5.20 | 1:1 |
| Uncle Terry | LWC947 | 312161.9 | 7752189.0 | 6.3 | 35.70 | 1:6 |
| Gorge Creek West | LWC896 | 313680.6 | 7751618.3 | 5.19 | 16.60 | 1:3 |
Table 2: Top 10 Silver Results
| Prospect | SampleID | Easting | Northing | Ag g/t |
| Uncle Terry | LWC949 | 312159.7 | 7752186.3 | 78.8 |
| Gorge Creek West | LWC636 | 313358.1 | 7751435.4 | 68.8 |
| Uncle Terry | LWC948 | 312161.8 | 7752186.9 | 66.2 |
| Uncle Terry | LWC935 | 312161.1 | 7752183.7 | 65.6 |
| Gorge Creek West | LWC890 | 313683.9 | 7751607.9 | 54.4 |
| Gorge Creek West | LWC892 | 313687.1 | 7751609.8 | 50.2 |
| Gorge Creek West | LWC651 | 313350.8 | 7751428.2 | 48 |
| Gorge Creek West | LWC652 | 313350.1 | 7751427.0 | 35.8 |
| Uncle Terry | LWC947 | 312161.9 | 7752189.0 | 35.7 |
| Gorge Creek West | LWC657 | 313364.3 | 7751418.8 | 31.3 |
REVIEW OF ANNOUNCEMENT BY QUALIFIED PERSON
This announcement has been reviewed by Adam Jones, Chief Geologist at 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.
FOR FURTHER INFORMATION, PLEASE CONTACT:
| ECR Minerals Plc | Tel: +44 (0) 1738 317 693 | ||
| Nick Tulloch, Chairman
Andrew Scott, Director |
|||
| Email: | |||
| Website: www.ecrminerals.com | |||
| Allenby Capital Limited | Tel: +44 (0) 3328 5656 | ||
| Nominated Adviser
Nick Naylor / Alex Brearley / Vivek Bhardwaj |
info@allenbycapital.com
|
||
| Axis Capital Markets Limited | Tel: +44 (0) 203 026 0320 | ||
| Broker | |||
| Ben Tadd / Lewis Jones | |||
| SI Capital Ltd | Tel: +44 (0) 1483 413500 | ||
| Broker | |||
| Nick Emerson
|
|||
| Brand Communications | Tel: +44 (0) 7976 431608 | ||
| Public & Investor Relations | |||
| Alan Green | |||
Glossary
| Ag: | Silver |
| Au: | Gold |
| g/t: | Grammes per Tonne (Metric) |
| km: | Kilometres (Metric) |
| km²: | Kilometre squared (Metric) |
ABOUT ECR MINERALS PLC
ECR Minerals is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) has 100% ownership of the Bailieston and Creswick gold projects in central Victoria, Australia, has six licence applications outstanding which includes one licence application lodged in eastern Victoria (Tambo gold project).
ECR also owns 100% of an Australian subsidiary LUX Exploration Pty Ltd (“LUX”) which has three approved exploration permits covering 946 km2 over a relatively unexplored area in Lolworth Range, Queensland, Australia. The Company has also submitted a license application at Kondaparinga which is approximately 120km2 in area and located within the Hodgkinson Gold Province, 80km NW of Mareeba, North Queensland.
Following the sale of the Avoca, Moormbool and Timor gold projects in Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX) and the subsequent spin-out of the Avoca and Timor projects to Leviathan Gold Ltd (TSX-V: LVX), MGA has the right to receive up to A$2 million in payments subject to future resource estimation or production from projects sold to Fosterville South Exploration Limited. ECR also holds a royalty on the SLM gold project in La Rioja Province, Argentina.
MGA also has approximately A$75 million of unutilised tax losses incurred during previous operations.
ECR Minerals #ECR – Diamond Drilling Commences at Tambo Gold Project, Victoria and Fourth Company in Discussions on Potential Sale of A$75m Tax Losses
ECR Minerals plc (LON: ECR), the exploration and development company focused on gold in Australia, is pleased to announce the commencement of diamond drilling at the Company’s Tambo Gold Project in Victoria, Australia (the “Tambo Gold Project”), as well as providing an update on corporate activities.
HIGHLIGHTS
- Maiden diamond drilling campaign now underway at the Tambo Gold Project
- Fourth confidentiality agreement signed with Australia-domiciled company in relation to the potential sale of ECR’s A$75 million of tax losses
- Laboratory analysis of 378 rock chips taken from gold prospects at the Lolworth Project in Queensland now completed and results expected later this month
Tambo Gold Project, Victoria
Further to the Company’s announcement on 9 October 2024, the maiden diamond drilling campaign has commenced at the Tambo Gold Project targeting beneath the historical workings of the Duke of Cornwall Mine, Swifts Creek. The drilling programme is expected to take approximately two weeks with up to 500 metres of aggregate depth planned, although the exact profile of the campaign will be determined on site. Previous rock chip assays from direct outcrop and exposures around and within the old workings include results of 22.85 g/t Au, 26.25 g/t Au and 52.2 g/t Au coupled with highly anomalous gold in soils. Initial results are expected in November 2024.
Update on Potential Sale of Tax Losses
Further to the Company’s announcements of 9 October 2024 and 2 July 2024, ECR, through its engagement with Argonaut PCF Ltd, has signed an additional non-disclosure agreement and is now in discussions with four Australia-domiciled public and private companies in relation to the potential sale of its A$75 million of tax losses.
ECR’s tax losses are held within its wholly owned subsidiary, Mercator Gold Australia Pty Ltd, and were incurred during the period from 2006 to date. Any sale of the tax losses would be coupled with a disposal of certain non-core assets of the Company. Whilst no guarantee can be given as to any potential sale or agreement being reached or as to the timing or terms, the board of directors of ECR continues to be encouraged by the considerable interest shown in this potentially valuable asset.
Lolworth, Queensland,
Laboratory analysis of 378 rock chips recently taken from gold prospects at the Lolworth Project in Queensland, including Butterfly Creek, Uncle Terry and Gorge Creek has now been completed and the Company expects to receive the data shortly. The next step will be for management to undertake a detailed review of this information to contextualise the data within the overall project area. It is therefore expected that the full results will be available by the end of the month. Initial field work across the Lolworth Project showed promising signs, including visible gold in streams and hillsides. A further announcement will be made in due course.
As announced on 3 October 2024, ECR Minerals is working in partnership with the Geological Survey of Queensland (“GSQ”) to further investigate the critical minerals potential at the Lolworth Project. The results from geochemical analysis on samples taken from the Oaky Creek prospect in the central-north area of the project will be announced once received. Stream sampling in this area has previously detected Niobium in concentrate samples and geochemical analysis will be carried out by the GSQ on pegmatites to better understand their fertility for hosting critical minerals, in particular Niobium and Tantalum.
Mike Whitlow, ECR’s Managing Director, said: “I’m very pleased to announce that the diamond drill rig has arrived at the Tambo Gold Project, marking the beginning of our highly anticipated maiden drilling campaign at this site. Our initial work at the Tambo Gold Project has been very promising with high-grade gold results in rock chips reinforcing our confidence in the potential of this asset. We look forward to confirming and expanding on these results, which is expected in November 2024. I’m also encouraged by the growing interest in our tax losses from both private and public companies, with several requests for confidentiality agreements. As we’ve said previously the potential value of any transaction could be significant for ECR. We are expecting a steady stream of updates across our core projects in the coming weeks and months and I look forward to reporting back on the rock chip results from Lolworth once further analysis has been conducted.’’
REVIEW OF ANNOUNCEMENT BY QUALIFIED PERSON
This announcement has been reviewed by Adam Jones, Chief Geologist at 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.
FOR FURTHER INFORMATION, PLEASE CONTACT:
| ECR Minerals Plc | Tel: +44 (0) 1738 317 693 | ||
| Nick Tulloch, Chairman
Andrew Scott, Director |
|||
| Email: | |||
| Website: www.ecrminerals.com | |||
| Allenby Capital Limited | Tel: +44 (0) 3328 5656 | ||
| Nominated Adviser
Nick Naylor / Alex Brearley / Vivek Bhardwaj |
info@allenbycapital.com
|
||
| Axis Capital Markets Limited | Tel: +44 (0) 203 026 0320 | ||
| Broker | |||
| Ben Tadd / Lewis Jones | |||
| SI Capital Ltd | Tel: +44 (0) 1483 413500 | ||
| Broker | |||
| Nick Emerson
|
|||
| Brand Communications | Tel: +44 (0) 7976 431608 | ||
| Public & Investor Relations | |||
| Alan Green | |||
Glossary
| Au: | Gold |
| g/t: | Grammes per Tonne (Metric) |
| km: | Kilometres (Metric) |
| km²: | Kilometre squared (Metric) |
ABOUT ECR MINERALS PLC
ECR Minerals is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) has 100% ownership of the Bailieston and Creswick gold projects in central Victoria, Australia, has six licence applications outstanding which includes one licence application lodged in eastern Victoria (Tambo gold project).
ECR also owns 100% of an Australian subsidiary LUX Exploration Pty Ltd (“LUX”) which has three approved exploration permits covering 946 km2 over a relatively unexplored area in Lolworth Range, Queensland, Australia. The Company has also submitted a license application at Kondaparinga which is approximately 120km2 in area and located within the Hodgkinson Gold Province, 80km NW of Mareeba, North Queensland.
Following the sale of the Avoca, Moormbool and Timor gold projects in Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX) and the subsequent spin-out of the Avoca and Timor projects to Leviathan Gold Ltd (TSX-V: LVX), MGA has the right to receive up to A$2 million in payments subject to future resource estimation or production from projects sold to Fosterville South Exploration Limited. ECR also holds a royalty on the SLM gold project in La Rioja Province, Argentina.
MGA also has approximately A$75 million of unutilised tax losses incurred during previous operations.
ECR Minerals #ECR – Australia Projects Update
Up to 75.6g/t Gold Rock Chip Identified at Lolworth, Queensland
Maiden Diamond Drilling Program to Commence at Tambo Gold Project in Coming Weeks
Drilling Application Lodged to Follow up 32% Antimony Result At Bailieston, Victoria
ECR Minerals plc (LON: ECR), the exploration and development company focused on gold in Australia, is pleased to announce an update on its gold and rare earths projects in Queensland and Victoria.
HIGHLIGHTS
Queensland
- Up to 75.6 g/t gold rock chip discovered at the Uncle Terry Prospect at the Lolworth Project
- Results expected from enhanced gold recovery process at the Blue Mountain Project
Victoria
- Planning for diamond drill programme to commence at the Tambo Gold Project in coming weeks
- Drilling application lodged to further investigate the potential at Bailieston given the recently announced exceptional Antimony results
Lolworth, Queensland
Two field teams have been working on site at the Company’s Lolworth Project since early May 2024, where initial field work across several gold prospects in the Upper Gorge Creek showed promising signs, including visible gold in streams and hillsides.
First rock chip results now received from the Uncle Terry Prospect are encouraging, with samples of up to 75.6 g/t Au, 1.32 g/t Au and 1.29 g/t Au from a new mineralised quartz vein situated approximately 400m north-west from the main prospect. Follow-up mapping has traced the visible part of this outcrop for at least 100m in strike and ending in a quartz blow where Galena (Lead-Silver) is clearly visible. Numerous mineralised quartz shears at least 1m wide have been mapped over the entire Uncle Terry Prospect area. The main shear zone is showing to host Lead (Pb) and Silver (Ag) with best outcrop rock chips of 1.89% Pb and 11 samples greater than 5 g/t Ag, including two highlights of 272 g/t Ag and 69 g/t Ag. ECR’s field teams are currently extending soil sampling to explore for hidden gold-bearing outcrops in the immediate vicinity.
The results for 378 rock chip samples covering all five gold prospects at the Lolworth Project are due in the coming weeks. Confirmation of the presence of further high-grade gold is expected, as samples anomalous in silver have been routinely sent to the laboratory for gold analysis. Silver has been identified as the strongest pathfinder element correlating to gold mineralisation at the Lolworth Project.
Stream sampling for gold and rare earths on the eastern side of the 1,000 km² project area is progressing well and nearing completion. Regional geological mapping has indicated the presence of significant pegmatitic intrusions. Previous work suggests that this eastern area features the same geological formations as the Oaky Creek region of the tenement where stream sampling has previously detected niobium in concentrate samples.
ECR’s field crews have also taken a bulk sample from the Oaky Creek Niobium streamline which will be used for mineralogical purposes to aid in tracking down the source rock.
Table 1: Summary of latest rockchip results from the Uncle Terry Prospect, Lolworth.
| Prospect | Sample ID | Easting | Northing | Au g/t | Ag g/t | Pb % | ||||
| Uncle Terry | LWC432 | 312178 | 7752097 | 75.6 | 272 | 0.03 | ||||
| Uncle Terry | LWC431 | 312194 | 7752128 | 1.32 | 1.5 | 0.02 | ||||
| Uncle Terry | LWC463 | 308392 | 7751048 | 1.29 | 4.3 | 0.02 | ||||
| Uncle Terry | LWC548 | 312418 | 7751770 | 0.08 | 69.00 | 0.09 | ||||
| Uncle Terry | LWC545 | 312418 | 7751766 | 0.02 | 12.20 | 0.23 | ||||
| Uncle Terry | LWC401 | 312355 | 7751894 | 0.04 | 11.00 | 0.00 | ||||
| Uncle Terry | LWC410 | 312382 | 7751852 | 0.01 | 10.60 | 0.00 | ||||
| Uncle Terry | LWC481 | 312327 | 7751879 | 0.01 | 8.40 | 0.00 | ||||
| Uncle Terry | LWC402 | 312358 | 7751890 | 0.03 | 8.10 | 0.24 | ||||
| Uncle Terry | LWC544 | 312420 | 7751766 | 0.01 | 7.50 | 0.14 | ||||
| Uncle Terry | LWC406 | 312370 | 7751870 | 0.01 | 6.70 | 0.00 | ||||
| Uncle Terry | LWC543 | 312420 | 7751764 | 0.01 | 6.10 | 0.04 | ||||
| Uncle Terry | LWC546 | 312418 | 7751766 | 0.01 | 5.40 | 0.40 | ||||
| Uncle Terry | LWC549 | 312420 | 7751769 | 0.01 | 0.20 | 1.89 | ||||
| *Locations in GDA94 Zone 55 datum. | ||||||||||
Blue Mountain, Queensland
As announced on 1 August 2024, a trenching and bulk concentrate sampling programme was undertaken at the Blue Mountain Project during July of this year. A total of 15.4 cubic metres of alluvial gravel was processed through a pilot trommel wash plant, yielding 9.95 grammes of visible gold, an overall average of 1.55 grammes per b.c.m. Additionally, six bulk samples of sluice box concentrates were submitted for laboratory analysis, with best results including 192.15 g/t Au and 97.40 g/t Au within these concentrates.
Given these highly encouraging results ECR has submitted further samples to the laboratory to undergo an enhanced gold recovery process to determine the potential commercial options for recovery. The results are expected in the coming weeks.
The Blue Mountain Project consists of two exploration permits (EPM27175 and EPM27183). Both permits are in good standing and the Company has recently applied to extend the terms for an additional five years. Both tenements contain at least 12km of strike length available for follow up sampling and testing.
Tambo Project, Victoria
On 12 July 2024, ECR Minerals announced the fire assay gold results from the historic Duke of Cornwall Mine in Swifts Creek (Tambo Gold Project) with a best result including 52.2 g/t Au. A total of 10 samples returned results above 5 g/t Au. Subsequently, 84 soil samples were taken perpendicular to the strike of the Duke of Cornwall lode to gain a better understanding of the geochemical orientation with a best result of 0.56 ppm Au.
ECR Minerals is pleased to announce that terms have now been agreed with a drilling contractor and a site visit by ECR chief geologist, Adam Jones, is due to take place this week. A maiden diamond drilling campaign is expected to commence at the project in the coming weeks.
Bailieston, Victoria
On 3 July 2024, ECR Minerals announced results from additional testing for the critical mineral Antimony (Sb) from diamond core previously drilled at Bailieston, Central Victoria. 44 samples were submitted for additional multi-element testing with best results including 0.3m grading 32% Sb and 0.1m grading 1.20 % Sb.
A drilling application has now been lodged with the relevant Governmental authorities to further investigate the potential at Bailieston given the recently announced exceptional Antimony results. Further details will be announced in due course.
The ECR Board made the decision to reanalyse diamond core samples for Antimony from the Bailieston Project, drilled during the 2021-2022 campaign, due to the Melbourne Geological Zone’s reputation as a prominent host for Antimony lodes and the increasing demand for this critical mineral.
The Costerfield Mine, owned by Mandalay Resources, is a significant Antimony producer in the region, recording 1,860 tonnes of Sb in 2023. Nearby, Nagambie Resources recently announced a maiden JORC inferred resource estimate of 17,800 tonnes of Sb, while Southern Cross Gold has been actively exploring for Antimony at its Sunday Creek Project.
ECR Minerals holds exploration licenses situated 45 kilometres east of Costerfield and 25 kilometres west of Nagambie. ECR’s Bailieston Prospect (HR3) is positioned on the Bailieston Anticline, renowned for its Antimony mineralisation.
Mike Whitlow, Managing Director, said: “It has been a highly productive year for ECR, with significant progress made across our portfolio of gold and rare earths projects, and exploration activities are set to accelerate even further. We consider that we’re on the verge of identifying the key sources of gold at Lolworth, with a number of high-priority drill targets soon to be lined up for testing. This marks a pivotal step forward as we look to unlock the project’s full potential. At the Blue Mountain Project, we are eagerly anticipating the results from our enhanced gold recovery process which will be critical in guiding us towards the potential commercial options for gold extraction. In Victoria, our focus remains firmly on drilling. We’re set to commence drilling at the Tambo Project in the coming weeks and work is underway to further explore the highly prospective Antimony potential at Bailieston. With the recent surge in this critical mineral’s price, we believe that the Bailieston project’s Antimony potential may become increasingly significant.”
REVIEW OF ANNOUNCEMENT BY QUALIFIED PERSON
This announcement has been reviewed by Adam Jones, Chief Geologist at 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 Regulation (MAR) Disclosure
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
FOR FURTHER INFORMATION, PLEASE CONTACT:
| ECR Minerals plc | Tel: +44 (0) 1738 317 693 | |
| Nick Tulloch, Chairman
Andrew Scott, Director |
||
| Email: | ||
| Website: www.ecrminerals.com | ||
| Allenby Capital Limited | Tel: +44 (0) 3328 5656 | |
| Nominated Adviser
Nick Naylor / Alex Brearley / Vivek Bhardwaj
|
info@allenbycapital.com
|
|
| Axis Capital Markets Limited | Tel: +44 (0) 203 026 0320 | |
| Broker | ||
| Ben Tadd/Lewis Jones | ||
| SI Capital Ltd | Tel: +44 (0) 1483 413500 | |
| Broker | ||
| Nick Emerson | ||
| Brand Communications | Tel: +44 (0) 7976 431608 | |
| Public & Investor Relations | ||
| Alan Green | ||
Glossary
| Ag: | Silver |
| Au: | Gold |
| b.c.m | Bank Cubic Metre |
| g/t: | Grammes per Tonne (Metric) |
| HR3: | The Bailieston Prospect |
| JORC: | Australasian Code for Reporting of Mineral Resources and Ore Reserves’ of December 2012 (“JORC Code”) as prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy. |
| km: | Kilometres (Metric) |
| km²: | Kilometre squared (Metric) |
| M: | Metres (Metric) |
| Pb: | Lead |
| ppm: | Parts per million (Metric) |
| Sb: | Antimony |
ABOUT ECR MINERALS PLC
ECR Minerals is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) has 100% ownership of the Bailieston and Creswick gold projects in central Victoria, Australia, has six licence applications outstanding which includes one licence application lodged in eastern Victoria (Tambo gold project).
ECR also owns 100% of an Australian subsidiary LUX Exploration Pty Ltd (“LUX”) which has three approved exploration permits covering 946 km2 over a relatively unexplored area in Lolworth Range, Queensland, Australia. The Company has also submitted a license application at Kondaparinga which is approximately 120km2 in area and located within the Hodgkinson Gold Province, 80km NW of Mareeba, North Queensland.
Following the sale of the Avoca, Moormbool and Timor gold projects in Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX) and the subsequent spin-out of the Avoca and Timor projects to Leviathan Gold Ltd (TSX-V: LVX), MGA has the right to receive up to A$2 million in payments subject to future resource estimation or production from projects sold to Fosterville South Exploration Limited. ECR holds a royalty on the SLM gold project in La Rioja Province, Argentina which could potentially receive up to US$2.7 million in aggregate across all licences.
MGA also has approximately A$75 million of unutilised tax losses incurred during previous operations.
ECR Minerals #ECR – Victoria Exploration and Queensland Project Updates
ECR Minerals plc (LON: ECR), the exploration and development company focused on gold in Australia, announces updated results from gold exploration activities within licences EL006184 (Creswick), EL5433 (Blue Moon) and EL7484 (Tambo North), Victoria, Australia.
ECR Minerals plc has 100% ownership of all three exploration licences. ECR Minerals also holds 100% ownership of 6 other active exploration tenements along with 2 other exploration tenements in application with the State of Victoria, Australia.
ECR CEO Andrew Haythorpe commented: “While the Board are pleased to have finally received assays for our drill programs in Victoria, the latest results have not been as encouraging as we would have hoped.”
“On taking up the position as CEO last year, I have worked with management to ensure that low-cost work programmes, including soil geochemistry and mapping, have and will continue to be used to rank prospects prior to drilling. This approach will be applied to future campaigns in both Queensland and Victoria.”
‘’In contrast to the Company’s historical projects in Victoria, we believe the prospects identified for drilling and further mapping and sampling in Queensland are of superior width and consistency.”
“The outcome from work undertaken in Victoria over the coming months will be weighed against the results we anticipate seeing in Queensland and I look forward to reporting back on progress in the coming days and weeks.’’
HIGHLIGHTS
- Results from the recent western extension drilling at Blue Moon, Bailieston from two drill holes. Best results include 9m @ 0.56 g/t Au from 83.2m in hole BBMDD012.
- Drilling results from four diamond holes at Brewery Lane Creswick have been received which include 1m @ 4.29 g/t Au from 94.8m in hole CSD016.
- On-ground work within Eastern Victoria on EL7484 (Tambo) has commenced. The Board is encouraged by initial investigations.
- Exploration strategy transitions to North Queensland, Australia as field season commences.
DRILL RESULTS, BLUE MOON (BAILIESTON)
The most recent results from diamond drilling at the Blue Moon Prospect, Bailieston included the excellent result of 0.5m @ 17.77 g/t Au from 84.9m in hole BBMDD010 (see RNS from February 24 2023 here). A further two holes have now been drilled (BBMDD012 and BBMDD013) targeting the potential down plunge of the high-grade result in BBMDD010 and following the historic drill hole from the 2019 RC drill program. Unfortunately, the grade trend did not expand at depth, but still generated an excellent results of 9m @ 0.56 g/t Au from 83.2m drilled depth in hole BBMDD012. All reportable drill results from BBMDD012 and BBMDD013 are tabulated in Table 1 below. As the grades and widths of the Blue Moon Prospect within the drilled area downgraded the potential of an immediate commercial discovery, the drill rig was moved to Brewery Lane, Creswick.
CRESWICK (BREWERY LANE) DRILLING PROGRAM
A total of 4 drill holes were completed into the Slades and Spring Hill Reefs (lodes). The best results from this drilling campaign include 1m @ 4.29 g/t Au from 94.8m in hole CSD016 plus a full list of reportable gold intercepts from the 4 holes in Table 2 below. There is a considerable amount of additional work required to establish mineral resources at Creswick, including drilling at Mills Reef, Kuboid Hill and other prospects where soil sampling and rock chipping have shown the presence of gold (see RNS from April 17 2023 here, and RNS from May 2 2023 here). However, with global markets currently reflecting a lack of appetite for long-term investment into junior gold exploration companies the Board has decided to halt exploration drilling at Brewery Lane, Creswick for the remainder of this year and focus instead on exploration at ECR’s Queensland projects.
GOLD EXPLORATION IN EASTERN VICTORIA (TAMBO)
ECR has two tenements (EL007484 and EL007486) in the Tambo River region residing in the eastern part of Victoria state. EL007484 is currently active and license EL007486 is in the final stages of application. The field team have recently gained access to historical gold workings within EL007484 on private land, and with the landowner’s support for gold exploration a programme of rock chipping and pXRF mapping within quartz veins from underground exposures is now on-going. The field team are reporting good visual findings with plenty of sulphides seen within quartz veins. Initial results are expected shortly.
NEXT STEPS – EXPLORATION TRANSITION TO NORTH QUEENSLAND
Exploration has commenced at the Lolworth Project in North Queensland. The results from last year’s field season revealed numerous Gold, Niobium and Tantalum anomalies within many of the drainage lines within the Lolworth Range (see RNS from March 26 2023 here, and RNS from April 3 2023 here). Although the project is in the early stages of exploration, initial findings are already showing a larger footprint of diverse mineralisation and the potential to identify a commercial resource of not only Gold, but also for critical minerals. Using our now established process of detailed mapping and sampling, the Board plans to identify a number of drill targets at Lolworth by the end of this year.
The field team will also commence work at the Hurricane Project, also in North Queensland (see Hurricane project detail in RNS from October 27 2022 here). Work undertaken by previous explorers identified a number of quartz-breccia outcrops of varying widths carrying a broad range of Gold and Antimony values, (antimony is a valuable critical mineral). A 50km2 LIDAR aerial mapping survey has just been completed by ECR across the areas containing the quartz-breccia outcrops, which to date have not been drilled. LIDAR can assess the ground through the vegetation and allows the field team to quickly target and test breccia outcrops. ECR Geologists will be on the ground at Hurricane from June 2023 and the Board will report on progress in due course. Subject to satisfactory progress, the first drilling at Hurricane is scheduled for the second half of 2023.
REVIEW OF ANNOUNCEMENT BY QUALIFIED PERSON
This announcement has been reviewed by Adam Jones, Technical Director of Exploration at 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:
| ECR Minerals plc | Tel: +44 (0) 20 7929 1010 | |||
| David Tang, Non-Executive Chairman
Andrew Haythorpe, CEO |
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| Email: | ||||
| Website: www.ecrminerals.com | ||||
| WH Ireland Ltd | Tel: +44 (0) 207 220 1666 | |||
| Nominated Adviser
Katy Mitchell / Andrew de Andrade |
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| SI Capital Ltd | Tel: +44 (0) 1483 413500 | |||
| Broker | ||||
| Nick Emerson | ||||
| Novum Securities Limited | Tel: +44 (0) 20 7399 9425 | |||
| Broker
Jon Belliss |
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| Brand Communications | Tel: +44 (0) 7976 431608 | |||
| Public & Investor Relations | ||||
| Alan Green
|
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ABOUT ECR MINERALS PLC
ECR Minerals is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) has 100% ownership of the Bailieston and Creswick gold projects in central Victoria, Australia, has six licence applications outstanding which includes one licence application lodged in eastern Victoria. (Tambo gold project). MGA is currently drilling at the Bailieston Blue Moon Project (EL5433) and undertaking geochemical exploration on the Creswick (EL6148) project and has an experienced exploration team with significant local knowledge in the Victoria Goldfields and wider region.
ECR also owns 100% of an Australian subsidiary LUX Exploration Pty Ltd (“LUX”) which has three approved exploration permits covering 946 km2 over a relatively unexplored area in Queensland, Australia.
Following the sale of the Avoca, Moormbool and Timor gold projects in Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX) and the subsequent spin-out of the Avoca and Timor projects to Leviathan Gold Ltd (TSX-V: LVX), Mercator Gold Australia Pty Limited has the right to receive up to A$2 million in payments subject to future resource estimation or production from projects sold to Fosterville South Exploration Limited.
ECR holds a 90% 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, which has a 43-101 compliant resource. ECR also holds a royalty on the SLM gold project in La Rioja Province, Argentina and can potentially receive up to US$2.7 million in aggregate across all licences.
APPENDIX 1
Table 1. Drill intercepts containing reportable levels of gold (> 0.1 g/t Au) for the remaining drillholes at the Blue Moon Prospect, Bailieston, Victoria
| Drillhole | From (m) | To (m) | Interval (m) | Grade (g/t Au) |
| BBMDD012 | 83.2 | 84.2 | 1 | 0.18 |
| BBMDD012 | 84.2 | 85.2 | 1 | 0.12 |
| BBMDD012 | 85.2 | 86.2 | 1 | 0.16 |
| BBMDD012 | 86.2 | 86.8 | 0.6 | 0.32 |
| BBMDD012 | 86.8 | 87.4 | 0.6 | 0.66 |
| BBMDD012 | 87.4 | 88.4 | 1 | 0.49 |
| BBMDD012 | 88.4 | 89.4 | 1 | 0.97 |
| BBMDD012 | 89.4 | 90.05 | 0.65 | 0.31 |
| BBMDD012 | 90.05 | 90.85 | 0.8 | 0.18 |
| BBMDD012 | 90.85 | 91.2 | 0.35 | 0.12 |
| BBMDD012 | 91.2 | 91.65 | 0.45 | 0.14 |
| BBMDD012 | 91.95 | 92.25 | 0.3 | 1.26 |
| BBMDD012 | 93.25 | 94.35 | 1.1 | 0.28 |
| BBMDD012 | 94.35 | 95.2 | 0.85 | 0.11 |
| BBMDD012 | 100 | 100.4 | 0.4 | 0.11 |
| BBMDD012 | 100.4 | 100.8 | 0.4 | 0.12 |
| BBMDD012 | 102.2 | 102.95 | 0.75 | 0.15 |
| BBMDD013 | 70.8 | 71.5 | 0.7 | 0.13 |
| BBMDD013 | 71.5 | 72.5 | 1 | 0.3 |
| BBMDD013 | 73.5 | 74.1 | 0.6 | 0.15 |
| BBMDD013 | 74.7 | 75.4 | 0.7 | 0.15 |
| BBMDD013 | 76.1 | 77 | 0.9 | 0.13 |
| BBMDD013 | 77.2 | 78 | 0.8 | 0.16 |
| BBMDD013 | 78 | 79 | 1 | 0.15 |
| BBMDD013 | 79.95 | 80.2 | 0.25 | 0.15 |
| BBMDD013 | 81.7 | 82.7 | 1 | 0.23 |
| BBMDD013 | 82.7 | 83.7 | 1 | 0.12 |
| BBMDD013 | 83.7 | 84.4 | 0.7 | 1.6 |
| BBMDD013 | 85.4 | 86.4 | 1 | 0.27 |
Table 2. Drill intercepts containing reportable levels of gold (> 0.1 g/t Au) for the Brewery Lane diamond drilling, Creswick, Victoria
| Drillhole | From (m) | To (m) | Interval (m) | Grade (g/t Au) |
| CSD015 | 6.8 | 7.2 | 0.4 | 0.15 |
| CSD015 | 7.2 | 7.5 | 0.3 | 0.14 |
| CSD015 | 26.15 | 27.15 | 1 | 0.13 |
| CSD015 | 27.5 | 27.95 | 0.45 | 0.12 |
| CSD015 | 27.95 | 28.15 | 0.2 | 0.13 |
| CSD015 | 28.15 | 28.3 | 0.15 | 0.15 |
| CSD015 | 29.65 | 29.95 | 0.3 | 0.27 |
| CSD015 | 29.95 | 30.3 | 0.35 | 0.15 |
| CSD015 | 36.7 | 37.05 | 0.35 | 0.14 |
| CSD015 | 40.55 | 40.8 | 0.25 | 0.11 |
| CSD016 | 75.85 | 76.1 | 0.25 | 0.13 |
| CSD016 | 94.8 | 95.8 | 1 | 4.29 |
| CSD017 | 14.7 | 15 | 0.3 | 0.14 |
| CSD017 | 28 | 28.3 | 0.3 | 0.11 |
| CSD017 | 34.5 | 34.7 | 0.2 | 0.12 |
| CSD017 | 68.9 | 69.2 | 0.3 | 0.34 |
| CSD017 | 87.9 | 88.7 | 0.8 | 0.67 |
| CSD017 | 101.55 | 101.85 | 0.3 | 0.8 |
| CSD017 | 105.4 | 106.15 | 0.75 | 0.24 |
| CSD018 | 3.1 | 3.3 | 0.2 | 0.25 |
| CSD018 | 11.4 | 12 | 0.6 | 0.39 |
| CSD018 | 12.5 | 13 | 0.5 | 0.26 |
| CSD018 | 13 | 13.5 | 0.5 | 0.33 |
| CSD018 | 20.9 | 21.6 | 0.7 | 0.22 |
| CSD018 | 23.6 | 24.2 | 0.6 | 0.63 |
| CSD018 | 38.4 | 39.4 | 1 | 0.12 |
| CSD018 | 46.8 | 47 | 0.2 | 0.13 |
| CSD018 | 73.8 | 74.2 | 0.4 | 0.15 |
| CSD018 | 89 | 89.4 | 0.4 | 0.12 |
| CSD018 | 97.1 | 97.4 | 0.3 | 0.16 |
| CSD018 | 100.6 | 101.8 | 1.2 | 0.13 |
| CSD018 | 101.8 | 102.1 | 0.3 | 0.13 |
| CSD018 | 118 | 118.75 | 0.75 | 0.18 |
| CSD018 | 118.75 | 119.1 | 0.35 | 1.3 |
| CSD018 | 119.1 | 120 | 0.9 | 0.11 |
| CSD018 | 120 | 120.5 | 0.5 | 0.19 |
| CSD018 | 121.6 | 122 | 0.4 | 0.11 |
| CSD018 | 122 | 123 | 1 | 0.18 |
| CSD018 | 127 | 128 | 1 | 0.14 |
ECR Minerals #ECR CEO Interview – Alan Green talks to Craig Brown
Brand Comms CEO Alan Green talks to ECR Minerals #ECR CEO Craig Brown about the company’s flagship gold exploration projects in the heart of Australia’s Victoria Goldfields.
Craig talks about the recent placing to raise a further £2m with Novum Securities at 2.2p, and elaborates on the rationale behind it, before discussing the initial drilling results at the Bailieston Historic Reserve 3 prospect, that led to a fall in the share price despite identifying gold and gold mineralisation.
We look at slides from the current company presentation, and examine the scale of the operations and historic gold grades from the other Bailieston prospects including Blue Moon, Black Cat, HR4 (Cherry Tree, Cherry Tree South) and Yellow & Red Moon.
We move to Creswick and discuss the Dimocks Main Shale geological feature, the historical (2019) grades, license applications and JV implications and the upcoming drilling campaign. Craig then updates on the Tambo Project, and the connection with ECR’s Head Geologist Dr Rodney Boucher before we discuss the Bendigo HQ operation.
Alan and Craig then summarise by looking at the current company valuation vs. assets and work underway.
ECR Minerals #ECR – CEO Craig Brown talks to Alan Green
Brand Comms CEO Alan Green talks to ECR Minerals #ECR CEO Craig Brown about the company’s flagship gold exploration projects in the heart of Australia’s Victoria Goldfields. Taking slides from the latest company presentation, Craig talks about ECR’s wholly owned drill rig, HQ at Bendigo and the £4m funding and extra cash resources owned by the company. We look at the Creswick Gold project located close to the Ballarat Gold Mine before discussing this year’s production numbers at the Fosterville goldmine and how they might compare to assay results and ore grades currently being drilled at the Bailieston HR3 target. Craig looks at Black Cat, Cherry Tree and other targets at Bailieston, before we move onto the blue sky potential at the Tambo Project, and the connection with ECR’s Head Geologist Dr Rodney Boucher. We end with some takeaway points for investors.
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: