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ECR Minerals #ECR – Heads of Terms for Proposed Disposal of MGA
ECR Minerals plc (LON: ECR), the exploration and development company focused on gold in Australia, is pleased to announce that, further to previous announcements, it has entered into a non-binding heads of terms (the “Heads of Terms”) with Octo Holdings Pty Ltd (“Octo”) regarding the proposed sale (the “Proposed Disposal”) of the entire issued share capital of ECR’s wholly-owned subsidiary, Mercator Gold Australia Pty Ltd (“MGA”). MGA holds certain of the Company’s exploration assets in Victoria, Australia but will be restructured prior to the Proposed Disposal as described below.
Highlights of the Proposed Disposal pursuant to the non-binding Heads of Terms:
- Total cash consideration to be payable of A$4.5 million
- Payable in two equal cash tranches: the first tranche on completion of the Proposed Disposal
and the second tranche on or before 31 March 2025 - MGA is to be restructured such that the Creswick and Tambo projects will be transferred to another of the Company’s subsidiaries, so that these projects are excluded from the Proposed Disposal
- The Bailieston gold and antimony exploration project will remain in MGA and therefore would be included in the Proposed Disposal
- MGA holds ECR’s A$75 million of tax losses which represent the main asset that is to be disposed
Overview of the Proposed Disposal
Pursuant to the Heads of Terms, Octo has agreed to acquire MGA on a cash-free and debt-free basis. It is proposed that, on or before completion of the Proposed Disposal, ECR will effect a reorganisation of MGA such that the only exploration assets remaining within MGA will be the four exploration tenements collectively known as the Bailieston project (EL5433, EL006911, EL006912, and EL007296), which targets gold and antimony mineralisation over 142 km2 of exploration ground within the Melbourne zone. Although potentially encouraging antimony results have been reported from the Bailieston project (as announced on 3 July 2024), the Bailieston project is considered by the Board to be a non-core asset given ECR’s key focus on gold exploration.
It is proposed that the tenements comprising ECR’s core Creswick and Tambo gold exploration projects, along with the lease of ECR’s premises near Bendigo, Victoria, will be transferred to another of the Company’s wholly owned subsidiaries and so would be excluded from the Proposed Disposal. Furthermore, MGA’s contracts with ECR’s employees, consultants and other suppliers will be similarly transferred such that the Proposed Disposal will have no impact on ECR’s ongoing Victoria operations at the Creswick and Tambo projects. For the avoidance of doubt, ECR’s core Lolworth and Blue Mountain projects and the Kondaparinga project (all of which are based in Queensland) are held via a different ECR subsidiary and will therefore be unaffected by the Proposed Disposal.
Under the Heads of Terms, the consideration to be payable by Octo is to be A$4.5 million and is to be settled in two equal tranches in cash, with the first tranche on completion of the Proposed Disposal and the second tranche on or before 31 March 2025.
The Heads of Terms restate the exclusivity period between ECR and Octo until 31 January 2025 and it is the parties’ expectation that the Proposed Disposal will be concluded before that date. In the event that further time is required to finalise the pre-completion steps summarised in this announcement, then Octo has the right to extend the exclusivity period for a further 28 days in return for the payment of a commitment fee of A$50,000 (which is refundable in certain circumstances), which would be deductible from the first tranche of the consideration.
It is noted that the Heads of Terms are not binding in relation to the terms of the Proposed Disposal, as described above, and that the Proposed Disposal will be subject, among other things, to due diligence by Octo and the execution of a legally binding agreement governing the transaction. There can therefore be no certainty that final binding terms will be agreed, nor as to the timing or final terms, value or conditions of the Proposed Disposal or the final position in respect of the proposed pre- completion restructuring of MGA.
As previously announced, the Proposed Disposal may be considered to 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 Proposed Disposal to be conditional on the consent of shareholders being given in a general meeting, the publication of a shareholder circular detailing the terms of the transaction and certain other disclosures as set out in the AIM Rules.
Proposed use of proceeds
Subject to its completion, ECR currently intends to use the net proceeds from the Proposed Disposal to advance the exploration and development of its Queensland and Victoria projects, as previously announced. In particular, the Board considers that the stronger balance sheet that the Company would have on completion of the Proposed Disposal will accelerate its ability to commercialise its core projects.
The board will also assess potential additional value-accretive opportunities for the Company.
The Board considers that the combination of the subscription that was announced in November 2024 and the Proposed Disposal proceeds would ensure that ECR would be fully funded for all of its currently planned activities for the medium-term future.
Next Steps
It is proposed that the parties’ legal advisers will now prepare the necessary definitive and binding agreement to effect the Proposed Disposal and, as described above, ECR will organise the pre- completion restructuring of MGA. Octo will conclude any remaining due diligence on MGA and its assets simultaneously with these workstreams.
Nick Tulloch, ECR’s Chairman, said: “These Heads of Terms represent a significant milestone in our strategy to unlock value from our Australian assets. As investors will know, this has been a complex process and it is a credit to the entire ECR team that we are now at this stage. Once completed, the Proposed Disposal will provide significant cash proceeds to strengthen our balance sheet and the simultaneous restructuring has been designed to preserve the core value within ECR without interruption to our ongoing key operations at Creswick and Tambo. Once the Proposed Disposal has been completed, ECR will be fully funded for all of its currently planned activities for the medium-term future.”
Financial information relating to the Proposed Disposal
Set out in the Appendix to this announcement is a summary of the audited Statement of the Financial Position and the Statement of Profit or Loss and Other Comprehensive Income for MGA for the year ended 30 September 2023, being the date to which ECR’s last audit was prepared.
It is noted that this historic financial information does not reflect the proposed pre-completion restructuring of MGA described above. In particular, shareholders should note the following key adjustments to MGA which are anticipated to occur in relation to its proposed pre-completion restructuring:
- All cash balances within MGA at the point immediately prior to completion will be retained by ECR (MGA’s cash balances as at 20 December 2024 are approximately A$10,000)
- MGA’s assets, and particularly the fixed assets and Capitalised Development Expenditure, will be apportioned between the Bailieston, Creswick and Tambo projects, with the Creswick and Tambo projects (comprising the majority of MGA’s assets) being retained by ECR
- Investments by MGA in ECR’s other subsidiaries, Mercator Gold Holding and Lux Exploration, will be written off
- The inter-group loan from ECR to MGA of A$99 million will similarly be written off
- All other liabilities of MGA, save for those in respect of the remaining Bailieston project tenements, will be settled in full
- The majority of the expenses in the Statement of Profit or Loss and Other Comprehensive
Income relate to the Creswick and Tambo projects, as well as the ongoing running of ECR’s administrative functions in Australia and so will continue to be borne by ECR following completion of the Proposed Disposal
Appendix – extracted audited historic financial information on MGA
Mercator Gold Australia Pty Ltd
Statement of Financial Position
For the Year ended 30 September 2023
|
30 September 2023 |
|
| A$ | |
| Current Assets | |
| Cash and cash equivalents | 132,874 |
| Other receivables | 18,903 |
| Inventory | – |
| Total Current Asset | 151,777 |
| Fixed Assets | |
| Fixed Assets | 753,585 |
| Accumulated depreciation | (215,609) |
| Total Fixed Assets | 537,976 |
|
Other Non-Current Assets |
|
| Acquisition of Mining Properties | 50,000 |
| Capitalised Development Expenditure | 7,319,104 |
| Investment in Mercator Gold Holding | 849,800 |
| Investment in Lux Exploration | 636,200 |
| 8,855,104 | |
| Total Assets | 9,544,857 |
| Current Liabilities | |
| Trade and other payables | 61,368 |
| Loan from ECR Minerals Plc | 99,036,939 |
| Total current liabilities | 99,098,307 |
| Non-current Liabilities | |
| Trade and other payables | 2,434,859 |
| 2,434,859 | |
| Total Liabilities | 101,553,166 |
| Net Liabilities | (91,988,309) |
| Equity | |
| Issued capital | 391 |
| Accumulated losses | (91,988,700) |
| Total Equity | (91,988,309) |
Mercator Gold Australia Pty Ltd
Statement of Profit or Loss and Other Comprehensive Income For the Year ended 30 September 2023
|
30 September 2023 |
|
| A$ | |
| Revenue | – |
| – | |
| Income | |
| Interest Income | 3,591 |
| Other income | 4,818 |
| Gross profit | 8,408 |
| Expenses | |
| Accounting and audit fees | 790 |
| Consultants | 99,916 |
| Bank charges | 913 |
| Depreciation expense | 225,817 |
| Insurance | 13,716 |
| Legal fees | 7,652 |
| Development expenses | 1,121,517 |
| Director’s fee | 20,000 |
| General expenses | 24,623 |
| Office expenses | 6,174 |
| Management Fees | 270,620 |
| Rent | 42,317 |
| Travel | 17,240 |
| Employment expenses | 37,153 |
| Loss on investment | – |
| Loss on disposal of asset | 81,734 |
| Total Expenses | 1,970,182 |
| Less: Development expenses Capitalised | (1,121,517) |
| Profit/(Loss) before income tax | (840,256) |
| Income tax expense | – |
| Profit/(Loss) for the year | (840,256) |
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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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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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.
Bailieston Project – Background
The Bailieston project targets epizonal gold and antimony mineralisation and lies within the Melbourne zone, located approximately 150km north of the Victorian state capital, Melbourne. The project is located geologically within the orogenic Lachlan Fold Belt (LFB), and is subdivided into geological zones based on distinct geological and metallurgical characteristics.
The project is characterised by gold and antimony mineralisation, and across the zone ECR Minerals holds a total of 142 km2 of exploration ground across four tenements (EL5433, EL006911, EL006912 and EL007296). These tenements enjoy good road access, and contain the historical prospects known as HR3 (Byron-Maori), HR4 (Cherry Tree), Blue Moon, Black Cat and Pontings, all of which have a history of exploration and some modest production. Updates relating to the Bailieston project were recently announced on 10 September 2024 and 3 July 2024 and further information on the Bailieston project can be found on the Company’s website: https://ecrminerals.com
ECR Minerals #ECR – Subscription to raise £950,000
ECR Minerals plc (LON: ECR), the exploration and development company focused on gold in Australia, is pleased to announce that it has raised, subject only to Admission, £950,000 before expenses through a subscription of a total of 287,878,787 new ordinary shares of 0.001 pence each in the Company (“Ordinary Shares”) at a price of 0.33 pence per new Ordinary Share (the “Subscription Price”) (together the “Subscription”).
The Subscription Price represents a discount of approximately 20.5 per cent. to the closing middle market price of 0.415 pence per Ordinary Share on 22 November 2024, being the latest practicable business day prior to the publication of this announcement.
The new Ordinary Shares will be issued using the Directors’ existing share allotment authorities, as approved at the Company’s annual general meeting held on 23 April 2024.
The net proceeds from the Subscription will primarily be used to advance ECR’s projects in Victoria and Queensland during 2025, specifically:
· Concluding the proposed sale of the Company’s tax losses which are held in the Company’s subsidiary Mercator Gold Australia Pty Ltd (“MGA”) – ECR is currently in exclusive negotiations with a prospective purchaser
· Completing the commercialisation assessment of production at Blue Mountain during the first quarter of 2025 – the independent report from Gekko Systems Pty Limited announced on 8 October 2024 demonstrated a 91.7% gold recovery into 0.40% of the mass
· Preparing Blue Mountain to be capable of production and revenue generation by the end of the first half of the year
· Re-starting the field campaign in Lolworth in the second quarter of 2025, drawing on the Company’s partnership with the Geological Survey of Queensland (“GSQ”) to further investigate the critical minerals potential at the project
· Subject to the forthcoming results from the diamond drilling campaign at Tambo, which are due in the coming weeks, preparing a follow up and potentially more detailed campaign at Tambo
· Further investigations of ECR’s prospective antimony potential at Bailieston where a 32% (best) core sample was reanalysed from historical data
Following completion of the Subscription, ECR will be funded for its planned activities in 2025.
Nick Tulloch, Chairman, said: “Through the Subscription we will be funded for our planned 2025 programme, meaning that whilst we seek to conclude what could be a valuable sale of our tax losses, held in our subsidiary MGA, we can commence detailed preparations for the coming year. A particular highlight is our intention to prepare Blue Mountain to be capable of going into production and our assessment of the commercialisation of that project is already well underway. We are also optimistic about our opportunities at Lolworth where our partnership with the GSQ adds further validity to the potential breadth of that project. Nearer term, the initial drilling results at Tambo announced last week point to what could also be a very promising ongoing campaign there.”
Admission and Disclosure Guidance and Transparency Rules
Application will be made to the London Stock Exchange Plc for the 287,878,787 new Ordinary Shares to be admitted to trading on AIM (“Admission”) and it is expected that Admission will become effective on or around 9 December 2024. The 287,878,787 new Ordinary Shares will rank pari passu with the existing Ordinary Shares. Upon Admission, ECR’s issued ordinary share capital will comprise 2,191,885,012 Ordinary Shares. Upon Admission, 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 Guidance and Transparency Rules.
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: |
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Website: www.ecrminerals.com |
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Allenby Capital Limited |
Tel: +44 (0) 20 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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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 |
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 MD Mike Whitlow discusses the conditional offer accepted for the proposed sale of surplus land
ECR Minerals MD Mike Whitlow discusses the conditional offer accepted for the proposed sale of surplus land, plus the latest drilling results from Tambo.
ECR Minerals #ECR – Australia Projects Update
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
· Ongoing discussions with three Australia-domiciled public and private companies in relation to the potential sale of ECR’s A$75 million of tax losses
· Rock chip results from Lolworth Project, including Butterfly Creek, Uncle Terry and Gorge Creek expected in the coming weeks
· Partnership with the Geological Survey of Queensland (“GSQ”) to further investigate the critical minerals potential at the Lolworth Project
· Maiden diamond drilling program at the Tambo Project to commence this month
Update on Potential Sale of Tax Losses
Further to the Company’s announcement of 2 July 2024, ECR, through its engagement with Argonaut PCF Ltd (”Argonaut”), is currently in discussions with three Australia-domiciled public and private companies in relation to the potential sale of its A$75 million of tax losses. Each company has signed a non-disclosure agreement.
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 (the “Board” or the “Directors”) continues to be encouraged by the considerable interest shown in this potentially valuable asset.
Queensland
Laboratory results from 378 rock chips recently taken from gold prospects at the Lolworth Project in Queensland, including Butterfly Creek, Uncle Terry and Gorge Creek are expected in the coming weeks. Based on the work done to date, confirmation of the presence of further high-grade gold is expected, as initial field work across the Lolworth Project showed promising signs, including visible gold in streams and hillsides.
As announced on 3 October 2024, ECR Minerals is now also working in partnership with the 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.
Victoria
Further to the Company’s announcement on 25 September 2024, civil works for ECR’s maiden diamond drilling programme at the Tambo Project are nearing completion. The drilling programme is expected to commence this month and will target beneath the historical workings of the Duke of Cornwall Mine, Swifts Creek. 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.
Nick Tulloch, ECR’s Chairman, said: “With much of our recent focus being on our highly encouraging results from the Blue Mountain Project which has given us the confidence to examine the viability of installing a production plant at the site, we continue to develop the other parts of our portfolio of assets. We await rock chip results from the Lolworth Project and we look forward to commencing our maiden diamond drilling programme at the Tambo Project later this month. We have also been very encouraged by the level of interest in our tax losses. Transferring tax losses is a specialist and bespoke process but, if successful, the potential value could be significant to ECR.”
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:
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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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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
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Au: |
Gold |
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g/t: |
Grammes per Tonne (Metric) |
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km: |
Kilometres (Metric) |
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km²: |
Kilometre squared (Metric) |
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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).
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 operation
ECR Minerals #ECR – Contractor engaged and civil works underway for drilling at Tambo gold project
ECR Minerals Plc (LON: ECR), the exploration and development company focused on gold in Australia, is pleased to provide the following update in relation to its forthcoming maiden diamond drilling program at its Tambo gold project in Victoria, Australia (the “Tambo Project”).
HIGHLIGHTS
- Civil works have now commenced for maiden diamond drilling program at the Tambo Project
- Drilling contractor now engaged and diamond drilling campaign to commence shortly
Tambo Project, Victoria
Following a site visit by ECR’s chief geologist Adam Jones to the Tambo Project, and following terms being agreed as announced on 10 September 2024, an approved drilling contractor has now been engaged for a maiden diamond drilling programme at the Company’s Tambo Project in Victoria, Australia. Civil works, including the preparation of work areas and access to drill sites, have also commenced for the campaign which is expected to get underway shortly.
On 12 July 2024, ECR announced the fire assay gold results from the historic Duke of Cornwall Mine in Swifts Creek (Tambo) 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.
Mike Whitlow, ECR’s Managing Director, said: “We announced earlier this month that our focus for our projects in Victoria is firmly on drilling. I am pleased to report that site preparation at the Tambo Project is now well underway, and we have secured an approved drilling contractor ready to commence work. The continuity of gold results from our recent rock chip samples and soil analysis at the Tambo Project has significantly enhanced our confidence in the Tambo Project. We will ensure our shareholders are kept informed as we approach the start of drilling shortly.’’
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) |
| 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, 80 km 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 – Planning Underway for Diamond Drilling Programme at Tambo, Victoria
ECR Minerals plc (LON: ECR), the exploration and development company focused on gold in Australia, is pleased to provide an update on activities at its projects in Victoria, Australia.
HIGHLIGHTS
Tambo
- 84 soil samples taken in the vicinity of the Duke Of Cornwall Lode
- Best results include 0.56 ppm Au – a total of 48 samples returned above 0.01 ppm Au
- Follows earlier best results from rock chip sampling including 52.2 g/t Au
- Planning underway for diamond drilling programme in Q4
Bailieston
- Discussions advancing on pathways to maximise the Antimony potential given the continued price rise and interest in the mineral
- Best results from recent field work include 0.3m @ 32% Sb (Antimony) and 0.1m @ 1.20% Sb
- Antimony is classified as a critical mineral by the Australian Government
- ECR remains fully funded for its planned operations in Queensland and Victoria in 2024
Background to Soil Sampling, Tambo
On 12 July 2024, ECR Minerals announced the fire assay gold results from the historic Duke of Cornwall Mine in Swifts Creek (Tambo), Victoria, Australia. Best results included 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.
Of these, 48 samples returned results above 0.01 ppm Au and a total of 4 samples returned results greater than 0.1 ppm Au (Table 1).
A significant correlation between gold and bismuth has now been identified, highlighting bismuth as a key pathfinder element within the exploration licence.
Next Steps
Given the highly encouraging surface results, the Company is now planning its next steps which will include further evaluating the sub-surface levels of gold. Negotiations are underway with the landholder and contractors for an anticipated maiden diamond drilling campaign which is expected to commence early in the fourth quarter of 2024.
Antimony Exploration in Victoria
As announced on 3 July 2024, ECR Minerals made the decision to reanalyse diamond core samples for Antimony from its 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 best sample returned an Antimony result of 0.3m @ 32% Sb (drillhole BH3DD019) while a further 11 samples returned highly anomalous results.
Prices of the metal, which is used in flame-retardants, munitions and batteries, have continued to rise to new highs in 2024. Whilst still early stage, the Board is further analysing how best to advance this valuable opportunity given the wider demand and interest in the region, including identifying a suitable strategic partner to collaborate with to fund further exploration at Bailieston.
Mike Whitlow Chief Operating Officer commented: “The results of the comprehensive soil analysis at Tambo, coupled with the exceptional quality of the previously collected rock chip samples have significantly boosted our confidence in the project’s potential. The continuity of the gold results, as well as confirmation of a direct correlation with bismuth, strongly supports our decision to prioritise drilling at Tambo at the earliest opportunity later this year. We are making excellent progress in securing the required permits and services to commence drilling operations and will provide further updates as they become available.”
Table 1: Soil sample results greater than 0.01 ppm Au
| Sample ID | Au ppm | Bi ppm |
| BTSL046 | 0.56 | 309 |
| BTSL009 | 0.31 | 46 |
| BTSL019 | 0.22 | 62 |
| BTSL020 | 0.12 | 112 |
| BTSL047 | 0.09 | 17 |
| BTSL043 | 0.08 | 75 |
| BTSL016 | 0.06 | 32 |
| BTSL045 | 0.06 | 23 |
| BTSL052 | 0.05 | 22 |
| BTSL010 | 0.04 | 13 |
| BTSL027 | 0.04 | 4 |
| BTSL048 | 0.03 | 7 |
| BTSL057 | 0.03 | 8 |
| BTSL035 | 0.03 | 5 |
| BTSL022 | 0.03 | 8 |
| BTSL026 | 0.03 | 1 |
| BTSL029 | 0.03 | 21 |
| BTSL003 | 0.02 | 3 |
| BTSL018 | 0.02 | 12 |
| BTSL028 | 0.02 | 10 |
| BTSL023 | 0.02 | 9 |
| BTSL034 | 0.02 | 5 |
| BTSL012 | 0.02 | 4 |
| BTSL041 | 0.02 | 11 |
| BTSL031 | 0.02 | 5 |
| BTSL044 | 0.02 | 11 |
| BTSL025 | 0.02 | 9 |
| BTSL066 | 0.02 | 13 |
| BTSL072 | 0.02 | 1 |
| BTSL056 | 0.01 | 1 |
| BTSL051 | 0.01 | 3 |
| BTSL042 | 0.01 | 15 |
| BTSL002 | 0.01 | 3 |
| BTSL054 | 0.01 | 1 |
| BTSL001 | 0.01 | 3 |
| BTSL011 | 0.01 | 6 |
| BTSL049 | 0.01 | 1 |
| BTSL065 | 0.01 | 21 |
| BTSL021 | 0.01 | 16 |
| BTSL032 | 0.01 | 5 |
| BTSL006 | 0.01 | 8 |
| BTSL039 | 0.01 | 1 |
| BTSL053 | 0.01 | 1 |
| BTSL050 | 0.01 | 1 |
| BTSL008 | 0.01 | 6 |
| BTSL005 | 0.01 | 11 |
| BTSL033 | 0.01 | 8 |
| BTSL007 | 0.01 | 4 |
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 | |||
| Zeus Capital Limited | Tel: +44 (0) 203 829 5000 | ||
| Nominated Adviser
Katy Mitchell / Andrew de Andrade |
|||
| Axis Capital Markets Limited | Tel: +44 (0) 203 026 0320 | ||
| Broker | |||
| Ben Tadd/Lewis Jones | |||
| Brand Communications | Tel: +44 (0) 7976 431608 | ||
| Public & Investor Relations | |||
| Alan Green | |||
ECR Minerals #ECR – Unaudited Half-Yearly Results for the Six Months Ended 31 March 2024 and Business Update
ECR Minerals plc (LON: ECR), the exploration and development company focused on gold in Australia, is pleased to announce its unaudited half-yearly financial results for the six months ended 31 March 2024 for the Company, along with a review of significant developments during and post period.
HIGHLIGHTS
Operational highlights:
- Geological mapping at Lolworth led to the discovery of numerous quartz outcrops within the ridgeline above those gold bearing streams in the Upper Gorge Creek area with best results from rock chipping of 13.75 g/t Au, 3.13 g/t Au and 2.17 g/t Au over a number of outcrops measuring up to 3m wide x 20m long
- Discovery of a rhyolitic dyke in Gorge Creek East, Lolworth 5.5m wide x 200m long having anomalous gold valueswith the best rock chip from the centre of the dyke returning 8.02 g/t A
- Results from mapping a quartz veinlet system within the upper creek drainage of Flaggy Creek, Lolworth over a length of 70 metres long and within a zone up to 100m wide have proven to be gold-bearing with best results being 6.05 g/t Au, 5.96 g/t Au, 4.66 g/t Au and 3.97 g/t Au
- Application submitted for an Exploration Licence at Kondaparinga, Queensland, approximately 120km2in area within the Hodgkinson Gold Province
- Broader mineralisation and increased levels of high-grade gold reported from our drilling programme at Creswick, Victoria, with best individual grades 8.87g/t Au and 8.06g/t Au
- Bulk sample testing at Davey Road, Victoria indicated extensive gold mineralisation, with a best result of 41.03 g/t Au
- Tambo rock chip results comfortably exceeded those from previous exploration activities, with eight samples having gold grades greater than 5 g/t Au and best results of 51.5 g/t Au, 26.5 g/t Au and 24 g/t A
Financial highlights:
- Sale of non-core assets realise A$420,000
- Ongoing examination of historic tax losses of A$75 million to potentially unlock significant value
- Cost reductions through salary sacrifice scheme and closure of London office
- Two fundraisings completed in September 2023 and March 2024 to raise almost £1.2 million in aggregate
Nick Tulloch Chairman said: “In the nine months since Mike Whitlow and I joined ECR, we have sought to implement a step change in the pace of our operations, coupling increased activity in our Australian projects with a prudent approach to cash management. Mike and I have always viewed ECR’s project portfolio as a potential sleeping giant, and now with the results and developments reported across our tenements in recent months, we believe the Company is well on the way to realising the value of these assets.”
“As a Board, we are receptive to ideas to add value, new initiatives and projects to our operations. In recent months we have received approaches from other businesses in the resources sector offering co-development and other collaborative opportunities. While these developments in themselves have served to further confirm the nascent value within our project portfolio, in line with our own projects, we have retained a conservative approach to these discussions. Expanding ECR’s business is high on our agenda but we will do so only when we are satisfied the risk is low and that we can maximise gains for our shareholders.”
“For the remainder of 2024, I want to reassure shareholders that, following on from a very successful period of work in Victoria, they can look forward to further newsflow as we re-commence our operations in Queensland.”
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 | |||
| WH Ireland Ltd | Tel: +44 (0) 207 220 1666 | ||
| Nominated Adviser
Katy Mitchell / Andrew de Andrade |
|||
| 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 | |||
Link here to review Chairman’s report and financial statements
ECR Minerals #ECR – Photon Analysis Yields Grades Up to 51.5 g/t Gold at Swifts Creek (Tambo)
ECR Minerals plc (LON: ECR), the exploration and development company focused on gold in Australia, is pleased to provide the first gold results from photon analysis of rock chips from the historic Duke of Cornwall Mine, Swifts Creek (Tambo), Eastern Victoria, Australia.
HIGHLIGHTS
- A selection of 37 rock chips from the Duke of Cornwall Lode have been analysed for gold using photon analysis.
- Best results include 5 g/t Au, 26.5 g/t Au and 24 g/t Au.
- A further 5 rock chips contain gold grades greater than 5 g/t Au.
- Total of 56 rock chips and 84 soil samples were taken across the broader strike of mineralisation with results from these additional samples due shortly.
- The Eastern Victorian exploration tenements offer a new area for gold and base metal exploration.
Recently completed exploration
ECR Minerals holds exploration tenement EL007484 in eastern Victoria, Australia. It has also applied for, but is awaiting final approval, for exploration licence EL007486 (in the same area). Situated approximately 500km east of ECR’s Central Victorian projects (Creswick and Bailieston), the project area hosts distinct geology offering potential opportunities for gold and base metals.
There has been no significant exploration work completed on EL007484 since a site visit by ECR in 2023. Initial findings at that time included a significant rock chip sample of 0.2m @ 22 g/t Au from the Duke of Cornwall Mine. Elevated levels of pathfinder elements arsenic and bismuth alongside gold indicated the potential for further discoveries.
A recent exploration campaign included detailed mapping of historical gold workings and the collection of 56 rock chips and 84 soil samples taken at spaced intervals across and along strike of the mineralisation to gain a better understanding of the spread of pathfinder elements. Notably, historical mine development below 20m from surface remains unexplored.
With positive community and landowner relations the Board is confident that ECR is well positioned to make substantial progress on the project going forward.
Photon analysis
In response to recent challenges in obtaining laboratory results for gold through conventional fire assay methods, as previously announced, ECR has been trialling alternative approaches, including the use of photon analysis. PhotonAssay, described in more detail at the end of this announcement, is a novel, cost effective and non-destructive analytical technique, which can significantly reduce both sample preparation time and the duration of final analysis. This method has undergone testing by a number of mining companies and its consultants, in recent years, to understand its precision and the Directors understand it has been extensively used for grade control sampling at the Fosterville Goldmine (owned by Agnico-Eagle). Whilst it is still a new technique, the work done to date suggests that gold grade analysis does not necessarily need fire assay accuracy and that photon analysis can achieve the same results, particularly if grades mined are high and the sample size is large.
Out of the 56 rock chips, 37 have been analysed for their gold content using Photon analysis. The initial findings suggest encouraging indications of high-grade gold. Notably, eight samples have revealed gold concentrations exceeding 5 grams per tonne (g/t). Sample BTR056 was obtained from in-situ unmined vein material and has demonstrated an expected grade of up to 51.5 g/t Au. Sample BTR047, extracted from a vein previously sampled in 2023 where a fire assay indicated 0.2 meters at 22 g/t Au, yielded a photon analysis result consistent with expectations, measuring 24 g/t Au.
All 56 rock chips are now undergoing duplicate analysis for gold by way of fire assay, and the results of this analysis will be announced as soon as they are available. In addition, earlier findings from 2023 indicate the presence of the metal bismuth, with concentrations reaching up to 0.4 kilograms per tonne, alongside gold. Further work is underway to better understand the significance and implications of bismuth in these samples.
Table One: Rock chip results above 0.5g/t Gold from Latest Tambo Project Exploration
| SAMPLE ID | g/t Au | Comment |
| BTR056 | 51.5 | 40cm wide Unmined quartz outcrop above Adit |
| BTR044 | 26.5 | Quartz from dump |
| BTR047 | 24 | 20cm Quartz vein in situ. (Same sample site from 2023 at 22 g/t Au) |
| BTR054 | 19.7 | 10 cm Unmined vein extension within Adit |
| BTR046 | 16.9 | Quartz from mine dump |
| BTR021 | 16.7 | Quartz from mine dump |
| BTR027 | 7 | Subcropping quartz vein |
| BTR025 | 5.01 | Quartz from mine dump |
| BTR045 | 2.03 | – |
| BTR028 | 1.07 | – |
| BTR029 | 1.04 | – |
| BTR026 | 0.84 | – |
No other rock chip samples returned reportable results.
Figure One: Plan view of Duke of Cornwall Lode and Best Rock Chips.
Mike Whitlow Chief Operating Officer said: “Our technical strategy in Victoria continues to deliver promising results. We are observing significant variations in the geological age and footprint at our easternmost tenement, Tambo. Today’s findings are particularly encouraging, as they are based on new scientific data analysis, further supporting the potential for drilling this asset in the second half of this year.’’
Adam Jones Chief Geologist added: “The Eastern Adit has shown very encouraging high-grade results which merit further exploration. Although still early stage, our work done to date suggests these grades continue at greater depths below surface and beyond the shallow historical workings. These encouraging findings have pinpointed several high-priority drill targets which we will revisit in the coming months. What was also apparent during my visit is that large parts of the tenement are yet to be explored so there is considerable scope to follow up. It’s worth considering what other sites have been overlooked since the early days of mining, especially in the current strong gold price environment.’’
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 | |||
| WH Ireland Ltd | Tel: +44 (0) 207 220 1666 | ||
| Nominated Adviser
Katy Mitchell / Andrew de Andrade |
|||
| 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 | |||
| Novum Securities Limited | Tel: +44 (0) 20 7399 9425 | ||
| Broker
Jon Belliss |
|||
| Brand Communications | Tel: +44 (0) 7976 431608 | ||
| Public & Investor Relations | |||
| Alan Green | |||
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 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.
ABOUT PHOTON ASSAY
Developed by Australia’s national science agency, CSIRO, photon assay is described as a technique that can deliver faster, safer, and more accurate gold analysis. The developers of PhotonAssay are positioning it as an environmentally-friendly replacement for fire assay that can provide rapid turnaround on high sample volumes. Samples can be processed in less than 2 minutes in an automated process, compared to 3-4 hours for fire assay samples. A number of companies have undertaken a thorough evaluation of the method on their projects by undertaking extensive testing against fire assays (currently considered the gold standard for grade determination) with excellent results. PhotonAssay is considered most suitable for coarse gold mineralisation where analysis of large sample sizes is advantageous.
The technique works by hitting samples with high-energy X-rays, which causes excitation of atomic nuclei allowing enhanced analysis of gold, silver, copper and other elements in as little as two minutes. A highly sensitive detector picks up the unique atomic signatures from these elements to determine concentrations.
PhotonAssay has the following features:
- Bulk measurement of large samples, typically 400–650 g
- Minimal sample preparation e.g. crush to 2–3 mm top-size
- Non-destructive; no chemical reagents required
- Rapid (< 2 mins per sample, 70 samples/hour)
- Excellent sensitivity (0.01 ppm detection limit on reagent blanks, 0.015-0.030 on typical gold ores)
- Independent of sample matrix, chemistry or mineralogy
- Fully-automated
ECR Minerals #ECR – Further Significant Increase of Gold Grades at Creswick & Exploration Activities Update
ECR Minerals plc (LON: ECR), the exploration and development company focused on gold in Australia, is pleased to provide the final bulk sampling results from its reverse circulation drilling programme at the Kuboid Hill site in Creswick earlier this year. Bulk sampling of drilled material highlights high-grade pockets of gold within the broader scale mineralisation footprint.
The Company also provides an update on its operations at Bailieston and Tambo in Victoria as well as its forthcoming plans in Queensland.
HIGHLIGHTS
- Five bulk samples upgrade initial Kuboid Hill drill results. Most significant is the upgrade from 1m @ 1.04 g/t Au to 1m @ 8.37 g/t Au
- Results expected shortly from photon assay pilot testing at Tambo Project
- Analysis underway for antimony in selected diamond core from Bailieston, Victoria
- Resumed field operations in Queensland at Lolworth Project, focusing on priority targets including Gorge Creek, Reedy Creek, and Butterfly Creek, with stream samples yielding up to 1395 ppm Au
- Additional test work at Blue Mountain, Queensland expected to commence within weeks.
- ECR is fully funded for its planned work programs in Victoria and Queensland in 2024.
Details of the Programmes
Creswick
As announced on 8 April 2024, a total of 1,032 metres of reverse circulation (“RC”) drilling was completed at Kuboid Hill on 16 February 2024. This was the second part of an extended reverse circulation drilling programme at Creswick, following on from 522 metres completed at Davey Road where, as previously announced on 12 February 2024, ECR reported a best overall grade gold of 41.03g/t Au. The Kuboid Hill programme was designed to follow up on the Company’s anomalous gold soil sampling campaign that was completed in 2022.
Final bulk sampling results for the outstanding 13 RC drill holes at Kuboid Hill, consistent with the results reported on 7 May 2024, have revealed higher gold content. This was anticipated because of the presence of coarse gold in the area. Five bulk samples are now evidencing significant intercepts, the most prominent of which is an increase from 1m @ 1.04 g/t Au to 1m @ 8.37 g/t Au in hole KHRC005 from 17m depth. The bulk sampling of the other drill holes did not return any reportable results. These findings support the presence of higher-grade gold pockets within a broader low-grade mineralisation halo at Kuboid Hill which differs from Davey Road’s narrow vein, higher-grade style of mineralisation. The results provide encouragement that similar mineralisation styles exist within the Creswick license area.
Details of Significant Intercepts from the Latest Bulk Sampling (Kuboid Hill RC Drilling) > 0.5 g/t
| HOLE | Sample | From | To | Bulk g/t | Original g/t |
| KHRC005 | CRB1357 | 17 | 18 | 8.37 | 1.04 |
| KHRC001 | CRB1549 | 19 | 20 | 1.78 | 0.27 |
| KHRC006 | CRB1231 | 19 | 20 | 1.73 | 0.03 |
| KHRC010 | CRB543 | 20 | 21 | 1.03 | 0.51 |
| KHRC001 | CRB1539 | 10 | 11 | 0.71 | 0.03 |
Photon Assaying
ECR has submitted a number of Kuboid Hill bulk samples, as well as rock chips recently taken from its Tambo Project, for testing. Traditional fire assay methods will also be used to back up the results for comparison. Photon assaying is an emerging gold analysis method, which is environmentally friendly and available locally, providing quicker results with less preparation and non-destructive sample analysis. A number of well-known producing gold mines, including Fosterville, are currently employing this method of analysis.
Victoria Exploration – Tambo and Bailieston
ECR has now wrapped up its initial reconnaissance exploration on its Eastern Victorian licence at Swifts Creek, Tambo River (EL007484), focusing on the historic Duke of Cornwall mining area. The exploration team collected rock chips, including in-situ samples, and also completed a number of soil sample lines along the strike of mineralisation to identify pathfinder elements for future exploration programs. Initial findings from a year ago revealed arsenic, bismuth minerals and gold.
As previously announced, following the success of its stream sampling campaign at Bailieston, which produced best results of 798 ppb Au and 712 ppb Au, ECR is also re-analysing the core from its earlier drilling at the HR3 prospect at Bailieston for antimony. The Costerfield-Bailieston-Nagambie district is noted for economic veins of antimony and elevated antimony has been observed from previous pXRF analysis of the drill core.
Queensland Exploration Programme for 2024
Exploration plans for the 2024 season at the Lolworth Project, North Queensland, have resumed. Initial plans include following up on last year’s stream sample results at Butterfly Creek, Reedy Creek, and Upper Gorge Creek, where gold samples of up to 1395 ppm were reported. Soil sampling is also underway on selected ridgelines above these areas. Additionally, a sampling program for Niobium and Tantalum will be conducted on the eastern side of the project area this season.
In Central Queensland, a trenching program is expected to commence within weeks at the Blue Mountain Project. Prospects with previous alluvial gold findings will be revisited where the Board believes there is potential for a significant alluvial gold resource. Investigation of hard rock prospects in the area is also planned.
Mike Whitlow Chief Operating Officer said: “These positive results from our bulk sampling campaign are highly encouraging, validating the significant potential value we see in our Creswick gold assets. The discovery of higher-grade gold pockets within a broader low-grade mineralisation halo at Kuboid Hill provides additional evidence that similar mineralisation styles may be present within the Creswick license area. The extent of our drilling programme, and the volume of bulk samples, took time both in preparation and also for laboratory results and, going forward we will also be utilising new techniques, such as photon assaying, to expedite the delivery of future results.”
Adam Jones Chief Geologist added: “ECR is now entering a busy period with several exploration programmes underway across our portfolio of projects. I look forward to reporting back on the results of our initial exploration programs at Tambo in Victoria and our re-analysis for antimony in Bailieston. My time will now be focused on our follow-up activities in Queensland and I am particularly excited about the commencement of exploration at our Blue Mountain project where historical work conducted by the previous operator presents compelling opportunities, especially for its alluvial gold potential. At Lolworth, our soil sampling will follow up last year’s discovery of gold samples with concentrations of up to 1395 ppm and, later in the season, we will undertake a sampling program for niobium and tantalum on the eastern side of the project area.”
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 | |||
| WH Ireland Ltd | Tel: +44 (0) 207 220 1666 | ||
| Nominated Adviser
Katy Mitchell / Andrew de Andrade |
|||
| 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 | |||
| Novum Securities Limited | Tel: +44 (0) 20 7399 9425 | ||
| Broker
Jon Belliss |
|||
| Brand Communications | Tel: +44 (0) 7976 431608 | ||
| Public & Investor Relations | |||
| Alan Green | |||
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 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.
ECR Minerals #ECR – CEO Nick Tulloch talks to Andrew Scott
Kuboid Hill results Davey Road results Funded for work programmes in Victoria & Queensland Tambo next up Blue Mountain Tax losses & cash management