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ECR Minerals #ECR CEO Craig Brown updates on progress at Share Talk

ECR Minerals plc #ECR CEO Craig Brown updates on progress, provides his view on the Australian Gold exploration sector and discusses the recent sale of the SLM gold project at Share Talk. Link here

ECR Minerals #ECR – Sale of SLM Gold Project

ECR Minerals plc (LON: ECR), the precious metals exploration and development company, is pleased to announce the sale of its wholly owned Argentine subsidiary Ochre Mining SA (“Ochre”), which holds the SLM gold project in La Rioja, Argentina.

HIGHLIGHTS:

  • ECR retains an NSR royalty of up to 2% to a maximum of USD 2.7 million in respect of future production from the SLM gold project;
  • The purchaser, Hanaq Argentina SA (“Hanaq”), is a Chinese-owned company engaged in lithium, base and precious metals exploration in Northwest Argentina including Salta, Jujuy and La Rioja, with a highly experienced management team;
  • The sale allows ECR to focus on its core gold exploration activities in Australia.

Craig Brown, Chief Executive Officer, commented:  

“We are pleased to retain exposure to potential upside from the SLM gold project in the form of a royalty on future production, and we believe that Hanaq has the operational capabilities and access to Chinese investment capital necessary to put the SLM project into production, subject to the usual prerequisites. Moreover, the transaction enables ECR to concentrate its resources on our core gold exploration activities in Australia.”

Further Information

Ochre’s sole asset is the SLM gold project, which comprises seven mining licences in La Rioja, Argentina. Hanaq has purchased 100% ownership of Ochre from ECR. The consideration for the acquisition is the grant to ECR of a 2% net smelter return (NSR) royalty in respect of four of the licences, and a 1% NSR royalty in respect of the other three licences. The NSR is capped at USD 2.7 million in aggregate (across all licences). This is the equivalent of approximately £2.07 million, based on 1.3031 GBP/USD exchange rate (Bloomberg closing rate 04/02/2020).

The directors of the Company understand that the founder and CEO of Hanaq Group, of which Hanaq Argentina SA is part, is Mr Xiaohuan (Juan) Tang, who has a substantive track record in Latin America, including responsibility for the successful permitting of the Pampa de Pongo iron ore project in Peru in his former capacity as General Manager of Jinzhao Mining Peru. Pampa de Pongo is one of the largest iron ore deposits in Latin America. Mr Tang has degrees from Tsinghua University in China, and Imperial College, Cambridge University and Oxford University in the UK.

More information regarding the Hanaq group can be found at the following link:

http://www.hanaqgroup.com/en/index.html

Commencement of production at the SLM project under Hanaq’s ownership is not a certainty, and is subject, inter alia, to further exploration and feasibility studies being successfully completed (if deemed necessary by Hanaq) and to the necessary permits for production being obtained. Upon the receipt of any future royalties, the Company intends to apply the funds to its exploration and development activities.

The book value of Ochre and the SLM project in ECR’s unaudited half-yearly results for the six months ended 31 March 2019 was £1,072,210. In its audited financial statements for the year ended 30 September 2019, Ochre reported no turnover and no profits, and net assets of approximately £170,000 (equivalent). Ochre has one employee.

MARKET ABUSE REGULATIONS (EU) No. 596/2014

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (MAR). Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information is now considered to be in the public domain.

FOR FURTHER INFORMATION, PLEASE CONTACT:

ECR Minerals plc

Tel: +44 (0)20 7929 1010

David Tang, Non-Executive Chairman

Craig Brown, Director & CEO

Email:

info@ecrminerals.com

Website: www.ecrminerals.com

WH Ireland Ltd

Tel: +44 (0)161 832 2174

Nominated Adviser

Katy Mitchell/James Sinclair-Ford

SI Capital Ltd

Tel: +44 (0)1483 413500

Broker

Nick Emerson

ABOUT ECR MINERALS PLC

ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd has 100% ownership of the Avoca, Bailieston, Creswick, Moormbool and Timor gold exploration projects in central Victoria, Australia and the Windidda project in the Yilgarn region, Western Australia.

ECR has earned a 25% interest in the Danglay epithermal gold project, an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines. An NI43-101 technical report was completed in respect of the Danglay project in December 2015 and is available for download from ECR’s website.

ECR Minerals #ECR – Update on Windidda Project, Western Australia

ECR Minerals plc (LON: ECR), the precious metals exploration and development company, is pleased to provide an update on the Windidda project in Western Australia which is held by ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”).

HIGHLIGHTS:

  • ECR’s 100%-owned Australian subsidiary MGA has been granted four exploration licences in the north-eastern Yilgarn region of Western Australia;
  • The licences form part of the Windidda project, which is now considered to be potentially prospective for komatiite hosted Ni-Cu-PGE as well as orogenic gold;
  • MGA has commissioned a consultant to complete additional geophysical modelling and review of historical activity reports for areas to the south of Windidda in order to better understand the potential prospectivity of the project.

Craig Brown, Chief Executive Officer, commented: ECR has had a busy start to the year, with work in progress in relation to the Windidda project in Western Australia, which is now considered to be potentially prospective for nickel-copper-PGE mineralisation as well as orogenic gold, and planning underway for fieldwork in the Bailieston gold project area in Victoria to commence in February.

We also continue to review a number of potential new projects and strategic developments for the Company, and will of course provide updates to the market as appropriate.”

Windidda Project Update

The Company’s 100%-owned Australian subsidiary MGA has commissioned a consultant to complete the following work in order to better understand the potential prospectivity of the Windidda project and the depth of cover:

  1. Review and assessment of all historical activity reports for relevant areas to the south of the Windidda project, including reports filed by North Ltd, BHP/Western Mining Corporation and Rox Resources Ltd.
  2. Modelling of newly identified airborne gravity data which partially covers two of the Windidda exploration licence applications. This data is additional to that modelled last year (see announcement dated 15 October 2019), and the results can be assessed and related to the previous magnetic modelling on equivalent lines.

Recent preliminary research into the geological setting of the project suggests that the southern parts are potentially prospective for komatiite hosted nickel-copper-PGE (platinum group element) mineralisation. Approximately 12km from the southernmost exploration licence application at Windidda, Rox Resources Ltd has estimated a JORC (2012) Inferred Mineral Resource of 573,000t at 1.63% nickel, 1.19% copper, 0.082% cobalt, 1.49 g/t palladium and 0.85 g/t platinum for the Olympia deposit within Rox’s Collurabbie project (see www.roxresources.com.au).

In late 2018, MGA applied for a total of nine exploration licences to comprise the Windidda project, of which four have now been granted. The remaining five licence applications are subject to objections to the expedited grant procedure from native title parties. MGA is considering its options in this regard, and may decide to rationalise the Windidda tenement package in light of the native title objections and the findings of ongoing technical work.

MARKET ABUSE REGULATIONS (EU) No. 596/2014

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (MAR). Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information is now considered to be in the public domain.

FOR FURTHER INFORMATION, PLEASE CONTACT:

ECR Minerals plc

Tel: +44 (0)20 7929 1010

David Tang, Non-Executive Chairman

Craig Brown, Director & CEO

Email: info@ecrminerals.com

Website: www.ecrminerals.com

WH Ireland Ltd

Tel: +44 (0)161 832 2174

Nominated Adviser

Katy Mitchell/James Sinclair-Ford

SI Capital Ltd

Tel: +44 (0)1483 413500

Broker

Nick Emerson

ABOUT ECR MINERALS PLC

ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd has 100% ownership of the Avoca, Bailieston, Creswick, Moormbool and Timor gold exploration projects in central Victoria, Australia and the Windidda project in the Yilgarn region, Western Australia.

ECR has earned a 25% interest in the Danglay epithermal gold project, an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines. An NI43-101 technical report was completed in respect of the Danglay project in December 2015 and is available for download from ECR’s website.

ECR’s wholly owned Argentine subsidiary Ochre Mining has 100% ownership of the SLM gold project in La Rioja, Argentina. Exploration at SLM has focused on identifying small tonnage mesothermal gold deposits which may be suitable for relatively near-term production.

Alan Green talks Open Orphan #ORPH, ECR Minerals #ECR, Destiny Pharma #DEST, Mirriad #MIRI & RA Intl #RAI on Vox Markets podcast

Alan Green discusses Open Orphan #ORPH, ECR Minerals #ECR, Destiny Pharma #DEST, Mirriad #MIRI & RA International #RAI with Justin Waite on the Vox Markets podcast. Click on the image above.

ECR Minerals #ECR – Significant Research & Development Refund

ECR Minerals plc (LON: ECR), the precious metals exploration and development company, is pleased to provide an update in respect of a significant cash refund received by ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) under the Australian government’s R&D Tax Incentive scheme.

HIGHLIGHTS:

  • ECR’s 100%-owned Australian subsidiary MGA has received a cash refund of research and development (R&D) expenditure of AUD 555,212 (approximately £295,515);
  • The qualifying activities pertain to research into turbidite-hosted gold deposits within MGA’s exploration licences in Victoria, Australia;
  • In addition, as at 30 September 2019, MGA had carried forward corporate income tax losses of AUD 66,341,587 (approximately £35.3 million) which are expected to be available for offset against future taxable gains.

Craig Brown, Chief Executive Officer, commented: “I am very pleased to announce the receipt of this cash refund by MGA, which provides a significant boost to the group’s cash position.

The gold price remains strong and we believe there is considerable and growing interest in respect of Australian gold exploration, and we have also observed strong interest in the Victorian goldfields where we have an active exploration portfolio.

Overall, the board believes the additional cash creates exciting opportunities for an entrepreneurial gold-focused company like ECR.”

FURTHER INFORMATION

The refund received relates to qualifying expenditure made by MGA in the fifteen months ended 30 September 2019. The accounting period is fifteen months long rather than the usual twelve months as MGA’s financial year-end has been changed to 30 September from 30 June in order to align it with the rest of the ECR corporate group.

MARKET ABUSE REGULATIONS (EU) No. 596/2014

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (MAR). Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information is now considered to be in the public domain.

FOR FURTHER INFORMATION, PLEASE CONTACT:

ECR Minerals plc

Tel: +44 (0)20 7929 1010

David Tang, Non-Executive Chairman

Craig Brown, Director & CEO

Email:

info@ecrminerals.com

Website: www.ecrminerals.com

WH Ireland Ltd

Tel: +44 (0)161 832 2174

Nominated Adviser

Katy Mitchell/James Sinclair-Ford

SI Capital Ltd

Tel: +44 (0)1483 413500

Broker

Nick Emerson

ABOUT ECR MINERALS PLC

ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd has 100% ownership of the Avoca, Bailieston, Creswick, Moormbool and Timor gold exploration projects in central Victoria, Australia and the Windidda gold project in the Yilgarn region, Western Australia.

ECR has earned a 25% interest in the Danglay epithermal gold project, an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines. An NI43-101 technical report was completed in respect of the Danglay project in December 2015 and is available for download from ECR’s website.

ECR’s wholly owned Argentine subsidiary Ochre Mining has 100% ownership of the SLM gold project in La Rioja, Argentina. Exploration at SLM has focused on identifying small tonnage mesothermal gold deposits which may be suitable for relatively near-term production.

ECR Minerals (ECR) – Cyber Monday Deal – Buy now whilst prices are low!

Closing at just £0.66GBX on Black Friday AIM listed gold explorer ECR Minerals (ECR) looks a bargain Cyber Monday deal for investors seeking to capitalise on a bullish gold market within a world-class mining region in 2020.

Having set their sights on Australia, a country estimated to have the largest gold reserves globally, amongst Australia’s exploration boom, ECR Minerals standouts as an ambitious gold exploration and development company with strategic licenses in both Victoria and Western Australia. 

In addition to their Windidda Gold Project in Yilgarn region of Western Australia, a package of nine exploration licence applications covering a 1,600 square kilometre area with the potential to host orogenic gold deposits, ECR now have active exploration underway at five key sites in the Victoria Goldfields. 

The most notable of these, the Creswick Project has been identified by ECR as potentially company transformational, with investors eagerly awaiting further announcements following Novembers update.

Final full bag tests confirm high grade gold at ECR Minerals (ECR) Creswick Project

Updates from ECR’s Creswick Project at the beginning of November provided investors with ongoing encouragement over the huge license potential.

The announcement revealed the final results from a total of 129 ‘full bag’ tests and the assay of 74 duplicate sub-samples collected when drilling from the site held by ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”).

According to ECR CEO Craig Brown the results…”confirm the presence of nuggety gold mineralisation in the Dimocks Main Shale (DMS) at Creswick, some of which is very high grade.”

Most significantly the highest grade duplicate result of 80.97 g/t gold came from a 1 metre interval that originally assayed 44.63 g/t (announced on 8 May 2019). The ‘full bag’ test of the remainder of the material gave a result close to the average of the two sub-samples at 63.03 g/t (announced 27 August 2019).

What about the nuggety nature of the gold deposits? Well despite demonstrating grade variability, according to ECR consistency across the results suggests that the effect may be less severe than initially thought. 

What’s next for Creswick? 

Following the results, the Company continues to value Creswick, which is one of MGA’s five projects in their Victoria goldfields portfolio, as a site of strategic importance.

According to Brown: “MGA’s tenement position at Creswick covers approximately 7 kilometres of the DMS trend, and our drilling earlier this year only tested approximately 300 metres of this.

We therefore believe there is significant potential upside in the project, and we are now considering how best to build on the results obtained from Creswick to date to create value for ECR shareholders.”

ECR are now in the process of conducting geostatistical analysis to quantify the effect and evaluate the representativeness of the larger samples, employing the services of Dr Simon Dominy – an expert on nuggety gold systems. 

As such investors will be waiting eagerly for ECR’s next update with the next series of announcements potentially company transformational.

A Black Friday bargain

Whilst the share price might not have responded as immediately as ECR would have hoped after the November update, the stock put in a strong finish to the month, and currently look like a bargain Black Friday – Cyber Monday deal. 

This view is backed by many gold mining pundits. According to Incrementum AG fund manager and author of an annual report entitled ‘In gold we trust, Ronald-Peter Stoferle historical evidence suggests gold mining equities are about to take off.

“From my point of view the party is getting going. I think we’re not at the very beginning but I think the party guests are only very slowly entering the room and it will probably be a fun party,” Stoferle told told delegates at the recent Zurich Precious Metals Summit.

Alongside these bullish predictions for the gold market, with key updates likely to be delivered from a number of ECR’s projects in the next few months, 2020 could be a very shiny year for this busy gold explorer.

Remember DYOR!

By Harry Dacres-Dixon

ECR Minerals plc (ECR) Update on Creswick Gold Project, Victoria, Australia

ECR Minerals plc (LON: ECR), the precious metals exploration and development company, is pleased to announce the results of further analysis of samples from reverse circulation (RC) drilling completed earlier this year at the Creswick gold project in Victoria, Australia.

The Creswick project is 100% held by ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”).

HIGHLIGHTS

  • Final results have been received from 129 ‘full bag’ tests and assay of 74 duplicate sub-samples collected when drilling. The highest grade duplicate result of 80.97 g/t gold came from a 1 metre interval that originally assayed 44.63 g/t (announced on 8 May 2019). The ‘full bag’ test of the remainder of the material gave a result close to the average of the two sub-samples at 63.03 g/t (announced 27 August 2019).
  • Grade variability due to the nugget effect has been demonstrated, but some consistency between results has been seen, and indicates the effect may be less severe than initially thought.
  • The data generated has been provided to Dr Simon Dominy, a noted expert on nuggety gold systems, for geostatistical analysis to quantify the nugget effect and evaluate the representativeness of the larger samples. The findings of this work will guide ECR’s next steps at Creswick.
  • On the basis of work undertaken to date ECR considers Creswick a highly important strategic project as part of MGA’s Victoria goldfields portfolio of five projects.

Craig Brown, Chief Executive Officer of ECR Minerals plc, commented:

“These results confirm the presence of nuggety gold mineralisation in the Dimocks Main Shale (DMS) at Creswick, some of which is very high grade.

MGA’s tenement position at Creswick covers approximately 7 kilometres of the DMS trend, and our drilling earlier this year only tested approximately 300 metres of this.

We therefore believe there is significant potential upside in the project, and we are now considering how best to build on the results obtained from Creswick to date to create value for ECR shareholders.

Creswick is one of five projects owned by ECR within the Victoria goldfields and forms part of what is rapidly becoming a highly significant and strategic portfolio in the region.”

FURTHER INFORMATION

The initial results of RC drilling at Creswick by MGA were announced on 8 May 2019, and there was evidence that the results were subject to a nugget effect.

In order to assess the significance of this effect, MGA’s consultants devised a testing program using gravity and electrostatic concentration (GEC) on full bags of RC drill cuttings, which would constitute the whole sample recovered from each metre of drilling (less sub-samples obtained at the time of drilling via a splitter mounted on the drill rig).

In nuggety gold systems, increasing sample size increases the chance of nuggets being captured in the sample, and thus being appreciated as part of the gold endowment of the system.

Typically, only a small sub-sample of the drill cuttings generated by each metre of RC drilling is analysed (assayed) for gold. In the case of MGA’s 2019 RC drilling at Creswick, two sub-samples of approximately 2 kilograms were obtained from the rig-mounted splitter, out of up to approximately 30 kilograms of cuttings per metre. The first sub-sample was sent for assay by the Leachwell method at Gekko Systems, an independent laboratory in Victoria, and the results were announced on 8 May 2019.

Using the GEC method on the full bags, MGA was able to subject larger, more representative sample sizes to analysis. More details regarding the GEC testing process are given in ECR’s announcement dated 27 August 2019, which can be viewed at the following link:

https://polaris.brighterir.com/public/ecr_minerals_plc/news/rns/story/xq2j1qx

In parallel, 74 duplicate sub-samples obtained at the time of drilling via the rig-mounted splitter have been analysed by the Leachwell method at Gekko Systems. This has been done to enable comparison with the assay results (obtained by the same method) for the first set of sub-samples, which will assist in classifying the nugget effect as extreme, major or minor.

RESULTS OF ANALYSIS

A total of 129 ‘full-bag’ samples were analysed using the GEC process.

  • In the case of 102 samples, no gold had been detected in the first sub-sample analysed by the Leachwell method. In 6 of these samples, the GEC process detected gold (up to 0.55 g/t).
  • In the case of 9 samples, the GEC process returned a higher gold grade than analysis of the first sub-sample.
  • In the case of a further 9 samples, the GEC process returned a lower gold grade than analysis of the first sub-sample.
  • In the case of a further 9 samples in which gold had been detected in analysis of the first sub-sample (up to 0.11 g/t), no gold was detected by the GEC process.

Table 1: Assay results for all intervals with at least one result >0.1 g/t gold

Hole

From (m)

To (m)

First

sub-sample (g/t gold)

Second

sub-sample

(g/t gold)

GEC test

(g/t gold)

CSR006

15

16

44.63

80.97

63.03

CSR012

52

53

2.49

2.35

2.28

CSR006

14

15

0.12

0.11

0.11

CSR006

22

23

0.39

0.68

1.38

CSR010

85

86

0.27

0.78

1.32

CSR011

8

9

0.27

0.18

0.59

CSR010

84

85

x

x

0.02

CSR001

16

17

0.29

2.97

0.51

CSR011

6

7

0.63

0.32

0.02

CSR006

17

18

0.15

0.42

0.18

CSR007

39

40

0.22

0.52

0.01

CSR012

53

54

0.28

0.07

0.24

CSR006

18

19

0.06

x

0.30

CSR006

20

21

x

0.10

0.12

CSR001

18

19

0.11

x

0.01

CSR001

19

20

0.07

x

x

CSR001

11

12

0.06

x

x

CSR004

36

37

0.00

ANC

0.55

CSR007

52

53

0.00

ANC

0.34

CSR001

15

16

0.25

ANC

0.01

CSR010

81

82

0.00

ANC

0.23

CSR011

19

20

0.14

ANC

0.18

CSR006

16

17

0.11

ANC

0.17

CSR006

47

48

0.00

ANC

0.13

CSR007

38

39

0.11

ANC

0.00

CSR004

22

23

0.11

ANC

0.09

x = below detection
ANC = analysis not conducted

COMPETENT PERSON STATEMENT

The information in this announcement that relates to exploration results is based on information compiled by Dr Rodney Boucher of Linex Pty Ltd. Linex Pty Ltd provides geological services to Mercator Gold Australia Pty Ltd, including the services of Dr Boucher, who has a PhD in geology, is a Member and RPGeo of the Australian Institute of Geoscientists and is a Member of the Australasian Institute of Mining and Metallurgy. Dr Boucher has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Boucher consents to the inclusion in the announcement of the material based on his information in the form and context in which it appears.

MARKET ABUSE REGULATIONS (EU) No. 596/2014

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (MAR). Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information is now considered to be in the public domain.

FOR FURTHER INFORMATION, PLEASE CONTACT:

 ECR Minerals plc

Tel: +44 (0)20 7929 1010

David Tang, Non-Executive Chairman

Craig Brown, Director & CEO

Email:

info@ecrminerals.com

Website: www.ecrminerals.com

WH Ireland Ltd

Tel: +44 (0)161 832 2174

Nominated Adviser

Katy Mitchell/James Sinclair-Ford

SI Capital Ltd

Tel: +44 (0)1483 413500

Broker

Nick Emerson

ABOUT ECR MINERALS PLC
ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd has 100% ownership of the Avoca, Bailieston, Creswick, Moormbool and Timor gold exploration licences in central Victoria, Australia and the Windidda gold project in the Yilgarn region, Western Australia.

ECR has earned a 25% interest in the Danglay epithermal gold project, an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines. An NI43-101 technical report was completed in respect of the Danglay project in December 2015 and is available for download from ECR’s website.

ECR’s wholly owned Argentine subsidiary Ochre Mining has 100% ownership of the SLM gold project in La Rioja, Argentina. Exploration at SLM has focused on identifying small tonnage mesothermal gold deposits which may be suitable for relatively near-term production.

As investors await ECR’s Creswick assay results, Windidda survey confirms potential for Gold.

Anticipation builds on Creswick Assay results 

ECR’s investors are eagerly awaiting the remaining assay results to be revealed from the whole-of-bag testing process at the Company’s Creswick Gold project. 

If the partial assay results released on the 27th August 2019 are anything to go by, then investors definitely have something to be hopeful about. The 17 samples tested demonstrate a substantial increase in average gold grades. 

The remaining 113 samples, which are expected to be released in the near future will provide an important insight into Creswick’s potential million ounce resource. So be sure to keep your eyes peeled for any announcements over the coming weeks. 

Windidda Gold Project – Farm-In offer and Positive GeoPhysics survey 

It’s not just Creswick grabbing attention though. ECR revealed at the end of September that they had been approached by a listed mineral exploration company to farm into their Windidda Gold Project in Western Australia. 

Whilst ECR have decided not to proceed with the farm-in, another company looking to come on board is certainly an encouraging indication of the project potential. 

ECR may also be expecting some better offers to come to the table. Given how sought after licenses are in the Yilgarn Craton, not to mention difficult to come by, such a development wouldn’t necessarily come as a surprise given that the area is home to around 30% of the world’s known gold reserves. 

The decision to retain 100% ownership is also an indication of ECR’s own strong belief in its value and confidence in its ability to go it alone. 

“We were fortunate to get the licences at the Yilgarn Craton, given the area’s excellent reputation” CEO Craig Brown told Mining Maven 

“The permissions we have applied for currently are covered by a layer of other rocks, but, most importantly, underneath have significant exposure to that same critical greenstone belt that our peers are utilising successfully. The idea is that we want to drill down through the upper layers into the greenstone, where the large majority of the gold deposits in the Yilgarn Craton are contained. There has been some geophysics completed in the past that boast very positive indications for our work,” he added. 

On the back of this, ECR commisioned Western GeoPhysics to process and interpret existing airborne magnetic and ground gravity data. The survey results announced mid October 2019 noted that the depths to magnetic sources were shallowest on a highly magnetic trend striking NNW-SSE in the western half of the Windidda project area. Added to this, previous gold intersections drilled by North Ltd (NL) in 1998-2000 coincide with the highly magnetic units in the NL Bermuda project area, which lies outside the Windidda project area to the south. 

This magnetic and mineralised ‘Bermuda’ trend projects into Windidda exploration licence application E38-3369, and the modelling results indicate shallow feasible drill targets there. 

“The results of the study by Western Geophysics are most encouraging and demonstrate real potential for the discovery of gold mineralisation”, said Brown. 

“The under-cover greenstone exploration model has been successfully tested to date by Greatland Gold at its Ernest Giles project located approximately 125km east of ECR’s Windidda gold project.” 

Gold price rally could continue into the long-term 

The push by ECR throughout the year to develop and expand its gold exploration activities could not have been timed better. 2019 has been a fantastic year for the precious metal. The gold spot price has rallied by over 25% during the past year, currently hovering around $1,505 per ounce and predicted to continue delivering long-term growth. 

Several geopolitical and economic issues across the world have contributed to this incline and are likely to shape prices further. 

From a volatile oil market, escalating concerns regarding the US-China trade war, ongoing Brexit uncertainty, talk of a global recession, negative bond yields and falling interest rates – all these are resulting in investors turning towards gold. 

Speaking on Palisade Radio, Resource Maven’s Gwen Preston, discusses how global currencies are in a race to the bottom as countries compete for trade, and central banks continue to cut interest rates. She points to the uncertainty facing investors today, and how, as a result they are seeking a safe haven’ which is likely to be gold. 

According to Gwen, “Gold can perform and is performing already against the strong US Dollar. When gold performs against a strong US dollar, it is the mark of a real gold bull market. So I think that is something to grant a lot of confidence to gold moves so far.’ 

Bloomberg’s October commodity update also expect gold’s rally to long continue, predicting that it will beat other commodities and reach record highs. 

“Gold will remain at the top of the precious metals leaderboard, and its performance [will] accelerate into year-end. A definitive reversal in weakening global economic conditions should be needed to reverse this trend, yet further woes in 4Q appear the greater risk,” writes Bloomberg Intelligence senior commodity strategist Mike McGlone. 

Looking beyond this, Frank Holmes CEO at US Global Investors predicts that extremely dovish monetary policies around the world and economic conditions could propel gold prices much higher, possibly even reaching $10,000 oz over the long-term. 

ECR a potential steal 

Such long-term predictions will certainly please the ECR board. Should the remaining assays from their Creswick site prove positive, the company might well undergo a substantial upward re-rating. 

Unlike many of its peers though, ECR mitigates risk across a broad and diverse spread of projects. Hopes and aspirations are high for the Windidda Gold Project, as well as their three additional sites in Victoria, all of which are under active exploration. 

ECR CEO Craig Brown certainly believes the company is well undervalued. “If ECR was listed on the ASX our market cap would be 3-4 times higher” said Brown after a recent ShareTalk evening. Sat at just 0.77p I’d have to agree with him. Either way, ECR’s story is one to keep an eye on. 

Harry Dacres-Dixon

References:

Financial Times – UK Small-Cap Miners Hold Promise for Investors

Article by the Financial Times

ECR Minerals Craig Brown, chief executive of ECR Minerals, insists he is “not a goldbug, not fixated on gold”.

Nonetheless, ECR’s main business is exploring for gold deposits and it is planning mines in the Australian states of Victoria and Western Australia.

Mr Brown said gold mining is commercially appealing because the purification process is simple and the metal is a durable store of value.

ECR’s sites are still in the early stages of proving viability and are years away from commercial operation. In Victoria, the company is testing mineral samples for gold content to determine the extent and purity of deposits.

Mr Brown described the Western Australia project as “relatively greenfield, we’re not even talking about resources yet, we’ve got to drill some holes first”.

He maintains that ECR’s above-ground surveys give the company good reason to think that gold may be below.

Gold prices have risen by about 15 per cent over the year to $48 a gramme as investors have sought refuge from market turbulence.

ECR is listed on Aim and its shares currently trade at 0.7p. The price rose sharply in March and April after a series of positive findings from drilling in Victoria, but it has dropped back again and is currently down 7 per cent since January. Its market capitalisation is £3.2m.

ECR Minerals #ECR – Positive Geophysics Update at Windidda Gold Project Australia

ECR Minerals plc (LON:ECR), the precious metals exploration and development company, is pleased to provide an update with regard to the Company’s Windidda gold project located in the Yilgarn region of Western Australia.

The Windidda gold project includes nine licence applications covering approximately 1,600 square kilometres of the Yilgarn region. The application areas were identified as a potential greenstone hosted orogenic gold exploration opportunity with significant potential to contain Archaean greenstones buried beneath cover. The application process for the licences is ongoing at present.

The focus of this announcement, the processing and interpretation of airborne and ground geophysics, is an important element in the determination of high profile drill targets, enabling the rapid assessment of the potential for gold mineralisation.

HIGHLIGHTS

  • Processing, analysis and interpretation of gravity and open file airborne geophysics survey data covering the Windidda gold project area in Western Australia has been completed by Western Geophysics Pty Ltd on behalf of ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”).
  • The aim of the work was to process and interpret available airborne magnetic and ground gravity data to determine the depth of Archaean units below overlying Proterozoic Earaheedy Basin sediments.
  • The modelling results show the depths to magnetic sources are shallowest on the highly magnetic trend striking NNW-SSE in the western half of the Windidda project area.
  • Shallow, altered and mineralised gold intersections drilled by North Ltd in 1998-2000 coincide with the highly magnetic units in their Bermuda project area, which lies outside the Windidda project area to the south.
  • The magnetic and mineralised trend (Bermuda trend) projects into Windidda exploration licence application E38-3369 and the modelling results indicate shallow feasible drill targets there.

Craig Brown, Chief Executive Officer, commented: “The results of the study by Western Geophysics are most encouraging and demonstrate real potential for the discovery of gold mineralisation hosted in under-cover Archaean greenstones in the world-class gold mining environment of Western Australia.

The under-cover greenstone exploration model has been successfully tested to date by Greatland Gold at its Ernest Giles project located approximately 125km east of ECR’s Windidda gold project.

We look forward to moving the Windidda gold project forward and reporting back to the market with further developments.”

 

FURTHER INFORMATION

MGA has nine exploration licence applications located approximately 150km north of Laverton in Western Australia, which comprise the Windidda project. An update on the status of the applications was provided in the Company’s announcement dated 27 September 2019, which may be viewed at the following link:

https://polaris.brighterir.com/public/ecr_minerals_plc/news/rns/story/rm5zl8w

The locations of the exploration licence applications, the regional geology and the gold and base metal (nickel) occurrences in the Gerry Well greenstone belt to the south are shown on Figure 1, which may be viewed at the following link:

https://www.ecrminerals.com/images/2019/10/14/windidda-project-geophreport-wgpx-figure-1.jpg

The Windidda project area is underlain by Proterozoic age sediments of the Earaheedy Basin. The basin rocks unconformably overlie Archaean rocks of the northern margin of the Yilgarn craton.

The geophysical modelling results show the depths to magnetic sources are shallowest on the highly magnetic trend striking NNW-SSE in the western half of the project area. Shallow, altered and mineralised gold intersections from drilling by North Ltd (“North”) in 1998-2000 coincide with the highly magnetic units in their Bermuda project area (labelled “Windidda South” on Figure 1), located outside the Windidda project area to the south. The magnetic and mineralised trend (Bermuda trend) projects into Windidda exploration licence application E38-3369 and the modelling results indicate feasible drill targets there.

The modelling shows increasing depth to the north for central and eastern zones of NNE-SSW striking, strongly magnetic units. Magnetic units at <200 metres BGL (below ground level) are indicated on Lines 2000 and 2001, shown on Figure 18, which may be viewed at the following:

https://www.ecrminerals.com/images/2019/10/14/windidda-project-geophreport-wgpx-figure-18.jpg

In order to advance future exploration, additional geophysics surveys are recommended to lower risk prior to any drilling. These being detailed gravity and high-resolution airborne EM surveys.

Previous work completed by North, located approximately seven kilometres to the south of the southern boundary of Windidda exploration licence application E38-3369, determined the Proterozoic is approximately less than or equal to 100 metres thick with some more shallow areas of Archaean banded iron formation (BIF) and ultramafic formations in subcrop.

A significant amount of work was done there by North (Bermuda project) from 1998 to 2000 including, mapping, drilling, some gravity lines and induced polarisation surveys. Unfortunately, none of the ground geophysics data are lodged in digital format with the West Australian Department of Mines. North concluded: “Significant gold anomalism has been intersected within E38/589. Associated with anomalous gold values are strong alteration zones, major through-going structures and anomalous multi-element geochemistry. All these factors show that E38/589 exhibits significant potential for hosting gold mineralisation and, requires further drilling to test anomalous zones.” The mineralisation is labelled as Windidda South on Figure 1.

MARKET ABUSE REGULATIONS (EU) No. 596/2014

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (MAR). Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information is now considered to be in the public domain.

FOR FURTHER INFORMATION, PLEASE CONTACT:

ECR Minerals plc

Tel: +44 (0)20 7929 1010

David Tang, Non-Executive Chairman

Craig Brown, Director & CEO

Email:

info@ecrminerals.com

Website: www.ecrminerals.com

WH Ireland Ltd

Tel: +44 (0)161 832 2174

Nominated Adviser

Katy Mitchell/James Sinclair-Ford

SI Capital Ltd

Tel: +44 (0)1483 413500

Broker

Nick Emerson

ABOUT ECR MINERALS PLC

ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd has 100% ownership of the Avoca, Bailieston, Creswick, Moormbool and Timor gold exploration licences in central Victoria, Australia and the Windidda gold project in the Yilgarn region, Western Australia.

ECR has earned a 25% interest in the Danglay epithermal gold project, an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines. An NI43-101 technical report was completed in respect of the Danglay project in December 2015 and is available for download from ECR’s website.

ECR’s wholly owned Argentine subsidiary Ochre Mining has 100% ownership of the SLM gold project in La Rioja, Argentina. Exploration at SLM has focused on identifying small tonnage mesothermal gold deposits which may be suitable for relatively near-term production.

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