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.
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.
By Harry Dacres-Dixon