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ECR Minerals (ECR) – Result of AGM

LONDON: 23 April 2019 – The board of directors of ECR Minerals plc (the “Directors”) are pleased to announce that at the Company’s annual general meeting held today all resolutions were passed.

ABOUT ECR

ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Limited 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.

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

#ECR Minerals’s Craig Brown says new Yilgarn gold properties look “highly prospective” – Proactive Investors

Shares in ECR Minerals PLC (LON:ECR) moved up by almost 10% to 0.8p at the end of the first week of the year, following the application for licences over 1,600 square kilometres of new ground in the Yilgarn in Western Australia.

The ground has been identified as having significant potential for hosting Archean greenstone belts of the kind that host many of Western Australia’s and the world’s richest gold deposits.

READ: ECR Minerals moves into Western Australia

“It looks like very prospective territory,” says Craig Brown, ECR’s chief executive.

“Everybody regards Western Australia as a very promising area to work in.”

The opportunity on the new ground is enhanced because it comes with pre-existing data.

“There was some work completed in the 1980s and 1990s,” says Brown.

“But they were looking for nickel at the time, and they also found molybdenum. So one of the first things we’re going to do is go over that old information. Because nobody’s ever looked for gold here.”

One reason for that is that the rocks that may be mineralised lie under cover, so opportunities for geochemistry are limited.

But ECR is hopeful that the cover may be fairly shallow, and that exploration work will be relatively straightforward.

“The best way to test it is to do aircore drilling,” says Brown.

“It’s very cheap at around A$40 or A$50 per metre, including assaying costs, so our plan is to do an aircore programme once we’ve reviewed the existing data.”

ECR is unlikely to move on that until the licences have actually been granted, although Brown doesn’t see any real issue with that.

After all, the deal that’s wrapped around them is pretty attractive: for 19 licences the company must pay A$1,400 each, plus an annual rent, that takes the total cost up to only A$88,000.

“Hopefully they’ll be granted in the next quarter,” says Brown, “and we’ll move pretty quickly after that.”

Australia projects

In the meantime, work is continuing on ECR’s other Australian gold projects, in particular, Bailieston and Creswick.

“At Bailieston we want to go back and have a look at Blue Moon, Black Cat and Byron targets,” says Brown.

“We’re planning on conducting a small programme of drilling at Blue Moon in the current quarter of this year. We’re just budgeting the whole thing out. We drilled at Blue Moon in May 2018 and we came across a zone of mineralisation where all the rocks were weathered and you could see that the mineralisation had already been leached out of the rock.”

What was really interesting though, was that the mineralisation in question showed considerable similarity to Mandalay’s Costerfield mine, 25 kilometres away.

“They mine between 150 and 200 metres below the surface,” explains Brown.

We believe we can hit fresh rock and sulphides beneath the leached material that we’ve already intersected.”

So that’s one intriguing aspect of the project. Another is that Newmont picked up ground adjacent to Bailieston in December. So we’re not just talking about small companies operating on the edge of geological speculation here. The big players are coming in too.

Then there’s the Avoca licence, which is likely to be the subject of a 1,500-metre rotary air blast (RAB) programme shortly, and Creswick over in Victoria which will also be investigated.

Creswick, in particular, holds significant potential, according to Brown.

“We’re quite optimistic there’s something down there,” he says.

So lots to look forward to over the coming months, especially since ECR Minerals already has the money in the bank to pay for all this work.

There’s £1.2mln currently in the treasury, according to Brown, following two fundraising exercises undertaken last year: a £650,000 raise in July, and a £700,000 raise in December.

And that means that shareholders will be able to enjoy the full benefits of any positive newsflow without having to look over their shoulders to worry about dilution any time soon.

ECR has, in any case, a very supportive cornerstone investor in Shenyang Xinliaoan Machinery, a connection Brown brought with him when he joined ECR, acquired during his days operating in Central Asia.

All told, ECR looks to be on a secure footing going into 2019, with plenty of exciting newsflow to come, and the nice backdrop of a rising gold price to put it all into context.

Share Talk Q&A with Craig Brown – Chief Executive Officer of ECR Minerals plc

We wanted to cover your Strategic Business Update released on 6 November 2018, but firstly should ask about your thoughts on market conditions?

How you feel about market conditions depends on positioning. 

For private and institutional investors conditions are pretty awful although there is evidently a keen search by investors for stocks to acquire that could be positive performers even in present market conditions.

We have to demonstrate that ECR is in that category through our work and communications about our progress.

For resource companies on the markets, those with established businesses and cash can keep working through the downturn phase and make ready for the upturn.

ECR raised money in July and as a result, has the working capital to run until Q3 2019 as previously publicised.  We are in a strong position operationally and financially and that makes us a positive investment proposition, in my view, at this time.

 

On the gold side of your business, Australia seems the focus right now.  Why is that?

The Victoria region has been a stunning producer of gold over the years and was the location of one of the great nineteenth-century gold rushes. What’s better is that we believe there is considerable gold still to be discovered, and we are exploring for it right now.

We are greatly heartened by the exceptional success of the Fosterville mine in Victoria, which has produced more than a million ounces of gold to date and has ramped up production significantly of late, announcing record quarterly gold production of 90,000 ounces in Q3 2018.  The mine is also notable for the discovery of significant bonanza grade mineralisation at depth in recent years.  Fosterville is located in the same district as ECR’s Bailieston and Moormbool gold projects.

Our strategic and well-publicised objective is to find a substantial multi-million ounce gold deposit in the region and we are on an exciting pathway.  We have published exploration results across a number of our many targets in the last few months and the results have been very exciting for the team.

We have already identified a gold system at the Blue Moon target and a large gold system at the Creswick target and more work is underway across the portfolio that will bring further updates to market.

In summation, we have multiple targets, very positive initial exploration results and our ongoing campaign is in full swing.  There is a lot to aim for here and we have the resources and capable in-country team to get the work done.

 

You have mentioned Argentina and opportunities there in respect of “corporate avenues”. Can you elaborate?

I can’t be too specific, but we are pro-active in the background in Argentina and are reviewing a number of project opportunities and corporate options that may have the potential to add value.

Adding value is one thing, but we appreciate crystallisation of value is paramount for shareholders and we are very switched on to that.

Argentina is a resource-rich country and largely supportive of mineral exploration and development.  We have strong and growing local relationships and there are increasingly more opportunities and more avenues we could pursue.  We are active in moving initiatives forward and will update shareholders as soon as we have material progress.

 

The Iceberg due diligence is taking some time, in fact, more than originally planned, why is that?

We have been presented with a lot of data and are going through all the information.

One thing is key, acquisitions should be structured well and project due diligence conducted very carefully.  If it takes more time to do a thorough job, all companies should do that and not be afraid to extend option periods. You protect shareholders that way.

Also, in the challenging conditions working capital is a scarce resource and there are a number of high potential projects available.  Our job is to apply working capital to the best options and the process of due diligence ensures we do just that.

 

What other gold opportunities are you considering?

We have a good pipeline of Australian gold opportunities mainly in Victoria, Western Australia and the Northern Territory.

Whether we will pursue any additional projects depends on multiple factors including a project’s fit within the Company alongside our other gold interests; whether the project costs are comfortably within our management and financial resources; and whether we can see a value crystallisation route for shareholders.

We are looking at early stage exploration and projects with existing resources.

 

Turning to energy metals and minerals can you explain what you mean by “interest from third parties”?

As a Company, we are very excited by gold as a commodity focus, and we know our current and potential investors are too.  That should not mean that we turn off to other opportunities and it has become increasingly clear to us that there is considerable interest in the energy metals and minerals segment.

The general interest of investors is a good thing and we need to be aware of that.  However, there are also a number of organisations external to ECR who are keen to build a pipeline in energy metals and minerals.

In fact, the evident strategic drive to build this pipeline is demonstrated by the potential offer of capital to finance new ventures should the company be able to identify suitably meritable projects.

What is particularly appealing is the interest in ECR to act as a vehicle for new opportunities in respect of gold and energy metals & minerals.

Market conditions may be difficult but that is giving us a real opportunity to stand apart from the crowd by building our business in this downturn phase. The cash at bank and potential third party engagement helps of course.

 

Can you give us an indication of the type of energy metal or mineral project you are looking for?

Again, its difficult to answer too specifically as that information should be centred on market announcements. However, we have identified through our network various interesting projects in Australia and elsewhere.  These are across multiple commodity categories including cobalt, copper, lithium, uranium and vanadium.

We want projects that our shareholders will appreciate and that can also engage the interest of new potential investors. We also want projects that can attract external finance with an emphasis on project level financing helping to reduce dilution at corporate plc level, something we know is very important to shareholders.

 

You seem very positive about the ECR business at the moment.  What excites you the most about the business?

The work that goes into the Company is relentless at times, especially now with so much underway.  So you need the excitement to keep you buoyed up.

I am delighted to be working closely with our Chairman David Tang, who apart from being very commercially minded, has an extensive network across many Asian countries and is able to bring ECR to the attention of that network.  We have plenty of support provided we build our business with projects of real merit and potential.

It feels like it is ECR’s time but an intensive amount of effort is going in to make that happen.

Share Prophets – Hopeful Samples Might Lead to a Glittering Share Rise for this Aussie Prospector – ECR Minerals #ECR

By Malcom Stacey

Hello Share Treaders. Down under there is a precious metals company called ECR Minerals (ECR). With gold values possibly set to rise in a difficult environment for most other shares, it might pay to have a gander at this one. ECR’s wholly-owned Australian subsidiary Mercator Gold Australia has Avoca, Bailieston, Moormbool and Timor gold exploration licences in Central Victoria.

The Aim-listed company claims that the latest assay results for the Bailieston field are promising. The company has taken 75 rock samples ‘confirming gold mineralisation’. I’m no expert, but I would say that might not be the same as finding big nuggets, but ECR seems quite chuffed all the same.

Roughly the same number of samples were taken earlier. And 22 of them also revealed gold traces: to the extent of 2.7 ounces per ton of rock. That may not sound a lot, but apparently, in gold mining terms, it’s quite hopeful. Assaying has also been extended to its Cherry Tree field, where many of the samples taken also show ‘gold mineralisation’.

And now the enterprise awaits the results of rock chip sampling undertaken in another area, Creswick. Earlier mapping had, we’re told, revealed a large gold system. Those results are expected soon and if promising, we might expect the share price to rise. But the company doesn’t only pins hopes on Australia. Its Argentine subsidiary, Ochre Mining, has 100% ownership of another gold project in La Rioja, Argentina.

Craig Brown, Chief Executive of ECR, says both batches of sampling at Bailieston in Victoria have produced high-grade gold. And it might pay to look for gold companies as a bit of a hedge against falling share prices. But of course, searching for mineable gold can be pretty risky.

A bit like drinking in the Punter’s Return.

 

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