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ECR Minerals (ECR) – Update on Australian Gold Exploration

ECR Minerals plc (LON: ECR), the gold exploration and development company focussed on Australia, is pleased to provide the following update on its activities, which are carried out through its wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”).

 

HIGHLIGHTS:

  • Lithogeochemical study by preeminent consulting geochemist commissioned for Creswick gold project in Victoria;
  • Exploration options for Bailieston project in Victoria being reviewed with the MGA technical team – programme to be announced shortly;
  • Additional exploration licence granted at the Windidda project in Western Australia;
  • Business development – the Company continues to review its commercial options for MGA’s Victorian gold projects following expressions of interest from third parties.

Creswick Gold Project, Central Victoria

MGA has commissioned Dr Dennis Arne to carry out a lithogeochemical study of cuttings (chips) generated by reverse circulation (RC) drilling at the Creswick project in 2019. Dr Arne is a preeminent consulting geochemist in Victoria, whose experience includes extensive consultancy at the highly successful Fosterville gold mine in Central Victoria owned by Kirkland Lake Gold.

Dr Arne will be working with fresh (unoxidised) RC chips from Creswick to determine whether the observed quartz veining is associated with the presence of ferroan carbonate. Ferroan carbonate is intimately associated with all Central Victorian gold deposits that have not been contact metamorphosed.

The amount of ferroan carbonate generally increases as mineralised structures are approached. It can therefore be used for vectoring within alteration systems associated with gold mineralisation, particularly when integrated with geochemical data, and can be used to distinguish between mineralised and non-mineralised quartz veins. The results of the study are anticipated to be valuable for the purposes of future exploration at the Creswick project. Further updates will be provided in due course.

Windidda Gold Project, Western Australia

Further to the Company’s announcement dated 27 January 2020, MGA has been granted an additional exploration licence comprising part of the Windidda project in the north-eastern Yilgarn region of Western Australia. MGA has withdrawn three exploration licence applications over areas now considered to be less prospective, and one further application remains in process.

Bailieston Gold Project, Central Victoria

The westernmost part of the Bailieston licence is approximately 30km east of Kirkland Lake Gold’s Fosterville gold mine, and abuts an exploration licence applied for by Newmont Exploration Pty Ltd to the north.

ECR is considering a number of potential exploration programmes for the Bailieston project, including further drilling at the Blue Moon prospect, where 2019 reverse circulation (RC) drilling by MGA returned an intercept of 2 metres at 17.87 g/t gold within a zone of 15 metres at 3.81 g/t gold from 51 metres in BBM007 (see announcement dated 14 March 2019 for full details of this drilling programme and its results), and soil and stream sediment sampling in the Cherry Tree South and Ponting’s areas.

Craig Brown, Chief Executive Officer, commented: “With the gold price having recently exceeded USD 1,600, the equivalent of almost AUD 2,400 in Australian dollar terms, there is currently a very high level of interest in gold exploration and mining in Australia, including in Victoria and Western Australia.

As well as seeking to add value through our own exploration activities, ECR is considering potential transactions which may create value for the Company and its shareholders. Although there can be no guarantee that any transaction will be progressed, the board are encouraged by the number of opportunities that are available. Further updates will be provided as appropriate”

Review of Announcement by Qualified Person

This announcement has been reviewed 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 is a Qualified Person as that term is defined by the AIM Note for Mining, Oil and Gas Companies.

MARKET ABUSE REGULATIONS (EU) No. 596/2014

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

FOR FURTHER INFORMATION, PLEASE CONTACT:

ECR Minerals plc

Tel: +44 (0)20 7929 1010

David Tang, Non-Executive Chairman

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) – 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.

ECR Minerals #ECR – Australian Gold – Business Update

ECR Minerals plc (LON:ECR), the precious metals exploration and development company, is pleased to provide a business update for shareholders covering the Company’s Australian gold interests.

Craig Brown, Chief Executive Officer commented: “During the summer months the ECR team have been heads down and working hard across multiple areas of the business and we expect to be able to provide multiple updates in respect of field exploration and corporate development activities across our business in the near future.

“Given the extent of activities and to keep shareholders informed we felt it would be opportune to provide an update of the key areas of progress, notably in respect of the Company’s Western Australia Windidda gold project and also in respect of progress at Creswick gold project which is within our large and strategic landholding in the heart of the Victoria Goldfields and where the Company has highly active operations.”

HIGHLIGHTS:

Windidda Gold Project (Western Australia)

  • The Company’s wholly owned Australian subsidiary has submitted applications over 1,600 sq km of the Yilgarn Craton as announced on 2 January 2019;
  • The application process is progressing, with all 9 exploration licence applications having now been advertised in line with local requirements;
  • The Company is closely monitoring the tenement application process, which is being handled through a local tenement management consultant;
  • ECR has been approached by a listed mineral exploration company seeking to farm into the project, and although we have not decided to proceed with this farm-in proposal at this time, we are encouraged to see the interest being shown by third parties at such an early stage.

Creswick Gold Project (Victoria)

  • Whole-of-bag testing process has now been completed successfully and remaining samples have been sent to the laboratory for assay testing;
  • Partial assay results released on 27 August 2019 demonstrated a substantial increase in gold grade on average in respect of the 17 samples tested;
  • A further 113 samples, which for completeness included samples believed to be of lower grade, have been sent to the laboratory for assay testing with results expected to be received in the near future.

Other Gold Projects (Victoria)

The Company is highly proactive across its Victorian Goldfields projects, with the current key activities summarised below.

Blue Moon Prospect, Bailieston Gold Project

  • Following a reverse circulation drilling programme at Blue Moon prospect resulting in gold grades of up to 17.87g/t ECR formally announced a new gold discovery on 1 May 2019. Blue Moon is a flagship project for the Company and we are working to agree access with landowners to enable us to continue drilling to the west where our work indicates gold mineralisation may intensify.

HR3 Area, Bailieston Gold Project

  • Preparation of a detailed 3D geological model for the HR3 area has been undertaken over the summer months and is nearing completion. When complete the model is expected to generate numerous high priority drilling targets.

Henry’s Hill Gold Prospect – Avoca Project

  • Geological mapping and soil geochemistry has been completed in line with the Company’s announcement of 14 August 2019 with approximately 200 samples collected during the field exploration. Geochemical analysis of the samples is to be undertaken shortly.

Timor Gold Project

  • On 6 August 2019 the Company announced the results of rock chip sampling with grades of up to 22.6 g/t. The data gathered from the rock chip sampling programme, together with historic exploration data, has confirmed the prospectivity of the Timor gold project and the Company is now reviewing a potential drill programme over the key target areas.

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 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.

Time to Fillyaboots with ECR Minerals (AIM:ECR) as Victoria Gold Projects continue to evolve and gold attracts record investments.

Time to Fillyaboots with ECR Minerals (AIM:ECR) as Victoria Gold Projects continue to evolve and gold attracts record investments.  

  • High grade assays at Timor
  • Exploration underway at Avoca
  • Whole of bag testing results at Creswick
  • Record breaking month for gold
  • Time to Fillyaboots

 For those keen on regular progress updates, Australia-focussed mining company ECR Minerals (AIM: ECR) hits the mark by keeping investors up to date with their every move on Twitter. Of late, the three major developments over August at Timor, Avoca and Creswick projects have focussed attention, driven as much as anything by the rising demand for gold amid dwindling macroeconomic conditions.

1) High grade assay results demonstrate potential for Timor Gold Project to follow in the footsteps of Maryborough goldfield

The first of these was an impressive set of rock chip sampling results at the Timor project, which gave ECR investors plenty to smile about at the beginning of the month.

High grade gold assays of 22.6 g/t and 26.3 g/t were recorded respectively from Shaw’s Reef and Anglo-Saxon Reef prospects.

Mined to 152m depth, ECR revealed that Shaw’s Reef had produced 11,465 ounces at a grade of 20.93 g/t Au. Meanwhile, four samples from the Anglo-Saxon Reef averaged 8.12 g/t Au.

Not bad eh? Well on top of that, the reconnaissance had also “discovered the Brilliant / Northumbria reef and its extensive gold workings, including an old open cut” ..according to CEO Craig Brown.

“This prospect area extends over a length of approximately 500m and is up to 80m wide and assays from 13 samples indicate widespread low-grade gold mineralisation.”

These results indicate that Timor may well follow on from the historical success of the Maryborough Goldfield.

Maryborough, which lies within the area covered by the Timor license, previously produced over 640,000 ounces of gold from hard-rock and alluvial sources, with 220,000 ounces mined from hard-rock operations at an average grade of 14g/t gold.

Northumbria Reef open cut

2) Avoca Exploration Underway

In addition to Timor, there was plenty of news forthcoming from ECR’s other Victoria sites. On the 14th of August the Company announced it had begun exploration at Henry’s Hill within the Avoca gold project license area.

The company now has active exploration works underway at four projects within the Victorian goldfields region, including Bailieston, Creswick, Timor and now Avoca.

“We are delighted to be highly active in the Victoria Goldfields region, at a time when the area is attracting considerable interest from larger companies and investors” commented Craig Brown.

Previously seven samples have been taken from the roadside reserve at Henry’s Hill, with three of these returning 5.1, 1.4 and 1.3 g/t gold.

With land access permission secured from the landowner and ever keen to keep the ball rolling, ECR will be commencing soil geochemistry and field mapping imminently.

3) Whole of bag testing results at Creswick:

Now for Creswick, the one we’ve all been waiting on. This is ECR’s strategic priority, with potential to be a multi-million ounce gold deposit.

Craig Brown and his team have been quick to try to progress the project and understand the impact of the nuggety nature of it’s gold deposits – conducting whole-of-bag testing in order to gain more representative results than from the original 2 kg assays.

Despite delays due to inclement weather at Victoria, ECR were happy to announce that work was underway and generating important results from the gravity and electrostatic concentration (GEC) of gold process, constructed under the guidance of the highly accredited resource geologist Keith Whitehouse.

GEC uses the dual processes of gravity and chargeability, which not only sounds rather impressive, but is capable of removing coarse, fine and ultrafine particles of gold from the RC samples.

According to Craig Brown.. “the results so far have demonstrated significant variability from the original assays, demonstrating that the small sample size can overstate and understate results.”

“Notably the original 44.63 g/t assay from the 2 kg sample from CSR006 (15-16 m) is increased to 63.03 g/t.”

To help support the process, ECR have appointed mining geologist and geometallurgist Dr Simon Dominy. With over 25 years’ experience Dr Dominy looks to be the man to help ECR evaluate their results, review the sampling process and guide future exploration & project development work at Creswick.

Gold sets record breaking highs

From a timing standpoint, ECR have hit the metaphorical bullseye considering the rapid rise in demand for safe-haven gold. Investors ploughed almost $5bn into the precious metal in August amid ongoing trade tensions and diminishing macroeconomic conditions, taking it to its highest level since April 2013.

Prices have remained high moving into September, with levels closing at US$1,551 a troy ounce on Wednesday the 4th of September. Analysts see no sign of prices dipping either.

Bloomberg Intelligence (BI) have said that US gold prices could be set for new record highs. Meanwhile Goldman Sachs upgraded its 6-month gold forecast at the beginning of August to $1,600 an ounce as trade tensions continue to escalate.

According to BI senior commodity strategist Mike McGlone:

“The dollar price of gold is on far more stable ground than it was about a decade ago. Some combination of sustained greenback strength and rapid stock-market appreciation should be necessary to suppress the metal’s price … Bottoming with the Federal Reserve’s interest-rate hike in 2015, the gold price appears to be situated for brighter days,” McGlone said in a September update.

Worsening economic data and the fast approaching Brexit deadline have also pushed the price of gold in British Pounds and Euros to new record highs.

The UK gold price in Pounds per ounce was up more than 50% from the eve of the UK’s vote to leave the EU back in June 2016, hitting £1279 on Tuesday the 3rd of September.

Time to Fillyaboots

All said, while ECR could be accused of being slightly trigger happy with their posts on Twitter, the reality is that the company have a lot to talk about.

As well as gold’s strength, with active exploration underway at four sites in Victoria and with nine exploration licences in the highly prospective Yilgarn region, ECR Minerals are certainly a company worth your attention if you’re looking to join the gold rush.

Each month the company continues to materially progress its projects, with August no exception. Timor’s high grade assay results give plenty of hope, putting a solid floor under the Company valuation, whilst recent exploration at Avoca demonstrates yet again that ECR are not resting on their laurels.

Finally, and of most importance thorough testing appears to be fully underway at Creswick, meaning ECR are moving ever closer to understanding the true value of their potential multi million ounce gold deposit. And with a market cap at just GBP3.5m, there has never been a better time to fillyaboots with this ambitious gold explorer.

By Harry Dacres-Dixon

 

Sources:

Gold Prices To Hit $1,575 In 3 Months, $1,600 In 6 Months – Goldman Sachs

Gold prices to pick off U.S. dollar high next – Bloomberg Intelligence

Investors pile into gold as trade conflict rumbles on

Gold Price Hits Fresh UK and Euro Highs as Brexit Rebels Fight No.10, German Factories Prepare for ‘No Deal’

ECR Minerals #ECR – High Grade Gold Assays – Timor Gold Project – Australia

ECR Minerals #ECR – Exploration Commences at Henry’s Hill – Avoca Gold Project – Australia

ECR Minerals plc (ECR) Progress Update – Creswick Gold Project Australia

ECR Minerals #ECR – Exploration Commences at Henry’s Hill – Avoca Gold Project – Australia

ECR Minerals plc (LON:ECR), the precious metals exploration and development company, is pleased to announce the commencement of gold exploration at Henry’s Hill within the Company’s Avoca gold project.

Craig Brown, Chief Executive Officer commented: “The ECR team are excited to feed Henry’s Hill at the Avoca gold project, into the pipeline of projects under exploration in Victoria.

The Avoca Gold Project is one of five projects held by ECR in the Victorian Goldfields region, with four projects at Avoca, Bailieston, Creswick and Timor now the subject of active exploration or project development operational activity.

We are delighted be highly active in the Victoria Goldfields region, at a time when the area is attracting considerable interest from larger companies and investors.”

Highlights:

  • Previously, ECR geologists have taken 7 rock chip samples from the roadside reserve at Henry’s Hill. The samples were taken approximately 5m from each other at various intervals across shallow pits on the roadside reserve. All seven samples were independently tested by Onsite Laboratory Services.
  • Three of these samples returned 5.1, 1.4 and 1.3 g/t gold;
  • ECR have secured land access permission from the landowner and will commence soil geochemistry and field mapping imminently;
  • The soil geochemistry will be undertaken in an attempt to locate the loci of the mineralised shoot/s;
  • In addition, the work will examine the potential for the mineralisation to extend under cover to the east and the potential continuation of mineralisation to the west;
  • Geological mapping conducted in conjunction with the soil geochemistry will attempt to better define the controls on the shoots.

Henry’s Hill Background

Henry’s Hill is located within EL5387 and is 10 km north of Avoca in central Victoria.

The area to be explored is historically known as Henry’s Hill but is also known to the locals as Wolfram Hill due to the presence of the tungsten-bearing ore that was mined along with gold.

Within Henry’s Hill there are shallow historic workings in a zone over 800 m long and up to 100 m wide and which can be seen through the link below:

https://www.ecrminerals.com/images/Projects/AHH_Henrys_Hill_Google_Earth.jpg

The zone has been worked to alluvial cover to the east and so may extend an additional 200 m to the tenement boundary. The workings die out to the west potentially as the influence of the faults diminishes.

The area was mapped in 1950 by government geologist D Thomas, who identified a series of north-dipping faults dissecting NW trending sediments. The most likely geological reconstruction has these faults intersecting a north-plunging anticline under cover to the east. This relationshipis hypothesised to explain the faults diminishing to the west and will be investigated during field mapping.

The presence of tungsten is a good indicator of the influence of magmatic fluids. Granites occur at the surface to the north. Further evidence for granite-related mineralisation will be sought during the exploration work.

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 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.

ECR Minerals #ECR – Issue of Shares for Business Services

ECR Minerals plc (LON:ECR) the precious metals exploration and development company is pleased to announce that 5,090,000 New Ordinary Shares have been issued by the Company at a deemed share price of 1.0p per share in lieu of business support, marketing and communications services valued at £50,900.

The shares are to be issued to five different and unconnected service providers covering principally investor and public relations services.

Craig Brown Chief Executive Officer of ECR Minerals plc commented: “ECR continues to aggressively pursue its Australian gold project portfolio and has experienced exploration success across its Bailieston and Creswick projects in 2019. A third project, Timor, is now activated and exploration work is progressing on the ground.

Given the range and depth of our project interests and amount of operational activity, we are focused on maintaining strong and focused market communications to ensure our message is well distributed and properly understood.

I am pleased that our service providers have today taken shares in lieu of cash for services, which we believe demonstrates their confidence in the business model..

I look forward to updating the market with further developments at the earliest opportunity.”

ADMISSION OF SHARES AND TOTAL VOTING RIGHTS

Admission of the New Ordinary Shares is expected to occur on or around 24 July 2019. Following Admission of the Financing Shares, ECR’s issued ordinary share capital will comprise 450,930,783 ordinary shares of 0.001 pence. This number will represent the total voting rights in the Company, and, following admission of both the placing and subscription shares, 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 and Transparency Rules. The new shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.

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 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.

Mining Maven: Gold Nuggets, Discoveries, and Greenstone Potential: A Breakdown of ECR Minerals’ Australia Drilling Progress

Download the report here: ECR Report – Jun 2019

Introduction

This year has seen ECR Minerals (LSE:ECR) launch an extensive exploration campaign across the highly popular Australian state of Victoria as it continues its search for multi-million-ounce gold deposits. Early signs of success have supported a substantial increase in the company’s share price from 0.75p to 1p, despite a harsh commodity market backdrop and weak investor sentiment in the UK, where it is based. Here, we break down ECR’s progress and plans at each of its Victoria prospects and outline its activity across the rest of Australia.

 

ECR Minerals #ECR – Unaudited Half-Yearly Results for the Six Months Ended 31 March 2019

ECR Minerals plc, the precious metals exploration and development company, is pleased to announce unaudited half-yearly financial results for the six months to 31 March 2019 for the Company as consolidated with its subsidiaries (the “Group”), along with a review of significant developments during the period and subsequently.

HIGHLIGHTS:

Victorian Goldfields Gold Project Portfolio

  • Significant expansion in operational activity in the period culminating in the January 2019 commencement of a gold focus drill programme across two projects at Bailieston (Black Cat prospect and Blue Moon prospect) and Creswick;
  • Post period end in April 2019 successful reconnaissance drilling confirmed at Black Cat prospect announced, in licence ground adjacent to a large licence application package lodged by Newmont Mining
  • In May 2019 new gold discovery announced at the Blue Moon prospect, confirmed by reverse circulation (RC) drilling results
  • In June 2019, extreme nuggetty gold geology confirmed at Creswick leading to the launch of a gold nugget test programme at the project
  • ‘Whole-of-bag’ testing underway on RC drill samples from the Creswick, which the Company believes may host a very substantial gold deposit subject to further drilling and evaluation

Western Australian Portfolio

  • In January 2019 the Company announced the formation of the Windidda project, including nine licence applications covering 1,600 square kilometres covering a buried Archean Greenstones
  • Archean greenstones host many of Western Australian and the world’s most prolific gold deposits

Financial Results

  • Group comprehensive expense of £305,180 for the six months ended 31 March 2019 (£321,433 for the six months ended 31 March 2018)
  • Net assets of £4,052,109 at 31 March 2019 (£3,413,792 at 31 March 2018)
  • Financing undertaken in December 2018 to raise £700,000 and providing sufficient cash resources for planned business activities until at least Q2 2020
  • In May 2019 the Company announced a tax update confirming an Australian research & development cash refund of A$318,972 (approximately £175,188) and an anticipated further claim to be made of approximately A$370,000 (approximately £198,000);
  • The Company also confirmed in May 2019 that its 100% owned operating subsidiary Mercator Gold Australia Pty Ltd had carried forward corporate income tax losses of A$66,203,862 (approximately £35.5million) in respect of historical losses which are available for carry forward

CHIEF EXECUTIVE OFFICER’S REPORT

The six months to 31 March 2019 and the period since have been marked by a series of exciting developments for ECR, all of them related to the Group’s primary strategic activity, which is exploration for multi-million ounce gold deposits in Australia through ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”).

The focus of on-the-ground activities was and continues to be MGA’s projects in the state of Victoria, but also important are the applications lodged in December 2018 for the exploration licences which will comprise the Windidda gold project in Western Australia. Windidda represents a strategic move by ECR into the Yilgarn Craton which, like Victoria, is one of the world’s major gold provinces.

EXPLORATION ACTIVITIES IN THE VICTORIAN GOLDFIELDS

The first half of calendar year 2019 saw significant drilling activity at MGA’s Creswick gold project in Victoria, and at the Black Cat and Blue Moon gold prospects within the Bailieston project area. A great deal of preparation for the drilling, consisting of planning and preliminary exploration including rock chip and soil sampling and geological mapping, took place in the second half of calendar year 2018.

This preparatory work also informed the application by MGA for a number of additional exploration licences to expand its ground position in the Creswick, Bailieston and Moormbool areas. We were also encouraged by the fact that in late 2018, a subsidiary of Newmont Mining applied for an exploration licence abutting MGA’s Bailieston licence to the north.

New Gold Discovery at Blue Moon Prospect

Turning to the drilling itself, the results of reverse circulation (RC) drilling at Blue Moon have confirmed the prospect as a new gold discovery.

Highlights included intersections of 2 metres at 17.87 g/t gold within a zone of 15 metres at 3.81 g/t gold from 51 metres in BBM007, and 3 metres at 3.88 g/t gold within a zone of 11 metres at 2.42 g/t gold from 169 metres in BBM006. Twelve holes were drilled for a total of 1,718 metres.

The drilling results indicate that the host sandstone is thicker and the gold grades significantly higher on the westerly section, and further exploration will therefore seek to follow the system to the west, subject to agreeing access with landowners.

Successful Reconnaissance Drilling at Black Cat Prospect

Rotary air blast (RAB) drilling at the Black Cat prospect, which is located immediately south of the ground applied for by Newmont, constituted a successful reconnaissance programme at a prospect which had never been drilled before.

The programme targeted numerous quartz reefs with 18 shallow holes for 485 metres of drilling in total. Significant intersections included 7 metres at 1.76 g/t gold from 35 metres in BCD11 and 3 metres at 4.26 g/t gold from 16 metres in BCD18.

As well as the encouraging grades, the drilling provided important geological information which may help vector further exploration at Black Cat and in the wider Bailieston gold project area.

Nuggety Gold Confirmed at Creswick and Whole-of-Bag Tests Underway

At Creswick, MGA completed a total of 1,687 metres of reverse circulation (RC) drilling in 17 holes, targeting multiple quartz vein orientations within the Dimocks Main Shale (“DMS”).

Drilling identified more extensive quartz than anticipated, in a zone exceeding 60 metres in width (more than twice the 25 metres expected), with quartz identified in more than one third of the 1,687 metres drilled. Gold mineralisation was identified in the majority of holes, with grades in nine holes ranging from 0.6 g/t gold to 44.63 g/t gold (1.44 oz/t).

MGA’s geologists have hypothesised an extreme nuggety distribution of gold based on observations and results, including capturing a small 0.27 g nugget in gravity tests conducted on a single sample bag. This means that gold is not evenly distributed in bags of RC drilling samples.

The Company previously assayed 2 kg sub-samples from a 30 kg bag, which is industry practice but too small a sample for an extreme nuggety distribution. There was a significant likelihood that coarse gold could be excluded from the sample.

This meant that assays of the 2 kg sub-samples could be understated for gold, and this was demonstrated in one whole-of-bag test where the assay from a 2 kg sub-sample reported gold of 1.88 g/t whereas the 30 kg whole-of-bag sample test showed the bag actually contained a substantially higher 11.8 g/t. Alternatively, a single assayed nugget will overstate the average from a 2 kg sub-sample.

In order to address these issues, a comprehensive process of whole-of-bag testing has commenced to determine the full extent of the gold within the RC drill samples. This is a sizeable exercise. Of the 1,687 metres drilled, 640 bags of close to 30 kg each contain quartz and these bags plus the surrounding bags will be tested in a process which is fully discussed in the Company’s announcement dated 11 June 2019.

Internal modelling suggests the DMS has significant prospective tonnage to potentially host an important gold deposit at Creswick, and therefore a better indication as to the true grade of the mineralisation which will be provided by the results of the whole-of-bag testing will be of great significance for the Company.

WINDIDDA GOLD PROJECT, WESTERN AUSTRALIA

The Windidda project comprises nine exploration licence applications for a 1,600 square kilometre land package which has been identified as a buried Archean greenstone trend with the potential to host orogenic gold deposits.

The granting of the licences is awaited, and consultants instructed by MGA have already begun geophysical data processing and modelling to determine structural trends within, and the depth to, the interpreted buried Archean greenstones.

The opportunity to apply for the Windidda project was introduced to ECR by Sam Garrett, who joined the Company as a non-executive director in February 2019. Sam is an Australian geologist with 30 years of exploration management, project assessment and operational experience working for large multi-national and junior mining and exploration companies in ten countries including Australia, Argentina and the Philippines.

ARGENTINA AND PHILIPPINES PROJECTS

ECR continues to have 100% ownership of the SLM gold project in La Rioja, Argentina, and is entitled to a 25% interest in the Danglay gold project in the northern Philippines. The status of both projects remains as disclosed in the Company’s latest annual report and accounts published in March 2019.

FINANCIAL RESULTS

For the six months ended 31 March 2019 the unaudited financial statements of the Company as consolidated with its subsidiaries (the “Group”) record a total comprehensive expense of £305,180, the largest component of which is other administrative expenses of £432,387, which relate primarily to the development of the Group’s projects, but which cannot be capitalised under applicable accounting standards. The Group reported a total comprehensive expense of £321,433 for the six months ended 31 March 2018.

The Group’s net assets were £4,052,109 at 31 March 2019 compared with £3,413,792 at 31 March 2018, including £622,457 of cash and cash equivalents at 31 March 2019. The Group’s cash position benefited from a £700,000 equity financing completed by the Company in December 2018.

Post the period end, MGA, ECR’s 100% owned Australian subsidiary, received a research and development refund of A$318,971.73 (approximately £175,188) from the Australian government. This refund relates to qualifying expenditure incurred by MGA in the year ended 30 June 2018, and in due course MGA intends to submit a further claim for the year ended 30 June 2019.

Craig Brown
Chief Executive Officer

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

Tel: +44 (0)1483 413500

Broker

Nick Emerson

FORWARD LOOKING STATEMENTS

This announcement may include forward looking statements. Such statements may be subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results or events to differ materially from current expectations. There can be no assurance that such statements will prove to be accurate and therefore actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements. Any forward looking statements contained herein speak only as of the date hereof (unless stated otherwise) and, except as may be required by applicable laws or regulations (including the AIM Rules for Companies), the Company disclaims any obligation to update or modify such forward looking statements as a result of new information, future events or for any other reason.

Consolidated Income Statement

For the six months ended 31 March 2019

Six months ended

31 March 2019

Six months ended

31 March 2018

Year ended

30 September 2018

Continuing operations

£

£

£

Other income

175,188

Other administrative expenses

(432,387)

(240,719)

(544,521)

Currency exchange differences

(5,758)

(2,507)

(6,912)

Total administrative expenses

(438,145)

(243,226)

(551,433)

Operating loss

(262,957)

(243,226)

(551,433)

Fair value movements – available for sale financial asset

4,260

(5,429)

(971)

Aborted transaction option fee

(25,000)

(283,697)

(248,655)

(552,404)

Finance income

1,135

710

1,386

Finance costs

1,000

Finance income and costs

1,135

710

2,386

Loss for the period before taxation

(282,562)

(247,945)

(550,018)

Income tax

Loss for the period

(282,562)

(247,945)

(500,018)

Loss attributable to:

Owners of the parent

(282,562)

(247,945)

(500,018)

Loss per share – basic and diluted

(0.07)p

(0.10)p

(0.21)p

Consolidated Statement of Comprehensive Income

For the six months ended 31 March 2019

Six months ended

31 March 2019

Six months ended

31 March 2018

Year ended

30 September 2018

£

£

£

Loss for the period

(282,562)

(247,945)

(500,018)

Items that may be reclassified subsequently to profit or loss

Gain/(losses) on exchange translation

(22,618)

(73,488)

(171,442)

Other comprehensive income/(expense) for the period

(22,618)

(73,488)

(171,442)

Total comprehensive expense for the period

(305,180)

(321,433)

(721,460)

Attributable to:

Owners of the parent

(305,180)

(321,433)

(721,460)

Consolidated Statement of Financial Position

At 31 March 2019

As at

31 March 2019

As at

31 March 2018

As at

30 September 2018

Assets

£

£

£

Non–current assets

Property, plant and equipment

2,001

5,751

3,033

Exploration assets

3,305,640

2,675,346

2,859,474

Total non-current assets

3,307,641

2,681,097

2,862,507

Current assets

Trade and other receivables

245,494

46,138

79,413

Available for sale financial assets

25,558

16,841

21,299

Taxation

20,283

Cash and cash equivalents

622,457

701,499

781,142

893,510

784,761

881,854

Total assets

4,201,150

3,465,858

3,744,361

Current liabilities

Trade and other payables

149,041

52,067

92,816

Total liabilities

149,041

52,067

92,816

Net assets

4,052,109

3,413,792

3,651,545

Equity attributable to owners of the parent

Share capital

11,284,794

11,282,812

11,283,756

Share premium

45,164,876

43,823,335

44,460,171

Exchange reserve

(412,119)

(291,547)

(389,501)

Other reserves

1,381,998

1,381,998

1,381,998

Retained losses

(53,367,441)

(52,782,806)

(53,084,879)

Total equity

4,052,109

3,413,792

3,651,545

Consolidated statement of changes in equity

For the six months ended 31March 2019

Share capital

Share premium

Exchange

reserves

Other

reserves

Retained

reserves

Total

Equity

£

£

£

£

£

£

At 1 October 2017

11,282,812

43,823,335

(218,059)

1,381,998

(52,534,860)

3,735,226

Loss for the period

(247,945)

(247,945)

Loss on exchange translation

(73,488)

(73,488)

Attributable share of changes in equity of associated company

Total comprehensive income /(expense)

(73,488)

(247,945)

(321,433)

Share based payments

Shares issued in payment of creditors

At 31 March 2018

11,282,812

43,823,335

(291,547)

1,381,998

(52,782,805)

3,413,793

Loss for the period

(302,073)

(302,073)

Loss on exchange translation

(97,954)

(97,954)

Total comprehensive income /(expense)

(97,954)

(302,073)

(400,027)

Shares issued

929

649,071

650,000

Shares issue costs

(27,220)

(27,220)

Shares issued in payment of creditors

15

14,985

15,000

At 30 September 2018

11,283,756

44,460,171

(389,501)

1,381,998

(53,084,878)

3,651,545

Loss for the period

(282,562)

(282,562)

Loss on exchange translation

(22,618)

(22,618)

Total comprehensive income /(expense)

(22,618)

(282,562)

(305,180)

Shares issued

1,039

742,745

743,784

Share issue costs

(38,040)

(38,040)

Total transactions with owners, recognised directly in equity

1,039

704,705

(22,618)

(282,562)

400,564

At 31 March 2019

11,284,795

45,164,876

(412,119)

1,381,998

(53,367,440)

4,052,109

Consolidated Cash Flow Statement

For the six months ended 31 March 2019

Six months ended 31 March 2019

Six months ended

31 March 2018

Year ended

30 September 2018

£

£

£

Net cash flow used in operations

(571,969)

(301,408)

(563,850)

Investing activities

Increase in exploration assets

(446,165)

(6,600)

(302,794)

Interest received

1,135

1,386

Other income

175,188

Net cash used in investing activities

(269,842)

(6,600)

(301,408)

Financing activities

Proceeds from issue of shares

705,744

622,780

Net cash from financing activities

705,744

622,780

Net change in cash and cash equivalents

(136,067)

(308,008)

(242,478)

Cash and cash equivalents at beginning of the period

781,142

1,082,994

1,082,994

Effect of change in exchange rates

(22,618)

(73,487)

(59,374)

Cash and cash equivalents at end of the period

622,457

701,499

781,142

Notes to the Condensed Half-Yearly Financial Statements

For the six months ended 31 March 2019

1. Basis of preparation

The condensed consolidated half-yearly financial statements incorporate the financial statements of the Company and its subsidiaries (the “Group”) made up to 31 March 2019. The results of the subsidiaries are consolidated from the date of acquisition, being the date on which the Company obtains control, and continues to be consolidated until the date such control ceases.

These condensed half-yearly consolidated financial statements do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 30 September 2018. They have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year to 30 September 2018. The report of the auditors on those accounts was unqualified and did not contain a statement under section 498(2) or (3) of the Companies Act 2006, but did include a reference to matters which the auditors drew attention to by way of emphasis without qualifying their report.

The accounting policies have been applied consistently throughout the Group for the purpose of preparation of these consolidated half-yearly financial statements. New standards, amendments and interpretations effective for accounting periods commencing after 1 January 2018 have been adopted but do not have a material impact on the condensed consolidated financial statements. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

The financial information in this statement does not constitute full statutory accounts within the meaning of Section 434 of the Companies Act 2006. The financial information for the six months ended 31 March 2019 and 31 March 2018 is unaudited. The comparative figures for the period ended 30 September 2018 were derived from the Group’s audited financial statements for that period as filed with the Registrar of Companies. They do not constitute the financial statements for that period.

2. Going concern

The Directors are satisfied that the Group has sufficient resources to continue its operations and to meet its commitments for the immediate future. The Group therefore continues to adopt the going concern basis in preparing its condensed half-yearly financial statements.

3. Cash and cash equivalents

Cash includes petty cash and cash held in bank current accounts. Cash equivalents include short-term investments that are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value.

4. Earnings per share

Six months ended

31 March 2019

Six months ended

31 March 2018

Year ended

30 September

2018

Weighted number of shares in issue during the period

400,451,205

247,605,240

263,542,617

£

£

£

Loss from continuing operations attributable to owners of the parent

(282,562)

(247,946)

(550,018)

The disclosure of the diluted loss per share is the same as the basic loss per share as the conversion of share options decreases the basic loss per share thus being anti-dilutive.

Notes to the Condensed Half-Yearly Financial Statements

For the six months ended 31 March 2019

5. Income tax

No charge to tax arises on the results and no deferred tax provision arises or deferred tax asset is identified.

6. Shares and options transactions during the period

The share capital of the Company consists of three classes of shares: ordinary shares of 0.001p each which have equal rights to receive dividends or capital repayments and each of which represents one vote at shareholder meetings; and two classes of deferred shares, one of 9.9p each and the other of 0.099p each, which have limited rights as laid out in the Company’s articles: in particular deferred shares carry no right to dividends or to attend or vote at shareholder meetings and deferred share capital is only repayable after the nominal value of the ordinary share capital has been repaid.

a) Changes in issued share capital and share premium:

Number of

Ordinary

Deferred

Deferred ‘B’

Deferred

Total

Share

Shares

shares

9.9p shares

0.099p shares

0.199p shares

shares

premium

Total

£

£

£

£

£

£

£

At 1 October 2018

341,962,383

3,420

7,194,816

3,828,359

257,161

11,283,756

44,460,171

55,743,927

Issue of shares less costs

100,000,000

1,000

1,000

665,960

666,960

Shares issued in payment of creditors

3,878,400

39

39

38,745

38,784

Balance at 31 March 2019

445,840,783

4,458

7,194,816

3,828,359

257,161

11,284,794

45,164,876

56,449,670

All the shares issued are fully paid up and none of the Company’s shares are held by any of its subsidiaries.

7. Consolidated Cash Flow Statement

Six months ended

31 March

2019

Six months ended

31 March

2018

Year ended

30 September

2018

£

£

£

Operating activities

Loss for the period, before tax

(282,561)

(247,946)

(550,019)

Adjustments:

Depreciation expense, property, plant and equipment

1,032

2,943

5,661

(Gain)/Loss on available for sale financial assets

970

Interest income

(1,135)

(1,386)

Other income

(175,188)

(Gain)/Loss on revaluation of investments

(4,259)

5,428

Shares issued in lieu of expense payments

15,000

(Increase) /decrease in accounts receivable

(166,081)

(1,097)

(24,525)

Increase/(Decrease) in accounts payable

56,225

(50,300)

(9,551)

(Increase)/decrease in taxation

(10,436)

Net cash flow used in operations

(571,969)

(301,408)

(563,850)

Notes to the Condensed Half-Yearly Financial Statements

For the six months ended 31 March 2019

8. Post period end events

On 15 April 2019 the Company announced that the Company has commenced processing and interpretation of airborne and ground geophysics in respect of the Company’s 100% owned Windidda gold project (the “Project”) in Western Australia.

On 26 April 2019 the Company announced the findings of the reconnaissance rotary air blast (RAB) drilling programme recently completed at the Black Cat gold prospect, which is located within the Bailieston gold project area (EL5433) in the state of Victoria, Australia. Significant intersections at 7 metres at 1.76 g/t gold from 35 metres in BCD11, 3 metres at 4.26 g/t gold from 16 metres in BCD18, and 1 metre at 6.3 g/t gold from 18 metres in BCD03.

On 1 May 2019 the Company announced further results from the reverse circulation (RC) drilling programme completed in February and March 2019 at the Blue Moon gold prospect in the state of Victoria, Australia. Across the full RC drilling programme, significant intersections included: 2 metres at 17.87 g/t gold within a zone of 15 metres at 3.81 g/t gold from 51 metres in BBM007; 3 metres at 3.88 g/t gold within a zone of 11 metres at 2.42 g/t gold from 169 metres in BBM006; 1 metre at 2.15 g/t gold at the top of a zone of 16 metres at 0.28 g/t gold from 85 metres in BBM004; 2 metres at 1.40 g/t gold within a zone of 14 metres at 0.54 g/t gold in BBM005 from 132 metres; 1 metre at 1.94 g/t gold from 138 metres and 5 metres at 0.46 g/t gold from 152 metres in BBM010; and 5 metres at 1.09 g/t gold from 97 metres in BBM013.

On 8 May 2019 the Company announced an update in respect of the Company’s exploration programme at the Creswick gold project (the “Project”) in Victoria, Australia. Of the 17 holes drilled the Company identified gold mineralisation in all holes, with grades in 9 holes ranging from 0.6 g/t gold to 44.63 g/t gold (1.44 oz per tonne).

On 14 May 2019 the Company announced that Mercator Gold Australia Pty Limited (“MGA”) ECR’s 100% owned Australian subsidiary has received a cash Research and Development refund of A$318,971.73 which relates to qualifying expenditure incurred by MGA in the year ended 30 June 2018. The refund was received under the R&D Tax Incentive from the Department of Industry, Innovation and Science of the Australian Government.

On 17 May 2019 the Company announced the launch of the new corporate website which can be viewed at: www.ecrminerals.com.

On 11 June 2019 the Company announced an update in respect of the Company’s gold nugget test programme at the Company’s Creswick Project in Victoria, Australia.

On 24 June 2019 the Company announced the appointment of Keith Whitehouse, of Australian Exploration Field Services Pty Limited, as a consultant resource geologist to the Company.

On 26 June 2019 the Company announced the commencement of gold exploration activities at the Timor Gold Project (the “Project”) in Victoria, Australia.

ECR Minerals #ECR – Progress Update – Gold Nugget Test Programme Creswick Gold Project – Australia

ECR Minerals plc (LON:ECR), the precious metals exploration and development company, is pleased to provide an update in respect of the Company’s follow on gold nugget test programme at the Company’s Creswick Project in Victoria, Australia. The test programme has been designed by ECR, in conjunction with its advisers.

Readers are also advised to review the Company’s previous announcement dated 8 May 2019 which outlined the presence of a nuggetty gold system at Creswick, and this may be viewed through the following link:

https://polaris.brighterir.com/public/ecr_minerals_plc/news/rns/story/wk5e8vw

Highlights:

  • ECR’s technical team, in conjunction with advice from tendering laboratories, have devised a structured approach to systematically test zones in and around the 640 sample bags (each close to 30 kg) containing quartz collected from the recent reverse circulation drilling campaign at the Creswick Gold Project;
  • An initial trial selection process will utilise a metal detector to prioritise bags with a metallic signal. This is anticipated to expedite the sample selection from the large number of bags to send for full testing;
  • Metal detecting is now underway and a number of bags have tested positive for metal content and have been removed from site for “whole-of-bag” testing. A testing process is being finalised with a preferred laboratory;
  • Full laboratory analysis will require multiple steps including sieving, detecting, gold particle analysis, gravity concentration and assaying to determine the size distribution and grade of the coarse and fine gold within the sample;
  • ECR will communicate the results of the testing process within an initial update expected in the near term and further interim updates as the whole of bag testing process continues.

Craig Brown, Chief Executive Officer commented: “I am extremely pleased with the professionalism of the Company’s technical team in devising the structured approach to bag testing that has been developed. Creswick is a unique project and the assessment of in-situ gold mineralisation requires bespoke project management and technical application.

I am delighted that our first metal detecting of bags has already highlighted metal content, which we expect is reflective of nugget gold mineralisation as samples from depth are unlikely to contain other detectable metals.

Our internal modelling suggests the Dimocks Main Shale is large enough to potentially host a multi-million ounce gold deposit at Creswick and therefore ECR are allocating resources to this project in a prioritised manner whilst continuing to develop our other Australian gold projects in parallel.”

Background:

Within its previous exploration work and as announced by the Company on 8 May 2019 ECR hypothesised an extreme nuggetty distribution of gold based on observations and results, including capturing a small 0.27 g nugget in gravity tests conducted on a single sample bag. This means that gold is not evenly distributed in bags of drilling samples.

The Company previously assayed 2 kg samples from a 30 kg bag which is industry practice but too small a sample for extreme nuggetty distribution. There was a significant likelihood that coarse gold could be excluded from the sample.

This meant that assays samples could be understated for gold and this was demonstrated in one bag test where the assay from a 2 kg sample reported gold of 1.88g/t whereas the 30kg whole of bag sample test showed the bag actually contained a substantially higher 11.8g/t. Alternatively, a single assayed nugget will overstate the average from a 2 kg sample.

Based on the size of the previously recovered 0.27 g nugget, an ideal sample size could be approximately 5,000 kg. A 30 kg bag is 0.6% of this size and not large enough to be considered a representative sample, but a fifteen-fold improvement on 2 kg samples. There remains a high chance the full bag tests will not capture the nuggets. However, the greater number of full bag tests will increase the likelihood of including nuggets.

“Whole-of-bag” testing methodology

Following discussions with its technical team ECR concluded it should move into a process of “whole-of-bag” testing to determine the full extent of the gold within the reverse circulation samples. This is a sizeable exercise. Of the 1687 m drilled, 640 bags of close to 30 kg each contain quartz and these bags plus the surrounding bags will be tested.

In order to achieve the above objectives the Company’s technical team, in association with external consultants including laboratories capable of undertaking the whole of bag sample work, have considered numerous approaches to the testing process. This involved visits by ECR to the laboratories and consideration of various testing pathways and associated record keeping and process validation.

Analysis will test the primary hypothesis that gold is coarse but a program is being designed to additionally check for fine gold within the bags to assess the size distribution of the particles.

After due consideration of all factors and a range of practical tests, the Company is finalising a testing procedure at a suitable laboratory which is likely to follow the steps below:

1. Initial metal detector scanning of bags to prioritise bags to send to the lab for full testing. The Company considers that nuggets large enough to significantly impact the nugget effect will be able to be located with a metal detector. This will save the company the cost of testing all bags. A series of bags with no signal will be collected for analysis of the finer gold fraction, especially if the main set of bags show a significant fine gold component;

2. Secure transfer of bags testing positive for metal content to the laboratory for whole of bag testing;

3. Under laboratory conditions sensitive metal detector scanning of the coarse sieved (>0.85 mm) fraction of the bags is undertaken and the source of the signal removed, examined, logged, photographed and weighed. The entire coarse sample will then be assayed to calculate the total coarse gold from the bag;

4. The fine sieved fraction (<0.85 mm) will be gravity concentrated and this concentrate plus all of tails assayed for gravity recoverable and total gold. Following this step, all of the contents of the original bag would have been assayed;

5. The total gold content for each size fraction of each whole tested bag is calculated.

Initial findings from first batch of bags tested

After establishing the above testing protocol, the Company’s technical team have commenced initial metal detection of the bags as outlined by step one above

During the first phase of metal detection work a number of bags have generated a positive signal from the metal detector. These bags have been secured for transport to the laboratory for whole of bag testing under laboratory conditions.

Further metal detection tests are continuing and additional bags testing positive for metal will be securely transferred to the laboratory for whole of bag examination.

Whilst it is not certain that the tested bags contain gold, or as to what grade of mineralisation exists, and whether this is elevated grade against previous bag assay samples, the Company’s technical team consider the number of bags responding to date is very positive and the Company looks forward to receiving the “whole-of-bag” gold data from the early bags selected for laboratory analysis.

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 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.

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