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Monetary Stimulus = Currency Devaluation = Increasing Gold Demand

As the world starts to emerge from the first wave of the COVID-19 crisis, the implications for the unprecedented monetary stimulus measures employed by Governments around the globe to support citizens in lockdown are becoming ever clearer.

As stock markets roar back from the coronavirus-led rout, advisers to the world’s wealthy are urging them to hold more gold, questioning the strength of the rally and the long-term impact of global central banks’ cash splurge, Reuters writers commented.

In a note for Kitco News, Allen Sykora noted Gold had started a new week on firmer footing amid worries about the rising number of COVID-19 cases. “The price of gold jumped to its highest in more than a month this morning ($1,757), after surging coronavirus cases heightened concerns over a delay in global economic recovery,” said a research note from commodities brokerage SP Angel. Analysts cited news reports showing that while social distancing in March and April slowed the spread of the virus, reopening in a number of U.S. states and European nations has coincided with a new wave of infections.

Commerzbank believes the U.S. economic recovery is “hanging in the balance” with a likelihood of “increasing calls for the U.S. government to implement further stimulus measures, especially as [Federal Reserve Chair Jerome] Powell had already called for more fiscal stimulus during his virtual testimony before the U.S. Congress last week,” Commerzbank also believes the U.S. Fed is “likely to keep the pedal to the metal – i.e. to expand its balance sheet”… and thus the issue of currency debasement/inflation ..”will remain high in the minds of market participants.”

Geologists speculating with fees for professional services

This ‘pedal to the metal’ approach to monetary easing and the conseqential strength in gold continues to drive investor interest in junior gold explorers. Increasingly this sector is seeing mining geologists taking fees for their work in shares as well as cash, as armed with knowledge and experience, a successful drilling campaign can have a transformational effect the valuations of small cap explorers with quality projects, meaning that professional fees can potentially multiply in value. The majority of small mining companies however only have one or two key projects in their asset portfolio, so micro-cap explorers that own a broad spread of assets are particularly sought after.

AIM listed ECR Minerals (AIM: ECR) is firmly in the latter category. The company 100% owns the Bailieston and Creswick projects in Central Victoria, Australia, and also has financial interests in the Avoca, Moormbool and Timor projects following the sale of those licenses, detailed below. In addition ECR has earned a 25% interest in the Danglay epithermal gold project in the north of the Philippinesand and holds a net smelter royalty on the SLM gold project in Argentina.

Creswick

Creswick has long been viewed as a potential pivot project for ECR after the highest grade duplicate result of 80.97 g/t gold came from a 1 metre interval that originally assayed 44.63 g/t, confirming the original findings announced on 8 May 2019. Referred to by ECR as ‘nuggety gold mineralisation’, a study by pre-eminent consulting geochemist Dr Dennis Arne, whose experience includes extensive consultancy at the highly successful Fosterville gold mine in Central Victoria, underlined the significant gold exploration potential at Creswick

Bailieston

Bailieston is also at the centre of the current gold exploration boom in Victoria, located close to the highly successful Fosterville mine owned by Kirkland Lake Gold. The project potential was underlined by the arrival of mining giant Newmont Exploration with a license application for ground immediately to the north of ECR’s Black Cat prospect. The Fosterville mine is located approximately 50km west of the Bailieston project.

Flagship Projects Set to Deliver Value

The focus on Creswick and Bailieston prompted the board decision in April 2020 to sell three further Victoria licences (the Avoca, Moormbool and Timor gold exploration projects) to TSX-V listed Fosterville South Exploration Ltd for an upfront cash payment of A$500,000, plus additional potential of a further A$2 million based on resource estimates and gold production.

This, added to the two recent R&D cash refunds and the GB£500,000 placing at 0.5p mean that ECR are fully funded and ready to spend on further developing the two flagship assets.

And with external parties currently reviewing data on the Bailieston and Creswick gold projects with a view to potential commercial transactions and joint venture opportunities, the ECR board believes that both projects “hold considerable potential and inherent value for the Company.”

Currently valued at just GB£3.9m, there are great expectations for ECR in the coming months despite the restrictions resulting from the COVID-19 lockdown. Given the compelling backdrop in the Gold market and the ‘pedal to the metal’approach to monetary easing by Governments around the world, ECR shareholders could be set for a bonanza if Creswick and Bailieston come good.

References:

Reuters: https://www.reuters.com/article/us-health-coronavirus-gold-wealth-analys/worlds-ultra-wealthy-go-for-gold-amid-stimulus-bonanza-idUSKBN23P253

Kitco: https://www.kitco.com/news/2020-06-22/Gold-prices-trade-to-one-month-high-on-COVID-19-concerns-analysts.html?sitetype=fullsite

 

 

 

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

Hallgarten & Company produce Initiation of Coverage Research Report for ECR Minerals

ECR Minerals plc (LON:ECR), the precious metals exploration and development company, is pleased to announce that Hallgarten & Company have produced an Initiation of Coverage report on the Company.

The report, which has been compiled using publically available information, is available on the Company’s website through the following link:

https://www.ecrminerals.com/investors-media/research-notes/download?path=ECR_Feb2019.pdf

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.

Central Victoria gold rush revival continues as ECR Minerals applies for licensing at an additional four sites following Newmont’s application a few weeks ago.

  • Newmont Mining and ECR Minerals join Central Victoria gold rush revival 
  • Fosterville mine in Victoria expected to break production record 
  • Untouched potential in Victoria 
  • ECR Minerals fully funded through to June 2020 following strategic financing round

In recents weeks it was revealed that world’s second largest gold producer Newmont Mining (NYSE:NEM) had applied for the licensing of a large area of land in Victoria, bordering ECR Minerals (AIM:ECR) Bailieston and Moormbool gold projects.

ECR have responded by announcing four new license applications that will expand two of their existing holdings in the Victoria region. These include three strategically placed sites in the Bailieston/Moormbool project area which lie south and south west of the area Newmont recently applied for. It also includes an area that will expand the highly promising Creswick project over a southern portion of the Dimocks Main Shale (DMS) – which is believed to sit between two historically significant mining areas, estimated to have produced 15 million ounces of gold.

For ECR, Newmont’s application to move in next door was without a doubt further encouragement of the huge potential of their existing sites and appears to have encouraged them to move fast and extend licensing in strategic areas in the Victoria region.

ECR CEO Craig Brown said that the application submitted by Newmont bordering Bailieston and Moormbool gold projects “is an important ratification of our strategic Australian gold positioning.”

The presence of Newmont certainly adds weight to the potential prospectivity of the area. Brown added that ECR’s exploration work at Bailieston “has recently demonstrated gold prospectivity as highlighted by the results of our Bailieston sampling programme announced on 28 September 2018 with gold grades up to 67.4g/t.”

Victoria Gold Rush Revival

While the licenses all remain pending, the moves support what appears to be a highly promising revival for gold mining in the Victoria region.

Early this year Melbourne Mining Club chairman Richard Morrow told the The Australian Mining Review “The success of Kirkland Lake Gold at Fosterville has really lifted the profile of Victoria as a place to find gold, especially high-grade, underground mineable gold” (Australian Mining Review). The statement came after an estimated 1.7 million ounces worth approximately $2.85 billion was discovered at the mine in 2017 (Premier).

In November, Kirkland Lake Gold revealed the Fosterville mine located just 30km away from ECR’s Bailieston project had produced “exceptionally high grades”, with the mill grade in Q4

2018 averaging over 35.0 grams per tonne. Fosterville is now expected to break its own record quarterly production in the fourth quarter of 2018, pushing full-year predictions up to 330,000 ounces (Mining.com). Beyond this, it expects to achieve over 500,000 ounces per year by 2020.

Fostervilles ongoing success and the latest applications from ECR and Newmont certainly seem to support Richard Morrow’s statement. If accepted they will continue to push Victoria back into the spotlight amongst gold miners – a position it’s not held since the famous Victoria gold rush in the early 1850s.

Untouched potential in Victoria area

The 1850’s gold rush saw production skyrocket in Victoria as thousands of miners moved to the area after strong mineralisation was discovered in Ballarat in 1851. Levels were so significant that for a number of years gold output in Victoria exceeded that seen anywhere else in the world, bar the more extensive fields of California. Victoria’s greatest yield for one year was in 1856, when 3,053,744 troy ounces of gold were extracted.

However, by the early 1860s most diggers had moved North to New South Wales, then Queensland and across to Western Australia (WA), which now produces the majority of Australia’s gold. Despite this short period of extensive mining the state has still produced over 2,400 tonnes of gold or 32 percent of all the gold mined in Australia and 2 per cent of all the gold ever mined in the world. While WA has produced more, with 3,275.8 tonnes, much of this has been thanks to the booms of the last two decades where new technology has enhanced the discovery and extraction of gold.

WA has also undergone six separate development phases since the 1890s compared to Victoria’s initial rush in the 1850s as well as its current phase. However, contrasted on a yield per area basis, Victoria has an order of magnitude greater than any other Australian state producing an average of 10.8kg of gold / km2. Generating these significant levels of gold in such a period of time, without much of today’s technology would suggest the area remains full of potential – as the recent reports from Fosterville and ECR suggest.

If the old saying ‘the best place to find gold is in the shadow of the headframe of an old mine’ holds true then ECR are ideally placed to make the most of this golden opportunity. As well as Bailieston, they have licences granted in Avoca (EL5387), Timor (EL6278), Moormbool (EL6280) and Creswick (EL6184). As seen on the map above, all of these projects lie within close, if not direct proximity to historical sites known for significant levels of gold mining since the 1850s. These include; Ballarat, which ‘at its peak between 1852-1853 was recognised as probably the richest alluvial goldfield in the world, the Mt Alexander field at Castlemaine which in December 1851 was yielding 23,000 oz of gold a week, Creswick as already highlighted, as well as, Maryborough and Maldon (Earth Resources).

ECR Minerals fully funded through to June 2020

ECR has kicked off 2019 in style, signalling it’s ambitions to become a major Australia gold explorer with the announcement on January 2nd 2019 that it has applied for nine new exploration licences in an area called the Windidda gold project in Yilgarn, Western Australia. The Yilgarn Craton contains evidence of the oldest crust on Earth, and at almost 4km long, 1.5km wide and 500m deep, it’s world-famous Super Pit produces up to 800,000 ounces of gold per year alone.

There appears to be an overwhelming tide of evidence, both current and historical supporting further exploration and development at Central Victoria. While the Newmonts and Fostervilles will continue exploration and production at their own rate, based on the recent reports of high yields and strong yield per area results, it is ECR Minerals with 5 licensed sites and a host of additional plots pending that could be the investment opportunity of the century, and in pole position to capitalise on the untouched potential of Central Victoria. Clearly investors and shareholders think so too: ECR announced a strategic financing round, which together with warrants and shares totalling GBP1.77m will see the company fully funded to pursue operations through to June 2020. Directors Craig Brown and David Tang

both participated in the financing round. Either way, ECR investors could be sitting on a gold mine in the not so distant future.

By Harry Dacres-Dixon

References:

Australian Mining Review – http://australianminingreview.com.au/mining-in-victoria-good-as-gold/ 

Brand Communications – http://www.branduk.net/ecr-minerals-ecr-new-licence-applications-australian-gold-portfolio/

Earth Resources – http://earthresources.vic.gov.au/earth-resources/geology-of-victoria/exhibitions-and-Imagery/ history-mining-victoria

Mining.com – http://www.mining.com/kirkland-lake-golds-aussie-operation-breaks-production-record/ Premier – https://www.premier.vic.gov.au/bendigos-billion-dollar-gold-rush/

Value the markets – http://www.valuethemarkets.com/index.php/2018/11/15/exclusive-newmont-mining-secures-li cense-area-next-ecr-minerals-baileston-gold-project/

Geology for Investors – https://www.geologyforinvestors.com/gold-archean-greenstone-belts/

Kirkland Lake Gold – https://www.klgold.com/news-and-media/news-releases/default.aspx

Other companies http://kzr.com.au/wp-content/uploads/austocks/kzr/2018_06_20_KZR_1529488920.pdf

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