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

Article by the Financial Times

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

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

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

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

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

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

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

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

ECR Minerals #ECR – 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.

Alan Green talks ECR Minerals #ECR, Smart Metering #SMS, Sativa Group #SATI, Feedback #FDBK & Petrel Resources #PET on Vox Markets podcast

Alan Green talks ECR Minerals #ECR, Smart Metering #SMS, Sativa Group #SATI, Feedback #FDBK & Petrel Resources #PET with Justin Waite on the Vox Markets podcast. Interview is 49 minutes and 10 seconds in.

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

High Grade Gold Assays – Timor Gold Project – Australia

ECR Minerals plc (LON:ECR), the precious metals exploration and development company, is pleased to announce the receipt of high grade gold assays from the recently completed rock chip sampling programme at the Timor Gold Project (the “Project”) in Victoria, Australia.

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

Craig Brown, Chief Executive Officer commented: “I am extremely pleased to announce the receipt of high-grade gold assays from the Shaw’s Reef and Anglo-Saxon Reef prospects, during a recent reconnaissance sampling program where assays of 22.6 g/t and 26.3 g/t Au were received, respectively. Both these samples are of vein quartz taken randomly from the main waste dumps created by the old underground operations of the late 1800s & early 1900s.“

“Furthermore, the reconnaissance has discovered the Brilliant/Northumbria reef and its extensive gold workings, including an old open cut. 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.”

Highlights:

  • Quartz vein material assayed 22.6 g/t from Shaw’s Reef main shaft waste dump, which mined to 152m depth and produced 11465 ounces at a grade of 20.93 g/t Au;
  • Quartz vein material assayed 26.3 g/t from Anglo-Saxon Reef main shaft waste dump & the four samples averaged 8.12 g/t Au. No production records are available and the mine appears to have been worked to relatively shallow depths;
  • Eighty-four (84) rock samples were collected from 19 prospects, with over half (47) of the samples being mineralised or anomalous at >0.1 g/t Au;
  • These 47 anomalous samples of quartz vein or waste rock material are from 14 separate prospects which averaged 1.8 g/t Au indicating that not only are the quartz samples mineralised but that there is a high-level background gold content of the host rocks associated with many of the prospects;
  • The maximum gold grade for these waste rock samples received is 6.49 g/t from the North British Reef, where the material assayed was a host rock slate without any quartz content, which is remarkable;
  • A number of the prospects have consistently anomalous gold grades indicating that the ore does not appear to be particularly nuggetty and that reliable grades can be expected. Further sampling is therefore required to establish the extent of the mineralisation of these particular prospects prior to drilling;
  • A number of prospects remain to be sampled within both the LMFZ and SMFZ pending access negotiations to private property;
  • Wide zones of anomalous gold mineralisation associated with old quartz reef workings that operated on a number of parallel reefs, quartz blows, ladder veins and stockworks within a corridor of up to 80m wide occur at the Brilliant/Northumbria Reefs at the northern end of the Shaw-McFarlane Fault Zone (SMFZ). This zone is about 500m in length and may extend further and therefore offers an immediate drill target with potential for open cut gold mining. Historically part of the zone was open cut with horse and cart technology (Figure 1).

A link to Figure 1 Northumbria Reef open cut:

https://www.ecrminerals.com/images/2019/07/30/northumbria-reef-open-cut.jpg

A link to Figure 2 Brilliant Reef large quartz outcrop approximately 400m south of Northumbria workings:

https://www.ecrminerals.com/images/2019/07/30/brilliant-reef-large-quartz.jpg

Background to the Timor Gold Project:

Timor Gold project is located in Victoria Australia and held under exploration licence EL006278.

Historical records demonstrate that the Maryborough goldfield within the licence area has 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. (See references below).

Two major fault zones have been identified on the Project, namely the Shaw-McFarlane Fault Zone (“SMFZ”) and the Leviathan-Mariners Fault Zone (“LMFZ”), which are responsible for the majority of the hard-rock gold production.

The SMFZ has been shown to have consistently produced high grade gold mines along its length with Shaw’s Reef, McFarlane’s Reef and Havelock Monte Christo having recorded production at average grades ranging from 22g/t gold to 217 g/t gold with certain operations having been impacted by metallurgical challenges. (See references below.)

Opportunities exist within the SMFZ to identify and process gold mineralisation at potentially very high grade by applying modern processing techniques to resolve processing challenges that limited production many years ago.

The LMFZ hosts a large number of variably sized reefs that occur within the fault zone. These reefs are associated with diorite dykes and generally offer larger gold targets, albeit at lower grade compared to the SMFZ and historical mining records demonstrate that mining activities were often to relatively shallow depths.

Most of the LMFZ is under shallow alluvial cover which produced a considerable amount of gold in the early days of the Maryborough gold rush of the 1850s.

Both the SMFZ and the LMFZ have potential for modern open cut and underground mining techniques, because of the scale of the deposits present.

As a result of the successful program of reconnaissance rock dump sampling from the old workings announced today, the Company is reviewing the data collected to determine the next step for this the Timor Project.

Further information to follow as each step of the exploration programme is implemented and the results interpreted.

COMPETENT PERSON STATEMENT

This announcement has been reviewed by Neil Motton BAppSc (Hons), MAusIMM (CP), FSEG, a geological consultant to the Company’s wholly owned subsidiary Mercator Gold Australia Pty Ltd with more than 30 years of professional experience. Mr Motton 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 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.

References:

HOWITT, A.M., 1913. The Maryborough goldfield. Geological Survey of Victoria Memoir 11. Department of Mines, Victoria, 76 pp.

Whitelaw, H.S., 1899, Antimony Ores in Victoria. Geological Survey of Victoria Special Report.

ANON., Undated. Leviathan Gold Mines, Maryborough. Map showing Mining Lease areas, locations of shafts, reefs, alluvial leads composite level plans for mines, etc. Plan No 1757/B/1.

ANON, 1888, Lands held under Leases for Gold Mining, Shaw’s & Mariner’s Reef, Maryborough. Register for Mining Registrar for March 1888.

ECR Minerals: ‘Nuggety Nature’ of its Site in Australia gives Hope to this Hard-Working Gold Seeker

By Malcolm Stacey | Share Prophets | Friday 26 July 2019
Hello, Share Primers. Say what you like about gold explorers, there are a few that try really hard and deserve success. It’s a risky business, prospecting, but the rewards, if they come at all, can be dazzling. And it’s a reasonable strategy to have at least some fun money in this field, given the rosy prospect that some commentators expect on this scintillating website for a rising gold price.
I’ve previously brought  to your attention ECR Minerals. (ECR). I praised, among other factors, its diligence in bringing news to shareholders. I does it almost weekly and I do not find its releases to be too over-optimistic. Not like some miners I could mention.
To recap: ECR has exploration and development underway at 3 projects in Victoria, Australia. They are Bailieston, Crewick and Timor. Crewick is currently getting most of the attention as ECR claims it has ‘potential to host  a multi-million ounce gold deposit’.
We are told – and I believe this company to be honest – ‘There is plenty of long standing geological and anecdotal evidence supporting this view.’  In the winter, ECR did a lot of drilling at Crewick. Results exceeded expectations with quartz found in  third of the drilled land. (Quartz is a jolly sign, apparently).
But it was what the company quaintly describes as the ‘nuggety’ nature of gold mineralisation on the site that we’re expected to be encouraged by. If there are nuggets then it leads to the likliehodd of understated essays in the company’s samples.
The Aim-listed prospector has so many samples to test, it has rented a large aircraft hangar in Nagambie for the storage, preparation and drying of samples. They’ve also shipped in posh lab equipment to get the assays done.
And if all this is not successful, then the outfit does have the other Australian gold projects to fall back on.
Remember, gang, that oil prices are depressed at the moment. But as many analysts fear for the global economy, that might not stay pertinent for long.
And now let’s do some sampling of our own in the Punter’s Return.

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.

Malcolm Stacey, ShareProphets – You’ll Need to Be Brave to Invest in this Gold Explorer – But You Never Know

Hello, Share Travellers. Though the Footsie is moving up, there’s scant news to keep things bubbling along even faster. As usual, at this time of year, more traders are on hols with their kids and volumes go down. So by way of a change, may I bring to your attention ECR Minerals #ECR a gold explorer in Australia. Sounds risky – and of course it jolly well is…

Link here to view the full article

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) Creswick Gold – Resource Geologist Appointment

ECR Minerals plc (LON:ECR), the precious metals exploration and development company, is pleased to announce the appointment of Keith Whitehouse, of Australian Exploration Field Services Pty Limited, as a consultant resource geologist to the Company.

Mr Whitehouse holds a BSc Geology from the Victoria University of Wellington and has over 40 years’ experience in the provision of technical services to the resources industry with an emphasis on resource modelling, JORC and NI 43-101 reporting, business development, data management and associated IT solutions.

With extensive experience of Victoria exploration, and resource modelling, and as a former Chair and current committee member of the Central Victoria branch of AusIMM, Mr Whitehouse brings valuable skills and capabilities to complement the ECR technical team.

Craig Brown, Chief Executive Officer commented: “I am delighted to announce the appointment of Keith Whitehouse as an adviser to the Company. Keith’s knowledge and experience will be applied immediately with regard to our ongoing work at Creswick, where we are seeking to quantify gold mineralisation in a manner that, if applicable, can be embodied within a JORC compliant resource.

In addition Keith’s skills will be of further value in respect of other projects in our Victorian portfolio, especially those where knowledge and experience relevant to resource modelling in a nuggetty environment are required.”

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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