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ECR Minerals #ECR wholly owned subsidiary Mercator Gold receives R&D development refund of approx GBP171k from Australian Government

ECR Minerals plc (LON:ECR), the precious metals exploration and development company, is pleased to provide an update in respect of a Research and Development refund received under the R&D Tax Incentive from the Department of Industry, Innovation and Science of the Australian Government.

Highlights:

  • 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 (approximately £171,000);
  • The refund received relates to qualifying expenditure incurred by MGA in the year ended 30 June 2018;
  • In addition, MGA is entitled to submit a further claim for the year ended 30 June 2019 and based on current estimated qualifying expenditure the amount of the claim for the period to date will be approximately A$370,000 (approximately £198,000) which the Company would expect to receive in around August 2019, although there can be no guarantee that this amount will be obtained;
  • Finally, included within the MGA Tax Return for the year ended 30 June 2018, MGA has 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.

Craig Brown, Chief Executive Officer commented: “I am pleased to confirm the receipt of a significant cash refund by MGA our Australian subsidiary. This incoming cash augments existing cash resources and will applied toward the Company’s active gold exploration programmes in Australia.

A further refund claim will be made for the year ended 30 June 2019 and based on current qualifying expenditure, we anticipate a claim of A$370,000 against which we would expect to receive cash payment around August 2019, based on our current planned financial accounts and tax reporting schedule although there can be no guarantee that this amount will be obtained.

We are grateful for the immense support offered by the Australian Government which we believe demonstrates the attractiveness of Australia as a destination for investment in exploration and development projects.

As a result of Government support, the Company’s cash resources are bolstered, enabling it to maintain a considerable and active exploration programme.”

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 – Successful Reconnaissance Drilling at Black Cat Gold Prospect Victoria, Australia

ECR Minerals plc (LON:ECR), the precious metals exploration and development company, is pleased to announce 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.

ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) has 100% ownership of the Bailieston project.

Readers are advised to review ECR’s announcement dated 4 February 2019 regarding the initiation of the Black Cat drilling programme, which can be viewed at the following link:

https://polaris.brighterir.com/public/ecr_minerals/news/rns/story/w1mok9w

HIGHLIGHTS:

  • Reconnaissance RAB drilling programme targeted numerous quartz reefs at Black Cat with a total of 18 shallow holes for 485 metres of drilling;
  • Significant intersections are reported in Table 1 below and include 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;
  • The potential for supergene enriched mineralisation at the water table interface and for deeper primary mineralisation could be investigated by drilling deeper holes;
  • The Black Cat prospect is located immediately south of ground recently applied for by Newmont Mining, and is among the high priority targets identified by the geophysical interpretation and targeting study completed for MGA in late 2017;
  • Important geological insights have been generated by the drilling programme, which will guide further exploration at Black Cat and other prospects in the Bailieston gold project area.

Craig Brown, Chief Executive Officer of ECR Minerals plc, commented: “This was a valuable reconnaissance programme at a gold prospect which had never been drilled before, located immediately south of ground recently applied for by a subsidiary of Newmont Mining.

The drilling targeted numerous quartz reefs with 18 holes drilled in total. Most of the locations had some historical gold mining activity, and all of them had positive previous rock chip sampling results.

I am delighted with the positive outcomes from this programme. As well as some encouraging grades, the drilling has provided important geological information which may help vector further exploration in the project area towards achievement of ECR’s prime strategic objective, which is the discovery of a multi-million ounce gold deposit.”

Further Information

Rotary air blast (RAB) drilling is a low-cost method well suited to the first pass, reconnaissance testing required at the Black Cat gold prospect. Eighteen holes were drilled, to a maximum depth of 47 metres downhole, for a total of 485 metres.

Full details of all drill holes are reported in the tables below. A map showing the location of the drill holes may be downloaded at the following link:

https://www.ecrminerals.com/black-cat

Composite samples representing 3 or 4 metre downhole lengths were initially compiled from the drill cuttings and sent to be fire assayed for gold. After receipt of the assay results, composites which returned anomalous gold grades were re-sampled on a metre by metre basis. This second set of samples was sent for fire assay, and the intersections reported in this announcement are based on those assay results. All assays were carried out at On Site Laboratory Services in Bendigo, Victoria.

Each of the three main quartz reefs that were worked historically at Black Cat is around 350m long. Drill holes were located along each of these reefs, especially near the most significant workings.

Discussion of Results

The main Black Cat reef comprises a series of en-echelon quartz lenses within a shear zone, as is found at various other reefs within the Redcastle goldfield, and for this reason the drilling completed did not always intersect the quartz veined sections. Apart from the quartz veined material that was mined historically, there exist siliceous pyritic sandstones and heavily fractured limonitic siltstones that can also be auriferous.

Hole BCD11 was drilled at the southern end of the main reef and the intersection of 7 metres at 1.76 g/t gold is associated with a diorite dyke and a zone of significant quartz veining at the footwall of the dyke in the host sandstone.

Narrow high-grade zones were intersected in BCD03 (1 metre at 6.3 g/t gold from 18 metres) and BCD18 (3 metres at 4.26 g/t gold from 19 metres) on two separate reefs, the main reef and the north reef, both of which appear to be shoot types of mineralisation because of the discontinuity along strike which has been established by other drill holes. In the case of both BCD03 and BCD18, no quartz veining was observed in the drill cuttings where gold was found to occur. The gold-mineralised intersections here are associated with limonitic siltstone.

The drilling indicates that there is typically a supergene enriched zone near surface that reaches a vertical depth of around 10 metres. There remains potential for additional supergene enrichment near the water table (approximately 50 metres), and for higher gold grades in deeper primary mineralisation. The three most significant intersections are all on different reefs and each could be investigated further by deeper drilling.

Further exploration could also focus on larger nearby structures that may be the source of the gold mineralisation, such as the Moormbool and Black Cat faults.

Table 1

Significant Intersections from Q1 2019 RAB Drilling at the Black Cat Gold Prospect

EL5433, Victoria, Australia

NB: intersections reported are apparent width with a cut-off grade of 0.3 g/t gold

Hole ID From (m) To (m) Interval (m) Grade g/t gold Reef
BCD01 16 18 2 0.58 North extension
BCD03 18 19 1 6.3 North
BCD08 0 3 3 0.68 Main
BCD11 35 42 7 1.76 Dyke
BCD15 8 9 1 1.08 Main
BCD18 16 19 3 4.26 Main

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 Ltd has 100% ownership of the Avoca, Bailieston, Creswick, Moormbool and Timor gold exploration projects 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.

Table 2

Hole Details (MGA94) – Q1 2019 RAB Drilling at the Black Cat Gold Prospect

EL5433, Victoria, Australia

Hole ID Easting Northing Depth Azimuth Dip Location
BCD01 307822 5931871 34 220 -60 NW trench
BCD02 307803 5931848 31 37 -60 NW trench
BCD03 307871 5931678 33 226 -60 North reef
BCD04 307860 5931690 30 225 -60 North reef
BCD05 307958 5931126 20 2 -60 Dyke
BCD06 307813 5931772 24 45 -60 North reef ext.
BCD07 307820 5931780 13 45 -60 North reef ext.
BCD08 307901 5931272 16 25 -60 Main reef
BCD09 307898 5931262 26 20 -60 Main reef
BCD10 307890 5931314 26 225 -60 Main reef
BCD11 307961 5931133 47 10 -60 Dyke
BCD12 307940 5931016 30 215 -60 South reef east end
BCD13 308005 5931113 42 13 -60 Dyke
BCD14 307936 5931145 36 10 -60 Dyke
BCD15 307865 5931340 9 220 -60 Main reef
BCD16 307867 5931343 13 220 -60 Main reef
BCD17 307879 5931330 28 226 -60 Main reef
BCD18 307895 5931302 27 225 -60 Main reef
Total 485

Table 3

Complete Results of Q1 2019 RAB Drilling at the Black Cat Gold Prospect

EL5433, Victoria, Australia

NB: intersections reported are apparent width with a cut-off grade of 0.3 g/t gold

Hole ID From (m) To (m) Interval (m) Grade g/t gold Reef
BCD01 16 18 2 0.58 North extension
BCD02 No significant intersections
BCD03 18 19 1 6.3 North
BCD04 No significant intersections
BCD05 No significant intersections
BCD06 No significant intersections
BCD07 No significant intersections
BCD08 0 3 3 0.68 Main
BCD09 No significant intersections
BCD10 No significant intersections
BCD11 35 42 7 1.76 Dyke
BCD12 No significant intersections
BCD13 No significant intersections
BCD14 No significant intersections
BCD15 8 9 1 1.08 Main
BCD16 No significant intersections
BCD17 No significant intersections
BCD18 16 19 3 4.26 Main

ECR Minerals #ECR – Annual Financial Report & Notice of AGM

ECR Minerals plc is pleased to announce its audited financial statements for the year ended 30 September 2018. The information presented below has been extracted from the Company’s Annual Report and Accounts 2018.

Copies of the Annual Report and Accounts 2018 together with a notice of annual general meeting will be posted to shareholders today and will be available shortly on the Company’s website www.ecrminerals.comand from the Company’s registered office at Unit 117, Chester House, 81-83 Fulham High Street, Fulham Green, London SW6 3JA. The text of the notice of annual general meeting is provided below.

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 413 500
Broker
Nick Emerson

FORWARD LOOKING STATEMENTS

This announcement may include forward looking statements. Such statements may be subject to numerous 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 because of new information, future events or for any other reason.

The Directors of ECR Minerals plc (the “Directors” or the “Board”) present their report and audited financial statements for the year ended 30 September 2018 for ECR Minerals plc (“ECR”, the “Company” or the “Parent Company”) and on a consolidated basis (the “Group”)

Chairman’s Statement

Over the past year, ECR has continued to advance and augment its portfolio of gold exploration projects in Australia, which is one of the world’s principal gold producers and one of the foremost destinations for global mining investment.

During the financial year ended 30 September 2018 and since the year-end the Company’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) has carried out extensive exploration work in the state of Victoria, with drilling completed at two prospects in the Avoca gold project area during calendar year 2018, followed by drilling at the Creswick gold project in February 2019, and at the Blue Moon and Black Cat prospects in the Bailieston gold project area later the same month. The results of these programmes are discussed in the Chief Executive Officer’s report, to the extent which they are available. I am pleased to note that drilling results announced to date have included some significant intercepts at Blue Moon, the most exciting being 2 metres at 17.87 g/t gold from 57 metres downhole in BBM007, within a zone of 15 metres at 3.81 g/t gold from 51 metres.

In late 2018, the Group moved into another world-class Australian gold province, the Yilgarn Craton in Western Australia. MGA has made nine exploration licence applications over a 1,600 square kilometre land package which has been identified as a potential greenstone-hosted orogenic gold exploration opportunity with significant potential to contain Archaean greenstones buried beneath Permian cover sequences of the Canning Basin.

Importantly, ECR is moving forward from a position of financial strength, having raised £1.35 million (before costs) during calendar year 2018, and with the potential for more than £2 million of further funding to come into the Company through the exercise of warrants issued to investors as part of those fundraisings.

I would like to welcome Sam Garrett to the Board as a non- executive director. Mr Garrett, who is a resident of Australia, holds a Bachelor of Science degree with First Class Honours in Geology and a Master of Economic Geology degree, both from the University of Tasmania. He also holds a Master of Applied Finance degree from Macquarie University in Australia. Mr Garrett has over 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. I am sure that Sam has a valuable contribution to make as a director of ECR.

Christian Dennis resigned as a non-executive director of the Company in July 2018, to focus on his other business interests. The Board would like to thank Christian for his service as a director of ECR and wish him well for the future.

Pleasingly, the gold price has made a healthy start to 2019 by returning to levels in excess of USD 1,300 per troy ounce, and we are hopeful that macroeconomic conditions will see the price rise further in the near future. Regardless, the Board remains confident in ECR’s strategic objective of discovering a multi-million ounce gold deposit, and we look forward to reporting further progress towards this goal.

Chairman

28 March 2019

Chief Executive Officer’s Report

The Group’s concentration on gold exploration in the state of Victoria, Australia, continued apace during the year, as did the exploration boom across the Victorian gold province as a whole. The latter has been driven in large part by the success story which has unfolded at the Fosterville gold mine, which produced more than 350,000 ounces of gold in 2018 and is firmly established as Victoria’s largest gold producer.

At the same time, we have expanded our footprint to Western Australia by applying for a package of nine exploration licences in the Yilgarn Craton, which comprise the Windidda gold project, and maintained our presence in Argentina at the SLM gold project in La Rioja Province.

We are also continuously evaluating potential new opportunities and will engage with those, such as the Windidda project, that we determine may have the potential to enable the achievement of ECR’s primary strategic objective, which is to generate value for shareholders through the discovery of a multi-million ounce gold deposit.

By convention, much of this Chief Executive Officer’s Report relates to activities which have taken place after 30 September 2018. Diamond drilling at the Bung Bong, Monte Christo and Blue Moon prospects was completed prior to the year-end, as was rock-chip sampling in the Byron and Cherry Tree areas. Reverse circulation (RC) drilling at Blue Moon and the Creswick project and rotary air blast (RAB) drilling at the Black Cat prospect has taken place in the current financial year.

GOLD EXPLORATION IN VICTORIA, AUSTRALIA

In Victoria, ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) has 100% ownership of six exploration licences: Avoca (EL5387), Bailieston (EL5433), Creswick (EL006184), Moormbool (EL006280 and EL006913) and Timor (EL006278).

MGA has pending applications for four further exploration licences, two south and south west of the existing licence at Creswick; and two others in the vicinity of the Bailieston and Moormbool project areas, to secure available ground south and south east of a licence applied for by Newmont Exploration Pty Ltd.

In early February 2019, MGA commenced a reverse circulation (RC) drilling programme at Creswick, which was followed by a second RC programme at the Blue Moon prospect in the Bailieston gold project area. In parallel, a rotary air blast (RAB) programme was carried out at the Black Cat prospect, which is also within the Bailieston gold project area.

The Company announced assay results in respect of three holes drilled at Blue Moon on 14 March 2019, with results from a further nine holes expected to be announced soon. Assay results from drilling at Black Cat and Creswick are also expected to be announced in the near future. From the announced Blue Moon results, significant intersections included 2 metres at 17.87 g/t gold from 57 metres down hole in BBM007, within a zone of 15 metres at 3.81 g/t gold from 51 metres.

Bailieston Gold Project – EL5433

The Bailieston project is at the epicentre of the current gold exploration boom in Victoria, being located close to the highly successful Fosterville mine owned by Kirkland Lake Gold. This point is underlined by the arrival of Newmont Exploration in the district with an application for ground immediately to the north of the Black Cat prospect.

Blue Moon Prospect

The focus of activities in the Bailieston project area for the past year has been the Blue Moon prospect. This was identified as a high priority prospect in early 2018 when Dr Rodney Boucher, an experienced Victorian gold geologist, commenced a review of all available data on MGA’s exploration licences (at that time numbering four licences), complemented by geological mapping and geochemical surveys in selected areas. The purpose of this work was to help define targets for a diamond drilling programme extending across a number of MGA’s prospects.

The geochemical surveys utilised a portable XRF to delineate proxy minerals associated with gold. An arsenic- anomalous zone up to 40 metres wide and more than 200 metres long was identified at Blue Moon, and previous work showed anomalism over a further 150 metres to the west. Previous rock chip samples included results of 12.1, 10.1 and 7.0 g/t gold, and previous soil surveys identified gold to 5.0 g/t.

The diamond drilling at Blue Moon was intended to test the arsenic and antimony anomalies identified by the soil geochemical survey completed by MGA in early 2018. Positive results from the drilling were announced in July 2018.

Diamond drill holes BBM001 and BBM002 were designed to establish the dip of the host sandstones and assess the potential for gold mineralisation. Intercepts of 5.45 metres at 0.12 g/t gold from 33.95 metres and 10.0 metres at 0.16 g/t Au from 43.8 metres were obtained in BBM001 and BBM002, respectively. Upon drilling faulted, stockworked sandstone in the first two holes, BBM003 was drilled down dip to test the nature of the cross-cutting faults and veins and to obtain a large number of samples for analysis. An intercept of 39.5 metres at 0.3 g/t gold from 24.2 metres, including 2.7 metres at 1.12 g/t gold from 60 metres, was obtained in BBM003. Intersections given in this paragraph are apparent width.

The gold mineralisation intersected is hosted in an approximately 5.5 metre wide medium-grained sandstone within a thick bioturbated shale. Diorite sills have intruded along the margins of the sandstone. The sandstone is metamorphosed to quartzite and the brittle host showed stockwork vein development in each of the three holes. Small iron-oxide pseudomorphs thought to be of arsenopyrite and pyrite were disseminated throughout the quartzite. Deep weathering of the sandstone meant that no samples of fresh rock could be obtained from the diamond drill holes to verify the minerals.

The high repeatability of the assay results from MGA’s diamond drilling at Blue Moon supports the hypothesis that the prospect is a disseminated gold occurrence comparable to some of the mineralisation exploited at the Fosterville mine approximately 50km away.

Given the deep weathering and the potential for gold depletion in the oxidised sulphides, it was considered possible that higher grades would be encountered at depth in the fresh (un-weathered) rock. Obtaining samples from fresh rock was a key objective of the drilling completed at Blue Moon in February 2019.

The twelve reverse circulation (RC) holes (BBM004-15) completed at Blue Moon by MGA aimed to intercept the sandstone on 50 metre spacing across three sections and to gain samples from beneath the oxide zone.

Assay results have been announced for holes BBM007, BBM006 and BBM004, and have shown both high grade intervals and significant widths of anomalous gold grades. As well as 2 metres at 17.87 g/t gold from 57 metres down hole in BBM007, within a zone of 15 metres at 3.81 g/t gold from 51 metres, an intersection of 3 metres at 3.88 g/t gold from 170 metres down hole within a zone of 11 metres at 2.42 g/t gold from 169 metres in hole BBM006 has been announced. Intersections given in this paragraph are apparent width.

These results indicate that a high grade zone exists within the target sandstone host. Further drill results and interpretation will be required to understand any concentration of mineralisation within shoots.

The base of the oxide zone was at 64 metres in BBM007 within the host sandstone. Visible gold was seen in three samples (3 metres at 13.4 g/t gold from 57-60 metres) and it is possible these are elevated gold values as a result of supergene enrichment close to the base of the oxide zone. BBM004 & 6 intercepted the host sandstone beneath the oxide zone. Logging recorded estimates of up to 4% pyrite and 2% arsenopyrite with minor quartz. No visible gold was seen in these samples.

In addition to Blue Moon, two further prospects with similar characteristics at surface, namely anomalous arsenic and broad areas of quartz float, have been identified within an approximately 3km radius. MGA will be further assessing these prospects, referred to as Red Moon and Yellow Moon, in the months to come.

Black Cat Prospect

Black Cat is among the high priority targets identified by the geophysical interpretation and targeting study completed for MGA by Terra Resources in late 2017 and has not been previously drilled. The prospect is immediately south of ground recently applied for by Newmont Exploration and contains 220 metres of historical workings along three known lines of quartz reef. Strong gold-in-soil anomalism in some areas indicates unworked reefs may remain to be discovered, and rock chip sampling of quartz-poor material indicates potential for disseminated gold. Rock chip samples at Black Cat have returned encouraging grades up to 11.3 g/t gold.

Rotary air blast (RAB) drilling is a low cost method well suited to the first pass testing required at Black Cat, and a 450 metre RAB programme commenced in February 2019.

Other Prospects at Bailieston

Away from Black Cat and the ‘Moon’ prospects, exploration work at Bailieston included 151 surface rock chip samples to help assess targets in the Byron and Cherry Tree areas, which contain numerous northwest trending quartz reefs, including the Byron, Scoulars and Maori reefs that were drilled by MGA in 2017. Of these samples, 51 returned gold grades in excess of 0.5 g/t, with the highest being 67.4 g/t. Of the high grade samples, 26 were re-assayed in accordance with common QA/QC practice, and the repeat assays demonstrated good consistency with the first round of assays.

Creswick Gold Project – EL006184

The Creswick project targets gold mineralisation hosted within the Dimocks Main Shale (DMS), which extends over a 15km trend from the mining centre of Ballarat to the south, approximately 7km of which is covered by EL006184 and MGA’s two exploration licence applications. In the project area, the DMS is an approximately 25 metre wide shale containing bedding and cleavage-parallel auriferous quartz veins. Only two holes have previously been drilled to test the DMS within EL006184, both in the 1990s. The results of this drilling included an intercept of 2 metres at 12.28 g/t gold. The best previous drill intercept into the DMS elsewhere is 2 metres at 176 g/t gold.

Avoca Gold Project – EL5387

MGA drill-tested two gold prospects in the Avoca project area in April and May 2018, also following Dr Boucher’s data review, mapping and geochemical surveying. Five holes were completed at the Bung Bong prospect using a diamond core rig. Thereafter, the rig moved to the Monte Christo prospect, where two holes were drilled. Assay results were announced in early June 2018.

All five holes at Bung Bong and the two holes at Monte Christo fulfilled their intended purpose, which was to test the structural architecture of the target areas. The holes were the first ever drilled at both Bung Bong and Monte Christo, and gold mineralisation was intersected at both prospects, although no high-grade shoots were encountered.

WESTERN AUSTRALIA

Windidda Gold Project

In December 2018, MGA submitted nine contiguous exploration licence applications covering a 1,600 square kilometre package of ground prospective for gold mineralisation in the Yilgarn region of Western Australia, east of the town of Wiluna. The application package is to be known as the Windidda gold project.

Archaean greenstones host many of Western Australia and the world’s most prolific gold deposits, and the Windidda applications cover a significant proportion of an identified gravity-magnetic trend with known gold prospects along trend in outcropping greenstone to the south (outside the application areas).

The under-cover greenstone gold exploration model has been successfully tested by Greatland Gold (LON:GGP) at its Ernest Giles project located approximately 125km east of the Windidda project.

Previous exploration within the Windidda project area has targeted base metal and manganese deposits within the cover sequences. Gravity and magnetic anomalies interpreted to be hosted in greenstone units beneath the cover have not been targeted. These targets are expected to be amenable to aircore drilling to enable rapid assessment of potential for gold mineralisation, after the exploration licences are granted.

Iceberg Gold Project

The Company secured an option over the Iceberg project in Western Australia in August 2018, but after completing its due diligence, elected not to proceed with the acquisition.

FINANCIAL RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2018

For the year to 30 September 2018 the Group recorded a total comprehensive expense of £721,460, compared with £562,649 for the year to 30 September 2018.

The largest contributor to the total comprehensive expense was the line item “other administrative expenses”, which represents the costs of operating the Group and carrying out exploration at its projects, where these costs are ineligible for capitalisation under applicable accounting standards.

The Group’s net assets at 30 September 2018 were £3,651,545, in comparison with £3,735,225 at 30 September 2017. The decrease is due to increased exploration assets as a result of the capitalisation of exploration expenditure during the year being offset by a reduction in cash and cash equivalents.

Craig Brown

Chief Executive Officer

Independent Auditor’s Report

For the year ended 30 September 2018

Independent Auditor’s Report to the Members of ECR Minerals Plc

Opinion

We have audited the financial statements of ECR Minerals Plc (the ‘parent company’) and its subsidiaries (the ‘group’) for the year ended 30 September 2018 which comprise the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated and Parent Company Statement of Financial Position, the Consolidated and Parent Company Statements of Changes in Equity, the Consolidated and Parent Company Statements of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union and as regards the parent company financial statements, as applied in accordance with the provisions of the Companies Act 2006.

In our opinion:

  • the financial statements give a true and fair view of the state of the group’s and of the parent company’s affairs as at 30 September 2018 and of the group’s and parent company’s loss for the year then ended;
  • the group financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union;
  • the parent company financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union and as applied in accordance with the provisions of the Companies Act 2006; and
  • the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard as applied to listed entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

  • the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
  • the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group’s or the parent company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Our application of materiality

The scope of our audit was influenced by our application of materiality. The quantitative and qualitative thresholds for materiality determine the scope of our audit and the nature, timing and extent of our audit procedures. Group materiality was £60,000 based upon gross assets and the loss before tax. The Parent Company materiality was £55,000 based upon gross assets and the result for the year. For each component in the scope of our group audit, we allocated a materiality that is either equal to or less than our overall group materiality.

An overview of the scope of our audit

As part of designing our audit, we determined materiality and assessed the risk of material misstatement in the financial statements. In particular, we looked at areas involving significant accounting estimates and judgement by the Directors and considered future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud. The Australian and Argentinian subsidiary undertakings represent the principal business units within the Group, upon which we performed audit procedures directly on significant accounts based on size or risk profile to the Group. A full scope audit was undertaken on the financial statements of the Parent Company.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. This matter was addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on this matter.

Key Audit Matter How the scope of our audit responded to the key audit matter
Recoverability of intangible assets – exploration and development costs (refer note 10)

The carrying value of intangible assets as at 30 September 2018 is £2,859,474 which comprises exploration and development projects in Australia, Argentina and the Philippines. The carrying value of these intangible assets are tested annually for impairment. There is a risk that the carrying value of these early stage projects is impaired and that the exploration and development expenditure

capitalised during the year is not in accordance with IFRS 6.

The carrying value of all early stage exploration and development projects were assessed and tested in accordance with the following criteria:

  • The Group holds good title to the licence areas;
  • The Group has planned and budgeted for further expenditure for mineral resources in the licence areas; and
  • Exploration and development work undertaken to date has indicated the existence of commercially viable quantities of mineral resource.

We undertook substantive testing on capitalised expenditure during the year to ensure it satisfied the criteria under IFRS 6.

We discussed with management the scope of their future budgeted and planned expenditure on each licence area.

As disclosed in note 10 to the financial statements, the Group has not formally acquired title to its 25% interest in Cordillera Tiger Gold Resources, Inc (“Cordillera”) which is the holder of the exploration permit for the Danglay gold project in the Philippines. The conditions for the

earn-in have been satisfied but the relevant shareholding has yet to be issued, despite the Board of Cordillera authorising the issue. In addition, the exploration permit for the Danglay gold project held by Cordillera expired on 30 September 2015. Cordillera is currently waiting

for the Philippine authority to formally grant its renewal application. This indicates the existence of a material uncertainty over the recoverability of the carrying value of the Danglay gold project, which amounted to £1,176,729 as at 30 September 2018.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the group and parent company financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

  • the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
  • the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

  • adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
  • the parent company financial statements are not in agreement with the accounting records and returns; or
  • certain disclosures of directors’ remuneration specified by law are not made; or
  • we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the group and parent company financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the group and parent company financial statements, the directors are responsible for assessing the group’s and the parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone, other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

David Thompson (Senior statutory auditor)

For and on behalf of PKF Littlejohn LLP

Statutory auditor

28 March 2019 Consolidated Income Statement

For the year ended 30 September 2018

Year ended Year ended
30 September 2018 30 September 2017
Note £ £
Continuing operations

Other administrative expenses

(544,521)

(509,545)

Currency exchange differences (6,912) (3,186)
Total administrative expenses (551,433) (512,731)

Operating loss

3

(551,433)

(512,731)

Loss on disposal of investment (1)
Fair value movements – available for sale financial asset 9 (971) 1,255
(552,404) (511,477)

Financial income

7

1,386

353

Financial expense 1,000
Finance income and costs 2,386 353

Loss for the year before taxation

Income tax

5

(550,018)

(511,124)

Loss for the year from continuing operations (550,018) (511,124)
Loss for the year – all attributable to owners of the parent (550,018) (511,124)

Earnings per share – basic and diluted

On continuing operations

4

(0.21)p

(0.31)p

The Company has elected to take the exemption under section 408 of the Companies Act 2006 from presenting the parent company profit and loss account. The loss for the parent company for the year was £373,149 (2017: £208,774 loss).

Consolidated Statement of Comprehensive Income

For the year ended 30 September 2018

Year ended Year ended
30 September 2018 30 September 2017
£ £
Loss for the year (550,018) (511,124)
Items that may be reclassified subsequently to profit or loss

Loss on exchange translation

(171,442)

(51,524)

Other comprehensive expense for the year (171,442) (51,524)
Total comprehensive expense for the year (721,460) (562,648)

Attributable to:- Owners of the parent

(721,460)

(562,648)

The notes on pages 26 to 41 are an integral part of these financial statements.

Consolidated & Company Statement of Financial Position

At 30 September 2018

Group

Company

30 September

30 September

30 September

30 September

Note

2018

£

2017

£

2018

£

2017

£

Assets
Non-current assets
Property, plant and equipment 8 3,033 8,694 1,764 7,020
Investments in subsidiaries 9 852,728 852,170
Intangible assets 10 2,859,474 2,668,747 2,256,309 2,180,312
Other receivables 11 538,494 240,970
2,862,507 2,677,441 3,649,295 3,280,472

Current assets

Trade and other receivables 11 79,413 54,888 471,670 281,901
Available for sale financial assets 9 21,299 22,269 21,299 22,269
Cash and cash equivalents 12 781,142 1,082,994 749,025 1,046,787
881,854 1,160,151 1,241,994 1,350,957
Total assets 3,744,361 3,837,592 4,891,289 4,631,429

Current liabilities

Trade and other payables 14 92,816 102,367 75,662 80,432
92,816 102,367 75,662 80,432
Total liabilities 92,816 102,367 75,662 80,432
Net assets 3,651,545 3,735,225 4,815,627 4,550,997
Equity attributable to owners of the parent
Share capital 13 11,283,756 11,282,812 11,283,756 11,282,812
Share premium 13 44,460,171 43,823,335 44,460,171 43,823,335
Exchange reserve (389,501) (218,059)
Other reserves 1,381,998 1,381,998 1,381,998 1,381,998
Retained losses (53,084,879) (52,534,860) (52,310,298) (51,937,148)
Total equity 3,651,545 3,735,225 4,815,627 4,550,997

The financial statements were approved and authorised for issue by the Directors on 28 March 2019 and were signed on its behalf by:

Weili (David) Tang Craig Brown
Non–Executive Chairman Director & Chief Executive Officer

Consolidated Statement of Changes in Equity

For the year ended 30 September 2018

Share capital Share premium Exchange reserve Other reserves Retained reserves
(Note 13) (Note 13) Total
£ £ £ £ £ £
Balance at 30 September 2016 11,281,628 42,441,553 (166,535) 1,147,717 (52,023,736) 2,680,627
Loss for the year (511,124) (511,124)
Loss on exchange translation

(51,524) (51,524)

Total comprehensive expense

(51,524) (511,124) (562,648)

Shares issued

1,109

1,552,455 1,553,564

Share issue costs

(84,878) (84,878)

Share based payments

(166,739) 234,281 67,542

Shares issued in payment of creditors

75

80,944

81,019

Total transactions with owners,

recognised directly in equity

1,184

1,381,782

234,281

1,617,247

Balance at 30 September 2017

11,282,812

43,823,335 (218,059)

1,381,998

(52,534,860)

3,735,226

Loss for the year

(550,018)

(550,018)

Gain/loss on exchange translation

(171,442)

(171,442)

Total comprehensive expense

(171,442)

(550,018)

(721,460)

Shares issued

929

649,071

650,000
Share issue costs

(27,220)

(27,220)
Warrants issued in lieu
of finance cost

Shares issued in payment
of creditors
15

14,985

15,000

Total transactions with owners, recognised directly in equity

944

636,836

637,780

Balance at 30 September 2018 11,283,756 44,460,171

(389,501)

1,381,998

(53,084,878)

3,651,546

Company Statement of Changes in Equity

For the year ended 30 September 2018

Share capital Share premium Other reserves Retained reserves
(Note 13) (Note 13) Total
£ £ £ £ £
Balance at 30 September 2016 11,281,628 42,441,553 1,147,717 (51,728,374) 3,142,524
Loss for the year (208,774) (208,774)
Total comprehensive expense (208,774) (208,774)
Shares issued 1,109 1,552,455 1,553,564
Share issue costs (84,878) (84,878)
Share based payments (166,739) 234,281 67,542
Shares issued in payment of creditors 75 80,944 81,019
Total transactions with owners, recognised directly in equity

1,184

1,381,782

234,281

1,617,247

Balance at 30 September 2017 11,282,812 43,823,335 1,381,998 (51,937,148) 4,550,997
Loss for the year (373,149) (373,149)
Total comprehensive expense (373,149) (373,149)
Shares issued 929 649,071 650,000
Share issue costs (27,220) (27,220)
Shares issued in payment of creditors 15 14,985 15,000
Total transactions with owners, recognised
directly in equity 944 636,836

637,780

Balance at 30 September 2018 11,283,756 44,460,171

1,381,998

(52,310,297)

4,815,628

Consolidated & Company Cash Flow Statement

For the year ended 30 September 2018

Group

Company

Year ended 30 September

Year ended 30 September

Year ended 30 September

Year ended 30 September

Note

2018

£

2017

£

2018

£

2017

£

Net cash flow used in operations 21 (563,850) (569,016) (547,730) (511,307)
Investing activities
Purchase of property, plant & equipment (6,174) (4,082)
Increase in exploration assets 10 (302,794) (231,140) (75,998) (104,209)
Investment in subsidiaries (558) (112,070)
Loan to subsidiary (297,524) (133,629)
Interest income 1,386 353 1,268 233
Net cash used in investing activities (301,408) (236,961) (372,812) (353,757)
Financing activities
Proceeds from issue of share capital 622,780 1,468,686 622,780 1,468,686
Net cash from financing activities 622,780 1,468,686 622,780 1,468,686
Net change in cash and cash equivalents (242,478) 662,709 (297,762) 603,622
Cash and cash equivalents at beginning of the year 1,082,994 471,809 1,046,787 443,165
Effect of changes in foreign exchange rates (59,374) (51,524)
Cash and cash equivalents at end of the year 12 781,142 1,082,994 749,025 1,046,787

Non-cash transactions:

1. Settlement of creditors of £15,000 (2017: £80,994) with ordinary shares.

Notes to the Financial Statements

For the year ended 30 September 2018

1 General information

The Company and the Group operated mineral exploration and development projects. The Group’s principal interests are located in Argentina, the Philippines and Australia.

The Company is a public limited company incorporated and domiciled in England. The registered office of the Company and its principal place of business is Unit 117, Chester House, 81-83 Fulham High Street, Fulham Green, London SW6 3JA. The Company is listed on the Alternative Investment Market (AIM) of the London Stock Exchange.

2 Accounting policies

Overall considerations

The principal accounting policies that have been used in the preparation of these consolidated financial statements are set out below. The policies have been consistently applied unless otherwise stated.

Basis of preparation

The financial statements of both the Group and the Parent Company have been prepared in accordance with International Financial Reporting Standards (IFRSs) and Interpretations issued by the IFRS Interpretations Committee (IFRIC) as adopted by the European Union and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. These are the standards, subsequent amendments and related interpretations issued and adopted by the International Accounting Standard Board (IASB) that have been endorsed by the European Union at the year end. The consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain financial instruments. The Directors have taken advantage of the exemption available under Section 408 of the Companies Act 2006 and have not prepared an Income Statement or a Statement of Comprehensive Income for the Company alone.

The Group and Parent Company financial statements have been prepared on a going concern basis as explained in the Directors’ Report.

New accounting standards and interpretations

Effective during the year

During the year the Group has adopted the following standards and amendments:

  • Annual Improvements to IFRSs 2014–2016 Cycle
  • Amendments to IAS 12: Recognition of Deferred Tax Assets for Unrealised Losses
  • Amendments to IAS 7: Disclosure Initiative

The adoption of these standards and amendments did not have any impact on the financial position or performance of the Group.

Not yet effective

At the date of authorisation of these Group Financial Statements and the Parent Company Financial Statements, the following Standards, amendments and interpretations were endorsed by the EU but not yet effective:

IFRS 15 Revenue from Contracts with Customers including amendments to IFRS 15

  • Clarifications to IFRS 15 Revenue from Contracts with Customers
  • IFRS 9 Financial Instruments
  • IFRS 16 Leases
  • Amendments to IFRS 2: Classification and Measurement of Share-based Payment Transactions
  • IFRIC Interpretation 22 Foreign Currency Transactions and Advance Consideration
  • IFRIC 23 Uncertainty over Income Tax Treatments
  • Amendments to IAS 28 Long-term Interests in Associates and Joint Ventures

In addition to the above there are also the following standards and amendments that have not yet been endorsed by the EU:

  • Annual Improvements to IFRS Standards 2015-2017 Cycle
  • Amendments to IFRS 3 Business Combinations
  • Amendments to IAS 1 and IAS 8 Definition of Material

The Group intends to adopt these standards when they become effective. The introduction of these new standards and amendments is not expected to have a material impact on the Group or Parent Company.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and two of its subsidiaries made up to 30 September 2018. Subsidiary undertakings acquired during the period are recorded under the acquisition method of accounting and their results consolidated from the date of acquisition, being the date on which the Company obtains control, and continue to be consolidated until the date such control ceases.

The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

Going concern

It is the prime responsibility of the Board to ensure the Group and Company remains a going concern. At 30 September 2018, the Group had cash and cash equivalents of £781,142 and no borrowings. The Group’s financial projections and cash flow forecasts covering a period of at least twelve months from the date of approval of these financial statements show that the Group will have sufficient available funds in order to meet its contracted and committed expenditure. Further details are included in Note 19 to the financial statements. The Directors are confident in the ability of the Group to raise additional funding, if required, from the issue of equity and/or the sale of assets.

Based on their assessment of the financial position, the Directors have a reasonable expectation that the Group and Company will be able to continue in operational existence for the next 12 months and continue to adopt the going concern basis of accounting in preparing these Financial Statements.

Cash and cash equivalents

Cash includes petty cash and cash held in current bank 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.

Property, plant and equipment

Property, plant and equipment are stated at cost, less accumulated depreciation and any provision for impairment losses.

Depreciation is charged on each part of an item of property, plant and equipment so as to write off the cost of assets less the residual value over their estimated useful lives, using the straight–line method. Depreciation is charged to the income statement. The estimated useful lives are as follows:

Office equipment 3 years
Furniture and fittings 5 years
Machinery and equipment 5 years

Expenses incurred in respect of the maintenance and repair of property, plant and equipment are charged against income when incurred. Refurbishments and improvements expenditure, where the benefit is expected to be long lasting, is capitalised as part of the appropriate asset.

An item of property, plant and equipment ceases to be recognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on cessation of recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement in the year the asset ceases to be recognised.

Exploration and development costs

All costs associated with mineral exploration and investments are capitalised on a project–by–project basis, pending determination of the feasibility of the project. Costs incurred include appropriate technical and administrative expenses but not general overheads. If an exploration project is successful, the related expenditures will be transferred to mining assets and amortised over the estimated life of the commercial ore reserves on a unit of production basis. Where a licence is relinquished or a project abandoned, the related costs are written off in the period in which the event occurs. Where the Group maintains an interest in a project, but the value of the project is considered to be impaired, a provision against the relevant capitalised costs will be raised.

The recoverability of all exploration and development costs is dependent upon the discovery of economically recoverable reserves, the ability of the Group to obtain necessary financing to complete the development of reserves and future profitable production or proceeds from the disposition thereof.

Impairment testing

Individual assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may exceed its recoverable amount, being the higher of net realisable value and value in use. Any such excess of carrying value over recoverable amount or value in use is taken as a debit to the income statement.

Intangible exploration assets are not subject to amortisation and are tested annually for impairment.

Provisions

A provision is recognised in the Statement of Financial Position when the Group or Company has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre–tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

Leased assets

In accordance with IAS 17, leases in terms of which the Group or Company assumes substantially all the risks and rewards of ownership are classified as finance leases. All other leases are regarded as operating leases and the payments made under them are charged to the income statement on a straight line basis over the lease term.

Taxation

There is no current tax payable in view of the losses to date.

Deferred income taxes are calculated using the Statement of Financial Position liability method on temporary differences. Deferred tax is generally provided on the difference between the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of goodwill or on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting profit. Deferred tax on temporary differences associated with shares in subsidiaries and joint ventures is not provided if reversal of these temporary differences can be controlled by the Company and it is probable that reversal will not occur in the foreseeable future.

In addition, tax losses available to be carried forward as well as other income tax credits to the Company are assessed for recognition as deferred tax assets.

Deferred tax liabilities are provided in full, with no discounting. Deferred tax assets are recognised to the extent that it is probable that the underlying deductible temporary differences will be able to be offset against future taxable income. Current and deferred tax assets and liabilities are calculated at tax rates that are expected to apply to their respective period of realisation, provided they are enacted or substantively enacted at the Statement of Financial Position date.

Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the income statement, except where they relate to items that are charged or credited directly to equity, in which case the related current or deferred tax is also charged or credited directly to equity.

Investments in subsidiaries

Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

The investments in subsidiaries held by the Company are valued at cost less any provision for impairment that is considered to have occurred, the resultant loss being recognised in the income statement.

Equity

Equity comprises the following:

  • “Share capital” represents the nominal value of equity shares, both ordinary and deferred.
  • “Share premium” represents the excess over nominal value of the fair value of consideration received for equity shares, net of expenses of the share issues.
  • “Other reserves” represent the fair values of share options and warrants issued.
  • “Retained reserves” include all current and prior year results, including fair value adjustments on available for sale financial assets, as disclosed in the consolidated statement of comprehensive income.
  • “Exchange reserve” includes the amounts described in more detail in the following note on foreign currency below.

Foreign currency translation

The consolidated financial statements are presented in pounds sterling which is the functional and presentational currency representing the primary economic environment of the Group.

Foreign currency transactions are translated into the respective functional currencies of the Company and its subsidiaries using the exchange rates prevailing at the date of the transaction or at an average rate where it is not practicable to translate individual transactions. Foreign exchange gains and losses are recognised in the income statement.

Monetary assets and liabilities denominated in a foreign currency are translated at the rates ruling at the Statement of Financial Position date.

The assets and liabilities of the Group’s foreign operations are translated at exchange rates ruling at the Statement of Financial Position date. Income and expense items are translated at the average rates for the period. Exchange differences are classified as equity and transferred to the Group’s exchange reserve. Such differences are recognised in the income statement in the periods in which the operation is disposed of.

Share–based payments

The Company operates equity–settled share–based remuneration plans for the remuneration of some of its employees. The Company awards share options to certain Company Directors and employees to acquire shares of the Company. Additionally, the Company has issued warrants to providers of loan finance.

All goods and services received in exchange for the grant of any share–based payment are measured at their fair values. Where employees are rewarded using share–based payments, the fair values of employees’ services are determined indirectly by reference to the fair value of the instrument granted to the employee. The fair value is appraised at the grant date and excludes the impact of non–market vesting conditions. Fair value is measured by use of the Black Scholes model. The expected life used in the model has been adjusted, based on management’s best estimate, for the effects of non–transferability, exercise restrictions, and behavioural considerations.

All equity–settled share–based payments are ultimately recognised as an expense in the income statement with a corresponding credit to “other reserves”.

If vesting periods or other non–market vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of the number of share options expected to vest. Estimates are subsequently revised if there is any indication that the number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the current period. No adjustment is made to any expense recognised in prior years if share options ultimately exercised are different to that estimated on vesting.

Upon exercise of share options the proceeds received net of attributable transaction costs are credited to share capital and, where appropriate, share premium.

A gain or loss is recognised in profit or loss when a financial liability is settled through the issuance of the Company’s own equity instruments. The amount of the gain or loss is calculated as the difference between the carrying value of the financial liability extinguished and the fair value of the equity instrument issued.

Financial instruments

The Group’s financial assets comprise cash and cash equivalents, investments and loans and receivables. Financial assets are assigned to the respective categories on initial recognition, depending on the purpose for which they were acquired. This designation is re–evaluated at every reporting date at which a choice of classification or accounting treatment is available.

The Group’s loans, investments and receivables are non–derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables are measured at fair value on initial recognition. After initial recognition they are measured at amortised cost using the effective interest rate method, less any provision for impairment. Any change in their value is recognised in profit or loss. The Group’s receivables fall into this category of financial instruments. Discounting is omitted where the effect of discounting is immaterial. All receivables are considered for impairment on a case–by–case basis when they are past due at the Statement of Financial Position date or when objective evidence is received that a specific counterparty will default.

Investments that are held as available for sale financial assets are financial assets that are not classified in any other categories. After initial recognition, available for sale financial assets are measured at fair value. Any gains or losses from changes in the fair value of the financial asset are recognised in equity, except that impairment losses, foreign exchange gains and losses on monetary items and interest calculated using the effective interest method are recognised in the income statement.

Where there is a significant or prolonged decline in the fair value of an available for sale financial asset (which constitutes objective evidence of impairment), the full amount of the impairment, including any amount previously charged to equity, is recognised in the consolidated income statement. The Directors consider a significant decline to be one in which the fair value is below the weighted average cost by more than 25%. A prolonged decline is considered to be one in which the fair value is below the weighted average cost for a period of more than twelve months.

If an available for sale equity security is impaired, any further declines in the fair value at subsequent reporting dates are recognised as impairments. Reversals of impairments of available for sale equity securities are not recorded through the income statement. Upon sale, accumulated gains or losses are recycled through the income statement.

Financial liabilities, which are measured at amortised cost, and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities. Any instrument that includes a repayment obligation is classified as a liability.

Where the contractual liabilities of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities, and are presented as such in the Statement of Financial Position. Finance costs and gains or losses relating to financial liabilities are included in the income statement. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any features meeting the definition of a financial liability then

such capital is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Critical accounting estimates and judgements

The preparation of financial statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on–going basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised if the revision affects only that year or in the year of the revision and future years if the revision affects both current and future years.

The most critical accounting policies and estimates in determining the financial condition and results of the Group are those requiring the greater degree of subjective or complete judgement. These relate to:

  • capitalisation and recoverability of exploration costs (Note 10);
  • share–based payments (Note 6 and Note 13).

3

Operating loss

Year ended
30 September
2018

Year ended
30 September
2017

The operating loss is stated after charging: £ £
Depreciation of property, plant and equipment 5,662 4,653
Operating lease expenses 22,875 24,213
Share–based payments 67,542
Auditors’ remuneration – fees payable to the Company’s auditor for the audit of
the parent company and consolidated financial statements 21,500 21,500

4

Earnings per share

Basic and Diluted

Year ended
30 September

2018

Year ended
30 September

2017

Weighted number of shares in issue during the year 263,542,617 166,559,125

£

£

Loss from continuing operations attributable to owners of the parent (550,018) (511,124)

Basic earnings per share has been calculated by dividing the loss attributable to equity holders of the company after taxation by the weighted average number of shares in issue during the year. There is no difference between the basic and diluted earnings per share as the effect on the exercise of options and warrants would be to decrease the earnings per share.

Details of share options and warrants that could potentially dilute earnings per share in future periods is set out in Note 13.

PLEASE NOTE THAT THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in any doubt as to what action you should take, please consult your stockbroker or other independent adviser authorised under the Financial Services and Markets Act 2000 immediately. If you have recently sold or transferred all of your ordinary shares in ECR Minerals PLC, please forward this document, together with the accompanying documents, as soon as possible either to the purchaser or transferee or to the person who arranged the sale or transfer so they can pass these documents to the person who now holds the shares. If you have sold or transferred only part of your holding of ordinary shares in ECR Minerals PLC, you are advised to consult your stockbroker, bank or other agent through whom the sale or transfer was effected.

ECR MINERALS PLC

(the “Company”)

(Registered in England and Wales No 05079979)

NOTICE OF ANNUAL GENERAL MEETING

NOTICE is hereby given that the Annual General Meeting of the Company will be held at the offices of Charles Russell Speechlys LLP, 5 Fleet Place, London EC4M 7RD on 23 April 2019 at 9.00 a.m. for the purpose of considering and, if thought fit, passing Resolutions 1 to 5 as ordinary resolutions, and Resolutions 6 and 7 as special resolutions:

Ordinary Resolutions

1 To receive, consider and adopt the annual accounts of the Company for the year ended 30 September 2018, together with the reports of the directors and auditors thereon.

2 That Samuel James Melville Garrett, a director retiring in accordance with article 79.1.1 of the Company’s articles of association, be elected as a director of the Company.

3 To re-appoint PKF Littlejohn LLP as auditors of the Company, to hold office until the conclusion of the next general meeting at which accounts are laid before the Company.

4 To authorise the audit committee to determine the remuneration of the auditors of the Company.

5 That the directors be generally and unconditionally authorised pursuant to and in accordance with section 551 of the Companies Act 2006 (the “CA 2006”) to exercise all the powers of the Company to allot shares or grant rights to subscribe for, or to convert any security into, shares in the Company up to an aggregate nominal amount of £10,000 provided that this authority shall, unless renewed, varied or revoked by the Company, expire on 30 June 2020 or, if earlier, the date of the next annual general meeting of the Company, save that the Company may, before such expiry, make offers or agreements which would or might require equity securities to be allotted (or treasury shares to be sold) after the authority expires and the directors may allot equity securities (or sell treasury shares) in pursuance of any such offer or agreement as if the authority had not expired.

Special Resolutions

6 That, subject to the passing of Resolution 5, the directors be empowered to allot equity securities (as defined by section 560 of the CA 2006) pursuant to the authority conferred by Resolution 5 for cash, and/or sell treasury shares for cash, as if section 561(1) of the CA 2006 did not apply to any such allotment, provided that this power shall be limited to the allotment of equity

securities of up to an aggregate nominal value of £10,000. The authority granted by this resolution will expire at the conclusion of the Company’s next annual general meeting after this resolution is passed or, if earlier, at the close of business on 30 June 2020 save that the Company may, before such expiry, make offers or agreements which would or might require equity securities to be allotted (or treasury shares to be sold) after the authority expires and the directors may allot equity securities (or sell treasury shares) in pursuance of any such offer or agreement as if the authority had not expired.

7 That the Company be generally and unconditionally authorised for the purposes of section 701 of the CA 2006 to make one or more market purchases (as defined in section 693(4) of the CA 2006) of its ordinary shares with nominal value of £0.00001 each in the Company, provided that:

7.1 the Company does not purchase under this authority more than 44,584,078 ordinary shares;

7.2 the Company does not pay less than £0.00001 for each ordinary share; and

7.3 the Company does not pay more per ordinary share than the higher of (i) an amount equal to 5 per cent. over the average of the middle-market price of the ordinary shares for the five business days immediately preceding the day on which the Company agrees to buy the shares concerned, based on share prices published in the Daily Official List of the London Stock Exchange; and

(ii) the amount stipulated by the regulatory technical standards adopted by the European Commission pursuant to Article 5(6) of the Market Abuse Regulation (EU) No. 596/2014.

This authority shall continue until the conclusion of the Company’s annual general meeting in 2020 or 30 June 2020, whichever is the earlier, provided that if the Company has agreed before this date to purchase ordinary shares where these purchases will or may be executed after the authority terminates (either wholly or in part) the Company may complete such purchases.

By order of the board

Craig Brown

Director and Company Secretary

Registered Office:

Unit 117, Chester House 81-83 Fulham High Street Fulham Green

London, SW6 3JA 29 March 2019

NOTES ON RESOLUTIONS

The following paragraphs explain, in summary, the resolutions to be proposed at the annual general meeting (the “Meeting”).

Resolution 1: Receipt of the annual accounts

Resolution 1 proposes that the Company’s annual accounts for the period ended 30 September 2018, together with the reports of the directors and auditors on these accounts, be received, considered and adopted.

Resolution 2: Election of Samuel James Melville Garrett

Resolution 2 proposes that Mr Garrett, who was appointed since the last Annual General Meeting of the Company and is retiring in accordance with article 79.1.1 of the Company’s articles of association, be elected as a director of the Company.

Resolution 3: Re-appointment of auditor

Resolution 3 proposes the reappointment of the Company’s existing auditor to hold office until the end of the next annual general meeting.

Resolution 4: Remuneration of auditor

Resolution 4 is to authorise the audit committee of the Company to determine the remuneration of the Company’s auditors.

Resolution 5: Authority to allot shares

Resolution 5 is to renew the directors’ power to allot shares in accordance with section 551 of the CA 2006. The authority granted at the annual general meeting on 24 April 2018 is due to expire on 23 April 2019 (i.e. the proposed date of the forthcoming annual general meeting).

If passed, the resolution will authorise the directors to allot equity securities up to a maximum nominal amount of £10,000, which represents approximately 224% of the Company’s issued ordinary shares as at 28 March 2019 (being the latest practicable date before publication of this document).

If given, these authorities will expire at the annual general meeting in 2020 or on 30 June 2020, whichever is the earlier.

The directors have no present intention to issue new ordinary shares, other than pursuant to the exercise of options or warrants. However, the directors consider it prudent to maintain the flexibility to take advantage of business opportunities that this authority provides.

As at the date of this document the Company does not hold any ordinary shares in the capital of the Company in treasury.

Resolution 6: Disapplication of pre-emption rights

Resolution 6 is to grant the directors the authority to allot equity securities for cash or sell any shares held in treasury otherwise than to existing shareholders pro rata to their holdings, as there may be occasions where it is in the best interests of the Company not to be required to first offer such shares to existing shareholders.

Accordingly, resolution 6 will be proposed as a special resolution to grant such a power and will permit the directors, pursuant to the authority granted by resolution 5, to allot equity securities (as defined by section 560 of the CA 2006) or sell treasury shares for cash without first offering them to existing shareholders in proportion to their existing holdings up to a maximum nominal value of £10,000 representing approximately 224% of the Company’s issued ordinary shares as at 28 March 2019 (being the latest practicable date before publication of this document). If given, this authority will expire at the annual general meeting in 2020 or on 30 June 2020, whichever is the earlier.

Resolution 7: Purchase of own shares

Resolution 7 will be proposed as a special resolution and will give the Company authority to purchase its own shares in the markets up to a limit of 10 per cent. of its issued ordinary share capital. The maximum and minimum prices are stated in the resolution. Your directors believe that it is advantageous for the Company to have this flexibility to make market purchases of its own shares.

Your directors will exercise this authority only if they are satisfied that a purchase would result in an increase in expected earnings per share and would be in the interests of shareholders generally. In the event that shares are purchased, they would either be cancelled (and the number of shares in issue would be reduced accordingly) or, in accordance with the CA 2006, be retained as treasury shares.

If given, this authority will expire at the annual general meeting in 2020 or on 30 June 2020, whichever is the earlier.

As at 28 March 2019, the total number of outstanding options and warrants over ordinary shares in the Company was 309,179,606, which represents approximately 69 per cent. of the Company’s voting rights at that date. If the Company were to purchase its own ordinary shares to the fullest possible extent of its authority from shareholders (existing and being sought), this number of outstanding options and warrants could potentially represent 82 per cent. of the voting rights of the Company as at 28 March 2019.

END.

ECR Minerals #ECR – Strategic Financing Package, Business Update and New Broker Appointment

ECR Minerals plc (LON:ECR) the precious metals exploration and development company is pleased to announce details of a strategic financing, business update for shareholders and appointment of a new broker.

 

Highlights:

  • ECR Minerals has secured a strategic financing package, raising £650,000 through the issue of 92,857,143 new ordinary shares at a price of 0.70p per share (the mid-price of ECR at the date/time the financing was commenced);
  • Allowing for the existing cash at bank pre-financing and the funds raised today, ECR has sufficient working capital against current operational plans, until at least Q3 2019, with any warrant exercises further extending this cash runway;
  • Funds raised will be used to expand ECR’s Australian operations, including an accelerated development programme at the Blue Moon target in Victoria region, where 39.5 metres of gold mineralisation was identified during the latest drilling campaign (as announced on 6 July 2018);
  • In addition, the funds raised will enable ECR to consider additional opportunities in Australian gold and strategic metals, to complement existing interests;
  • Each strategic financing share has a warrant attaching to subscribe for a further new ordinary share in ECR Minerals plc at a price of 1.125p within two years of the admission date of the above financing shares resulting in the issue of 92,857,143 warrants over new ordinary shares.
  • However, should the 5 day volume weighted average share price (“VWAP”) of ECR exceed 5.0p (five pence) the Company will have the right to accelerate conversion of any outstanding warrants (see summary of terms set out below);

Should all warrants be converted (which cannot be guaranteed) this would generate approximately £1,045,000 before expenses for the Company;

  • ECR will, as a condition precedent to the offer of financing, create a pool of 25m options (the “Options”) to be allocated amongst current & future directors, staff and key consultants. The options will carry an exercise price of 1.125p per new ordinary share and will be subject to the requirement that the volume weighted average price of ECR shares must exceed 1.75p for five consecutive trading days before the options become ratified and exercisable;
  • SI Capital Limited, who arranged the financing, have been appointed as joint brokers to ECR with immediate effect. In lieu of fees, SI Capital will be awarded with 2.5million warrants to subscribe for 2.5m new ECR ordinary shares within the two year period following their appointment at a price of 1.5p per share.

Craig Brown, Chief Executive Officer of ECR Minerals plc, commented: “We are delighted to announce this strategic financing which considerably bolsters the Company’s working capital position and provides a significantly extended cash runway with which to implement our operational plans.

The gold mineralisation identified at Blue Moon and announced on Friday 6th July 2018 is a priority target for ECR, and as such, the Company intends to pursue further work on this target immediately. Furthermore, the Company is aware of numerous opportunities to augment its Australian gold exploration portfolio, and the additional funds raised will enable ECR to review and crystallise those opportunities that could add considerable value for shareholders.

I look forward to updating shareholders as we implement our plans for the Company.”

FURTHER INFORMATION

STRATEGIC FINANCING

ECR has secured a strategic financing raising £650,000 through the issue of 92,857,143 new ordinary shares (“New Ordinary Shares”) at a price of 0.70p per share to support proactive development of its existing interests and to enable the Company to engage with new opportunities, principally in respect of Australian gold and strategic metal exploration.

Each strategic financing share has a warrant attaching to subscribe for a further new ordinary share in ECR Minerals plc at a price of 1.125p within two years of the admission date of the above financing shares. Should the 5 day VWAP of ECR exceed 5p, the Company will have the right but not the obligation to force the exercise of the remaining warrants by issuing a 7 day notice of accelerated exercise to warrant holders. Any warrants not exercised during the 7 day notice period would lapse.

MANAGEMENT AND CONSULTANT OPTION POOL

The Company is to create a pool of an additional 25 million options at an exercise price equivalent to the financing warrant price or 1.125p per share.

It is proposed these options will vest immediately but will only become exercisable when the five consecutive trading day volume weighted average ECR share price exceeds a 1.75p threshold.

It is the intention that the Options will be allocated amongst the current directors, any new directors, staff of ECR and key consultants.

Where applicable the Options will be structured under a tax efficient option scheme.

Further details will be provided in due course when the options are issued.

ADMISSION OF STRATEGIC FINANCING SHARES AND TOTAL VOTING RIGHTS

Admission of the New Ordinary Shares is expected to occur on or around 25 July 2018. Following Admission of the Financing Shares, ECR’s issued ordinary share capital will comprise 340,462,383 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.

APPOINTMENT OF NEW BROKER

SI Capital Limited, who arranged the financing, have been appointed as joint brokers to ECR with immediate effect. In lieu of fees, SI Capital will be awarded with 2.5million warrants to subscribe for 2.5m new ECR ordinary shares within the two year period following their appointment at a price of 1.5p per share.

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 Australian 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.

ABOUT ECR MINERALS PLC

ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia has 100% ownership of the Avoca, Bailieston, Creswick, Moormbool and Timor gold exploration licences in central Victoria, 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.

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
Optiva Securities Ltd Tel: +44 (0)203 137 1902
Broker
Graeme Dickson
SI Capital Ltd Tel: +44 (0)1483 413500
Broker
Nick Emerson

FORWARD LOOKING STATEMENTS

This announcement may include forward looking statements. Such statements may be subject to numerous 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 because of new information, future events or for any other reason.

ECR Minerals #ECR identifies Gold system at Blue Moon prospect in Central Victoria, Australia.

ECR Minerals plc (AIM:ECR) is pleased to announce the results of diamond core drilling at its 100% owned Blue Moon gold prospect in Central Victoria, Australia.

The drilling programme at Blue Moon was undertaken to confirm the presence of gold mineralisation based on the Company’s technical work which had indicated potential for an extensive mineralised system.

For clarity the paramount objective of this drill programme was to identify the presence of gold, ratifying the internal exploration model and enabling further work to ascertain the mineralised structure and identify the potential for commercial development.

HIGHLIGHTS:

  • The assay results received provide evidence of a significant near surface mineralised system, with large mineralised gold intercepts up to 39.5 metres (apparent width) just 24.2 metres from surface in hole BBM003 in a host rock sandstone that outcrops at the surface;
  • All three holes intercepted gold mineralisation and the results support MGA’s hypothesis that Blue Moon is a disseminated gold system comparable to some of the mineralisation exploited at the 1Moz+ Fosterville mine;
  • Given the deep weathering at Blue Moon and potential for gold depletion in the oxidised sulphides, higher grades may be encountered at depth in fresh rock;
  • The Company has requested multi-element assay data to complement the gold results received and we will provide a further update to market when this additional assay data is been received;
  • The ECR technical team are undertaking additional work to move the Blue Moon target forward as rapidly as possible, reflecting the findings announced today.

Craig Brown, Chief Executive Officer of ECR Minerals commented: “Australia in general and Central Victoria region continues to experience a gold exploration boom and ECR are building a material presence in that region. The results today provide an exciting opportunity for the Company and we are keen to push ahead with our work to ascertain the size and nature of the mineralised system we have identified. I expect to be able to release further updates to the market in the near term.”

Further Information – Blue Moon & Drill Results

The drilling formed part of a larger diamond drilling programme across three prospects in Central Victoria: Bung Bong, Monte Christo and Blue Moon, all of which are 100% owned by the Company’s wholly owned subsidiary Mercator Gold Australia Pty Ltd (“MGA”). The Blue Moon prospect is part of the Bailieston project area (EL5433).

Drill hole data and significant intercepts from the three holes drilled at Blue Moon (BBM001 to BBM 003) are disclosed in Table A below. Intercepts are apparent width.

BBM001 and BBM002 were designed to establish the dip of the host sandstones and assess the potential for gold mineralisation. Intercepts of 5.45m at 0.12 g/t Au from 33.95m and 10.0m at 0.16 g/t Au from 43.8m were obtained in BBM001 and BBM002, respectively. Upon drilling faulted, stockworked sandstone in the first two holes, BBM003 was drilled down dip to test the nature of the cross-cutting faults and veins and to obtain a large number of samples for analysis. An intercept of 39.5m at 0.3 g/t Au from 24.2m, including 2.7m at 1.12 g/t Au from 60m, was obtained in BBM003.

The gold mineralisation intercepted is hosted in a 5.5m wide medium-grained sandstone within a thick bioturbated shale (see figure 1, for BBM003 which may be viewed at the following link: https://bit.ly/2lXAWv9). Diorite sills have intruded along the margins of the sandstone. The sandstone is metamorphosed to quartzite and the brittle host showed stockwork vein development in each of the three holes. Small iron-oxide pseudomorphs thought to be of arsenopyrite and pyrite are disseminated throughout the quartzite. Deep weathering of the sandstone has meant that no fresh samples have been seen to verify the minerals.

The high repeatability of the assay results, evident from MGA’s QA/QC procedures (which include the repetition of a certain number of assays), support MGA’s hypothesis that the Blue Moon prospect is a disseminated gold system comparable to some of the mineralisation exploited at the Fosterville mine approximately 50 km away. Given the deep weathering and the potential for gold depletion in the oxidised sulphides, it is possible that higher grades may be encountered at depth in the fresh rock.

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 Australian 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.

ABOUT ECR

ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia has 100% ownership of the Avoca, Bailieston, Creswick, Moormbool and Timor gold exploration licences in central Victoria, 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.

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
Optiva Securities Ltd Tel: +44 (0)203 137 1902
Broker
Graeme Dickson
FlowComms Tel: +44 (0)7891 677 441
Investor Relations
Sasha Sethi

FORWARD LOOKING STATEMENTS

This announcement may include forward looking statements. Such statements may be subject to numerous 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 because of new information, future events or for any other reason.

TABLE A

Drill hole data and significant intercepts from 2018 diamond drilling at Blue Moon prospect, EL5433, Central Victoria, Australia by Mercator Gold Australia Pty Ltd

Drill hole data (MGA 94 Zone 55) Intercepts
Hole ID Core size Easting (m) Northing (m) RL (m) Dip Az TD (m) From (m) To (m) Width (m) Au (g/t)
BBM001 HQ 326228 5922578 160 -60 222 79.2 33.95 39.40 5.45 0.12
BBM002 HQ 326187 5922552 163 -60 180 83.7 43.80 53.80 10.00 0.16
BBM003 HQ 326195 5922522 162 -85 11 73.2 24.20 63.70 39.50 0.30
Inc. 60.00 62.70 2.70 1.12

JORC Table 1

Section 1 Sampling Techniques and Data

Criteria JORC Code explanation Commentary
Sampling techniques
  • Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
  • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
  • Aspects of the determination of mineralisation that are Material to the Public Report.
  • In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.
  • All sampling and logging has been supervised and conducted by Dr Rodney Boucher of Linex Pty Ltd and by Linex staff at the Linex core processing facility or on site at the drill rig. Linex provided geological services to Mercator Gold Australia Pty Ltd, including the services of Dr Boucher.
  • All material was collected in commercially available diamond core trays.
  • Diamond core was cleaned and marked metre-by-metre.
  • The geologist determines which parts of the drill hole were to be sampled using criteria such as presence of quartz and mineral occurrence. Sample intervals were based on lithology and veining but in general were 1m.
  • The samples were cut with a core saw, with half collected for laboratory submission, and the remaining half transferred back to the core tray for storage.
  • No intervals were less than 0.30m or greater than 1.0m.
  • The diamond drill samples were submitted to Onsite Laboratory Services in Bendigo, Victoria. Sample preparation involved sample crush to 2mm, pulverise and then screen to 75 microns and split off 50g for analysis. Any samples that return grades >1 g/t Au are screen fire assayed.
Drilling techniques
  • Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).
  • All holes were drilled using a truck mounted Sandvik 710DE drill rig diamond coring from surface. Holes drilled were HQ.
  • All holes were surveyed with a single shot camera, nominally every 30m where practicable.
  • Core is orientated to geology. Due to the known strike of the outcrop at surface the bedding and vein measurements are taken relative to this orientation. Data were plotted on stereonets to confirm the orientation and the drilling of three holes with differing azimuths and dips assisted these plots. Beds were correlated between holes and surface outcrop for further confirmation.
Drill sample recovery
  • Method of recording and assessing core and chip sample recoveries and results assessed.
  • Measures taken to maximise sample recovery and ensure representative nature of the samples.
  • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
  • Core recoveries were measured by the geologist after each drill run, comparing length of core recovered versus drill depth. Core recovery was logged and recorded in the database.
  • The driller was under instruction to monitor recovery and rectify core loss by adjusting drill rig operation.
  • No strong relationship between core recovery and grade is evident.
  • Drilling has occurred on day shift and night shift at various times during the programme.
Logging
  • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
  • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.
  • The total length and percentage of the relevant intersections logged.
  • All core was geologically logged at 10 centimetre intervals to a standard that follows industry common practice and is suitable for future use in interpretation and resource estimation.
  • Logging of samples included but was not limited to lithology, mineralogy, alteration, veining, weathering and structure.
  • Drill core structural measurements were logged prior to cutting/sampling. Bedding, joint and fault orientations were measured.
  • All core was photographed wet and dry.
Sub-sampling techniques and sample preparation
  • If core, whether cut or sawn and whether quarter, half or all core taken.
  • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
  • For all sample types, the nature, quality and appropriateness of the sample preparation technique.
  • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
  • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
  • Whether sample sizes are appropriate to the grain size of the material being sampled.
  • Half core was sampled using a core saw. The right half of the core (viewed down hole) was submitted for assay.
  • Linex Pty Ltd core cutting and sampling procedures were followed to ensure sampling consistency.
  • 1m of non-mineralised material from either side of significant mineralised zones was submitted with the samples to the laboratory as part of the quality control process.
  • No second half sampling has been conducted.
  • The sample sizes are considered to be appropriate for the type of mineralisation in this area.
Quality of assay data and laboratory tests
  • The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
  • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
  • Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.
  • The sample preparation and analytical procedures are considered appropriate for the style of mineralisation.
  • Onsite Laboratory Services provided details of their routine quality controls.
  • 10% of samples were duplicate assayed and 10% of assays were repeated for quality control and quality assurance testing.
  • One standard sample was inserted per approximately 20 samples dispatched for assay.
  • Laboratory standards and blanks were inserted for quality control and quality assurance testing.
Verification of sampling and assaying
  • The verification of significant intersections by either independent or alternative company personnel.
  • The use of twinned holes.
  • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
  • Discuss any adjustment to assay data.
  • All assay and drillhole data were imported and stored in a database.
  • Significant intersections were verified by the logging geologist and Dr Boucher.
  • No twinned holes have been drilled.
  • Primary data for drill holes was compiled onto paper based logging templates and was then transferred into a database and validated by Linex Pty Ltd personnel. Back up digital copies of all paper log sheets were also kept.
  • No adjustments have been made to any assay data contained in this report.
Location of data points
  • Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
  • Specification of the grid system used.
  • Quality and adequacy of topographic control.
  • All drill hole location coordinates were measured using handheld GPS.
  • Collar surveying was performed by Linex Pty Ltd personnel. This was considered appropriate for the stage of exploration.
  • All drill holes were downhole surveyed. Down hole single shot surveys were conducted by the drilling contractor every 30m down hole and at end of hole where possible.
  • Drilling orientation was established prior to collaring with clinometer and compass.
  • The grid system used is GDA MGA 94 Z55.
  • The RL was recorded for each drill hole from the GPS and verified using publicly available satellite and aerial imagery.
Data spacing and distribution
  • Data spacing for reporting of Exploration Results.
  • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.
  • Whether sample compositing has been applied.
  • The drill hole spacing at Blue Moon is approximately 30 m.
  • Sample intervals were based on lithology but in general were 1 m.
Orientation of data in relation to geological structure
  • Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.
  • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
  • Two drill holes at Blue Moon were orientated at -60 degrees towards 222 and 180 degrees, with the third hole orientated at -85 degrees towards 11 degrees.
  • BBM001 & BBM002 holes were designed with the aim of crossing the host sandstone at a high angle.
  • BBM003 was designed to drill at a low angle to the lithology to gain maximum samples for analysis and to investigate the presence of cross faults and veins.
  • There is insufficient drilling data to determine if any bias can be detected in the data.
Sample security
  • The measures taken to ensure sample security.
  • All core drilled has been processed and cut at the Linex core processing facility by Linex Pty Ltd personnel. Core is then dispatched by Linex Pty Ltd personnel.
  • All sample reject is retained by Linex Pty Ltd.
  • Sample number receipt information from the laboratory is cross- referenced and rationalised against sample number dispatch information.
Audits or reviews
  • The results of any audits or reviews of sampling techniques and data.
  • No processes or data used in developing the release of exploration results have been subject to audit or review by non-Linex Pty Ltd personnel or contractors so as to reduce timelines for reporting.

Section 2 Reporting of Exploration Results

Criteria JORC Code explanation Commentary
Mineral tenement and land tenure status
  • Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
  • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.
  • Blue Moon is within the vicinity of Nagambie, Victoria.
  • Blue Moon is located on EL5433 and is 100% owned by Mercator Gold Australia Pty Ltd.
  • Exploration activities at Blue Moon were in open paddocks on private land.
Exploration done by other parties
  • Acknowledgment and appraisal of exploration by other parties.
  • There has been no contemporary exploration at Blue Moon. There are small historic pits and shafts at Blue Moon.
  • Previous soil and rock chip geochemistry has been conducted by Mercator Gold geologists.
Geology
  • Deposit type, geological setting and style of mineralisation.
  • The host rocks at Blue Moon are marine sandstones and shales intruded by dolerite dykes. Gold is hosted associated with quartz veining within the sandstone.
  • Outcrop at Blue Moon reveals sandstone and dolerite associated with quartz veins. Drilling confirmed the observations.
  • Bedding strikes west-north-west and dips to the north. Bedding is transected by a series of west-dipping faults.
Drill hole Information
  • A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:
    • easting and northing of the drill hole collar
    • elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar
    • dip and azimuth of the hole
    • down hole length and interception depth
    • hole length.
  • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
  • No material drill hole information has been excluded.
  • See Table A above

Data aggregation methods
  • In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.
  • Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
  • The assumptions used for any reporting of metal equivalent values should be clearly stated.
  • Averages of results through each intersection have been reported.
  • No cut-off grades have been applied.
Relationship between mineralisation widths and intercept lengths
  • These relationships are particularly important in the reporting of Exploration Results.
  • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
  • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).
  • Mineralisation widths are based on down hole lengths.
  • There is insufficient drilling data to determine continuity of mineralised domains.
Diagrams
  • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.
Balanced reporting
  • Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
  • All gold values have been reported.
Other substantive exploration data
  • Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.
  • All relevant data is presented in the text, tables and diagrams.
Further work
  • The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).
  • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
  • Future drilling will be dependent on future company direction.

ECR Minerals #ECR – Directorate Change

The directors of ECR Minerals plc announce that Christian St. John-Dennis has resigned as a director of the Company with immediate effect, in order to focus on his other business interests.

Craig Brown, Chief Executive Officer of ECR, commented: “The Directors would like to thank Christian for his assistance to the Company to date, and wish him well in his future endeavours. The Company’s intention is to appoint a new Non-Executive Director and a further announcement will be made to the market in due course.”

The Company confirms that it expects to release assay results at its Blue Moon project tomorrow.

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
Optiva Securities Ltd Tel: +44 (0)203 137 1902
Broker
Graeme Dickson
FlowComms Tel: +44 (0)7891 677 441
Investor Relations
Sasha Sethi

FORWARD LOOKING STATEMENTS

This announcement may include forward looking statements. Such statements may be subject to numerous 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 because of new information, future events or for any other reason.

ECR Minerals #ECR – Unaudited Half-Year Results for the Six Months Ended 31 March 2018

UNAUDITED HALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2018 AND UPDATE

LONDON: 29 JUNE 2018 – The directors of ECR Minerals plc are pleased to announce the Company’s unaudited half-yearly results for the six months to 31 March 2018, along with an update on the Group’s activities.

HIGHLIGHTS:

  • Five gold exploration licences in Victoria, Australia now held by ECR’s wholly owned subsidiary Mercator Gold Australia Pty Ltd, with a sixth licence applied for.
  • Consultancy Terra Resources identified 47 targets for potential follow-up within the Avoca, Bailieston, Moormbool and Timor exploration licences, including 15 high priority areas.
  • Blue Moon, Bung Bong and Monte Christo gold prospects drilled, with results for Bung Bong and Monte Christo announced in June 2018.
  • Blue Moon assay results received very recently and will be announced early next week.
  • Acquisition of Creswick gold project, considered highly prospective for gold mineralisation.
  • Reduced group comprehensive expense of £321,433 for 6 months ended 31 March 2018, (£432,339 for six months ended 31 March 2017).
  • Net assets of £3,413,791 at 31 March 2018 (£2,382,561 at 31 March 2017).

CHIEF EXECUTIVE OFFICER’S REPORT

ECR has continued to concentrate its efforts on gold exploration in Victoria, Australia, although the Directors regularly review potential new projects both inside and outside Australia. We view Victoria as a relatively overlooked gold exploration destination, given its impressive past gold production of around 85 million ounces, and the presence of a number of successful modern gold mines in the state. In particular, we note that the Fosterville mine, which is located in the same district as ECR’s Bailieston and Moormbool projects, has produced more than one million ounces to date, and is now under the ownership of Canada’s Kirkland Lake Gold. Kirkland Lake’s 2018 production guidance for Fosterville is 260-300,000 ounces from high grade underground mining operations.

ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) now has five exploration licences in Victoria (Avoca – EL5387; Bailieston – EL5433; Creswick – EL006184, Moormbool – EL006280; and Timor – EL006278), with a sixth licence under application and expected to be granted shortly (Creswick North).

In December 2017, the Company received the results of an interpretation and targeting study using open-file geophysical data covering the Avoca, Bailieston, Moormbool and Timor exploration licences. The study was carried out for MGA by the consultancy firm Terra Resources and identified a total of 47 targets for potential follow-up, including 15 high priority areas. The geophysical compilation datasets included regional airborne magnetics and radiometrics and ground gravity data, which were processed and imaged in order to perform geological interpretation and target generation. The high priority targets identified included areas already considered to be of significant interest by ECR, such as the Byron, Black Cat and Cherry Tree prospects at Bailieston, the magnetic anomaly at Moormbool, and the Leviathan trend at Timor. Several new target areas were also identified.

Early in 2018, Dr Rodney Boucher, an experienced Victorian gold geologist, commenced a review of all available data on MGA’s exploration licences (at that time numbering four licences), complemented by geological mapping and geochemical surveys in selected areas. The purpose of this work was to help define targets for a diamond drilling programme extending across a number of MGA’s prospects. The geochemical surveys utilised a portable XRF to delineate proxy minerals associated with gold.

Drilling at Blue Moon, Bung Bong and Monte Christo prospects

Drilling commenced at the Bung Bong prospect in April 2018, and five holes were completed. Thereafter, the rig moved to the Monte Christo prospect, and then to the Blue Moon prospect, with two holes drilled at each, after which the programme was brought to a close. The Blue Moon prospect is part of the Bailieston project area (EL5433), while Bung Bong and Monte Christo are part of the Avoca project area (EL5387). Assay results were announced in early June 2018 for the drilling at Bung Bong and Monte Christo. Results from the drilling at Blue Moon have been received very recently, and an announcement is being prepared for release early next week.

All five holes at Bung Bong and the two holes at Monte Christo fulfilled their intended purpose, which was to test the structural architecture of the target areas. The holes were the first ever drilled at both Bung Bong and Monte Christo, and gold mineralisation was intersected at both prospects, although no high-grade shoots were encountered.

Blue Moon disseminated gold prospect

The target at Blue Moon is a disseminated gold deposit, as opposed to the quartz reef systems at Bung Bong and Monte Christo. The drill holes at Blue Moon were designed to test arsenic and antimony anomalies identified by the soil geochemical survey completed by MGA earlier in the year. An arsenic-anomalous zone up to 40 m wide and more than 200 m long was identified, and previous work has shown anomalism over a further 150 m to the west. Previous rock chip samples include results of 12.1, 10.1 and 7.0 g/t, and previous soil surveys identified gold to 5.0 g/t (as detailed in the technical report identified in the Company’s announcement dated 20 April 2016). After the assay results from the drilling at Blue Moon have been fully interpreted, planning can begin for the next phase of exploration in Victoria.

Acquisition of Creswick gold project

MGA acquired 100% ownership of the Creswick licence in April 2018 and applied for Creswick North shortly after. The licences are considered highly prospective for gold mineralisation hosted within the Dimocks Main Shale, which extends over a 15 km trend from the mining centre of Ballarat to the south, including approximately 3 km within the Creswick project area. In the project area, the Dimocks Main Shale (DMS) is an approximately 25 m wide shale containing bedding- and cleavage-parallel auriferous quartz veins with potential for bulk mining. Only two holes have been drilled to test the DMS within the Creswick licence, both in the 1990s. The results of this drilling included an intercept of 2 m at 12.28 g/t gold. The best previous drill intercept into the DMS to the south of Creswick is 2 m at 176 g/t gold. ECR has not yet commenced field activities at Creswick.

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 annual report and accounts published in 2018.

FINANCIAL RESULTS

For the six months ended 31 March 2018 the financial statements of the Company as consolidated with its subsidiaries (the “Group”) record a total comprehensive expense of £321,433, the largest component of which is other administrative expenses of £240,719, which relate primarily to the development of the Company’s projects, but which cannot be capitalised under applicable accounting standards. The Group reported a total comprehensive expense of £432,339 for the six months ended 31 March 2017.

The Group’s net assets were £3,413,791 at 31 March 2018 compared with £2,382,561 at 31 March 2017.

Craig Brown
Chief Executive Officer

ABOUT ECR

ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia has 100% ownership of the Avoca, Bailieston and Timor gold projects in Victoria, 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 subsidiary Ochre Mining has a 100% interest in 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
Optiva Securities Ltd Tel: +44 (0)203 137 1902
Broker
Graeme Dickson
FlowComms Tel: +44 (0)7891 677 441
Investor Relations
Sasha Sethi

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 2018
Six months ended

31 March 2018

Six months ended

31 March 2017

Year ended

30 September 2017

Continuing operations £ £ £
Other administrative expenses (240,719) (431,492) 509,545
Currency exchange differences (2,507) (1,335) (3,186)
Total administrative expenses (243,226) (432,827) (512,731)
Operating loss (243,226) (432,827) (512,731)

Loss on disposal of available for sale financial assets

(1)

Fair value movements – available for sale financial
asset

(5,429) (1,108) 1,255
(248,655) (433,935) (511,477)
Finance income 710 131 353
Finance income and costs 710 131 353

Loss for the period before taxation

(247,945) (433,804) (511,124)
Income tax
Loss for the period (247,945) (433,804) (511,124)
Loss attributable to:
Owners of the parent (247,945) (433,804) (511,124)
Loss per share – basic and diluted (0.10)p (0.33)p (0.31)p
Consolidated Statement of Comprehensive Income
For the six months ended 31 March 2018
Six months ended

31 March 2018

Six months ended

31 March 2017

Year ended

30 September 2017

£

£

£

Loss for the period (247,945) (433,804) (511,124)

Items that may be reclassified subsequently to
profit or loss

Gain/(losses) on exchange translation (73,488) 1,465 (51,524)

Other comprehensive income/(expense) for the
period

(73,488) 1,465 (51,524)
Total comprehensive expense for the period (321,433) (432,339) (562,649)
Attributable to:
Owners of the parent (321,433) (432,339) (562,649)
Consolidated Statement of Financial Position
At 31 March 2018
As at

31 March 2018

As at

31 March 2017

As at

30 September 2017

Assets £ £ £
Non–current assets
Property, plant and equipment 5,751 11,483 8,694
Exploration assets 2,675,346 2,556,688 2,668,747
Total non-current assets 2,681,097 2,568,171 2,677,441
Current assets
Trade and other receivables 46,138 9,927 54,888
Available for sale financial assets 16,841 19,906 22,269
Taxation 20,283 70,816
Cash and cash equivalents 701,499 107,508 1,082,994
784,761 208,157 1,160,151
Total assets 3,465,858 2,776,328 3,837,592

Current liabilities

Trade and other payables 52,066 393,767 102,367
Interest bearing borrowings
Total liabilities 52,066 393,767 102,637

Net assets

3,413,792 2,382,561 3,735,225
Equity attributable to owners of the parent
Share capital 11,282,812 11,281,695 11,282,812
Share premium 43,823,335 42,508,217 43,823,335
Exchange reserve (291,547) (165,070) (218,059)
Other reserves 1,381,998 1,215,259 1,381,998
Retained losses (52,782,806) (52,457,540) (52,534,860)

Total equity

3,413,792 2,382,561 3,735,225

Consolidated statement of changes in equity

For the six months ended 31March 2018

Share
capital

Share
premium

Exchange

reserves

Other

reserves

Retained

reserves

Total

Equity

£ £ £ £ £ £

At 1 October 2016

11,281,628 42,441,553 (166,535) 1,147,717 (52,023,736) 2,680,627
Loss for the period (433,804) (433,804)
Loss on exchange translation 1,465 1,465
Total comprehensive income /(expense) 1,465 (433,804) (432,339)
Share based payments 67,542 67,542
Shares issued in payment of creditors 67 66,664 66,731

At 31 March 2017

11,281,695 42,508,217 (165,070) 1,215,259 (52,457,540) 2,382,561
Loss for the period (77,320) (77,320)
Loss on exchange translation (52,989) (52,989)
Total comprehensive income /(expense) (52,989) (77,320) (130,309)
Shares issued 1,109 1,552,455 1,553,564
Share issue costs (84,878) (84,878)
Share based payments (166,739) 166,739
Shares issued in payment of creditors 8 14,280 14,288

At 30 September 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)
Total comprehensive income /(expense) (73,488) (247,945) (321,433)

At 31 March 2018

11,282,812 43,823,335 (291,547) 1,381,998 (52,782,805) 3,413,793
Consolidated Cash Flow Statement
For the six months ended 31 March 2018

Six months ended
31 March 2018

Six months ended

31 March 2017

Year ended

30 September 2017

£ £ £
Net cash flow used in operations (301,408) (241,445) (569,016)
Investing activities
Increase in exploration assets (6,600) (191,080) (231,140)
Purchase of property, plant & equipment (3,776) (6,174)
Interest received 353
Net cash used in investing activities (6,600) (122,856) (236,961)
Financing activities
Proceeds from issue of shares and warrants 1,468,686
Net cash from financing activities 1,468,686
Net change in cash and cash equivalents (308,008) (364,301) 662,709
Cash and cash equivalents at beginning of the period 1,082,994 471,809 471,809
Effect of change in exchange rates (73,487) (51,524)
Cash and cash equivalents at end of the period 701,499 107,508 1,082,994

Notes to the Condensed Half-Yearly Financial Statements

For the six months ended 31 March 2018

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 2018. 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 2017. They have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year to 30 September 2017. 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.

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 2018 and 31 March 2017 is unaudited. The comparative figures for the year ended 30 September 2017 were derived from the Group’s audited financial statements for that year as filed with the Registrar of Companies. They do not constitute the financial statements for that year.

2. Going concern

The Directors are satisfied that the Company 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. Loss per share

Six months ended

31 March 2018

Six months ended

31 March 2017

Year ended

30 September

2017

Weighted number of shares in issue during the
period

247,605,240 130,179,729 166,559,125
£ £ £

Loss from continuing operations attributable to
owners of the parent

(247,945)

(433,804)

(511,124)

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.

5. Income tax

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

6. Related party transactions

The Directors are the only key management.

Directors’ remuneration during the period was as follows:

Six months ended 31
March 
2018

Six months ended
31 March 
2017

Year ended

30 September

2017

£ £ £
Directors’ emoluments 68,400 108,885 208,232
Employer’s national insurance contributions 8,312 10,402
Share-based payments 67,542 67,542
Total emoluments 76,712 176,427 286,176

There were no other related party transactions during the period.

7. Shares and options transactions during the period

During the period, no new shares or options were issued.

8. Consolidated Cash Flow Statement

Six months ended
31 March 
2018

Six months ended
31 March 
2017

Year ended

30 September

2017

£ £ £
Operating activities
Loss for the period, before tax (247,946) (433,804) (511,124)
Adjustments:

Depreciation expense, property, plant and equipment

2,943 (1,470) 3,717
Provision and impairment of investment and loans 1,108
Impairment of other current assets 2,672
Loss on available for sale financial assets (1,255)
Interest income (353)
Loss on revaluation of investments 5,428 1,465 1
Interest on convertible loans 135,118
Share based payments 67,542 67,542
Shares issued in lieu of expense payments 66,731 81,019
(Increase) /decrease in accounts receivable (1,097) (4,457) (36,899)
Increase/(Decrease) in accounts payable (50,300) 91,525 (199,876)
(Increase)/decrease in taxation (10,436) (32,757) 28,212
Net cash flow used in operations (301,408) (241,445) (569,016)

9. Post period end events

On 13 April 2018 the Company announced positive geochemical results and the start of a drilling programme at Bung Bong gold prospect in Victoria, Australia

On 20 April 2018 the Company announced that the Company’s wholly owned subsidiary Mercator Gold Australia Pty Ltd (“MGA”) has acquired 100% ownership of the Creswick gold project in central Victoria, Australia with no consideration payable by ECR or MGA.

On 3 May 2018 the Company announced that drilling has been completed at the Bung Bong gold prospect and drilling activities will commence shortly at the Monte Christo prospect.

On 22 May 2018 the Company announced that the Monte Christo drilling had been successfully completed and drilling commenced at the Blue Moon gold-antimony target.

On 5 June 2018 the Company announced the results of diamond drilling at the Bung Bong and Monte Christo gold prospects in Central Victoria, Australia.

ECR Minerals #ECR – Drilling report on Bung Bong and Monte Christo gold prospects

ECR Minerals plc is pleased to announce the results of diamond drilling at the Bung Bong and Monte Christo gold prospects in Central Victoria, Australia.

The drilling formed part of a larger diamond drilling programme across three prospects in Central Victoria: Bung Bong, Monte Christo and Blue Moon, all of which are 100% owned by the Company’s wholly owned subsidiary Mercator Gold Australia Pty Ltd. The programme has now been completed, and assay results are awaited in respect of Blue Moon.

The Blue Moon prospect is part of the Bailieston project area (EL5433), while Bung Bong and Monte Christo are part of the Avoca gold project area (EL5387). The target at Blue Moon is a disseminated gold deposit, as discussed in ECR’s announcement dated 22 May 2018, rather than a reef system as at Bung Bong and Monte Christo.

Drill hole data and significant intercepts from the five holes at Bung Bong (ABB001 to 005) and two holes at Monte Christo (AMC001 and 002) are disclosed in Table A below. Intercepts are apparent width.

Craig Brown, CEO of ECR, commented: “All five holes at Bung Bong and the two holes at Monte Christo fulfilled their intended purpose, which was to test the structural architecture of the target areas and guide further drilling, if warranted. These were the first ever drill holes at Bung Bong and Monte Christo, and gold mineralisation was intersected at both prospects, although we did not encounter any high-grade shoots in this drilling.

The Company will be considering what future work, whether drilling, geophysics or surface geochemistry, may be appropriate at these two prospects. Separately, we look forward to receiving assay results from the recently completed drilling at Blue Moon.”

Discussion of drilling results from the Monte Christo prospect
Hole AMC001 at Monte Christo intercepted two broad quartz zones, however assay results show these zones to be weakly mineralised. The upper zone is in the footwall of a dyke likely to have intruded along a fault below the shallow workings at surface. The lower zone shows vein development and partitioning around a fault. Significant intercepts in AMC001 included 2.1 m at 1.32 g/t from 87.3 m (including 1 m at 2.58 g/t).

AMC002 was drilled under the main historic shaft at Monte Christo but did not encounter the same reef development as AMC001, although an intercept of 1 m at 1.89 g/t Au from 85.4 m was obtained.

Historic reports explain that gold at depth at Monte Christo was associated with pyrites. The better of the assays in AMC001 and AMC002 show a close association with the presence of arsenopyrite. Arsenopyrite is weathered from the oxidised upper portion of the drill holes, and this may have depleted these zones of gold.

Discussion of drilling results from the Bung Bong prospect
The drilling at Bung Bong revealed faulting, vein development and partitioning for a width exceeding the 100 m traverse of five drill holes and open at depth, indicating bulk tonnage potential had the zone been shown to be gold-mineralised. Unfortunately, the assays from the holes drilled have not identified the location of a mineralised shoot.

The oxide zone deepened with the faulting towards the east at Bung Bong. The gold intercept in ABB001 (0.95 m at 2.20 g/t Au in ABB001 from 32.85m) was below the oxide zone and it is possible that sulphide destruction has led to gold depletion, as hypothesised at Monte Christo. This raises the possibility that there may be further exploration potential at depth, below the base of oxidation, in the case of both Monte Christo and Bung Bong.

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 Australian 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.

ABOUT ECR
ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia has 100% ownership of the Avoca, Bailieston, Creswick, Moormbool and Timor gold exploration licences in central Victoria, 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.

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
Optiva Securities Ltd Tel: +44 (0)203 137 1902
Broker
Graeme Dickson
FlowComms Tel: +44 (0)7891 677 441
Investor Relations
Sasha Sethi

FORWARD LOOKING STATEMENTS
This announcement may include forward looking statements. Such statements may be subject to numerous 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 because of new information, future events or for any other reason.

TABLE A
Drill hole data and significant intercepts from April-May 2018 diamond drilling at Bung Bong and Monte Christo prospects, Central Victoria, Australia by Mercator Gold Australia Pty Ltd

Drill hole data (MGA 94 Zone 55) Significant Intercepts
Hole ID Core size Easting (m) Northing (m) RL (m) Dip Az TD (m) From (m) To (m) Width (m) Au (g/t)
ABB001 HQ 724828 5890966 301 -80 71 47.34 32.85 33.80 0.95 2.20
ABB002 HQ 724850 5890959 300 -80 75 50.4 NSI
ABB003 HQ 724869 5890958 299 -80 60 65.5 NSI
ABB004 HQ 724887 5890953 297 -80 101 61.2 NSI
ABB005 HQ 724909 5890951 296 -70 101 72 NSI
AMC001 HQ 721323 5890794 263 -60 260 104.4 69.85 71.85 2.00 0.58
77.95 78.40 0.45 1.82
87.30 89.40 2.10 1.32
Inc. 87.30 88.30 1.00 2.58
AMC002 HQ 721340 5880620 266 -60 260 101.3 85.40 86.40 1.00 1.89

JORC Table 1

Section 1 Sampling Techniques and Data

Sampling techniques
  • Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
  • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
  • Aspects of the determination of mineralisation that are Material to the Public Report.
  • In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.
  • All sampling and logging has been supervised and conducted by Dr Rodney Boucher of Linex Pty Ltd and by Linex staff at the Linex core processing facility or on site at the drill rig. Linex provided geological services to Mercator Gold Australia Pty Ltd, including the services of Dr Boucher.
  • All material was collected in commercially available diamond core trays.
  • Diamond core was cleaned and marked metre-by-metre.
  • The geologist determines which parts of the drill hole were to be sampled using criteria such as presence of quartz and mineral occurrence. Sample intervals were based on lithology and veining but in general were 1m.
  • The samples were cut with a core saw, with half collected for laboratory submission, and the remaining half transferred back to the core tray for storage.
  • No intervals were less than 0.20m or greater than 1.5m.
  • The diamond drill samples were submitted to Onsite Laboratory Services in Bendigo, Victoria. Sample preparation involved sample crush to 2mm, pulverise and then screen to 75mm and split off 50g for analysis.
Drilling techniques
  • Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).
  • All holes were drilled using a truck mounted Sandvik 710DE drill rig diamond coring from surface. Holes drilled were HQ.
  • All holes were surveyed with a single shot camera, nominally every 30m where practicable.
  • Core is orientated using regional axial planar cleavage. Due to the known strike of cleavage, bedding and vein measurements are taken relative to cleavage. Data were plotted on stereonets to confirm the orientation and where possible, beds were correlated between holes for further confirmation.
Drill sample recovery
  • Method of recording and assessing core and chip sample recoveries and results assessed.
  • Measures taken to maximise sample recovery and ensure representative nature of the samples.
  • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
  • Core recoveries were measured by the geologist after each drill run, comparing length of core recovered versus drill depth. Core recovery was logged and recorded in the database.
  • The driller was under instruction to monitor recovery and rectify core loss by adjusting drill rig operation.
  • No strong relationship between core recovery and grade is evident.
  • Drilling has occurred on day shift and night shift at various times during the programme.
Logging
  • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
  • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.
  • The total length and percentage of the relevant intersections logged.
  • All core was geologically logged at 10 centimetre intervals to a standard that follows industry common practice and is suitable for future use in interpretation and resource estimation.
  • Logging of samples included but was not limited to lithology, mineralogy, alteration, veining, weathering and structure.
  • Drill core structural measurements were logged prior to cutting/sampling. Bedding, joint and fault orientations were measured relative to cleavage to provide orientations.
  • All core was photographed wet and dry.
Sub-sampling techniques and sample preparation
  • If core, whether cut or sawn and whether quarter, half or all core taken.
  • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
  • For all sample types, the nature, quality and appropriateness of the sample preparation technique.
  • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
  • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
  • Whether sample sizes are appropriate to the grain size of the material being sampled.
  • Half core was sampled using a core saw. The right half of the core (viewed down hole) was submitted for assay.
  • Linex Pty Ltd core cutting and sampling procedures were followed to ensure sampling consistency.
  • 1m of non-mineralised material from either side of significant mineralised zones was submitted with the samples to the laboratory as part of the quality control process.
  • No second half sampling has been conducted.
  • The sample sizes are considered to be appropriate for the type of mineralisation in this area.
Quality of assay data and laboratory tests
  • The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
  • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
  • Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.
  • The sample preparation and analytical procedures are considered appropriate for the style of mineralisation.
  • Onsite Laboratory Services provided details of their routine quality controls.
  • 10% of samples were duplicate assayed and 10% of assays were repeated for quality control and quality assurance testing.
  • One standard sample was inserted per approximately 20 samples dispatched for assay.
  • Laboratory standards and blanks were inserted for quality control and quality assurance testing.
Verification of sampling and assaying
  • The verification of significant intersections by either independent or alternative company personnel.
  • The use of twinned holes.
  • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
  • Discuss any adjustment to assay data.
  • All assay and drillhole data were imported and stored in a database.
  • Significant intersections were verified by the logging geologist and Dr Boucher.
  • No twinned holes have been drilled.
  • Primary data for drill holes was compiled onto paper based logging templates and was then transferred into a database and validated by Linex Pty Ltd personnel. Back up digital copies of all paper log sheets were also kept.
  • No adjustments have been made to any assay data contained in this report.
Location of data points
  • Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
  • Specification of the grid system used.
  • Quality and adequacy of topographic control.
  • All drill hole location coordinates were measured using handheld GPS.
  • Collar surveying was performed by Linex Pty Ltd personnel. This was considered appropriate for the stage of exploration.
  • All drill holes were downhole surveyed. Down hole single shot surveys were conducted by the drilling contractor every 30m down hole and at end of hole where possible.
  • Drilling orientation was established prior to collaring with clinometer and compass.
  • The grid system used is GDA MGA 94 Z44.
  • The RL was recorded for each drill hole from the GPS and verified using publicly available satellite and aerial imagery.
Data spacing and distribution
  • Data spacing for reporting of Exploration Results.
  • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.
  • Whether sample compositing has been applied.
  • The drill hole spacing at Bung Bong was 20 m along a single section
  • The drill holes at Monte Christo were approximately 150 m apart on differing sections.
  • Sample intervals were based on lithology but in general were 1m.
Orientation of data in relation to geological structure
  • Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.
  • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
  • A majority of diamond drill holes at Bung Bong were orientated at -80 degrees (or -70 degrees for ABB005) towards 060 degrees to 090 degrees.
  • The holes drilled at Monte Christo were both orientated at -60 towards 260 degrees.
  • All holes were designed with the aim to cross most veins and structures at a high angle.
  • There is insufficient drilling data to determine if any bias can be detected in the data.
Sample security
  • The measures taken to ensure sample security.
  • All core drilled has been processed and cut at the Linex core processing facility by Linex Pty Ltd personnel. Core is then dispatched by Linex Pty Ltd personnel.
  • All sample reject is retained by Linex Pty Ltd.
  • Sample number receipt information from the laboratory is cross- referenced and rationalised against sample number dispatch information.
Audits or reviews
  • The results of any audits or reviews of sampling techniques and data.
  • No processes or data used in developing the release of exploration results have been subject to audit or review by non-Linex Pty Ltd personnel or contractors so as to reduce timelines for reporting.

Section 2 Reporting of Exploration Results

Mineral tenement and land tenure status
  • Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
  • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.
  • Bung Bong and Monte Christo are within the vicinity of Avoca, Victoria, and are 100% owned by Mercator Gold Australia Pty Ltd.
  • Both prospects are located on EL5387.
  • Exploration activities at Bung Bong were confined to an existing track on Crown Land, activities at Monte Christo were in open paddocks on private land.
Exploration done by other parties
  • Acknowledgment and appraisal of exploration by other parties.
  • Bung Bong and Monte Christo are both centres for historic mining.
  • There has been no contemporary exploration at Bung Bong and Monte Christo.
Geology
  • Deposit type, geological setting and style of mineralisation.

  • The host rocks at Bung Bong and Monte Christo are deep marine sandstones and shales (turbidites). Gold is hosted by fault-related quartz and quartz spurs.
  • Outcrop at Bung Bong reveals multiple faults associated with quartz veins. Drilling confirmed the observations.
  • Bedding strikes north-south and dips to the west. Bedding is transected by a series of west-dipping faults.
Drill hole Information
  • A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:
    • easting and northing of the drill hole collar
    • elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar
    • dip and azimuth of the hole
    • down hole length and interception depth
    • hole length.
  • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
  • No material drill hole information has been excluded.

Bung Bong drill holes

Monte Christo drill holes

Data aggregation methods
  • In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.
  • Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
  • The assumptions used for any reporting of metal equivalent values should be clearly stated.
  • Averages of results through each intersection have been reported.
  • No cut-off grades have been applied.
Relationship between mineralisation widths and intercept lengths
  • These relationships are particularly important in the reporting of Exploration Results.
  • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
  • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).
  • Mineralisation widths are based on down hole lengths.
  • There is insufficient drilling data to determine continuity of mineralised domains.
Diagrams
  • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.
  • Refer to figures previously released by ECR Minerals plc.
Balanced reporting
  • Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
  • All gold values have been reported.
Other substantive exploration data
  • Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.
  • All relevant data is presented in the text, tables and diagrams.
Further work
  • The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).
  • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
  • Future drilling will be dependent on future company direction.

ECR Minerals #ECR – Monte Christo drilling successfully completed & drilling commences at Blue Moon Gold-Antimony Target

ECR Minerals plc is pleased to announce that drilling has been completed at the Monte Christo gold prospect in Central Victoria, Australia.

The activity at Monte Christo forms part of a larger diamond drilling programme across a number of gold prospects in Central Victoria, all of which are 100% owned by the Company’s wholly owned subsidiary Mercator Gold Australia Pty Ltd.

Drilling has now commenced at the Blue Moon gold-antimony prospect, where MGA has identified anomalous arsenic and antimony through the geochemical survey completed earlier this year using a portable XRF to delineate proxy minerals.

An announcement will be made when the assay results at Monte Christo are returned.

Drilling completed at the Monte Christo prospect

Two holes have been drilled at Monte Christo and have successfully tested the structural architecture of the prospect. The purpose of the drilling was to drill into quartz reefs that were historically mined at surface. There are four parallel reefs which have been identified from evidence of historical mining activity and the geochemical survey.

Assays from the holes at Monte Christo are pending.

A prospect map and a photograph of drill core from Monte Christo can be viewed at the following link: https://bit.ly/2IFgGb5

Planned drilling at the Blue Moon prospect

The drilling at Blue Moon will test arsenic and antimony anomalies identified by the soil geochemical survey completed by MGA earlier this year using a portable XRF to delineate proxy minerals associated with gold. An arsenic-anomalous zone up to 40 m wide and more than 200 m long has been identified and previous work has shown anomalism over a further 150 m to the west. Previous rock chip samples include results of 12.1, 10.1 and 7.0 g/t, and previous soil surveys identified gold to 5.0 g/t (as detailed in the technical report identified in the Company’s announcement dated 20 April 2016).

There has been no historical mining at Blue Moon other than a small six metre pit and two small shafts. The Company believes it is possible that the gold is disseminated and therefore would have been difficult to extract for the historical miners. However, disseminated gold deposits are of intrinsic interest to the modern day mining industry.

A prospect map illustrating the results of the geochemical survey at Blue Moon may be viewed at the following link: https://bit.ly/2rVYTpJ

ABOUT ECR

ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia has 100% ownership of the Avoca, Bailieston, Creswick, Moormbool and Timor gold exploration licences in central Victoria, 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
Optiva Securities Ltd Tel: +44 (0)203 137 1902
Broker
Graeme Dickson
FlowComms Tel: +44 (0)7891 677 441
Investor Relations
Sasha Sethi

FORWARD LOOKING STATEMENTS

This announcement may include forward looking statements. Such statements may be subject to numerous 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 because of new information, future events or for any other reason.

ECR Minerals #ECR – Result of AGM

RESULT OF ANNUAL GENERAL MEETING

 

LONDON: 24 April 2018 – The board of directors of ECR Minerals plc 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 has 100% ownership of the Avoca, Bailieston, Creswick, Moormbool and Timor gold exploration licences in central Victoria, 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
Optiva Securities Ltd Tel: +44 (0)203 137 1902
Broker
Graeme Dickson
FlowComms Tel: +44 (0)7891 677 441
Investor Relations
Sasha Sethi
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