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The rise and fall – or should we say, fall and rise – of the gold market in 2021

by Hannah Howes

Gold investment demand fell early this year, largely attributed to outflows in gold-backed ETFs as growing expectations of higher interest rates influenced investor attitude, according to the most recent World Gold Council (WGC) report (Gold outlook for 2021 positive, despite uncertainty – World Gold Council (miningweekly.com). When analysing this trend more closely, it has been noted that investment demand actually saw positive growth in the retail market with ETF outflows negatively impacting the overall picture. The WGC market intelligence manager Krishan Gopaul notes that the “The overall picture of investment falling in the quarter really hides two different stories – we see the ETF outflows but there is still the more positive growth story on the bar and coin side”.There has also been an increase in consumer demand which has been further enhanced by low gold prices, one of the major buyers of such commodities being China and other emerging markets. The catalysed global economic recovery, bolstered by swift vaccination efforts, has also boosted consumer confidence in the technology sector raising demand by 11% year on year.

The cyclical elements of gold demand have been heightened by the 10% decrease in gold price in the first quarter, in combination with the global economic recovery in response to positive Covid-19 outlooks. Senior Market Analyst Louise Street at WGC has observed that “having seen investors take shelter in gold from the initial impacts of Covid-19, the first quarter saw a sell-off in the gold price as confidence in economic recovery grew and US interest rates rose sharply,”adding that, notwithstanding this, gold holds a strong position in the most well-balanced portfolios. This is particularly so given the repeatedly reported fears of inflation. In previous years where records show inflation rates of over 3%, the price of gold increased 15% on average (https://www.gold.org/goldhub/research/outlook-2021). When looking ahead to the next few less-tumultuous years, Louise sees “reasons to be optimistic about the gold market”due to the resilience of the markets main drivers, low interest rates and increasing yields.

History ready to repeat itself?

The only certain thing to come from the past year is uncertainty in abundance. That said, when it comes to gold mining, we can remain confident in the fact that the Victoria goldfields, southern Australia, continues to stand as a reputable and reliable source of precious metals. This follows decades of mining in the region, in the wake of a glimmering spotlight launched by the 19thcentury gold rush. Testament to this fact is the nugget of gold rested assertively on my mantel, panned by myself during a trip to the Sovereign Hill attraction at the Ballarat Gold Mine.

AIM listed ECR Minerals (AIM: ECR) is a company on the brink of a gold fest from current drilling in the territory, focused on delivering the next multi-million ounce gold resource. ECR outright owns the Bailieston and Creswick projects located in Central Victoria, Australia, and with an operational HQ at Bendigo, is able to process and fast track core samples and assay results.

As well as holding financial interests in the Avoca, Moormbool and Timor projects, following the sale of those licenses to TSX-V listed Fosterville South Exploration Ltd for up to £1.3 million. Further retaining a 25% interest in the Danglay epithermal gold project located in Northern Philippines and a net smelter royalty agreement from the sale of the SLM gold project in Argentina.

Creswick

The Dimocks Main Shale, a geological feature believed to be have great gold potential, is home to Creswick and extends some 15km from the aforementioned mining centre of Ballarat.

Drill sites for the current programme are 2.2km south from those used in the previous drill programme in 2019, individual samples of which returned assays as high as 80.97 g/t gold over one metre. A study by pre-eminent consulting geochemist Dr Dennis Arne, whose experience includes extensive consultancy at the exceedingly successful Fosterville gold mine in Central Victoria, emphasized the significant gold exploration potential at Creswick, and ‘nuggety gold mineralisation’.

Bailieston

Also located in the sought-after central Victoria region, Bailieston is not far from the renowned Fosterville mine owned by Kirkland Lake Gold. Bailieston is base to ongoing drilling in the HR3 area, undertaken using ECR’s own diamond drill rig, with prospects also including Cherry Tree, Red Moon and Yellow Moon. Assay results have been announced for four holes in the HR3 area, with a further four holes awaiting final geological interpretation. What has been reported is that BH3DD005 holes 6 and 7 indicate the hypothesized central anticline does exist and represents a favourable target for gold mineralisation. Quality samples have been recorded from drilling by ECR at the Blue Moon prospect in 2019, including a 17.8g/t sample from a 2 metre interval. Making Blue Moon a noteworthy new discovery.

Through previously selling three Victoria licences (Avoca, Moormbool and Timor gold exploration projects) for cash and royalties to TSX-V listed Fosterville South Exploration Ltd, and a number of warrant exercises, the company is fully funded to continue drilling at its 100% owned Creswick and Bailieston projects through to into 2022. This strong cash position has given the company desirable footing moving forward, enabling them to push for the launch of further drilling programmes across existing property and acquire new opportunities.

In the recent Proactive Investors interview, ECR Minerals CEO Craig Brown spoke to Andrew Scott, highlighting the recent news of application for three new licenses in north-east Queensland, Australia. These permits are to cover a total of 900sq km of highly prospective ground within the Lolworth Range. Historical mining in the region totals 24.4mil ounces, equivalent to $48 billion worth of gold. Despite this, the area is relatively unexplored, offering “huge potential” according to Craig. As well as emphasising that he expects the gold price to only gain strength, with the precious metal being the hedge against inflation concerns.

Despite the recent retreat in share price, dropping from 4.25p in January, to 1.89p in May 2021, ECR’s strong cash position attributed to the aforementioned license sales and warrant exercises puts the company in an enviable industry spot. This, in combination with the fact the company owns a diamond drilling rig, currently operational at Bailieston while a contractor’s rig is active at Creswick, means ECR Minerals is set for a prosperous 2021/22 as demand for gold remains bullish. Making the current share price a bargain investment.

ECR Minerals plc (ECR) – High Gold and Antimony Results from Soil Sampling, Victoria, Australia

HIGH GOLD AND ANTIMONY RESULTS FROM SOIL SAMPLING, VICTORIA, AUSTRALIA

EXPLORATION AT HR3 BAILIESTON PROJECT HIGHLIGHTS POTENTIAL UNDEVELOPED REEF LINES

ECR Minerals plc (LON: ECR), the gold exploration and development company focused on Australia, is pleased to announce results from recent soil sampling undertaken within the Historic Reserve #3 (HR3) Bailieston in Victoria, Australia and 100%-owned by ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”).

Craig Brown, Chief Executive Officer, commented:

“I am delighted to announce further positive exploration news, this time from the implementation of a soil sampling programme utilising an innovative exploration methodology (see below) at HR3 that has revealed particularly high gold grades in soils and therefore identified a new target for drilling.

The significance of these findings means we have now submitted a request for consent to undertake additional exploration drilling at the location, which is over and above initial planned drill holes in the area.

As the momentum of our two rig drill programmes continues to build, additional findings such as those announced today further demonstrate the geological prospectivity of our licence areas. I look forward to providing further updates as material exploration data is received and reviewed by the Company.”

HIGHLIGHTS

  • Soil sampling has revealed high gold anomalies (up to 3.75 g/t Au) along with spatially associated antimony which is thought to be from the mineral stibnite which forms a close association with gold mineralisation.
  • A total of 720 B-horizon soil samples were taken across the central and eastern part of the Bailieston Historic Reserve # 3 (HR3) between February and March 2021.

The samples were tested by portable X-ray fluorescence (“pXRF”) for anomalous pathfinder elements for gold and a selected sub-set of 229 samples have been sent for trace element analysis (TL) for Au, Ag, As, Sb, Zn, Cu and Pb.

  • Results of this work show a strong spatial relationship between Au (gold), Sb (antimony) and to a lesser extent As (arsenic). Plotting of spatial Au-Sb elemental maps reveals trends which may correspond to the weathering of high grade gold shoots under shallow cover (fig. 1).
  • Field mapping shows sub-cropping quartz with little to no historical workings associated with these anomalies. Plans have been submitted for approval to drill along strike to test these quartz reefs at depth.

METHODOLOGY

Soils grids were designed over known and the possible strike extensions of gold-bearing quartz reefs. A 10m x 10m spaced grid was chosen as it is known that narrow high-grade gold reefs will erode over a small spatial area into the adjacent soil.

Metal detector prospectors in central Victoria know this phenomenon creating what are known as ‘patches’ and often contain visible coarse gold. Soils have been taken from the B-horizon, often at the gravel-clay interface at a depth around 10cm. This is where the gravels have not transported too far from their source rocks.

Soils located within gullies and adjacent mullock dumps were removed due to contamination. All soils were sieved on site to < 2mm and bagged, producing a sample around 300g in weight. A total of 720 samples have been taken to date (June 2021).

All soils were systematically analysed in-house using ECR’s owned Olympus pXRF. Analysis is undertaken using three sequential beams with a 15 second count attributing to each beam. Results are evaluated for traditional pathfinder elements such as As, Ag, Pb, Zn, Cu and Sb.

Soil with moderate arsenic content (generally > 40 ppm) and soils spatially close to extensions to known reef lines were selected for further trace elemental analysis for Au, Ag, As, Pb, Zn, Cu and Sb. A total of 229 sub-samples have been selected and sent to ALS laboratories, Adelaide, South Australia. Method Au-TL44/ME-ICP44 was chosen for analysis.

A detection limit in ppm is sufficient given the proximity to possible gold sources. Any Au-TL44 results greater than 1 ppm was analysed by Au-AROR44 which is used for ‘ore grade’ analysis. A 50g charge from a 95% passing 75µm pulverise was chosen due to the likely presence of coarse gold.

RESULTS

Thirteen samples returned gold values above 0.1 g/t Au. Silver, Copper, lead and Zinc results are low within the soils.

Arsenic is traditionally used as a pathfinder element for gold mineralisation and occurs at moderate levels within soils at HR3 and is fairly distributed which will mask blind gold deposits.

Antimony (Sb) results are variable with high results correlating spatially with high gold assays (fig1)

Figure 1: https://www.ecrminerals.com/images/fig1_HR3_Au-Sb_Soils_210608.jpg

Rock chips taken during 2018 along strike of the main soil anomaly showed a visible speck of coarse gold (fig. 2). Assays for these rock chips were analysed using a small charge fire assay resulting in variable results (up to 0.32 g/t Au) reflecting how coarse gold can be missed using traditional assay methods. Furthermore, non-executive director (Adam Jones) in February 2019 has found coarse gold by using a metal detector within the shallow soils in the vicinity of the reported soil anomalies (fig 3).

Figure 2: https://www.ecrminerals.com/images/fig2_LX0819_vg__2018.jpg

Figure 3: https://www.ecrminerals.com/images/fig3_036g_nugget_HR3.jpg

Table 1 Summary of results for analysis of a 229 selected soil samples using method Au-TL44/ME-ICP44.

Au-PREF

ppm

Ag-T L44

ppm

As-TL44

ppm

Cu-TL44

ppm

Pb-TL44

ppm

Sb-TL44

ppm

Zn-TL44

ppm

Number

229

229

229

229

229

229

229

Minimum

0

0.1

7.5

1.8

4.8

3

3

Maximum

3.75

0.1

124

14.9

28.6

386

44

Mean

0.05

0.1

46.78

6.68

10.52

43.47

9.99

Lower Quartile

0.01

0.1

33.7

4.7

8.5

14

6

Median

0.01

0.1

45.1

6.5

10.4

24

9

Upper Quartile

0.02

0.1

56.8

8.25

12.2

51

12

STD-deviation

0.26

0

21.61

2.52

3.17

54.96

5.99

CV

5.53

0

0.46

0.38

0.3

1.26

0.6

Range

3.75

0

116.5

13.1

23.8

383

41

LOOKING FORWARD STATEMENT

Results from the undertaking of this work reflect a close gold-antimony spatial relationship with a low to moderate arsenic undertone within the Bailieston goldfield. Further soil analysis for pathfinder elements will be undertaken on other tenements now under increased exploration activity within central Victoria such as Creswick, near Ballarat.

The outcome of this work will greatly increase the chances of finding blind sub-surface gold bearing reefs that have been missed by previous explorers.

To our current knowledge, this is the first-time geochemical analysis has been undertaken at such a high standard within these tenements.

Plans have been submitted for approval to drill underneath and along strike of these anomalous soils. Once approved, this drilling will be a continuation of the current drilling program that is underway on nearby HR4, Cherry Tree.

REVIEW OF ANNOUNCEMENT BY QUALIFIED PERSON

This announcement has been reviewed by Adam Jones, a director of ECR Minerals plc. Adam Jones is a professional geologist and is a Member of the Australian Institute of Geoscientists (MAIG). He 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

Novum Securities Limited

Broker

Jon Belliss

Tel: +44 (0)20 7399 9425

SI Capital Ltd

Tel: +44 (0)1483 413500

Broker

Nick Emerson

ECR Minerals #ECR – Novum Securities Broker Note

ECR Minerals #ECR joint broker Novum Securities recently published a research note by Dr Ryan Long comparing ECR to 17 listed junior #gold companies working in the Victoria Goldfields.

Read & download that note directly from the ECR website

https://www.ecrminerals.com/investors-media/research-notes

Alan Green talks Royal Mail Group #RMG, Destiny Pharma #DEST & ECR Minerals #ECR on the UK Investor Magazine podcast

Alan Green joins the Podcast with Jonathan Roy for the weekly instalment of UK equities and market themes.

With the FTSE 100 remaining stubbornly within a tight range, we look back at the appreciation we’ve seen in cyclical shares and whether investors should expect a greater proportion of their returns to be achieved from income in the form of dividends in the future.

Financials, tobacco and some commodity shares are now yielding significantly above 5% and present an attractive allocation possibility for investors.

Having secured promotion to the FTSE 100 we look at Royal Mail and the drivers behind the tremendous run in shares from below 150p to 600p. This was largely down to success inn parcel growth that could waver as the economy reopens so we question their growth strategy going forward.

We discuss Royal Mail (LON:RMG), ECR Minerals (LON:ECR) and Destiny Pharma (LON:DEST).

Proactive’s Andrew Scott talks to ECR Minerals #ECR CEO Craig Brown about Bailieston, Creswick and Queensland

ECR Minerals PLC‘s (LON:ECR) Craig Brown speaks to Proactive following the news it’s applied for three new licences in the north of Queensland, Australia. The permits cover a total 900sq km of highly prospective ground located within the Lolworth Range, 200km WSW of Townsville and 30km north from Pentlands. Brown also updates on drill programs which are progressing at its Bailieston and Creswick gold exploration projects in the Victoria Goldfields, Australia. They are 100%-owned by ECR’s wholly owned Australian subsidiary Mercator Gold Australia.

ECR Minerals #ECR – Additional Strategic License Applications in Australia

APPLICATION FOR 300 SUB-BLOCKS WEST OF CHARTERS TOWERS IN THE LOLWORTH DISTRICT OF NORTH QUEENSLAND, AUSTRALIA

ECR Minerals plc (LON: ECR), the gold exploration and development company focussed on Australia, is pleased to announce strategic licence applications with a view to adding new exploration opportunities in Queensland, Australia.

Three Exploration Permits in Application (“EPM”) licences have been submitted in North Queensland, Australia with all three EPM licences are held under LUX Exploration Pty Ltd “LUX” which is a 100%-owned Australian subsidiary of ECR Minerals.

Craig Brown, Chief Executive Officer, commented:

“The strong cash position enjoyed by ECR Minerals has not only enabled us to launch aggressive drilling programmes across our existing properties, but has also facilitated full utilisation of in-house and advisory resources to identify, investigate and acquire new opportunities to expand our Australian exploration portfolio.  Today’s announcement manifestly demonstrates that capability. 

We are currently operating two diamond drill rigs at the Bailieston and Creswick projects in Victoria, Australia, both of which are delivering considerable amounts of drill core for technical review, processing and assay testing.   

We believe the ongoing drilling operations and the upcoming implementation of drilling across multiple high-profile gold targets will expose ECR to potential new gold discoveries. 

We also look forward to providing further information from the new Queensland Australia licence applications, which we believe offer significant potential for precious and base metal discoveries in an area of Australia where multiple large-scale discoveries have already been made.

Exploration work across Australia continues apace and we expect to provide further operational updates in the near term

THE APPLICATION AREA

  • Three Exploration Permits in application (EPM 27901, 27902 and 27903); representing 300 sub-blocks covering a total 900 km2of highly prospective ground located within the Lolworth Range, 200km WSW of Townsville and 30km north from Pentlands, North Queensland Australia. 

EXPLORATION POTENTIAL

  • The application area contains metamorphic rocks of the Charters Towers Province, that host historical large gold producing centres such as Charters Tower (6.6M Oz Au) and Ravenswood (>1M Oz Au). The structural and basement geology is poorly understood in the area suggesting finding new deposits are possible.
  • The area also contains reported rhyolitic volcanics which play host to intrusion-related breccia gold deposits in the region such as Mount Leyshon (>2.5M oz) and Mount Wright (>1M oz). (see Figure 1 below).
  • Desktop study of historic exploration data from the late 1980’s revealed highly anomalous gold stream sediment sample results within the applied areas. 
  • The application area is encompassed on the southern boundary by rich alluvial gold deposits of the Cape River and Gorge Creek area, which drain the southern Lolworth Range.
  • The east boundary of EPM27902 and EPM27903 is bordered by current exploration permits exploring the Lolworth dyke swarm; a north-west trending system of rhyolitic dykes and small breccia pipes containing gold, copper and molybdenum.
  • Historic samples also highlighted tin-tungsten mineralisation in the western areas of EPM27902 (see Figure 2). Reports show no detailed follow-up work has been undertaken.

Figure 1: Location of EPM27901, 27902 and 27903 and nearby gold deposits and towns.

https://www.ecrminerals.com/images/figure1_Lux.jpg

EXPLORATION OUTLINE

  • Research reveals little mineral exploration work has been done within the Lolworth Range. Access, company specific targeted ore-deposit styles and price of metals reflect the efforts of past exploration. The most detailed exploration work undertaken within the application area would have been under AP4855M (A.R.I Limited) during the 1987-88 period. The work this company undertook is one of the main reasons for the current application area. A.R.I undertook a major stream sediment program within the drainage of the Lolworth Range via helicopter access. This work highlighted seven gold anomalous areas worth following up. Rock chips also demonstrated the perspectivity of the region with elevated gold in association with rhyolites and breccias. Eleven watersheds showed visible gold in pan concentrates. Highlights from this historic exploration work are shown on (Figure 2).

Figure 2: Plan of EPM application area showing historic stream sediment sampling results.

https://www.ecrminerals.com/images/figure2_Lux.jpg

  • Initial exploration likely to include confirmation of existing stream sampling anomalies to potential watersheds, followed up by soil and rock chip sampling of ridgelines that are above these anomalous watersheds. The outcome of this work will delineate worthy drill targets.
  • Once licence applications have been approved, LUX Exploration Pty Ltd. will have initially 5 years to complete the planned exploration program, with right to apply for permit extensions for up to a total of 15 years. LUX Exploration will need to extinguish 50% of the initial application area after 5 years.

REVIEW OF ANNOUNCEMENT BY QUALIFIED PERSON

This announcement has been reviewed by Adam Jones, a director of ECR Minerals plc. Adam Jones is a professional geologist and is a Member of the Australian Institute of Geoscientists (MAIG). He 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)207 220 1666
Nominated Adviser
Katy Mitchell / James Sinclair-Ford

 

Novum Securities Limited

Broker

Jon Belliss

Tel: +44 (0)20 7399 9425
SI Capital Ltd Tel: +44 (0)1483 413500
Broker

Nick Emerson

ABOUT ECR MINERALS PLC

ECR Minerals is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) has 100% ownership of the Bailieston and Creswick gold projects in central Victoria, Australia, and two licence applications lodged in eastern Victoria for the Tambo gold project.

 

MGA is currently drilling at both the Bailieston and Creswick projects and has an experienced exploration team with significant local knowledge in the Victoria Goldfields and wider region.

Following the sale of the Avoca, Moormbool and Timor gold projects in Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX) and the subsequent spin-out of the Avoca and Timor projects to Leviathan Gold Ltd (TSX-V: LVX), MGA has the right to receive up to A$2 million in payments subject to future resource estimation or production at any of those projects.

ECR has earned a 25% interest in the Danglay gold project, an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines, and holds a royalty on the SLM gold project in La Rioja Province, Argentina

 

ECR Minerals #ECR – Friday drilling update from the Bailieston project:

ECR Minerals #ECR Friday drilling update from the Bailieston Gold project in the Victoria Goldfields:

~ 8 diamond drill holes completed at HR3
~ Midas drill rig will shortly start work at the Cherry Tree prospect
~ sited c30km east of Fosterville Gold Mine

Alan Green discusses ECR Minerals #ECR & Kavango Resources #KAV on his weekly Stockbox Media Research talk

Alan Green discusses ECR Minerals #ECR & Kavango Resources #KAV on his weekly Stockbox Media Research talk

ECR Minerals #ECR – Core logging and processing at Bendigo regional headquarters

ECR Minerals #ECR – The team at ECR’s Victoria operating base and regional headquarters at Bendigo are working overtime logging and processing drill core samples arriving everyday from the Bailieston HR3 gold prospect drill programme.

ECR Minerals #ECR – Commencement of Drilling at Creswick and Bailieston Gold Project Update

ECR Minerals plc (LON: ECR), the gold exploration and development company focussed on Australia, is pleased to provide an exploration update for shareholders covering drilling and related activities underway across the Bailieston and Creswick gold exploration projects.

Both projects are located in the Victoria Goldfields, Australia and are 100%-owned by ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”).

Craig Brown, Chief Executive Officer, commented:

“We are pleased to now have drilling underway at two gold projects in the Victoria Goldfields, and we look forward to updating the market with assay results in due course.

Our drilling at Bailieston continues successfully using our in-house diamond drill rig and we look forward to assay results of recent holes, particularly following the initial geological review of the drill core.  Additionally, soil sampling from the HR3 area (see below) has identified very high gold grades in soils, further supporting the geological modelling and drill targeting.

With our strong cash position we have been able to expand drilling operations and have now commenced drilling at Creswick using external contractors.   We are very excited by the potential scale of the opportunity at Creswick and a larger scale drill programme at the project is something we have been eager to undertake.

We look forward to providing further updates in due course.”

COMMENCEMENT OF DRILLING AT CRESWICK GOLD PROJECT

In 2019 exploration drilling was undertaken at Creswick targeting gold mineralisation associated with quartz veins hosted in the Dimocks Main Shale (DMS).

The DMS is the hard-rock source of much alluvial and deep lead gold, with historical alluvial and deep lead production estimated at up to 2.5 million ounces in the Creswick/Berry lead system, and up to 11 million ounces in the entire Ballarat area, of which the DMS is a significant contributor.

A 2019 drill programme conducted by the Company tested circa 300 metres of the DMS trend, which extends over approximately 15 kilometres, 7 kilometres of which is covered by MGA’s granted exploration licence and two exploration licence applications.

MGA has engaged a contractor for a minimum of 1,200 metres of diamond drilling at Creswick, and the first drill hole in this programme is now underway.  It is planned to drill around 10 holes from drill sites located on State Forest land within exploration licence EL006184.

The drill sites for the current programme are approximately 2.2 km south along the DMS-trend from those used in MGA’s previous drilling programme at Creswick in 2019, individual samples from which returned assays as high as 80.97 g/t gold over one metre (announced on 5 November 2019).

PROGRESS AT BAILIESTON GOLD PROJECT

As previously announced, drilling is ongoing in the Historic Reserve #3 (HR3) area of the Bailieston project using ECR’s own diamond drill rig.  Assay results from the first four holes (BH3DD001 to 4) were announced on 20 April 2021.  Assay results and final geological interpretations are currently awaited in respect of four further holes (BH3DD005 to 8).

Hole BH3DD005 has targeted the Maori Reef, and holes BH3DD006 and 7 have targeted a hypothesised central anticline (as discussed in the Company’s announcement dated 20 April 2021). Hole BH3DD006 was also drilled to test the Dan Genders Reef. Initial geological interpretation of holes BH3DD005, 6 and 7 indicates that the hypothesised central anticline does exist and represents a favourable target for hosting gold mineralisation such as limb-thrust type vein systems.

SOIL SAMPLING

MGA has received the results from laboratory analysis of 229 soil samples taken across the central and eastern part of the HR3 area. These results are currently being plotted and analysed in comparison with results from portable X-Ray Fluorescence (“XRF”) analysis. The laboratory results include gold values up to 3.75 parts per million (equivalent to grams per tonne). The results will help identify potential extensions of and potential undiscovered veins running parallel to known reef systems and further updates will be provided in due course as appropriate.

REVIEW OF ANNOUNCEMENT BY QUALIFIED PERSON

This announcement has been reviewed by Adam Jones, a director of ECR Minerals plc.  Adam Jones is a professional geologist and is a Member of the Australian Institute of Geoscientists (MAIG).  He 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
 

Novum Securities Limited

Broker

Jon Belliss

Tel: +44 (0)20 7399 9425
SI Capital Ltd Tel: +44 (0)1483 413500
Broker

Nick Emerson

 

ABOUT ECR MINERALS PLC

ECR Minerals is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) has 100% ownership of the Bailieston and Creswick gold projects in central Victoria, Australia, and two licence applications lodged in eastern Victoria for the Tambo gold project. MGA is currently drilling at both the Bailieston and Creswick projects and has an experienced exploration team with significant local knowledge in the Victoria Goldfields and wider region.

Following the sale of the Avoca, Moormbool and Timor gold projects in Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX) and the subsequent spin-out of the Avoca and Timor projects to Leviathan Gold Ltd (TSX-V: LVX), MGA has the right to receive up to A$2 million in payments subject to future resource estimation or production at any of those projects.

ECR has earned a 25% interest in the Danglay gold project, an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines, and holds a royalty on the SLM gold project in La Rioja Province, Argentina.

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