ECR Minerals plc (LON: ECR), the exploration and development company focused on gold in Australia, is pleased to provide an update on the second drilling rig.
A contract announced on July 27 2021 (see RNS here) agreed the purchase of a new Cortech CMR1000 multi-purpose drilling rig for a total of US$402,957.
The Board subsequently made the decision to delay completion of the rig purchase to allow for the appointment of CEO Andrew Haythorpe and the completion of a new strategic plan announced on July 6 2022 (see RNS here).
The rig purchase has now been completed, following the agreement of a meaningful discount, on what the board consider to be competitive and attractive terms. Arrangements are currently being made for the rig to be loaded onto a ship for delivery to Melbourne Port.
ECR CEO Andrew Haythorpe commented: “I am delighted that we have now completed the purchase of our long awaited second drill rig, and on very attractive terms. Our MIDAS drill rig has proved its value in the field time and time again.’’
I believe the new Cortech, multi-purpose rig will significantly enhance our on-the-ground capabilities, offering both RC and diamond drilling systems. As Technical Director Adam Jones works on expanding our existing drill campaign plans, I look forward to announcing details of the rig’s maiden deployment once it arrives at Melbourne.”
ECR Chairman David Tang added: “I am pleased that we have finally secured our new Cortech rig on very preferential terms. Given the challenges that regional operators face in scheduling drill teams and equipment, the board considers that the new rig is a solid investment that will ramp up our operational capability and flexibility. In addition, this could also provide ECR with potential rig hire income should a suitable opportunity arise in the future.”
A contract for the purchase of a new Cortech CMR1000 multi-purpose drilling rig was initially signed for a total of US$402,957 in 2021. This followed the purchase of the Midas Drilling Rig (“MIDAS”) currently engaged in the diamond drilling programme currently underway at the Blue Moon project, Bailieston.
The Cortech CMR1000 is a high capacity, heavy duty multi-purpose drill rig which is highly effective in diamond coring, reverse circulation and rotary drilling techniques. It has been purchased complete with spares and all downhole equipment and is capable of drilling as deep as 2,000 metres*.
ECR has an experienced team of drilling personnel to operate the rig, and along with Midas, the addition of the new CMR1000 rig should increase the Company’s flexibility in the field. Owning and operating the two rigs is expected to accelerate future drilling schedules and enable drill programmes to be completed at lower cost, and should a suitable opportunity arise, provide ECR with rig rental income.
*Factory data sheet specification http://cortech.cn/product_show.asp?id=2&lan=en
FOR FURTHER INFORMATION, PLEASE CONTACT:
|ECR Minerals plc||Tel: +44 (0) 20 7929 1010|
|David Tang, Non-Executive Chairman
Andrew Haythorpe, CEO
|WH Ireland Ltd||Tel: +44 (0) 207 220 1666|
Katy Mitchell / Andrew de Andrade
|SI Capital Ltd||Tel: +44 (0) 1483 413500|
|Novum Securities Limited||Tel: +44 (0) 20 7399 9425|
|BlytheRay||Tel: +44 (0) 207 138 3204|
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, has eight licence applications outstanding including two licence applications lodged in eastern Victoria. (Tambo gold project). MGA is currently drilling at both the Bailieston (EL5433) and Creswick (EL6148) projects and has an experienced exploration team with significant local knowledge in the Victoria Goldfields and wider region.
ECR also owns 100% of an Australian subsidiary LUX Exploration Pty Ltd (“LUX”) which has three licence applications covering 900 km2 covering a relatively unexplored area in Queensland, Australia.
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), Mercator Gold Australia Pty Limited has the right to receive up to A$2 million in payments subject to future resource estimation or production from projects sold to Fosterville South Exploration Limited.
ECR holds a 70% 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, which has a 43-101 compliant resource. ECR also holds a royalty on the SLM gold project in La Rioja Province, Argentina and can potentially receive up to US$2.7 million in aggregate across all licences