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ECR Minerals #ECR – Acceleration of Maddens development through trial alluvial operations at the Brothers mining lease
ECR Minerals plc (AIM: ECR), the gold exploration and development company focused on Australia, is pleased to provide further details on its Queensland mining activities following on from a portfolio review undertaken as part of the Company’s ongoing transition towards becoming a diversified Australian gold producer.
The Board has approved the reallocation of operational personnel and a mobile wash plant from Raglan to what the Board considers to be the Company’s highest-priority development opportunity, the Maddens Gold Project in North Queensland, where trial alluvial mining activities are expected to commence shortly on the Brothers mining lease.
The Board believes this represents the most effective allocation of the Company’s financial and operational resources and is consistent with ECR’s stated strategy of building a diversified Australian gold company capable of generating both nearer-term revenues and long-term shareholder value.
Highlights
· Surface prospecting at Brothers has indicated a potentially high-grade alluvial mining opportunity within the existing mining lease.
· ECR team estimates that there may be around 100,000 cubic metres of minable material in place.
· Operational personnel and equipment to be redeployed from Raglan to commence trial alluvial mining at the Maddens’ Brothers mining lease.
· Existing mining leases, established underground development and multiple historic mining areas position Maddens as one of ECR’s highest-priority development assets.
· Increased technical and operational focus to be directed towards Maddens, Salt Bush and the Company’s expanded Queensland exploration portfolio.
· Mining operations at Raglan will transition to geological evaluation and mine-planning, pending the outcome of the test work at the Brothers mine.
· Raglan remains an important component of ECR’s Australian gold portfolio, pending restart of production operations.
· Recent exploration success at Lolworth continues to reinforce its potential as a district-scale gold system, including the recently announced 200-metre drill-ready gold corridor at Butterfly Creek.
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Surface gold recoveries in gullies draining from structures crossing the Brothers Mining Lease
Strategic development of project portfolio
Over the past twelve months, ECR has deliberately repositioned itself from a traditional exploration company into a diversified Australian gold company with multiple production and exploration opportunities across four Australian states. That strategy has significantly expanded both the scale of the Company’s portfolio and the number of projects potentially capable of contributing to future shareholder value.
As the portfolio has evolved, the Board has undertaken regular reviews to ensure that the Company’s capital, personnel and operational expertise remain focused on those assets capable of delivering the strongest long-term returns.
The review concluded that the Company’s highest-priority opportunities now lie within its expanded hard rock portfolio, led by Maddens in northern Queensland, supported by the future development potential at Salt Bush and Lolworth, which the Board considers has district-scale exploration potential.
Maddens is considered to provide exposure to a high-grade gold mining opportunity with existing mining leases, established underground workings and multiple additional mining opportunities across the broader project area. More recently, the on site team have developed an alluvial prospect within the Brothers mining lease. Surface samples have been very encouraging and the team estimates that there may be around 100,000 cubic metres of minable material.
Initial trial alluvial mining is expected to commence at the Brothers mining lease within the Maddens project area using the recently mobilised ECR test processing plant. Results from this programme will establish an operational baseline and assist the Company in determining future development plans, including the potential deployment of larger-scale processing equipment.
Recent underground surveying and LiDAR work has also significantly improved the Company’s geological understanding of the Maddens project and is expected to assist in prioritising future mining and exploration activities across the wider licence area.
Overview of the Brothers mine
Geological mapping indicates that the Brothers mining area lies within a structurally complex and strongly sheared mineralised zone. Historic underground development identified a steeply dipping mineralised shoot, while recent surface prospecting has recovered water-worn nuggety gold from gullies north and south of the historic workings. The Board believes these observations warrant immediate trial alluvial mining and further investigation of both the alluvial material and its potential hard-rock source.
The Brothers mine
Raglan
The initial operational phase at Raglan has provided the Company with valuable mining and processing experience, together with a significantly improved understanding of the project’s geological characteristics.
As work has progressed, management has identified opportunities for further geological interpretation, mine planning and technical evaluation to better define the most prospective mining areas before additional operational resources are committed.
Accordingly, operational personnel and a mobile wash plant will now be redeployed from Raglan to support trial mining activities at Maddens whilst technical analysis continues at Raglan. Active mining at Raglan will temporarily cease and the project will transition into a geological evaluation and mine-planning phase, while operational personnel and mobile processing equipment are redeployed to undertake trial alluvial mining at Brothers. Subject to the success of the Brothers trial alluvial mine, further Raglan equipment (including the 60 tonne/hour wash plant) could potentially be deployed at Maddens, as ECR seeks the highest return on capital.
The Board believes that this strategy represents the most prudent allocation of the Company’s available capital and operational capacity at the present time.
Raglan remains an important component of ECR’s Australian gold portfolio, and the Company intends to continue advancing its understanding of the project as part of its broader production pipeline. As part of the final Raglan clean up operations, the Company will gather all concentrated sands from the wash plant for processing, potentially in the mill at Maddens. Recovered gold from this concentrate will be added to gold nuggets and fines already recovered from Raglan and the aggregate quantity will be delivered to the offtaker for sale.
Queensland Growth Strategy
Alongside trial production-focused activities, ECR continues to advance its wider Queensland exploration strategy.
The Company recently announced the identification of a new 200-metre drill-ready gold corridor at the Butterfly Creek Prospect within its 946 km² Lolworth Project, where laboratory assays returned peak soil values of 3.51 g/t gold. Together with previous discoveries at Uncle Terry and Gorge Creek West, these results continue to reinforce management’s view that Lolworth has the potential to evolve into a significant district-scale gold system.
The Company also continues to make progress at Blue Mountain, with the mining lease application lodged, maintaining its objective of developing a diversified Australian gold portfolio comprising both near-term production assets and longer-term discovery opportunities.
Next steps
· Mobilisation and commissioning of the mobile wash plant and personnel to the Brothers mining lease.
· Initial trial alluvial mining and bulk processing.
· Reporting of recovered grades, throughput and recovery performance.
· Assessment of whether larger-scale processing equipment should be deployed to the Brothers mine area.
· Continued underground development planning at Maddens.
· LiDAR interpretation and exploration strategies to maximise potential at Maddens.
· Geological evaluation and mine planning at Raglan.
· Further updates on the Blue Mountain mining lease and Lolworth work programme.
Nick Tulloch, Chairman, commented: “Over the past year we have deliberately repositioned ECR from a traditional explorer into a diversified Australian gold company with a growing portfolio of potential production and exploration opportunities.
“As that portfolio has expanded, it has become increasingly important that we allocate our people, capital and equipment towards those projects capable of delivering the greatest long-term value for shareholders.
“Raglan has taken longer than anticipated to demonstrate consistent recoveries. The decision to redeploy resources is therefore a disciplined allocation of capital and resources. However, it is important to emphasise that this is not the end of the Raglan project and we will continue the geological evaluation and mine planning required to determine Raglan’s next operational phase, while directing our operating capability towards an alluvial opportunity at the Brothers mine area that warrants immediate trial work.”
“We believe that this strategic realignment reflects disciplined capital allocation and represents the next stage in ECR’s evolution into becoming a diversified Australian gold producer.”
Technical Director, Mike Parker, added: “One of the things that immediately attracted us to Maddens was that it is fundamentally different from many development-stage gold projects. It already benefits from an existing mining lease, established underground development and multiple historical mining areas, allowing us to move into production test work in the shorter-term.
“Importantly, Maddens is much more than a single mining opportunity. Alongside the Maddens mine itself, the wider project includes the Brothers, Sisters and You Can Tell Us mining areas, each offering additional development potential as our understanding of the project continues to grow. Brothers in particular is showing significant promise as an alluvial opportunity and, based on surface recoveries, it is important that we take the time to investigate what we believe could be a significant addition to the wider Maddens development plan.
“The technical work completed over recent months, including underground surveys and the LiDAR programme, has significantly improved our understanding of the structural geology across the project. Combined with the upcoming trial alluvial mining programme, we believe that Maddens has the potential to become one of the defining assets within ECR’s Australian gold portfolio.”
Review of Announcement by Qualified Person
This announcement has been reviewed by Michael Parker, Non-Executive Director of ECR Minerals Plc. Michael Parker has a BSc. In Mining Geology and is a professional geologist and is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM). He is a qualified person as that term is defined by the AIM Note for Mining, Oil and Gas Companies.
FOR FURTHER INFORMATION, PLEASE CONTACT:
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ECR Minerals Plc |
Tel: +44 (0) 20 8080 8176 |
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Nick Tulloch, Chairman Andrew Scott, Director |
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Website: www.ecrminerals.com |
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Allenby Capital Limited |
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Tel: +44 (0) 20 3328 5656 |
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Nominated Adviser and Joint Broker Alex Brearley / Nick Naylor / Vivek Bhardwaj (Corporate Finance) Kelly Gardiner (Sales and Corporate Broking)
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OAK Securities Joint Broker Jerry Keen / Robert Bell
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Tel: +44 (0) 20 3973 3678 |
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Axis Capital Markets Limited |
Tel: +44 (0) 20 3026 0320 |
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Joint Broker |
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Lewis Jones |
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SI Capital Ltd |
Tel: +44 (0) 1483 413500 |
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Joint Broker |
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Nick Emerson
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Brand Communications |
Tel: +44 (0) 7976 431608 |
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Public & Investor Relations |
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Alan Green |
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Allenby Note – ECR Minerals #ECR Gold development potential radically advanced
ECR Minerals recent A$10.6m (£5.6m) acquisition of Paleogold Ltd has radically enhanced its near-term gold development and exploration potential in Australia. Interests have been acquired in three projects in Queensland, South Australia and Western Australia.
By early-2027 we would expect the Raglan and Blue Mountain alluvial projects in Queensland to be fully on stream. ECR gold production should be meaningful by early 2027.
A slower than expected production start-up at Raglan and Blue Mountain have burdened the stock of late. In the coming months we would expect the news flow on this front to turn positive with favourable implications for the stock.
Our new ECR corporate valuation is £19.25m or 0.55p/share based on 3,543,751,795 shares outstanding. This compares with £13.76m and 0.42p/share in our February 2026 Update report based on 3,290,888,016 shares outstanding. The variance reflects the impact of the Paleogold acquisition and our view on the valuation basis for the new projects.
On a fully diluted basis assuming ~4.29 bn shares the valuation would be ~45p/share. This however still reflects a sizeable premium to the mid-June share price of 23p/share.
ECR Minerals #ECR – Completion of acquisition of Paleogold Limited and Paleogold Transactions
ECR Minerals plc (AIM: ECR), the gold exploration and development company focused on Australia, is pleased to announce the completion of its acquisition of Paleogold Limited (“Paleogold”) (the “Acquisition”), which also includes the completion of the Paleogold Transactions.
Following completion of the Acquisition and its associated Paleogold Transactions, ECR has acquired interests in gold projects across Queensland, Western Australia and South Australia, including most significantly, through the exercise of the Option to acquire, 50% of Lucky Strike Mining Ventures Pty Ltd (“Lucky Strike”) which holds the hardrock Maddens Flat group of mines (“Maddens Flat Group of Mines”) in North Queensland. ECR also, through Paleogold, now owns 20% of Salt Bush Flat Mines Nominees Pty Ltd which owns the Salt Bush project in South Australia (“Salt Bush”).
The Acquisition and associated Paleogold Transactions are fully funded with its consideration being satisfied via the issue of new ordinary shares of 0.001 pence each in the share capital of ECR (“ECR Shares” or “Ordinary Shares”), convertible loan notes, warrants and in the case of the initial cash consideration from ECR’s existing cash resources, with its deferred consideration structured so that it matches the timing of the expected production at the Maddens Underground Mine.
HIGHLIGHTS
- Completion of the Acquisition and simultaneous investments in Lucky Strike and Salt Bush, adds gold assets across Queensland, Western Australia and South Australia
- Fully funded, staged transaction structure, designed to be aligned with future cashflow from planned production
- Future share issues to Paleogold shareholders are contingent on ECR earning not less than A$5 million of revenues from the Paleogold Projects in year 1 and ECR earning not less than a cumulative A$10 million of revenues in year 2 from the Paleogold Projects
- Work is already underway for targeted gold production later this year from 50% interest in Maddens Flat Group of Mines in North Queensland
- Preparations in place to commence production at Salt Bush around the middle of 2027
- Exploration upside at Tuckanarra, adjacent to Odyssey Gold Ltd’s reported 407,000 ounce JORC gold resource
- Paleogold operational team to join ECR, providing on-site capability and continuity to oversee development and production
Over the past two weeks, Mike Parker, ECR’s non-executive director, has conducted a site visit of Maddens, Salt Bush and Raglan, accompanied by the Paleogold team. Initial observations from the visit have reinforced the Board’s confidence in the scale and quality of the acquired assets, particularly at Maddens where underground inspections confirmed both the high-grade nature of the mineralisation and the broader exploration potential across multiple underexplored structures. ECR will, in due course, announce further details of their findings and specifically plans for the advancement of all of the Paleogold Projects.
Overview of assets acquired
Maddens Flat Group of Mines – Queensland (50% interest)
The Maddens Flat Group of Mines comprises six Mining Lease sites in Northern Queensland, Australia where mining has previously occurred: The Maddens Underground Mine, The Brothers, The Sisters, Clyde Underground Mine, Taylors Mine and ‘You-Can-Tell-Us’. In addition, there is a Mining Lease (“ML”) covering the camp, processing plant, tailings dam, three freshwater dams, a workshop and storage shedding. A rectangular shaped Exploration Permit (EPM 12375) of 50 km2 encompasses the seven MLs and covers a largely unexplored district.
The high-grade quartz vein systems at the Maddens Underground Mine, which have historically produced at average grades of 25g/t Au and above, are characteristic of structurally controlled deposits where the potential for grade and continuity at depth and along strike remain open. Following recent underground inspections by ECR’s technical team, the Board believes the project demonstrates significant potential for both nearer-term production and district-scale exploration upside.
As part of the exercise of Paleogold’s Option, ECR has invested A$1 million to extend the Maddens Underground Mine decline another 120m to open up the next level. Based on historical grades produced and on its discussions with Paleogold, the Board believes that the next level (20m of backs over a shoot length of 100m) has the potential to generate around 2,500 oz gold. Operations are already in progress and it continues to be expected that production should commence with 3 – 6 months.
To date there has been no systematic drilling programme across the tenement, and as such, the Board considers that there is future upside potential across the district.
Salt Bush Flat Gold Project – South Australia (20% interest)
Salt Bush in South Australia is located on a Mining Lease (ML 4572) which was granted pre-native title legislation. Development of this into a mine is intended to be by way of a shallow open cut to 20m depth using vat leach technology.
Salt Bush has surface outcropping ore at over 6g/t Au with individual assays previously being recorded as high as 39g/t Au. The ore body strike length is estimated to be in excess of 800 metres with the ore body enriched in an upper 20m zone. There are multiple parallel mineralised veins which indicate the potential to expand the mineable area.
Based on the information provided by the co-owners, the Board believes that there is potential for over 10,000 oz gold that could be obtained by mining the estimated ore body to around 20m in depth. Recovery of the gold is proposed to be by way of a fine crush (<5mm) and then vat leaching with cyanide with an expected gold recovery of around 65% – 70%.
Alongside its investment in 20% of Salt Bush, ECR is committing A$200,000 over six months to prepare the project for future gold production. The funds will primarily be used to secure all the licensing required, plan out the camp and other facilities, including water supply and electricity, and prepare for vat leach production. These operations will commence shortly, and the Board believes that a realistic commencement of gold production would be around the middle of 2027.
Tuckanarra – Western Australia (80% interest)
The Tuckanarra Project comprises an area of 4,030 hectares (9,958 acres) over exploration licences E20/1065 and E20/1109 which straddle the Great Northern Highway and lie immediately west and south of the historic gold mining centre of Tuckanarra.
Odyssey Gold Ltd has announced a total JORC resource of 407,000 oz Au in an area which is located less than 1.5km east from the boundary of E20/1065. These mafic and ultramafic units are believed to extend into the NNE of the Paleogold Tuckanarra Project’s licence acreage and are prospective for gold hosted in the mafic/ultramafic rock sequence.
It is intended that geological mapping, deep ground penetrating radar investigations and detector reconnaissance will be utilised to explore this prospective zone.
Paleogold Transaction Terms
ECR has acquired the entire issued share capital of Paleogold via the issue to Paleogold shareholders of up to 621,000,000 new ECR Shares of which 207,000,000 ECR Shares are to be issued on completion of the Acquisition (the “Initial Paleogold Consideration Shares”), with the balance to be issued over two years contingent on certain revenue targets from gold production being achieved.
These targets are:
- ECR earning not less than A$5 million of revenues from Lucky Strike, the Salt Bush project and Tuckanarra (the “Paleogold Projects”) on the first anniversary of the Acquisition; and
- ECR earning not less than A$10 million of cumulative revenues from the Paleogold Projects on the second anniversary of the Acquisition.
Simultaneously with the completion of the Acquisition, ECR, via the exercise of Paleogold’s Option, has acquired 50% of Lucky Strike, owner of the Maddens Flat Group of Mines and has invested A$1 million to extend the Maddens Underground Mine decline.
ECR will pay certain vendor shareholders A$2 million in cash with the payment being made six months following completion. ECR will pay certain vendor shareholders A$140,000 on completion and has also issued an unsecured convertible loan note (“CLN”) for A$3.86 million. The principal value and interest of the CLN is convertible at 0.26 pence per ECR Share or otherwise repayable, including associated interest, 18 months following completion. Should the CLN holders wish to convert, they are capped at a maximum conversion of A$1 million every 30 days. The CLNs may be redeemed at any time by ECR and are interest-free for the first three months following completion. Thereafter interest accumulates at the rate of 3% per annum, rising in a series of prescribed steps to a maximum of 12% per annum by the first anniversary of completion. ECR has undertaken to apply a minimum of 50% of EBITDA from its holding in Lucky Strike to repayment of the CLNs. ECR has also issued 49,603,174 warrants over new ECR Shares exercisable at 0.35 pence to the holders of the CLN.
ECR has also acquired 20% of Salt Bush through the issue of 20,000,000 new ECR Shares (the “Salt Bush Investment Shares”) and has committed A$200,000 over six months on the Salt Bush project to prepare the project for gold production (the “Salt Bush Investment”).
The structure of these transactions is designed to match future cash flow from expected production at the Paleogold Projects, especially from Lucky Strike.
ECR, through Paleogold, has also entered into separate shareholders’ agreements with:
(1) North Queensland Mining Pty Ltd in respect of Lucky Strike; and
(2) the other Salt Bush shareholders.
Admission and Total Voting Rights
Application has been made for 227,000,000 new Ordinary Shares (being the Initial Paleogold Consideration Shares and the Salt Bush Investment Shares) to be admitted to trading on AIM (“Admission“) and it is expected that Admission will become effective on or around 22 May 2026. The 227,000,000 new Ordinary Shares will rank pari passu with the existing Ordinary Shares. Upon Admission, ECR’s issued ordinary share capital will comprise 3,543,751,795 Ordinary Shares. This number will represent the total voting rights in the Company, and, following Admission 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 Guidance and Transparency Rules.
Share certificates will be posted to the Paleogold shareholders and relevant Salt Bush shareholders, all of whom are resident in Australia.
Review of Announcement by Qualified Person
This announcement has been reviewed by Michael Parker, Non-Executive Director of ECR Minerals Plc. Michael Parker has a BSc. In Mining Geology and is a professional geologist and is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM). He is a qualified person as that term is defined by the AIM Note for Mining, Oil and Gas Companies.
ECR Chairman Nick Tulloch commented: “In what was already expected to be a pivotal year for ECR, with our Raglan and Blue Mountain alluvial gold projects, the acquisition of Paleogold is truly transformational for the Company.
“With our new interests in Maddens and Salt Bush, ECR now has exposure to multiple nearer-term production, development and exploration assets across Australia, creating what we believe is a very deliverable growth platform.
“What is especially compelling is that these are not purely conceptual exploration assets. Underground development is already underway at Maddens, operational activity continues at Raglan, Blue Mountain is advancing towards production and preparations are beginning at Salt Bush.
“We believe ECR is now transitioning into a genuine multi-asset Australian gold company with multiple pathways to production, cash flow and exploration upside.”
ECR Non-Executive Director Mike Parker added: “Having now spent time underground at Maddens and visited Salt Bush alongside the Paleogold operating team, I have come away even more excited about the quality and scale of the opportunities that ECR has acquired.
“At Maddens in particular, what we have seen first hand has been exceptionally encouraging. The combination of high-grade historical production, existing infrastructure, experienced operators and extensive underexplored strike potential creates what I believe is a very significant opportunity for ECR.
“The geology is highly compelling and it is increasingly clear to me that the historical mining completed to date is a smaller part of a broader system. The structures we inspected underground remain open and we believe there is considerable potential for both extensions of known mineralisation and the discovery of additional Madden-style deposits across the district.
“What is especially exciting is that this is not simply an exploration concept. Underground development is already advancing, the processing infrastructure is in place and there is a clear pathway towards production. Combined with the progress being made at Raglan and Blue Mountain, I believe ECR is entering a very exciting new phase as a multi-asset Australian gold company with strong operational momentum.”
Defined terms used in this announcement shall, unless otherwise defined, have the same meanings as set out in the Company’s announcement of 20 April 2026.
FOR FURTHER INFORMATION, PLEASE CONTACT:
| ECR Minerals Plc | Tel: +44 (0) 20 8080 8176 | ||
| Nick Tulloch, Chairman
Andrew Scott, Director |
info@ecrminerals.com | ||
| Website: www.ecrminerals.com | |||
| Allenby Capital Limited | Tel: +44 (0) 20 3328 5656 | ||
| Nominated Adviser and Joint Broker
Alex Brearley / Nick Naylor / Vivek Bhardwaj (Corporate Finance) Kelly Gardiner (Sales and Corporate Broking)
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info@allenbycapital.com
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| OAK Securities
Joint Broker Jerry Keen / Robert Bell
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Tel: +44 (0) 20 3973 3678 | ||
| Axis Capital Markets Limited | Tel: +44 (0) 20 3026 0320 | ||
| Joint Broker | |||
| Lewis Jones | |||
| SI Capital Ltd | Tel: +44 (0) 1483 413500 | ||
| Joint Broker | |||
| Nick Emerson
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| Brand Communications | Tel: +44 (0) 7976 431608 | ||
| Public & Investor Relations | |||
| Alan Green | |||
ECR Minerals #ECR – Update on proposed Paleogold Transactions to establish multi-project gold portfolio, advancing towards production and nearer-term newsflow
ECR Minerals plc (LON: ECR), the exploration and development company focused on gold in Australia, is pleased to provide the following update on its projects. This update includes the proposed Paleogold Transactions, which form part of ECR’s proposed Acquisition of Paleogold Limited. As announced on 20 April 2026, the Board believes that the Paleogold Transactions will advance ECR from an Australian-focused explorer and alluvial gold producer to a diversified gold company with nearer-term hard rock production, district-scale exploration upside and a seasoned operating team.
Defined terms used in this announcement shall, unless otherwise defined, have the same meanings as set out in the Company’s announcement of 20 April 2026.
Highlights
- Underground development advancing at Maddens with production targeted in the nearer term alongside near-mine exploration programme
- Strong operational momentum expected across a 10-project (post Completion of Paleogold Transactions), multi-state Australian gold portfolio
- Raglan ramping up to increased-scale mining following successful optimisation work
- Nearer-term gold production updates expected from Raglan and Maddens (pending Completion)
- Blue Mountain mining lease application progressing well with clear pathway to production
- Exploration and development activity ongoing across Lolworth, Creswick, Bailieston and Tambo
- Positioned to benefit from strong gold prices in a Tier-1 mining jurisdiction
Update on Acquisition process
ECR is pleased to announce that Paleogold has reported that it has now secured over 94% acceptances in respect of the Acquisition of Paleogold, with acceptances from the remaining shareholders expected shortly. Further updates in relation to the process for the completion of the Acquisition and other Paleogold Transactions (together “Completion”) will be provided in due course. As part of Completion, ECR, via Paleogold, will exercise Paleogold’s Option to acquire 50% of Lucky Strike, the owner of the Maddens Flat Group of Mines.
Following Completion, the Directors consider that ECR will rapidly evolve into a multi-asset gold company with 10 projects across four Australian states, combining nearer-term production opportunities with significant exploration upside.
These projects, including projects joining ECR’s portfolio upon Completion, are as summarised below.
Queensland
Maddens (subject to Completion)
The Maddens Flat Group of Mines comprises six historical mining sites located within a 50km² exploration tenement in Northern Queensland. The Maddens project is being advanced alongside an experienced operating team inherited through the Paleogold Acquisition, providing strong technical capability on the ground. To date there has been no systematic exploration programme across the Maddens Flat Group of Mines tenement, and as such, the Board considers that there is future upside potential across the district.
As part of the exercise of the Option that forms part of the Paleogold Transactions, ECR will commit to spend A$1 million to the development of the Maddens Underground Mine. This capital is being used to extend the existing decline by approximately 120 metres to access the next level of the mine, including securing staff and equipment.
Based on historical production grades and technical assessments, the Board believes this next level has the potential to generate approximately 2,500 ounces of gold.
Development work is currently underway and progressing well, with production targeted in the nearer term and post-Completion updates are expected as operations advance. Mike Parker, non-executive director of ECR, will visit Maddens in May 2026.
Maddens represents ECR’s first hard rock mining interest and is considered by the Board to have the potential to deliver a meaningful post-Completion financial contribution during 2026.
ECR will hold a 50% interest in the Maddens Flat Group of Mines following Completion.
Raglan
The Raglan Project is a fully permitted, turnkey alluvial gold operation acquired in December 2025, located nearby to ECR’s larger Blue Mountain project.
ECR’s team has been active on site since January 2026, focusing on site preparation, equipment servicing and operational readiness. Trial pit mining and processing programmes have been successfully completed which has provided initial production and has enabled optimisation of the wash plant and refinement of mining targets across the historic river channel. As is typical for alluvial operations, a reliable view of the recovered grades across the project will develop as sustained production progresses, and the Company will update the market accordingly.
This readiness work was completed through the Central Queensland wet season, a period during which many alluvial operations in the region typically scale back or suspend activity. With the wet season now largely over, the operating team is remobilising to site after a break over Easter to commence the ramp-up to increased-scale mining, with throughput expected to build progressively through Q2 2026.
Updates on gold production from Raglan are expected over the coming months.
The Board continues to view Raglan as a key production asset, with the potential to generate sufficient cashflow to support both corporate overheads and the development of Blue Mountain.
Blue Mountain
Blue Mountain represents a significantly larger alluvial gold opportunity within ECR’s Queensland portfolio.
Following successful drilling, wash plant trials and operational work completed in 2024 and 2025, the Company is now progressing towards securing a mining lease over the target areas. Preparations are well advanced and discussions with the relevant mining authority are ongoing.
The Board remains confident that the mining lease application can be concluded this year, positioning Blue Mountain as a significant follow-on production asset alongside Raglan.
The project benefits from strong operational synergies with Raglan, including the ability to deploy shared equipment, personnel and infrastructure across both sites. Initially ECR expects to deploy a mobile 10 tonne per hour washplant, acquired as part of the Raglan acquisition, at Blue Mountain (following the award of a mining lease) to perform initial analysis of test pits in a similar way to how operations at Raglan began.
Lolworth
ECR’s Lolworth Project continues to demonstrate strong exploration potential following encouraging maiden drilling results announced in December 2025, which confirmed a gold-silver system.
The Company has now submitted soil samples from recent fieldwork for laboratory analysis, with results expected to inform the next phase of exploration activity.
Further work programmes, including geophysical surveys and follow-up drilling, are planned to advance understanding of the system and define future targets.
Kondaparinga
The Company’s licence application at Kondaparinga is progressing following adjustments to the application area to address native title considerations.
The Board anticipates that these changes may facilitate a positive outcome and will update the market as appropriate.
South Australia
Salt Bush (subject to Completion)
Salt Bush is a shallow open cut development opportunity which the Board believes has the potential to deliver over 10,000 ounces of gold from relatively near-surface mineralisation.
The project benefits from an estimated break-even gold price significantly below current market prices, highlighting its potential economic attractiveness.
ECR will commit A$200,000 over six months to advance the project towards production readiness, including permitting, infrastructure planning and process design.
Work is expected to commence shortly following Completion, with production targeted for around mid-2027.
ECR will hold a 20% interest in Salt Bush following Completion.
Victoria
Creswick
Progress continues regarding discussions on the previously announced proposed joint venture with Bold Gold over the Creswick Project.
Activity has increased in recent weeks, with ongoing engagement between the parties and the appointment of legal advisers by Bold Gold.
Further updates will be provided as discussions progress.
Bailieston
Previous drilling at Bailieston confirmed gold and antimony mineralisation, with recent internal analysis identifying the Hard Up Reef as a priority target.
The Company’s geological team is currently preparing an exploration plan for further work in this area.
Tambo
ECR was awarded the Tambo South exploration licence in March 2026, extending its landholding to cover a contiguous 47km strike.
Initial exploration will include stream sampling, rock chip sampling and LIDAR (Light Detection and Ranging) surveys to assess the area’s mineral potential.
Western Australia
Tuckanarra (Subject to Completion)
Paleogold owns an 80% interest in the Tuckanarra Project, which is located adjacent to Odyssey Gold Ltd’s 407,000 oz gold resource, and is considered prospective for gold mineralisation.
Exploration programmes are being designed to test extensions of known mineralised systems into the Tuckanarra Project Licence area that will be joining ECR’s portfolio.
ECR will hold an 80% interest in Tuckanarra following Completion.
ECR Chairman Nick Tulloch commented: “2026 has already started strongly for ECR, and we believe the remainder of the year will be even more exciting as the Completion of the Paleogold Transactions brings multiple projects closer to production.
With the addition of the Paleogold Projects, we will have a substantial and diversified gold portfolio across Australia, combining nearer-term production opportunities with significant longer-term upside. Importantly, this is all taking place in a Tier-1 mining jurisdiction at a time of strong gold prices, which provides a highly supportive backdrop for our strategy.
“Our immediate focus is clear: advancing Maddens, Raglan and Blue Mountain. At Maddens, underground development is progressing well, with the potential to deliver meaningful production this year alongside near-mine exploration upside. At Raglan, the team has used the Central Queensland wet season productively and we are transitioning into increased-scale mining following optimisation work. We look forward to providing updates on gold production from Raglan in due course.
“What is particularly exciting is the depth of our pipeline. Beyond our initial and nearer-term production projects, we have Salt Bush as a more medium-term production asset and a range of exploration projects which should continue to build value across the portfolio.
“We also now benefit from a high-quality operating team at Maddens, along with the team from Paleogold who are to join ECR as part of the Completion of the Paleogold Transactions and bring significant experience in developing and operating gold mines.
“ECR will be entering a new phase – one defined by execution, production and growth – and we look forward to updating shareholders regularly as we deliver on that strategy.”
Review of Announcement by Qualified Person
This announcement has been reviewed by Michael Parker, Non-Executive Director of ECR Minerals Plc. Michael Parker has a BSc. In Mining Geology and is a professional geologist and is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM). He is a qualified person as that term is defined by the AIM Note for Mining, Oil and Gas Companies.
FOR FURTHER INFORMATION, PLEASE CONTACT:
| ECR Minerals Plc | Tel: +44 (0) 20 8080 8176 | ||
| Nick Tulloch, Chairman
Andrew Scott, Director |
info@ecrminerals.com | ||
| Website: www.ecrminerals.com | |||
| Allenby Capital Limited | Tel: +44 (0) 3328 5656 | ||
| Nominated Adviser and Joint Broker
Alex Brearley / Nick Naylor / Vivek Bhardwaj (Corporate Finance) Kelly Gardiner (Sales and Corporate Broking)
|
info@allenbycapital.com
|
||
| OAK Securities
Joint Broker Jerry Keen / Robert Bell
|
Tel: +44 (0) 3328 5656 | ||
| Axis Capital Markets Limited | Tel: +44 (0) 203 026 0320 | ||
| Joint Broker | |||
| Lewis Jones | |||
| SI Capital Ltd | Tel: +44 (0) 1483 413500 | ||
| Joint Broker | |||
| Nick Emerson
|
|||
| Brand Communications | Tel: +44 (0) 7976 431608 | ||
| Public & Investor Relations | |||
ECR Minerals #ECR – Mining Analyst Dr Ryan Long talks to Alan Green
- Here Dr Ryan Long discusses the ECR Minerals investment case with Alan Green.
- Key assumptions that underpin the financial model and sensitivity to gold price.
- Blue Mountain – a step change in production.
- Price target – what is the market currently missing?
- Production funding exploration at Lolworth
- Upcoming milestones
ECR Minerals #ECR – Raglan Production Plan Underway as ECR Prepares for Initial Gold
ECR Minerals plc (AIM: ECR), the gold exploration and development company focused on Australia, is pleased to announce that it is implementing its production plan at the Raglan alluvial gold project (the “Raglan Project”) this week, marking a key step as the Company prepares to enter initial gold production.
The Company has profiled the site and identified priority locations for initial trenching. These areas will be worked at successive depths as part of a broader programme designed to determine where gold grades are highest before progressing upstream across the property. In parallel, ECR will re-analyse previously worked ground, particularly at deeper levels, where the Board believes – consistent with outcomes at the nearby Blue Mountain Project – that recoverable gold remains in situ.
During the early stages of production at the Raglan Project, the operating team will assess and optimise the configuration of mining equipment, particularly the wash plant. The objective is to maximise daily throughput while maintaining a high level of gold recovery. The Company’s Blue Mountain Project has been independently tested and demonstrated a recovery rate of 91.7% gold into 0.40% of the mass, and part of the coming work programme will be aimed at assessing whether Raglan will achieve a comparable recovery rate performance.
Chairman Nick Tulloch and Directors Andrew Scott and Chris Gibbs will be meeting in Queensland later this week to oversee the initial stages of mining and production activities at the Raglan Project. During the visit, the Board members will meet with the operating team, review production progress based on early grade observations and meet with a prospective off-taker for gold production from both Raglan and Blue Mountain.
This milestone will coincide with exceptionally strong recent precious-metal prices, with gold currently trading above US$4,988 per ounce and silver having recently moved through US$100 per ounce, providing a highly favourable market backdrop as ECR enters its production phase.
Overview of the Raglan Project – Commencement of Mining and Production
The Raglan Project is a fully permitted, turnkey alluvial gold project located in central Queensland and held under Mining Lease ML 3665. The project includes a near-new 60 tonne-per-hour wash plant, gold room, water supply, accommodation camp and mobile mining fleet, enabling prompt mobilisation and a low-capex pathway to production.
With the operating team secured and all key infrastructure already on site, Raglan is expected to deliver ECR’s initial gold production and near-term early cashflow. The project also provides a foundation for shared operational capability and equipment utilisation across the Company’s nearby Blue Mountain alluvial gold project.
The Board considers that Raglan’s anticipated operating parameters are consistent with other producing alluvial mines in Queensland, where commercial production is achieved even at relatively modest grades, particularly in the current gold price environment.
The Company’s subsidiary that owns the Raglan Project has been renamed ECR Minerals (Raglan) Pty Limited, aligning it with the branding of the Company’s other Australian subsidiaries.
Portfolio Strategy
While the Raglan Project represents ECR’s immediate production focus, the Board’s meetings will also encompass strategic planning sessions across the Company’s broader Queensland and Victoria portfolio:
- Blue Mountain – preparations to bring the Blue Mountain gold project into production are advancing, following strong alluvial drilling results, visible coarse gold and successful wash-plant trials;
- Lolworth – a significantly-sized gold–silver project where maiden drilling provided indications of a broader mineralised system, with silver emerging as a potential key value driver at current prices; and
- Other Victoria tenements – assessing targets for prospective exploration and development activity over the year ahead.
ECR Chairman Nick Tulloch commented: “This week will mark an important moment for ECR. With our operating team secured and a production plan in place, several members of the Board will be travelling to Queensland to oversee the implementation of our initial mining operations at Raglan. This represents a major step forward as the Company transitions from a pure explorer into an operating gold producer.
“Raglan is a rare, turnkey alluvial operation with plant, permits and infrastructure already in place. Its anticipated operating parameters are considered to be consistent with other producing alluvial mines in Queensland and, with gold trading at historically high levels, we believe that the project has the potential to generate meaningful cashflow in due course.
“Importantly, Raglan also provides a strong operational foundation for our wider Queensland portfolio. Alongside Blue Mountain and the significantly sized Lolworth project, we believe ECR is well positioned for the year ahead, and we are excited by what lies ahead as we enter this next phase of the Company’s development.”
Review of Announcement by Qualified Person
This announcement has been reviewed by Adam Jones, Chief Geologist at 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.
FOR FURTHER INFORMATION, PLEASE CONTACT:
| ECR Minerals Plc | Tel: +44 (0) 20 8080 8176 |
| Nick Tulloch, Chairman
Andrew Scott, Director |
info@ecrminerals.com |
| Website: www.ecrminerals.com | |
| Allenby Capital Limited | Tel: +44 (0) 3328 5656 |
| Nominated Adviser and Joint Broker
Alex Brearley / Nick Naylor / Vivek Bhardwaj (Corporate Finance) Kelly Gardiner (Sales and Corporate Broking) |
info@allenbycapital.com
|
|
OAK Securities Joint Broker Jerry Keen / Robert Bell
|
Tel: +44 (0) 3328 5656 |
| Axis Capital Markets Limited | Tel: +44 (0) 203 026 0320 |
| Joint Broker | |
| Lewis Jones | |
| SI Capital Ltd | Tel: +44 (0) 1483 413500 |
| Joint Broker | |
| Nick Emerson | |
| Brand Communications | Tel: +44 (0) 7976 431608 |
| Public & Investor Relations | |
| Alan Green |
ECR Minerals #ECR – Strong new drill results expand alluvial gold footprint at Blue Mountain and visible gold and near-term production potential confirmed
ECR Minerals plc (AIM: ECR), the exploration and development company focused on gold in Australia, is pleased to report a highly encouraging set of alluvial drilling results from its Blue Mountain Project (“Blue Mountain”) in Central Queensland. These drilling results continue to strengthen the case for near-term, low-cost alluvial gold production, with the drilling results confirming visible coarse gold and the expansion of multiple unmined gold-bearing creek flats.
Highlights
· Visible coarse gold recorded in multiple drill samples from the newly identified Upper Kariboe Creek alluvial flat.
· Continuity of mineralisation now mapped across approximately 250 metres of strike, with widths ranging from 6 to 35 metres.
· Grades exceeding the 0.15 g/b.c.m cut-off returned via 19 intersections, including standout results up to 6.52 g/b.c.m, typically indicating the presence of nuggety near-source gold.
· Wash-plant trial work at the Lower Patterson area continues to demonstrate practical mining grades averaging 0.35g/b.c.m, considered favourable to grades in operating alluvial mines across North Queensland.
· Multiple areas now identified as potential start-up gold production zones, including Lower Patterson, Upper Kariboe, Windmill and Roan Colt.
ECR’s Chief Geologist, Adam Jones, commented: “These are some of the most encouraging alluvial results we’ve seen from Blue Mountain to date. Not only have we mapped a continuous gold-bearing corridor across the new Upper Kariboe Creek flat, we are now also consistently seeing visible coarse gold in multiple samples. That is always an exciting moment for a geologist, as coarse, nuggety particles typically indicate that you are close to the source and that the system has real strength.
“Our drilling has delivered far more than we initially expected. We set out to understand the gold trail and the host gravels, but the results are now giving us a clear picture of multiple unmined zones that have the potentiual to translate into a near-term alluvial production opportunity. The combination of strong drill grades, visible gold and the successful wash-plant trials at Lower Patterson is building genuine confidence that Blue Mountain has the scale and quality to support a commercially viable start-up operation.”
Summary of Drilling Program
A total of 264 shallow drill holes were completed in August 2025 across the Upper Kariboe and Denny Gully areas. The objective was to identify shallow, mineable alluvial gold deposits suitable for cost-efficient production.
Each hole was drilled from surface to bedrock, with samples collected every metre and assessed for gold content, material type and the presence of visible gold. Concentrated gravel samples were fire-assayed at On-Site Laboratory Services in Bendigo, and gold recovered was used to estimate grammes of gold per bank cubic metre (b.c.m) – which is considered to be the industry standard measure for alluvial mining viability.
Inevitably, gold particle size and distribution varies in alluvial systems, but the drilling campaign has provided a clear, reliable picture of the gold trail, allowing ECR to identify high-priority potential production zones with growing confidence.
Latest Drill Results
These results come from a previously untested, unmined creek flat at Upper Kariboe Creek (See Table 1 and Figure 1). This area is now emerging as one of the strongest alluvial targets in the project to date and, as a consequence, represents a further potential extension of the potential production zones in the project area.
Key outcomes:
· 19 samples above the 0.15 g/b.c.m cut-off, ranging from 0.16 g/b.c.m up to 6.52 g/b.c.m
· Multiple high-grade intersections contain coarse, nuggety gold, suggesting proximity to a primary source
· Mineralisation appears to form a continuous, mineable corridor approximately 230 metres long, with widths between 6 – 35 metres
· This is the first area where ECR has confirmed larger visible gold particles, representing a significant step forward in confidence
Table 1. Alluvial Drill Results for Significant Intercepts and Depths of Zones Tested (@ cut off => 0.15 g/b.c.m)
|
Traverse |
HOLE |
FROM (metres) |
TO (metres) |
DRILLING INTERVAL (metres) |
SAMPLEID |
Au (ppm) |
Au (mg) |
Estimated average grade of mineralisation grammes per b.c.m |
|
Section 28 |
S28H5 |
6 |
7 |
1 |
BMDC328 |
1600 |
67.7 |
6.52 |
|
Section 29 |
S29H6 |
6 |
7 |
1 |
BMDC357 |
2380 |
58.7 |
5.65 |
|
Section 27 |
S27H12 |
6 |
7 |
1 |
BMDC312 |
1630 |
40.5 |
3.90 |
|
Section 27 |
S27H1 |
3 |
4 |
1 |
BMDC374 |
1170 |
33.1 |
3.19 |
|
Section 33 |
S33H2 |
5 |
6 |
1 |
BMDC398 |
894 |
27.8 |
2.68 |
|
Section 29 |
S29H5 |
5 |
6 |
1 |
BMDC353 |
835 |
26.9 |
2.59 |
|
Section 27 |
S27H4 |
4 |
5 |
1 |
BMDC383 |
696 |
13.3 |
1.28 |
|
Section 29 |
S29H7 |
5 |
6 |
1 |
BMDC360 |
334 |
12.5 |
1.20 |
|
Section 31 |
S31H2 |
1 |
2 |
1 |
BMDC431 |
344 |
11.8 |
1.14 |
|
Section 32 |
S32H1 |
3 |
4 |
1 |
BMDC461 |
188 |
7.02 |
0.68 |
|
Section 27 |
S27H3 |
5 |
6 |
1 |
BMDC380 |
442 |
6.76 |
0.65 |
|
Section 30 |
S30H5 |
5 |
6 |
1 |
BMDC417 |
136 |
5.51 |
0.53 |
|
Section 29 |
S29H8 |
5 |
6 |
1 |
BMDC363 |
88.1 |
3.95 |
0.38 |
|
Section 29 |
S29H10 |
6 |
7 |
1 |
BMDC369 |
103 |
3.5 |
0.34 |
|
Section 33 |
S33H5 |
5 |
6 |
1 |
BMDC407 |
108 |
3 |
0.29 |
|
Section 32 |
S32H5 |
5 |
6 |
1 |
BMDC476 |
53.1 |
2.39 |
0.23 |
|
Section 27 |
S27H11 |
6 |
7 |
1 |
BMDC309 |
116 |
2.1 |
0.20 |
|
Section 33 |
S33H1 |
5 |
6 |
1 |
BMDC395 |
60.9 |
1.68 |
0.16 |
|
Section 28 |
S28H4 |
5 |
6 |
1 |
BMDC323 |
47.7 |
1.66 |
0.16 |
Figure 1. Overview of Target Areas, Blue Mountain, EPM27183.
Wash Plant Trials (Lower Patterson)
To validate drill grades under more real-world conditions, four bulk samples were run through a trial wash plant at Lower Patterson (See Table 2 and Figure 2). These tests simulated future production and confirmed highly recoverable gold values.
Key results:
· Average trial grade: 0.35 g/b.c.m
· Consistent recovery across all samples, including those taken from drill-defined zones
· Coarse gold observed during processing
· Trial grades are considered favourable to third-party established alluvial operations currently running across North Queensland
Taken together, the drilling and wash-plant outcomes reinforce Lower Patterson as a commercially attractive start-up mining area, with potential for near-term development.
Table 2. Trial Wash Plant Results from the Lower Patterson Area (Locations referenced in Figure 1).
|
Location |
Volume Processed (b.c.m) |
Recovered Gold (grams) |
Estimated Grade Wash Plant Trial (Au/b.c.m) |
Indicated Drill Grade (Au/b.c.m) |
|
A |
1.25 |
0.52 |
0.42 |
N/A |
|
B |
1.0 |
0.49 |
0.49 |
N/A |
|
C (Section 1 Hole 1) |
1.0 |
0.23 |
0.23 |
1.14 |
|
D (Section 1 Hole 10) |
1.0 |
0.26 |
0.26 |
0.49 |
|
TOTAL |
4.25 |
1.5 |
0.35 (Average trial grade) |
|
Figure 2. Coarse gold particle size, Lower Patterson Area.
Peripheral Drilling – Expansion of Target Area
Drill traverses at Windmill, Roan Colt and upper Dennys Gully have been completed, with further assay results pending in due course. Visible gold was noted during the preparation of several samples, and management anticipates that these areas may further increase the overall footprint with potential for near-term development. Of particular significance is drilling west of the original Lower Patterson flat.
Many of these peripheral areas show no evidence of historic mining, meaning ECR is the first to systematically test and map their gold potential.
Review of Announcement by Qualified Person
This announcement has been reviewed by Adam Jones, Chief Geologist at 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.
FOR FURTHER INFORMATION, PLEASE CONTACT:
|
ECR Minerals Plc |
Tel: +44 (0) 20 8080 8176 |
|
Nick Tulloch, Chairman Andrew Scott, Director |
|
|
Website: www.ecrminerals.com |
|
|
Allenby Capital Limited |
Tel: +44 (0) 3328 5656 |
|
Nominated Adviser and Joint Broker Alex Brearley / Nick Naylor / Vivek Bhardwaj (Corporate Finance) Kelly Gardiner (Sales and Corporate Broking) |
|
|
Axis Capital Markets Limited |
Tel: +44 (0) 203 026 0320 |
|
Joint Broker |
|
|
Lewis Jones |
|
|
|
|
|
SI Capital Ltd |
Tel: +44 (0) 1483 413500 |
|
Joint Broker |
|
|
Nick Emerson |
|
|
Brand Communications |
Tel: +44 (0) 7976 431608 |
|
Public & Investor Relations |
|
|
Alan Green |
ECR Minerals #ECR – Update on Raglan Project site visit
ECR Minerals plc (AIM: ECR), the gold exploration and development company focused on Australia, is pleased to provide an update on its proposed acquisition of Licence ML 3665 (the “Raglan Project” or “Raglan”), which is a fully permitted alluvial gold project and operation located near Raglan in Queensland, Australia (the “Proposed Acquisition”), the details of which were originally announced on 1 October 2025. Following this announcement, the Board of directors of ECR (the “Board” or the “Directors”) has received the results of the technical due diligence site visit to the Raglan Project, which commenced on 29 September 2025 and has now concluded with results that the Board considers to be very satisfactory.
Highlights of the Proposed Acquisition
· Granted Mining Lease: the Raglan Project includes a granted mining lease over approximately 300 acres and 2.9km of main creek systems, allowing operations to commence in the nearer-term following completion of the Proposed Acquisition
· Turnkey Infrastructure: the Proposed Acquisition includes a near-new 60 tonne per hour wash plant, gold room, water supply, camp, mobile mining fleet and supporting facilities – the due diligence site visit has provided confidence for management estimating that the second hand value of this equipment alone may be near to the A$1.1m purchase price for the Proposed Acquisition
· Nearer-Term Revenue Potential: existing equipment and mining lease could enable gold production and cashflow in the nearer-term, with the results of due diligence indicating the potential for more than 200 working days per year
· Exploration Upside: Bulk sampling during the site visit confirms coarse nuggety gold and grades that may be consistent with ECR’s nearby Blue Mountain Project, with potential for both further alluvial resources and a hard-rock source.
The Raglan Project
The Raglan Project lies approximately 40 minutes west of Gladstone, Queensland, close to mechanical services and infrastructure. The lease has historically produced coarse, nuggety gold and test pits excavated duringthe due diligence confirmed recoveries from both upper gravels and deeper bedrock wash. Mining at the Raglan Project to date has been largely small scale with several untested areas and depths within the property area.
The due diligence site visit was conducted by ECR’s Chief Geologist, Adam Jones, who assessed the mining lease, plant and equipment, and overall development potential. The equipment, including the gravity processing plant, was tested during the due diligence and found to be in good working order. Equally importantly, the test pits that were processed earlier this week yielded quantities of gold that the Board believes supports the commercial potential of the Raglan Project. The pits were dug in different parts of the property and the recovery from them, coupled with exploration upside observed on site, confirms to the Board that the Raglan Project has the potential to be a valuable asset for the Company.
Around three quarters of the gold produced during ECR’s due diligence was in small nuggets (up to 0.5 gramme pieces) with the Raglan Project‘s fine gravity concentrator recovering the balance as fine gold. The gold produced during the due diligence at Raglan was coarse, often with sharp edges potentially indicating a local source. Similarly, some particles of gold were observed attached to quartz, also indicating that a local source of the gold may be in the upper part of the lease area.
Completion of the Proposed Acquisition would provide ECR with plant and equipment that is estimated by management to be valued near to the purchase price alone, including a 60 tonne per hour gravity processing plant with jig and concentrator, gold room, generators, loaders, dump truck and camp facilities. These assets can also be redeployed for use at Blue Mountain at a later date, adding long-term flexibility and value.
With regard to planning for future production, based on the work programme completed this week, ECR currently estimates that the cost of operations at the Raglan Project, inclusive of diesel and two personnel, would be around A$3,000 per day which, at the current gold price, would require production of only around 0.6 oz/day to cover such overheads.
ECR Minerals, Chief Geologist, Adam Jones commented: “Our assessment at Raglan confirmed that the project offers both nearer-term production potential as well as what may be an interesting exploration upside. The existing wash plant and machinery all ran smoothly during my time on site and could be operated with minimal personnel. The coarse nuggety gold observed is encouraging and the geology indicates further opportunities not only within the alluvial gravels but also from a possible hard-rock source. With the plant, water source and mining licence already in place, Raglan provides the rare potential for a turnkey opportunity.”
ECR Chairman, Nick Tulloch, added “Completion of the acquisition of the Raglan Project will strengthen our portfolio at the right time and the right location. It will give us a fully equipped, production-ready asset at what we consider to be a very attractive entry price, while complementing our existing Blue Mountain and Lolworth projects in Queensland. This Proposed Acquisition underpins our strategy to build a pipeline of lower-capex, higher-margin producing gold assets. We believe that 2026 is shaping up to be a transformative year for ECR and the completion of the Proposed Acquisition offers the potential for nearer-term cashflow as we advance the scale of our operations.”
Next Steps
· ECR will now move to finalise the Proposed Acquisition on the agreed commercial terms, following completion of the Subscription (as defined below).
· Following completion of the Proposed Acquisition, a short programme of follow-up test pits will be undertaken to refine grade distribution across the main creek system.
· Planning is already underway for an initial mining campaign, designed to generate nearer-term revenues and establish operational protocols.
· In parallel, ECR will evaluate the potential hard-rock source identified in the western shear zone, with initial sampling already in hand.
· Once operational, it is planned that Raglan’s equipment and production team will provide a stepping stone to scale up Blue Mountain, aimed at accelerating the pathway to production across ECR’s Queensland portfolio.
The Proposed Acquisition remains subject to, among other things, further due diligence by ECR and the execution of a legally binding agreement governing the Proposed Acquisition and the completion of the subscription to raise £0.65 million (before expenses) announced on 1 October 2025 (the “Subscription”) in order to fund the purchase price payable for the Proposed Acquisition. There can therefore be no certainty that final binding terms will be agreed in order to complete the Proposed Acquisition, nor as to the timing or final terms, value or conditions of the Proposed Acquisition. Further updates will be provided in due course.
Review of Announcement by Qualified Person
This announcement has been reviewed by Adam Jones, Chief Geologist at 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.
FOR FURTHER INFORMATION, PLEASE CONTACT:
|
ECR Minerals Plc |
Tel: +44 (0) 20 8080 8176 |
|
Nick Tulloch, Chairman Andrew Scott, Director |
info@ecrminerals.com |
|
Website: www.ecrminerals.com |
|
|
Allenby Capital Limited |
Tel: +44 (0) 3328 5656 |
|
Nominated Adviser and Joint Broker |
info@allenbycapital.com |
|
Nick Naylor / Alex Brearley / Vivek Bhardwaj (Corporate Finance) |
|
|
Kelly Gardiner (Sales and Corporate Broking) |
|
|
Axis Capital Markets Limited |
Tel: +44 (0) 203 026 0320 |
|
Joint Broker |
|
|
Lewis Jones |
|
|
SI Capital Ltd |
Tel: +44 (0) 1483 413500 |
|
Joint Broker |
|
|
Nick Emerson |
|
|
Brand Communications |
Tel: +44 (0) 7976 431608 |
|
Public & Investor Relations |
|
|
Alan Green |
ABOUT ECR MINERALS PLC
ECR Minerals is a mineral exploration and development company operating through two wholly owned Australian subsidiaries ECR Minerals (Australia) Pty Ltd (“ECR Australia”) and ECR Minerals (Queensland) Pty Ltd (“ECR Queensland”).
ECR Australia owns the Bailieston and Creswick gold projects in central Victoria, Australia as well as the Tambo gold project in eastern Victoria.
ECR Queensland has two approved exploration permits over the Blue Mountain alluvial gold project in central Queensland, Australia, which it is currently working to bring into production. It also has three approved exploration permits covering 946 km2 over a relatively unexplored area in Lolworth Range in northern Queensland. Furthermore, ECR Queensland has also submitted a licence application at Kondaparinga which is approximately 120km2 in area and located within the Hodgkinson Gold Province, 80km NW of Mareeba, North Queensland.
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), ECR Australia has the right to receive up to A$2 million in payments subject to future resource estimation or production from these projects.
ECR Australia also has approximately A$75 million of unutilised tax losses incurred during previous operations.
ECR Minerals #ECR – Issue of Equity, Total Voting Rights and PDMR dealings
ECR Minerals plc (LON: ECR), the exploration and development company focused on gold in Australia, is pleased to announce the issue of new ordinary shares of 0.001 pence each in ECR (the “Ordinary Shares”) in respect of the board of directors of ECR’s (the “Board” or the Directors”) ongoing remuneration policy, whereby each Director and certain consultants to the Company are remunerated partially through the issue of new Ordinary Shares.
In accordance with their existing share-based remuneration arrangements, announced originally on 19 September 2023, Nick Tulloch, Chairman, and Mike Whitlow, Managing Director, will each receive 9,816,325 new Ordinary Shares, as payment in lieu of £22,500 of their accrued remuneration for the period from 1 January 2025 to 31 March 2025.
Also on 19 September 2023, it was announced that the Company’s Non-Executive Directors had agreed to subscribe for new Ordinary Shares as payment in lieu of their salary. As subsequently announced on 2 October 2024, with the salary sacrifice scheme passing its first anniversary, the Board updated the arrangements such that each Director will continue to accept a material part of their remuneration through the issue of new Ordinary Shares for at least a further 12 months. In accordance with these updated arrangement, Andrew Scott, Non-executive Director, will also receive 2,617,686 new Ordinary Shares, as payment in lieu of £6,000 of his accrued remuneration for the same period. The new Ordinary Shares will be issued at a price of 0.22921 pence per new Ordinary Share, which was the volume weighted average share price for Ordinary Shares over the previous 14 days.
A further 2,617,686 new Ordinary Shares will also be issued at a price of 0.22921 pence per new Ordinary Share as payment in lieu of £6,000 of the remuneration of a consultant to the Company during the period from 1 January 2025 to 31 March 2025.
Additional Issue of Equity
The Company has agreed to issue and allot 2,617,686 new Ordinary Shares as payment in lieu of £6,000 of accrued fees owed by the Company to a professional adviser, in order to assist the Company in conserving its cash resources. These new Ordinary Shares will be issued at a price of 0.22921 pence per new Ordinary Share, which was the volume weighted average price for Ordinary Shares over the 14 trading days prior to the date of the invoice.
PDMR dealings
Pursuant to the arrangements set out above, a total of 27,485,708 new Ordinary Shares will be issued by the Company. Following this issuance, the total numbers of Ordinary Shares that will be held following Admission (as defined below) by the Directors, as Persons Discharging Managerial Responsibility (“PDMRs”) of the Company as at the date of this announcement, are as follows:
| Name | New Ordinary Shares to be issued | Total Ordinary Shares held in the Company following Admission | As a percentage of the Company’s enlarged issued ordinary share capital following Admission |
| Nick Tulloch | 9,816,325 | 57,201,287 | 2.55% |
| Mike Whitlow | 9,816,325 | 57,201,287 | 2.55% |
| Andrew Scott | 2,617,686 | 22,048,521 | 0.98% |
| Total | 22,250,336 |
The FCA notification in respect of these PDMR dealings, made in accordance with the requirements of the UK Market Abuse Regulation, is appended further below.
Admission and Total Voting Rights
Application has been made for 27,485,708 new Ordinary Shares to be admitted to trading on AIM (“Admission“) and it is expected that Admission will become effective on or around 7 April 2025. The 27,485,708 new Ordinary Shares will rank pari passu with the existing Ordinary Shares. Upon Admission, ECR’s issued ordinary share capital will comprise 2,242,655,302 Ordinary Shares. This number will represent the total voting rights in the Company, and, following Admission 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 Guidance and Transparency Rules.
Nick Tulloch, Chairman of ECR, said: “Our policy of remunerating directors and senior members of our team partially through new Ordinary Shares has now passed 18 months and remains ongoing. We continue to focus on maximising the value of our assets and cash resources while aligning our interests with those of the Company’s shareholders.
“We have a great deal to look forward to during 2025. The highlight will be the ongoing work to bring our Blue Mountain gold project potentially into production but, in the nearer term, we expect to commence our drilling campaign at Bailieston to examine the possibility of an antimony resource. The rising price of this metalloid makes it one of the best performing commodities over the past 12 months and our own prior drilling results, coupled with proven resources nearby, have given us cause for optimism on this project. Alongside that, we are putting plans in place for drilling at Lolworth and continuing to conduct due diligence on our potential acquisition of Maximus Minerals.
We may be a small company but, through the breadth of our assets and efforts of the team, we punch above our weight.”
FOR FURTHER INFORMATION, PLEASE CONTACT:
| ECR Minerals Plc | Tel: +44 (0) 1738 317 693 | ||
| Nick Tulloch, Chairman
Andrew Scott, Director |
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| Email: | |||
| Website: www.ecrminerals.com | |||
| Allenby Capital Limited | Tel: +44 (0) 3328 5656 | ||
| Nominated Adviser
Nick Naylor / Alex Brearley / Vivek Bhardwaj |
info@allenbycapital.com
|
||
| Axis Capital Markets Limited | Tel: +44 (0) 203 026 0320 | ||
| Broker | |||
| Ben Tadd / Lewis Jones | |||
| SI Capital Ltd | Tel: +44 (0) 1483 413500 | ||
| Broker | |||
| Nick Emerson | |||
| Brand Communications | Tel: +44 (0) 7976 431608 | ||
| Public & Investor Relations | |||
| Alan Green | |||
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 six licence applications outstanding which includes one licence application lodged in eastern Victoria (Tambo gold project).
ECR also owns 100% of an Australian subsidiary LUX Exploration Pty Ltd (“LUX”) which has three approved exploration permits covering 946 km2 over a relatively unexplored area in Lolworth Range, Queensland, Australia. The Company has also submitted a license application at Kondaparinga which is approximately 120km2 in area and located within the Hodgkinson Gold Province, 80km NW of Mareeba, North Queensland.
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 from projects sold to Fosterville South Exploration Limited.
MGA also has approximately A$75 million of unutilised tax losses incurred during previous operations.
ECR is also in exclusive negotiations to acquire Maximus Minerals Ltd for £500,000 along with exercising that company’s option over the Cat Key advanced gold project for C$600,000. The consideration, if the transaction completes, will be settled in new ECR shares, issued at no less than 0.33 pence per share.
ECR Minerals #ECR – Strategic Update: Maximising the Value of Antimony at Bailieston and Tax Loss Monetisation
ECR Minerals plc (AIM: ECR), the exploration and development company focused on gold in Australia, provides an update on its ongoing strategy, including developments regarding the potential sale of its subsidiary, Mercator Gold Australia Pty Ltd (“MGA”), and plans to capitalise on the increasing global demand for antimony at Bailieston.
Highlights
- Termination of the non-binding heads of terms with Octo Holdings Pty Ltd
- Expanding discussions regarding the potential sale of MGA to include additional interested parties
- Reassessing the strategic value of Bailieston amid strong antimony prices and rising global demand
- Proposed further drilling campaign at Bailieston to unlock its full potential is funded and within budget
- Also evaluating an alternative strategy of allocating tax losses to Blue Mountain production
Potential sale of MGA
For several months, ECR has engaged in discussions with Octo Holdings Pty Ltd (“Octo”) in respect of the proposed sale of the entire issued share capital of MGA, which holds ECR’s Australian tax losses, to Octo. The proposed target completion date of the sale of MGA, as suggested by Octo, was 28 February 2025 to enable Octo to conclude other agreements, independent of ECR, that it is engaged in. In this regard, the Board of directors (“Board” or “Directors”) consider that Octo has not made satisfactory progress in relation to being able to proceed with the proposed transaction and consequently ECR has written to Octo terminating the non-binding heads of terms between the two parties.
During the discussions with Octo, ECR continued to attract interest in MGA from additional parties. As well as the appeal of the tax losses held by MGA, MGA is also the owner of three of the Company’s tenements in Victoria, including the Bailieston gold and antimony exploration project. It was proposed that on or before completion of the proposed disposal of MGA to Octo, ECR would effect a reorganisation of MGA such that the only exploration assets remaining within MGA would be the Bailieston project. With rising gold prices, and more particularly, rising antimony prices as well as growing global interest in the strategic importance of these metals, the Board believes that MGA’s, Bailieston tenement, represents an attractive possible strategic purchase as a potentially valuable asset in its own right.
With the non-binding heads of terms previously agreed with Octo now terminated, ECR’s Board has determined to widen discussions on the potential sale of MGA to include other interested parties. Based on the preliminary enquiries received, it is apparent that the interest in MGA and its assets is both extensive and varied and ECR will therefore take this opportunity to re-examine the optimum structure of any potential sale of MGA.
Rules on transferring tax losses in Australia are complicated with the overriding consideration being that tax losses will always belong to the company in which they were incurred (MGA in this instance) and the transfer of that company needs to be by way of an operating entity (i.e. the company needs to have activities in addition to the tax losses for a third party to be able to make use of them). Octo’s preference was for MGA’s operations to comprise Bailieston. However, in the intervening period and as described further below, ECR’s Board has reassessed Bailieston’s potential value in light of the ongoing price strength in the antimony market.
It is possible therefore that any potential sale of MGA could be restructured to comprise other tenements within the Company, thereby enabling ECR to retain Bailieston (or the more prospective areas within the Bailieston project area).
As previously announced, any disposal of MGA may be considered to be a fundamental change of business pursuant to Rule 15 of the AIM Rules for Companies. If applicable, this would require, amongst other items, the proposed disposal of MGA to be conditional on the consent of the Company’s shareholders being given in a general meeting, the publication of a shareholder circular detailing the terms of the transaction and certain other disclosures as set out in the AIM Rules. There can be no guarantee as to the conclusion of any agreement for the disposal of MGA, nor as to the timing or final terms, structure or value of any such transaction.
The Company will provide further updates as appropriate.
Antimony drilling campaign at Bailieston
On 3 July 2024, ECR announced the results of additional testing for antimony of diamond core samples from Bailieston drilled during 2021-2022. The best results included 0.3 metres grading 32% Sb (Antimony) and 0.1 metres grading 1.20% Sb and a total of 12 samples returned results greater than 0.1% Sb.
It is these results, coupled with other substantial antimony resources being reported in the nearby area that, in the opinion of the Board, have driven third party interest in Bailieston.
Given the growing strategic importance of antimony and the exceptional grade in the previous drilling, ECR is now examining plans for a step out drilling campaign at Bailieston. The Company’s geological analysis suggests that Bailieston is analogous to other narrow, high-grade gold-antimony deposits found throughout Central Victoria. Additionally, historical reports indicate small-scale antimony mining activity occurred immediately northwest of ECR’s previous drilling site along the same geological trend.
ECR’s geological team are reviewing these trends to determine the optimum locations for a new drilling campaign, targeting both gold and antimony. The results of this drilling may, if successful, redefine the potential value of Bailieston as well as MGA and may also inform ECR on the most suitable structures for any future sale of MGA.
This proposed drilling campaign was one of the allocated uses of funds from the subscription announced on 25 November 2024 and is therefore within ECR’s 2025 budget. A further announcement will be made in due course.
Update on plans for commercial production at Blue Mountain
Further to the announcement on 3 February 2025, ECR has continued to progress its plans to bring its Blue Mountain Project in Queensland into commercial production. This follows the 91.7% gold into 0.40% of the mass recovery rate estimated by Gekko Systems Pty Limited and the expectation that the alluvial-based ore located at the project is suitable for gravity concentration using a batch centrifugal concentrator.
The preliminary steps in relation to assessing the commercial suitability of the Blue Mountain Project are as follows:
- Aerial survey using drones to determine the most suitable locations for trenching
- Ground penetrating radar to determine the depth of the bedrock
- Commissioning of a wash plant, either made to order or purchased off the shelf and modified
- Planning for recovery and reuse of water
- Processing of bulk samples to test the recovery rate
Plans for steps 1-3 above are now well advanced in parallel with ongoing work on costing the full production plant and engaging specialist contractors. Further announcements will be made as the project develops.
Possible Strategic Use of Tax Losses
It is self-evident that MGA’s A$75 million tax losses represent a significant asset for ECR. While monetisation of the tax losses through a potential sale of MGA remains an option, ECR is also examining an alternative strategy of retaining and potentially utilising these losses within its own operations—particularly at Blue Mountain. Based on its preliminary projections, the Board understands that this could provide greater long-term value to shareholders.
The announcement on 3 February 2025 also noted that the ECR team believes that the Blue Mountain Project is capable of having an indicative revenue potential of approximately A$470,000 based on, amongst other assumptions, a wash plant with a 25 tonne per hour capacity. The results of the preliminary steps above are designed not only to validate these assumptions but also to determine the viability of increasing the scale of the operation by utilising dual wash plants. This in turn will inform the Board of the potential applicability of MGA’s tax losses for the Company’s own operations. Given the scale of Blue Mountain and the multiple gullies, the Board believes that there is considerable scope to upscale the operations, subject to the results of the steps described above.
Based on the current tax rates in Australia and the Board’s preliminary economic modelling for Blue Mountain, the Board currently estimates that MGA’s tax losses could have a total potential saving of approximately up to A$18.75 million to ECR if utilised within its own operations. The proposed transaction with Octo valued MGA at A$4.5 million reflecting the benefit to the Company of an immediate cash receipt. However, in light of the production opportunity at Blue Mountain, it has since become apparent that ECR may be able to use the tax losses itself on an earlier timeframe than previously envisaged. To put that in context, based on the potential revenue illustration above, the Board currently estimates that the Company would save A$4.5 million (being the value of the cash consideration that was proposed under the Octo transaction) in taxes in around six years through its operations at Blue Mountain. This period could be considerably less if the project was capable of being scaled up.
To make the tax losses available at Blue Mountain, ECR would need to conduct a straightforward restructuring of its Australian subsidiaries, a process that has already undergone considerable preparation work in the context of the potential sale of MGA. However, the effect of this reorganisation could potentially make Blue Mountain essentially tax free for the expected life of the project.
While ECR is assessing the commercial suitability of the Blue Mountain Project, there is no certainty that the Blue Mountain Project will enter into commercial production, nor be capable of achieving the illustrative monthly revenues outlined above and consequently being in a position to utilise any indicative tax savings in the manner described above.
ECR Chairman, Nick Tulloch, commented: “As shareholders are aware, we have dedicated substantial effort to unlocking value from our A$75 million of tax losses. Whilst we appreciate that some investors may be eager for a quick sale, it is essential that we prioritise the best long-term outcome for ECR’s shareholders. These losses were accumulated over two decades, and ensuring that we extract maximum value is our priority. The delays in the proposed Octo transaction, while disappointing, have provided us with an opportunity to reassess our strategic position. Given the level of demand for antimony and the strength of the grades that we have identified at Bailieston, it is clear that this asset may be more valuable than previously considered.
“Additionally, with our Blue Mountain Project advancing, we see a significant alternative opportunity to use MGA’s tax losses internally, potentially saving the Company millions in taxes if we bring this high-potential gold project into production.
“Our Company has several potentially high value projects and, through our sale efforts, a number of potentially interested parties wish to investigate the purchase of MGA. We are consequently in a far stronger place now than when we began the investigations into a sale of MGA and we will put our learning on the sale of tax losses and the developments within our own projects to good effect. Our plans to sell MGA and monetise the tax losses are still very much on our agenda, but offers will now be assessed against a competing use within our own operations.”
Review of Announcement by Qualified Person
This announcement has been reviewed by Adam Jones, Chief Geologist at 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.
FOR FURTHER INFORMATION, PLEASE CONTACT:
| ECR Minerals Plc | Tel: +44 (0) 1738 317 693 | ||
| Nick Tulloch, Chairman
Andrew Scott, Director |
|||
| Email: | |||
| Website: www.ecrminerals.com | |||
| Allenby Capital Limited | Tel: +44 (0) 3328 5656 | ||
| Nominated Adviser
Nick Naylor / Alex Brearley / Vivek Bhardwaj |
info@allenbycapital.com
|
||
| Axis Capital Markets Limited | Tel: +44 (0) 203 026 0320 | ||
| Broker | |||
| Ben Tadd / Lewis Jones | |||
| SI Capital Ltd | Tel: +44 (0) 1483 413500 | ||
| Broker | |||
| Nick Emerson
|
|||
| Brand Communications | Tel: +44 (0) 7976 431608 | ||
| Public & Investor Relations | |||
| Alan Green | |||
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 six licence applications outstanding which includes one licence application lodged in eastern Victoria (Tambo gold project).
ECR also owns 100% of an Australian subsidiary LUX Exploration Pty Ltd (“LUX”) which has three approved exploration permits covering 946 km2 over a relatively unexplored area in Lolworth Range, Queensland, Australia. The Company has also submitted a license application at Kondaparinga which is approximately 120km2 in area and located within the Hodgkinson Gold Province, 80km NW of Mareeba, North Queensland.
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 from projects sold to Fosterville South Exploration Limited.
MGA also has approximately A$75 million of unutilised tax losses incurred during previous operations.