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Money Guide interview ECR Minerals #ECR CEO Craig Brown

ECR Minerals #ECR CEO Craig Brown is interviewed by Money Guide. In the interview Craig discusses:

  • ECR now owns its own diamond drilling rig that can drill as deep as 1300 metres.
  • Tambo Gold Project, easy access, low costs. Principal geologist and Bruthen local boy Dr Rod Boucher is currently out conducting fieldwork
  • There are currently two parties interested in the Creswick project. One party is undertaking due diligence, although as Craig explains the progress has been hampered by the Victoria lockdown quarantine measures.
  • Drilling will shortly commence at the Bailieston project. This is located close to the Fosterville Gold mine, which has v low operating costs, producing 500,000oz a year and is ‘printing money’. Craig says that some ‘big players’ have moved into the region recently, and one is interested in Bailieston (HR3, Blue Moon, Cherry Tree).
  • ECR is very undervalued vs. peers – Craig looks at Fosterville South (TSX-FSX), which acquired ECR’s Avoca, Timor & Moormbool licenses earlier this year. The company currently has a value some 12 times that of ECR, and while the Golden Mountain project is progressing, Craig argues that ECR has ‘better projects’.

Alan Green talks Synairgen #SNG, OnTheMarket #OTMP, ECR Minerals #ECR & Blencowe Resources #BRES on the Vox Markets podcast

Alan Green discusses Synairgen #SNG, OnTheMarket #OTMP, ECR Minerals #ECR & Blencowe Resources #BRES with Justin Waite on the Vox Markets podcast. Interview is 14 minutes in.

USD28tn COVID bill keeps the Gold bull case intact for ECR Minerals #ECR and the new Victoria Gold rush.

In October 2020 IMF economic counselor *Gita Gopinath described coronavirus as the worst crisis since the Great Depression, adding that the pandemic would leave deep and enduring scars from job losses, weaker investment and children being deprived of education.

In its flagship world economic outlook, the IMF said stronger than expected Q2 and Q3 performances would see global output fall by 4.4% in 2020 compared with the 5.2% drop forecast during the summer.

The groundbreaking news of a vaccine with high efficacy rates from both Pfizer and Moderna triggered strong rallies in global stock markets, and while this led to a downward correction in the gold price, most market analysts remained bullish on gold over the longer term.

US Investment Group Energy & Capital are of the view that gold remains in a bull market super cycle. Energy & Capital editor, Gold bug, and investment analyst Luke Burgess said “The historic gold run of 2011 actually began in 2001, when gold was trading around $300 per ounce.”

“The same exact gold super-cycle happened in 1971–1980, when gold ran from $50 per ounce to almost $700,” Burgess added. “The value of the U.S. dollar is being weakened every day and there is nothing that the Federal Reserve or politicians can do to stop it. This will continue to have a tremendous effect on gold prices and the gold market in general.”

Energy & Capital are ultra bullish in outlook, with a $6500oz target price for the yellow metal within 2 years. While other commentators are more circumspect, the view on the longer-term trend is clear.**

“It is worth recalling that the driver of investment flows into precious metals has ultimately been sourced from a powerful impulse lower in real rates,” TD Securities said in a note.

“The U.S. Federal Reserve’s continued attempt to spark higher inflation expectations should suppress real rates deeper into negative territory. This will continue to drive investment appetite for precious metals, as capital seeks to shelter itself from increasingly negative real rates.”

Junior Gold Miners Flourish

It has been an extraordinary year for junior gold miners. Despite the recent gold correction to $1860oz, global gold producers are under more pressure than ever to replace their depleting reserves. The major gold producing conglomerates face declines in production, shrinking reserves and a potential increase in production costs, which means it is cheaper (and faster) for these companies to buy developed or developing gold projects.

As a result, there has been a rush to develop and fast track quality assets, which for some junior miners has meant revisiting dormant mining projects. The latest tools, survey techniques and desktop assets available to mining engineers have proved invaluable in the search for precious metals within existing dormant assets and mines around the world.

As gold prospecting continues apace in far flung and remote areas, this year has seen the goldfields in Victoria, South Australia thrust into the limelight once again.

A major mining centre since the 19th century gold rush, modern technology has today has paved the way for another gold rush in the region.

Indeed the Geological Survey of Victoria estimates that some 75 million ounces of high-grade gold is currently awaiting discovery, and with grants available to mining companies operating in the region, it is no exaggeration to say that companies are literally queuing up for licenses.


As an incumbent operator owning some of the most fertile territory in Victoria, London listed ECR Minerals (LSE: ECR) is already at the front of the queue, with its 100% owned Bailieston and Creswick Victoria gold projects, plus the recently acquired Tambo Gold project.

ECR also has financial interests in the Avoca, Moormbool and Timor projects following the sale of those licenses to Fosterville South Exploration Ltd (TSX.V:FSX), raising $500,000 plus $1 for every ounce of gold discovered. ECR also has interests in projects in the Philippines and Argentina.

Creswick

Creswick is situated within the Dimocks Main Shale, a geological feature considered to be highly prospective for gold, and which extends to the Ballarat gold mine centre and further south. ECR’s exploration licenses cover approximately 7km of this region, and along with several other mining companies with licenses in the region, has applied for a further license covering a further 140 sq km between Creswick and Ballarat.

A recent study by pre-eminent consulting geochemist Dr Dennis Arne, whose experience includes extensive consultancy at the Fosterville mine, (now the largest gold producer in Victoria), underlined the significant gold exploration potential at Creswick, and ‘nuggety gold mineralisation’. Joint venture / earn-in talks are continuing at Creswick.

Bailieston

Bailieston is also at the centre of the current gold exploration boom in Victoria, sited as it is a few km east of the world class Fosterville mine. Fosterville has delivered spectacular investment returns over recent years for owner Kirkland Lake Gold, not to mention some of it’s now millionaire shareholders.

The Bailieston license areas include a raft of prospects, including HR3, Black Cat, Cherry Tree, Red Moon and Yellow Moon, and with drilling permissions now received, the company reported last Friday that its newly acquired drilling rig will shortly be en route to the HR3 prospect from ECR’s new operational base at Bendigo. Work also continues apace at the Cherry Tree prospect, with soil geochemistry and geological mapping recently completed.

ECR’s Baillieston project also has a high profile neighbour in the form of mining giant Newmont, which has a license application in for ground immediately to the north of ECR’s Black Cat prospect.

Tambo Gold Project – Local Knowledge

One of the key advantages lies in the fact that ECR’s principal geologist Dr Rodney Boucher was born and raised in Bruthen, East Victoria, and therefore has an intimate knowledge of the region. In September 2020, this area knowledge was further employed by ECR when it lodged two new license applications for the new Tambo gold project in eastern Victoria. ECR CEO Craig Brown highlighted Dr Boucher’s knowledge in the stock exchange press release.

“Good quality exploration ground available for direct application is very difficult to find in Victoria, so we are very pleased to have identified and applied for the Tambo project, which covers a sizeable area of prospective geology near historic goldfields and has received little contemporary exploration.”

Brown added “Our principal geologist, Dr Rod Boucher, was born and raised nearby in Bruthen. He grew up gold prospecting with his father throughout the application areas and has an in-depth knowledge of the gold potential in the small streams and gullies. He is a descendant of gold miners from a locality once known as Boucher Town between Cassilis and Swifts Creek and completed his third-year undergraduate thesis on the geology of the Tambo Crossing area.”

Untapped Potential

There is a sense that despite the rush of license applications in the region, the current day Victoria gold rush is still very much in its infancy.

As other leading mining companies, including Newmont Corporation (NYSE: NEM), Power Metal Resources (LSE:POW), Red Rock Resources (LSE:RRR), Fosterville South and a host of other smaller mining groups queue for licenses, their respective CEO’s will no doubt be harbouring ambitions for a Kirkland Gold–esque share price explosion.  Indeed, Kirkland’s share price has rocketed over 2,200% in the past few years thanks to its ownership of the Fosterville Gold Mine and a 315% jump in annual gold production between 2014 and 2018 .

Despite movement restrictions in the Victoria region due to Covid-19, the foresight of the ECR board and CEO in securing the key licenses has not been lost on investors.

Following a further £600,000 fundraise in July, and further £400,000 from warrant exercises, ECR took the decision to acquire it’s own diamond drilling rig to press on with exploration Bailieston and Creswick. Investor bulletin boards are agog with anticipation, but despite the share price having nearly trebled between June and September 2020, in November the stock still trades on a ridiculously modest £13m market cap.

If, as all the pundits seem to be saying, we are at the start of a new Victoria Gold rush, then expectations that shares in small, incumbent explorers like ECR will deliver spectacular Kirkland-style increases in value may not be so far fetched after all.

*Source The Guardian: https://www.theguardian.com/business/2020/oct/13/imf-covid-cost-world-economic-outlook

**Source Reuters:

https://www.reuters.com/article/global-precious/precious-gold-holds-tight-range-as-vaccine-progress-offsets-rising-cases-idUSL4N2I43M1

 

ECR Minerals #ECR Victoria Goldfields Operational Update

ECR Minerals plc (LON: ECR), the gold exploration and development company focussed on Australia, is pleased to provide the following update on its activities in Victoria,  Australia, which are carried out through the Company’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”).

HIGHLIGHTS

  • MGA has taken delivery of its new Cortech CSD1300G diamond drill rig and a new operational base is being established in Bendigo, Victoria.
  • All necessary permissions are in place for drilling at the HR3 prospect within the Bailieston project area, where drilling operations will commence as soon as the drill rig is ready.
  • Soil geochemistry and geological mapping completed at the Cherry Tree prospect in the Baillieston project area.

Craig Brown, Chief Executive Officer of ECR commented:

“With the arrival of the ECR owned drill rig in Victoria we are now in a position to accelerate our exploration work and significantly, drilling of key targets.   Our initial target HR3 is already permitted for drilling and therefore we anticipate an expeditious start to operations.

Alongside the new drill rig we have also been undertaking a range of operational work including the soil geochemistry and mapping at Cherry Tree, the results of which have provided valuable information to guide our ongoing exploration.

I look forward to providing further information from Victoria in the near term as our operational activities continue.”

DRILL RIG AND NEW OPERATIONAL BASE

Further to the Company’s announcement dated 14 September 2020, the new drill rig has been delivered and is now being set up for work under the supervision of MGA’s highly experienced drilling manager Graeme Noble.

MGA is establishing a new operational facility in Bendigo, Victoria, where the rig will be based. The facility includes more than 1,000 square metres of shed, office and storage space. MGA intends to carry out cutting and sampling of diamond drill core on site as well as using the facility for maintenance and storage of the new drill rig and other equipment. The facility is within easy driving distance of both the Bailieston and Creswick projects.

DRILLING PLANS – BAILIESTON HISTORIC RESERVE #3 (HR3)

All necessary permissions are in place for drilling at the HR3 prospect, which comprises at least four closely-spaced lines of reef, including the Byron, Dan Genders, Scoulars and Maori Reefs, plus numerous cross-structures. This provides a number of drill-ready targets, and it is planned that drilling will commence at HR3 as soon as the new drill rig has been made ready for operations.

RESULTS OF GEOCHEMISTRY AND FIELD MAPPING AT CHERRY TREE

The Cherry Tree prospect lies on the Bailieston Trend within Historic Reserve #4 (HR4) and is located 1.5 kilometres south of HR3 (Fig. 1). The workings at Cherry Tree continue to the south to the Cherry Tree South workings. Cherry Tree and Cherry Tree South are separated by an alluvial gully. Some 30 large and numerous small shafts were sunk by the historic miners at Cherry Tree. The main zone of workings at Cherry Tree is surrounded by alluvial cover and there may be some scope for shallow extensions under the cover.

Cherry Tree geochemistry and field mapping results:

Fig. 1

Fig_1_Cherry_Tree_As_map.jpeg

Fig. 2

Fig_2_Cherry_Tree_As_model.jpeg

Detailed portable XRF (pXRF) geochemical sampling was conducted to better define the surface expression of the mineralisation and to seek extension to shoots. Some 920 readings were taken, on average 10 metres apart but sometimes as close as 2 metres to attempt to follow and define trends.

The Cherry Tree workings mostly lie on the westerly limb of a N-S elongate anticlinal dome (Fig. 2). The pXRF results show numerous zones of anomalism, mostly close to the historic workings. The anomalism increases towards the top of the dome and towards the northwest. The increasing anomalism towards the northwest is lost under cover indicating there may be some potential for remanent mineralisation at shallow depths. Overall, the programme has provided MGA with new insight into the controls on mineralisation at Cherry Tree, which is relevant to the selection of drill targets at Cherry Tree itself and potentially to other parts of the Bailieston Trend including HR3.

Review of Announcement by Qualified Person

This announcement has been reviewed by Dr Rodney Boucher of Linex Pty Ltd. Linex Pty Ltd provides geological services to Mercator Gold Australia Pty Ltd, including the services of Dr Boucher, who has a PhD in geology, is a Member and RPGeo of the Australian Institute of Geoscientists and is a Member of the Australasian Institute of Mining and Metallurgy. Dr Boucher is a Qualified Person as that term is defined by the AIM Note for Mining, Oil and Gas Companies.

MARKET ABUSE REGULATIONS (EU) No. 596/2014

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (MAR). Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information is now considered to be in the public domain.

FOR FURTHER INFORMATION, PLEASE CONTACT:

ECR Minerals plc Tel: +44 (0)20 7929 1010
David Tang, Non-Executive Chairman
Craig Brown, Director & CEO
Email:

info@ecrminerals.com

Website: www.ecrminerals.com
WH Ireland Ltd Tel: +44 (0)161 832 2174
Nominated Adviser
Katy Mitchell/James Sinclair-Ford
SI Capital Ltd Tel: +44 (0)1483 413500
Broker
Nick Emerson

 

ABOUT ECR MINERALS PLC

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

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

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

UK Investor Magazine Webinar – Zak Mir and Alan Green present a number of stock selections

Zak Mir and Alan Green join the UK Investor Magazine Virtual Conference to present a number of their stock selections. Stocks include #ECR, #IXI, #OTMP, #AMC, #KIBO, #ORCP, #SLE, #TERN & #XTR

ECR Minerals #ECR – Issue of Share Options to certain key consultants and staff

ECR Minerals plc (LON: ECR), the gold exploration and development company focussed on Australia, announces that further to its announcement dated 11 July 2018 (the “Announcement”), the Company has today issued an aggregate of 11,800,000 share options from the management and consultant option pool to certain key consultants and staff.

The terms of such options are set out in the Announcement.

MARKET ABUSE REGULATIONS (EU) No. 596/2014 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (MAR). Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information is now considered to be in the public domain.

FOR FURTHER INFORMATION, PLEASE CONTACT: 

ECR Minerals plc Tel: +44 (0)20 7929 1010 
David Tang, Non-Executive Chairman   
Craig Brown, Director & CEO   
Email:info@ecrminerals.com   
Website: www.ecrminerals.com   
    
WH Ireland Ltd Tel: +44 (0)161 832 2174 
Nominated Adviser   
Katy Mitchell/James Sinclair-Ford   
    
SI Capital Ltd Tel: +44 (0)1483 413500 
Broker   
Nick Emerson   

ABOUT ECR MINERALS PLC

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

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

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

ECR Minerals #ECR – Tambo Gold Project, Eastern Victoria, Australia

ECR Minerals plc (LON: ECR), the gold exploration and development company focussed on Australia, is pleased to announce that its wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) has applied for two new exploration licences in eastern Victoria, Australia. The licences, which are contiguous, will comprise the Tambo gold project.

HIGHLIGHTS

  • Two new exploration licence applications lodged in eastern Victoria: EL007484 (410 sq. km) and EL007486 (318 sq. km), to comprise the Tambo gold project;
  • Applications cover portions of the historic Swifts Creek/Omeo and Haunted Stream goldfields that have recorded historical gold production of 205,000 and 25,000 oz respectively, according to figures published by the Geological Survey of Victoria;
  • Project area prospective for orogenic reef gold and additionally for intrusion-related gold & base metal systems.

Craig Brown, Chief Executive Officer of ECR, commented: 
“Good quality exploration ground available for direct application is very difficult to find in Victoria, so we are very pleased to have identified and applied for the Tambo project, which covers a sizeable area of prospective geology near historic goldfields and has received little contemporary exploration.

Our principal geologist, Dr Rod Boucher, was born and raised nearby in Bruthen. He grew up gold prospecting with his father throughout the application areas and has an in-depth knowledge of the gold potential in the small streams and gullies. He is a descendant of gold miners from a locality once known as Boucher Town between Cassilis and Swifts Creek and completed his third-year undergraduate thesis on the geology of the Tambo Crossing area.”

ABOUT THE TAMBO PROJECT AREA

A map of the Tambo project area showing the location of the applications (Fig. 1a) and their geological setting (Fig. 2a) can be viewed at:

https://www.ecrminerals.com/images/2020/09/21/tambo_ela_f1_location_goldfields.jpg

https://www.ecrminerals.com/images/2020/09/21/tambo_ela_f2_geology.jpg

Geologically, the majority of the project area has exposed prospective basement including granites (Fig. 2a). In the past, the area has been mostly explored by smaller companies and individuals and has not received thorough exploration with modern techniques.

The project area falls within the area of a large airborne gravity survey which the Victorian State Government plans to commence in late 2020. The data from this survey, when published, is expected to generate new insight into the geology of eastern Victoria, including the Tambo project area.

The application areas are mostly covered by private land (EL007484) and Crown land (EL007486) respectively. Good access to the application areas is possible via tracks off the Omeo Highway that runs the length of the project area.

EL007484 
The application area includes a portion of the historic Swifts Creek/Omeo goldfield that includes gold production centres at Omeo, Cassilis and Brookville. The goldfield has recorded total historical production of 205,000oz (see source below), approximately half of which was primary gold. Primary mineralisation at Cassilis is orogenic reef gold and MGA intends to explore for this style of mineralisation along the Ensay and Cassilis shear zones that cross the application area.

EL007486 
Much of the application area is depicted to be covered by the historic Haunted Stream goldfield that has recorded historical production of 25,000oz gold (see source below). The small production from the tenement area is mostly from remnant patches of gold-bearing alluvial terraces, some of which have continued to be mined in recent decades. The source of the alluvial gold may be from the Stirling area, although there is potential for reef sources either at surface or at shallow depths within the tenement area.

The application covers the Mount Elizabeth caldera and accompanying intrusives. This region is prospective for mineralisation above the deeper intrusion and associated with the ring faults (Fig. 2b). Similarly, roof pendants in the Tambo Crossing granodiorite/tonalite indicate it has not been deeply exhumed. In contrast, Victoria’s intrusive systems are typically eroded to deeper levels so the opportunities to explore for deposits near the tops of these systems do not usually exist. There is great variability in the timing and chemistry of the granites in the Mt. Elizabeth area resulting in highly prospective mineralising host rocks.

Figures for historical gold production referred to in this announcement are from the following source: Willman, C. E., Morand, V. J., Hendrickx, M. A., VandenBerg, A. H. M., Haydon. S. J. & Carney, C., 1999. Omeo 1:100,000 map area geological report. Geological Survey of Victoria. Report 118, p253.

Review of Announcement by Qualified Person 
This announcement has been reviewed by Dr Rodney Boucher of Linex Pty Ltd. Linex Pty Ltd provides geological services to Mercator Gold Australia Pty Ltd, including the services of Dr Boucher, who has a PhD in geology, is a Member and RPGeo of the Australian Institute of Geoscientists and is a Member of the Australasian Institute of Mining and Metallurgy. Dr Boucher is a Qualified Person as that term is defined by the AIM Note for Mining, Oil and Gas Companies.

MARKET ABUSE REGULATIONS (EU) No. 596/2014 
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (MAR). Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information is now considered to be in the public domain.

FOR FURTHER INFORMATION, PLEASE CONTACT: 

ECR Minerals plc Tel: +44 (0)20 7929 1010
David Tang, Non-Executive Chairman  
Craig Brown, Director & CEO  
Email: info@ecrminerals.com  
Website: www.ecrminerals.com  
   
WH Ireland Ltd Tel: +44 (0)161 832 2174
Nominated Adviser  
Katy Mitchell/James Sinclair-Ford  
   
SI Capital Ltd Tel: +44 (0)1483 413500
Broker  
Nick Emerson  

ABOUT ECR MINERALS PLC 
ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd has 100% ownership of the Bailieston and Creswick gold projects in central Victoria, Australia.

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

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

Alan Green talks 2nd lockdown, Kingfisher #KGF, ECR Minerals #ECR & Mirriad #MIRI on the UK Investor Magazine podcast

Alan Green discusses the 2nd lockdown, Kingfisher #KGF, ECR Minerals #ECR & Mirriad #MIRI with Jonathan Roy on the UK Investor Magazine podcast

ECR Minerals #ECR CEO Craig Brown interview with StockBox Media

Craig Brown, CEO of ECR Minerals #ECR talks to StockBox Media and updates on progress at Bailieston and Creswick projects. Craig discusses the proposed drilling programme at Bailieston using the company’s newly acquired diamond drilling rig, and explains how this will provide flexibility and strategic advantages for the company.

ECR Minerals #ECR – Business Operations Update

ECR Minerals plc (LON: ECR), the gold exploration and development company focussed on Australia, is pleased to provide the following update on its activities, which are centred on the Bailieston and Creswick gold projects in Victoria, Australia. Both projects are 100% owned by ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”).

HIGHLIGHTS

  • Field mapping and geochemistry currently underway across numerous gold prospects in the Bailieston project area;
  • ECR has acquired a diamond drilling rig capable of drilling as deep as 1,300 metres, due for delivery next month and which will be deployed immediately on an ECR managed drill programme;
  • High priority gold prospects within the Bailieston and Creswick project areas with potential for immediate drilling have been identified.

Craig Brown, Chief Executive Officer of ECR, commented:

“There is continuing interest in ECR’s Bailieston and Creswick projects with regards to potential joint venture or earn in opportunities. However, there can be no guarantee that any transaction will occur. The Company will provide further updates as appropriate.

The engagement we are experiencing is not surprising given the interest in Victoria gold opportunities, as evidenced by the many corporate transactions that we have seen in the area.

ECR is also gearing up to launch next stage exploration campaigns across our properties and we look forward to providing updates as the work progresses

The Directors are very optimistic for the future, and the Company has a robust underlying cash position of £1.65m with which we can confidently push ahead with operational programmes.”

CURRENT EXPLORATION ACTIVITIES

With the approaching end of the Victorian winter, MGA has begun to ramp-up exploration at the Bailieston and Creswick projects. A programme of follow-up field mapping and geochemistry across numerous prospects in the Bailieston project area is currently underway. MGA has recently purchased its own portable Olympus XRF analyser in order to enhance and expedite its geochemical sampling capabilities.

A map of the eastern Bailieston project area showing some of the prospects and features referred to in this announcement can be viewed at:

https://www.ecrminerals.com/images/2020/09/09/prospectsreefs-eastern-bailieston-tenement-area.jpg

Detailed mapping and geochemistry at the Cherry Tree, Cherry Tree South and Black Cat prospects is aimed at locating the surface position of shoots and identifying mineralisation along strike of trends established by historical and recent exploration. This will assist with the consideration of these prospects for drilling.

Cherry Tree (Historic Reserve #4) and Cherry Tree South are along the Bailieston trend and south of the Fosterville-style mineralisation mined in a small open cut in the 1990s at Historic Reserve #1 (HR1).

Rock chip samples were taken by MGA from Cherry Tree and Cherry Tree South as part of a 2018 sampling programme along the Bailieston trend. A total of 58 rock chip samples were taken at Cherry Tree and Cherry Tree South, with 17 samples returning grades of >1 g/t gold and the highest assay result being 8.8 g/t gold.

Field mapping and geochemical sampling at the Kings Cross and Pontings prospects in the Bailieston project area will follow-up earlier results including soil samples of up to 1.79 g/t gold at Kings Cross and rock chip samples of up to 8.31 g/t gold at Pontings.

PURCHASE OF DIAMOND DRILLING RIG AND POTENTIAL FUTURE DRILLING

MGA has recently signed a contract for the purchase of a new Cortech CSD1300G diamond drilling rig complete with spares and all downhole equipment, which is capable of drilling as deep as 1,300 metres. The rig is expected to be delivered in October 2020 and will give MGA an in-house drilling capability, which will be preferable to relying on contractors.

MGA has access to experienced drilling personnel to operate the rig, and it is expected that future drilling can be completed at lower cost and with greater flexibility using MGA’s own rig.

High priority gold prospects within the Bailieston and Creswick project areas which have the potential for immediate further drilling are detailed below. Once the drill rig has been received in Australia, a decision will be taken as to where it should first be put to work.

Bailieston Project – Blue Moon 

Blue Moon is an exciting new gold discovery made by MGA, with intercepts from 2019 reverse circulation (RC) drilling including 15 metres at 3.81 g/t gold from 51 metres downhole (with 2 metres at 17.87 g/t gold) (see announcement dated 14 March 2019 for full details of the drill programme). The best 2019 drilling results came from the western fence line. The host sandstone thins towards the east, where the drill results diminished accordingly.

ECR plans to test whether the mineralisation continues to improve towards the west, subject to gaining surface access. There is also potential to carry out further drilling within the zones already tested, with the objective of establishing an initial JORC Mineral Resource.

Bailieston Project – HR3

Three dimensional (3D) modelling of historical data for the Bailieston Historic Reserve #3 (HR3) and the results of drilling in the area by MGA in 2017 was completed in late 2019 and has assisted in the identification of the architecture of the major folds, structures and cross structures at the prospect. HR3 comprises at least four closely-spaced lines of reef, including the Byron, Dan Genders, Scoulars and Maori Reefs, plus numerous cross-structures. This provides a number of drill-ready targets.

Creswick Project 

Drilling conducted by MGA in 2019 at the Slades Reef prospect covered 300 metres of the 12.5 kilometre strike length of the Dimocks Main Shale (DMS) within ECR’s granted exploration licence (EL) and EL application areas at Creswick. This drilling encountered complex structures at Slades Reef; the cross section shown in ECR’s announcement dated 21 June 2019 showed drilling into interpreted faulted and parasitic folded DMS on an overall west-dipping limb.

Diamond drilling can be utilised to test this structural hypothesis and test the gold-bearing structures identified at Slades Reef where key faults intersect the anticline. Elsewhere at Creswick, field mapping and geochemical sampling could be used to attempt to delineate the surface expression of shoots to the south including Jackass Reef and Mills Reef ahead of potential drilling of these targets.

Review of Announcement by Qualified Person

This announcement has been reviewed by Dr Rodney Boucher of Linex Pty Ltd. Linex Pty Ltd provides geological services to Mercator Gold Australia Pty Ltd, including the services of Dr Boucher, who has a PhD in geology, is a Member and RPGeo of the Australian Institute of Geoscientists and is a Member of the Australasian Institute of Mining and Metallurgy. Dr Boucher is a Qualified Person as that term is defined by the AIM Note for Mining, Oil and Gas Companies.

MARKET ABUSE REGULATIONS (EU) No. 596/2014 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (MAR). Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information is now considered to be in the public domain.

FOR FURTHER INFORMATION, PLEASE CONTACT: 

ECR Minerals plc Tel: +44 (0)20 7929 1010 
David Tang, Non-Executive Chairman   
Craig Brown, Director & CEO   
Email:info@ecrminerals.com   
Website: www.ecrminerals.com   
    
WH Ireland Ltd Tel: +44 (0)161 832 2174 
Nominated Adviser   
Katy Mitchell/James Sinclair-Ford   
    
SI Capital Ltd Tel: +44 (0)1483 413500 
Broker   
Nick Emerson   

ABOUT ECR MINERALS PLC

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

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

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

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