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ECR Minerals #ECR – Appointment of Adam Jones as Technical Director, Exploration

ECR Minerals plc (LON: ECR), the gold exploration and development company focused on Australia, is pleased to announce that Non-Executive Director Adam Jones will become an Executive Director with immediate effect. Adam’s new role will be Technical Director of Exploration across ECR’s portfolio of projects.

As previously announced on December 16th 2020, Adam Jones holds a Bachelor of Science degree from Ballarat University and First Class Honours from Adelaide University. Adam has over 12 years’ experience as a professional geologist in Australia, including significant experience and knowledge of regional gold exploration and production.

Adam is a member of the Australian Institute of Geoscientists (AIG) and has worked as an independent consulting geologist since 2015. His clients include or have included the A1 gold mine, Dart Mining, Nagambie Resources in Victoria and Vendetta Mining in Queensland.

Adam is a director of and has provided consultancy services to ECR’s Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) since April 2018 and has been involved in the supervision of drilling programmes and has undertaken geochemical and rock chip sampling and geological mapping campaigns.

He has considerable experience in geological interpretation, geotechnical and fault modelling, geological mapping and sampling, turbidite sequence-structural interpretations, wireframing and 3D modelling using Vulcan Software.

Adam will assume technical responsibilities for all of ECR’s projects, including the Lolworth Range project in North Queensland owned by ECR’s 100% owned subsidiary LUX Exploration Limited (“LUX”). He lives in Victoria close to ECR’s Bailieston and Creswick gold projects.

ECR Chairman David Tang commented: “Adam has been a key member of the ECR team since the day he joined, and I am delighted that he is now assuming an executive director role. I know he impressed our CEO on his recent trip to Victoria, and, looking forward, the Company will now benefit from his guidance and input on a higher strategic level.

ECR CEO Andrew Haythorpe added: “My decision to join ECR was very much influenced by the manner in which Adam has managed the Company’s ongoing drilling campaigns in Victoria as well as the skillset and vision demonstrated in his assessment and acquisition of the Lolworth Range project. My recent trip served to confirm my early impressions, and I very much look forward to working closely with him and benefitting from his expertise as we develop our asset portfolio.”         

FOR FURTHER INFORMATION, PLEASE CONTACT:

 

ECR Minerals plc Tel: +44 (0) 20 7929 1010
David Tang, Non-Executive Chairman

Andrew Haythorpe, CEO

Email:

info@ecrminerals.com

Website: www.ecrminerals.com
WH Ireland Ltd Tel: +44 (0) 207 220 1666
Nominated Adviser

Katy Mitchell / Andrew de Andrade

SI Capital Ltd Tel: +44 (0) 1483 413500
Broker
Nick Emerson
Novum Securities Limited  Tel: +44 (0) 20 7399 9425
Broker

Jon Belliss

BlytheRay Tel: +44 (0) 207 138 3204
Public Relations
Tim Blythe

 

ABOUT ECR MINERALS PLC

ECR Minerals is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) has 100% ownership of the Bailieston and Creswick gold projects in central Victoria, Australia, has eight licence applications outstanding including two licence applications lodged in eastern Victoria. (Tambo gold project). MGA is currently drilling at both the Bailieston (EL5433) and Creswick (EL6148) projects and has an experienced exploration team with significant local knowledge in the Victoria Goldfields and wider region.

https://mercatorgold.com.au/

ECR also owns 100% of an Australian subsidiary LUX Exploration Pty Ltd (“LUX”) which has three licence applications covering 900 km2 covering a relatively unexplored area in Queensland, Australia.

https://luxexploration.com/

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

ECR holds a 70% interest in the Danglay gold project; an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines, which has a 43-101 compliant resource. ECR also holds a royalty on the SLM gold project in La Rioja Province, Argentina and can potentially receive up to US$2.7 million in aggregate across all licences.

ECR Minerals #ECR – Creswick Project Update

ECR Minerals plc (LON: ECR), the gold exploration and development company focussed on gold exploration in Australia, is pleased to provide an update regarding the Creswick exploration project to shareholders.

ECR Minerals plc has 100% ownership of EL006184 and EL006907 located at Creswick, Central Victoria, Australia. Exploration is being undertaken by ECR’s Australian wholly owned subsidiary Mercator Gold Australia Pty Ltd (“MGA”).

ECR Chairman David Tang commented: “On behalf of our board I am pleased to report that these results show that Creswick, while complex in its geology and the nature of its mineralisation, has provided a solid platform of data that fully justifies our decision to progress Creswick and EL006184 to the next phase of exploration. The latest data also further justifies the strategy behind the purchase of the Brewing Lane property in September 2021, as it now provides a centre for our operations in Creswick and the potential to develop a mine decline should we decide to embark on that course in the future. Our board and exploration team are also excited by the potential at the recently awarded license area at EL006907, adjacent to Creswick”

“I would also like to apologise to shareholders for the delay in publishing the Creswick results. The prevalence of COVID-19 in Victoria in recent months has resulted in delays in results from the laboratory and interruptions in the supply chain supporting exploration activities.”

“Our search for a CEO continues, some early candidates have been identified and the interviewing process is underway. I would ask shareholders to bear with us during this time. I am also aware that some shareholders are concerned that our social media communication process has fallen below previous levels. We are working to address this.”

SUMMARY:

  • Anomalous gold results have been received from the remaining samples from the diamond drilling program completed at the end of 2021.
  • Recent duplicate sampling is revealing erratic gold results due to the presence of coarse gold, potentially undervaluing the true estimated grade.
  • Assay result turn-around time has been delayed due to COVID-19 management and related staff shortages at the laboratory.

BACKGROUND

The Creswick project is located approximately 18km to the north of the City of Ballarat. Ballarat itself has a rich history of gold and is still producing at the nearby Ballarat East Goldmine. The Creswick project consists of two active tenements respectively EL006184 and EL006907, plus MGA are awaiting the outcome of licence applications in the surrounding adjacent ground.

Intense historic alluvial gold workings exist within the tenements. Mapping the extent of the alluvial gold workings has traced the potential source of the gold to quartz veining associated with a wide, shale rich rock unit termed the Dimocks Main Shale (“DMS”). The company believes the strike extent of the DMS can be traced for at least 15km.  On September 2nd 2021 ECR announced the acquisition of a property at 35 Brewing Lane, Springmount, which sits in our existing license area EL006184. As stated in the announcement of Sept 2nd, the property has provided the Company with an operational base and, in future, can be developed as a site for the decline access to existing, and potential, vein mineralisation. Link to the Brewing Lane property announcement here

Our recent work has been concentrated within EL006184 close to Springmount, and the last three years has seen the Company complete RC drilling totalling 1691 metres and most recently complete 16 diamond drill holes for a total of 3433 metres. A detailed plan view showing the location of exploration activities undertaken during the 2021 year is linked below:

https://www.ecrminerals.com/images/2022/Fig1_Plan_of_Creswick_Project_Area_2021-1.png

OUTCOME OF DIAMOND DRILLING ACTIVITIES DURING 2021

Diamond drilling was undertaken to confirm the structural architecture of quartz mineralisation that was interpreted from the 2019 RC drilling program. The hypothesis was that quartz is situated in both bedding and axial cleavage planes formed within the DMS horizon which in places can be up to 25 metres in width. The substantial width and strike length of the DMS means the target is of great importance to ECR. Initial results from diamond holes CSD001 and CSD002 showed early success for gold mineralisation. Geological logging of diamond core also successfully proved that quartz mineralisation has preferentially developed within the shales. Drilling continued at broad spaced intervals approximately 300m apart and along strike of the DMS to the south for 2.1 km. Results show quartz mineralisation is still present along the strike limits of the drilling completed to date. Anomalous gold was detected in the southern most drill hole (CJD001) with 0.5m @ 0.54 g/t Au from 324m. As previously reported, the best intercept was from hole CSD003 drilled on top of a ridge south of Blue Gum Track. This important hole is located in an area with no previous mining history. Follow up drilling to CSD003 intercepted quartz mineralisation where expected, however grades were not as extraordinary as hole CSD003 with the best intercept being in CSD013 for 1m @ 1.98 g/t Au from 80.5m downhole. Drilling of hole CSD005 and CSD006 intercepted a large milled fault zone, believed by MGA geologists to be a cross-course fault, as commonly seen at the Ballarat East goldfield. All gold intercepts from the 2021 drilling considered anomalous above the lowest reportable levels are shown in Table 1 below.

Table 1. Summary of drill intercepts containing reportable anomalous levels of gold (0.11 g/t Au for the diamond drilling program completed on EL006184 during 2021. (*highlights in RED bold)

CSD001

From (m) To (m) Grade (g/t Au) Interval (m)
12.3 12.55 0.19 0.25
43.15 44.15 0.23 1
58.2 59.1 0.92 0.9
86 87 0.13 1
131.9 132.9 9.68 1
147.7 148.7 0.25 1
205.65 206.45 0.11 0.8
206.45 207.4 0.14 0.95
211.95 212.45 0.11 0.5
225.9 226.9 0.12 1
226.9 227.9 0.11 1
231.4 232.45 0.11 1.05
240 241.05 0.37 1.05
257.3 257.7 0.26 0.4

 

CSD002

From (m) To (m) Grade (g/t Au) Interval (m)
65.9 66.5 0.22 0.6
99.9 100.8 0.2 0.9
173.1 174.1 4.78 1
178.7 179.2 0.16 0.5
179.55 179.85 0.19 0.3
179.85 180.2 0.39 0.35
182.1 183.1 0.11 1

 

CSD003

From (m) To (m) Grade (g/t Au) Interval (m)
84.2 85.15 9.93 0.95
89.05 90 23.58 0.95

 

CSD004

From (m) To (m) Grade (g/t Au) Interval (m)
125.7 126.7 0.18 1

CSD005

From (m) To (m) Grade (g/t Au) Interval (m)
84 85 0.22 1
91.8 92.3 0.16 0.5
94.32 95.3 0.13 0.98

 

CSD007

From (m) To (m) Grade (g/t Au) Interval (m)
26 27 0.15 1
67.6 68.2 0.16 0.6
233.5 234.5 0.11 1

 

CSD008

From (m) To (m) Grade (g/t Au) Interval (m)
2.3 3.3 0.21 1
26.4 27.1 0.45 0.7
27.1 27.9 0.69 0.8

 

CSD009

From (m) To (m) Grade (g/t Au) Interval (m)
88.3 88.7 0.28 0.4
149.7 151 0.21 1.3

 

CSD011

From (m) To (m) Grade (g/t Au) Interval (m)
62 62.5 0.29 0.5
71 72 0.12 1

 

CSD012

From (m) To (m) Grade (g/t Au) Interval (m)
113 113.5 0.61 0.5

 

CSD013

From (m) To (m) Grade (g/t Au) Interval (m)
80.5 81.5 1.98 1

 

CSD014

From (m) To (m) Grade (g/t Au) Interval (m)
18.4 19.4 0.14 1
19.4 20.4 0.12 1
55.8 56.4 0.24 0.6

 

CJD001

From (m) To (m) Grade (g/t Au) Interval (m)
254.6 255 0.11 0.4
324 324.5 0.54 0.5
325.5 326 0.11 0.5

 

 

 

CJD002

From (m) To (m) Grade (g/t Au) Interval (m)
8 9 0.2 1
55.4 56.5 0.34 1.1
78.5 79.1 2.99 0.6
79.1 80.1 0.26 1
83.4 84.4 0.19 1
86.5 87.5 0.15 1
93.6 94.6 0.75 1
98 99.1 0.15 1.1
109.4 110.4 0.13 1
121.1 122.2 0.41 1.1
147.9 148.4 0.17 0.5
179.8 180.3 0.16 0.5
214.9 215.4 0.13 0.5

 

COARSE GOLD REVEALED IN SAMPLING

Geologists generally consider coarse gold deposit results above 0.2 g/t Au as anomalous and worth duplicating. Recently, a series of rock chips were taken by MGA geologists from exposed quartz veins in historic pits and trenches adjacent to Blue Gum Track. Duplicate sampling has revealed a large variability in gold grades. In particular, a chip sample 0.4m wide (true width) across outcrop initially showed 0.15 g/t Au. Replicating this sample with the same sampling protocols revealed 0.4m @ 31.8 g/t Au.

Previous bulk sampling of 1m drill composite samples from the 2019 RC drilling highlighted the presence of coarse gold which showed significant variability to the grades received from the initial 2kg riffle split samples from the RC drill rig. Samples that showed detectable gold were later bulk sampled in entirety from the remaining 1m drilled, 50 kg sample. Random nuggetty gold particles within the bulk samples increased the overall grade. Examples of this is shown in fig 2 linked below:

https://www.ecrminerals.com/images/2022/Fig2_Creswick_gold_particle_examples.png

The variability in gold grade is a reflection of the sample size (known as the volume-variance relationship). The larger the sample size, the better representation of the true average grade. Gold at Creswick is coarse and unevenly distributed, although the different size particles are located close together. HQ sized diamond drilling produces a core of rock 63.5mm in diameter with half of this diameter sent as a sample. The probability of sampling a coarse particle of gold within the core is low. RC drilling is larger in diameter and therefore produces a larger sample size increasing the probability of sampling a particle of gold. RC drilling however produces rock chips where geological quality is lost and understanding of the structural host to the best mineralisation cannot be interpreted and followed up on. A balance between drilling for structure by diamond drilling combined with grade drilling by RC drill methods targeted at the most extensively mineralised part of the system is now believed to be the best methodology with which to progress the Creswick asset.

The volume-variance relationship between diamond and RC drill methods in a coarse gold mineralised system is visually shown in fig 3 in the following link:

https://www.ecrminerals.com/images/2022/Fig3_volume-variance_drill_sizes.png

PROPOSED DEVELOPMENT PLAN
MGA have applied to renew EL006184 for another 5 years and are awaiting final approval. As the current incumbent, MGA has first rights over the license, and MGA Director and Geologist Adam Jones is proposing the next phase of exploration within EL006184 as follows;

  • Soil sampling programmes over the up-dip projections of quartz mineralisation identified from the 2021 diamond drilling campaign to test for sub-cropping gold shoots.
  • ECR’s property at Brewing Lane, Springmount contains numerous old abandoned gold workings with some underground exposures that offer opportunities for mapping and sampling, followed up by drilling.
  • The Company is currently seeking advice on which appropriate geophysical techniques may highlight important structures that control the distribution of gold mineralisation within the DMS.
  • Follow up drilling to include detailed RC and diamond drilling within the Brewing Lane property and adjacent ground with emphasis on bulk sampling techniques as was done in 2019.

Furthermore, MGA will start to evaluate prospects further south of existing drilling in the recently approved EL006907 using exploration techniques that proved successful on EL006184.

MGA is continuing to progress with drilling at the Bailieston tenements (EL5433), focussing on the Maori Reef and parallel reef systems within the HR3 goldfield. The geology team is also making progress with plans to re-enter and continue exploration on the Blue Moon prospect located on the southern extent of EL5433.

REVIEW OF ANNOUNCEMENT BY QUALIFIED PERSON

This announcement has been reviewed by Adam Jones, a director of ECR Minerals plc. Adam Jones is a professional geologist and is a Member of the Australian Institute of Geoscientists (MAIG). He is a qualified person as that term is defined by the AIM Note for Mining, Oil and Gas Companies.

MARKET ABUSE REGULATIONS (EU) No. 596/2014

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

FOR FURTHER INFORMATION, PLEASE CONTACT:

 

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

info@ecrminerals.com

Website: www.ecrminerals.com
WH Ireland Ltd Tel: +44 (0) 207 220 1666
Nominated Adviser

Katy Mitchell / Andrew de Andrade

SI Capital Ltd Tel: +44 (0) 1483 413500
Broker
Nick Emerson
Novum Securities Limited  Tel: +44 (0) 20 7399 9425
Broker

Jon Belliss

Blytheweigh Tel: +44 (0) 207 138 3204
Public Relations
Tim Blythe

 

 

ABOUT ECR MINERALS PLC

ECR Minerals is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) has 100% ownership of the Bailieston and Creswick gold projects in central Victoria, Australia, has eight licence applications outstanding including two licence applications lodged in eastern Victoria. (Tambo gold project). MGA is currently drilling at both the Bailieston (EL5433) and Creswick (EL6148) projects and has an experienced exploration team with significant local knowledge in the Victoria Goldfields and wider region.

 

https://mercatorgold.com.au/

 

ECR also owns 100% of an Australian subsidiary LUX Exploration Pty Ltd (“LUX”) which has three licence applications covering 900 km2 covering a relatively unexplored area in Queensland, Australia.

 

https://luxexploration.com/

 

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

ECR holds a 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, which has a 43-101 compliant resource. ECR also holds a royalty on the SLM gold project in La Rioja Province, Argentina and can potentially receive up to US$2.7 million in aggregate across all licences.

ECR Minerals #ECR – Creswick Exploration Licence Renewal Application EL006184

ECR Minerals plc (LON: ECR), the gold exploration and development company focussed on gold exploration in Australia, is pleased to announce that it has submitted an application to renew current exploration license EL006184 for an extended five-year term.

EL006184 covers land owned by one of ECR Minerals plc 100% owned Creswick projects and is operated by its subsidiary company Mercator Gold Australia Pty Ltd (“MGA”).

ECR Chairman David Tang commented: “We are pleased to report that ECR has completed the application to renew Creswick exploration license EL006184 for an extended five-year term. Together with our recently approved licence EL006907 covering the Ballarat East Nerrina Goldfield, this area provides access to the Dimocks Main Shale strike zone, believed to host the source veining for much of the alluvial gold within the Creswick deep lead alluvial system.”

“I look forward to providing further updates once our drill team and equipment return to Creswick”

SUMMARY:

  • Initial tenure of EL006184 expired on the 28th December 2021. The application renewal for the tenement for a further five-year term has been submitted.
  • MGA has first right in securing and applying to renew the ground covered by EL006184.

EL006184 has been a pivotal part of MGA’s exploration strategy and activities during 2021. Work undertaken includes the first ever diamond drill program conducted within the area, in addition to which MGA owns land and property at 35 Brewing Lane, Springmount sited within the tenement area. Exploration is scheduled to continue within MGA’s Creswick tenement area and will include further work along the Dimock Main Shale strike zone which is central to EL006184.

The renewal of EL006184 also complements recently approved licence EL006907 sited south and along strike of the mineralised belt towards Ballarat, Victoria, which the directors believe hosts the source veining for much of the alluvial gold within the Creswick deep lead alluvial system. Once the renewal is granted, the Company expects to return to recommence work at Creswick and within the new license area after completion of current operations at Bailieston, Victoria.

Further updates will be provided when the application has been processed.

REVIEW OF ANNOUNCEMENT BY QUALIFIED PERSON

This announcement has been reviewed by Adam Jones, a director of ECR Minerals plc. Adam Jones is a professional geologist and is a Member of the Australian Institute of Geoscientists (MAIG). He is a qualified person as that term is defined by the AIM Note for Mining, Oil and Gas Companies.

MARKET ABUSE REGULATIONS (EU) No. 596/2014

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

FOR FURTHER INFORMATION, PLEASE CONTACT:

 

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

info@ecrminerals.com

Website: www.ecrminerals.com
WH Ireland Ltd Tel: +44 (0) 207 220 1666
Nominated Adviser

Katy Mitchell / Andrew de Andrade

SI Capital Ltd Tel: +44 (0) 1483 413500
Broker
Nick Emerson
Novum Securities Limited  Tel: +44 (0) 20 7399 9425
Broker

Jon Belliss

Blytheweigh Tel: +44 (0) 207 138 3204
Public Relations
Tim Blythe

 

 

ABOUT ECR MINERALS PLC

ECR Minerals is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) has 100% ownership of the Bailieston and Creswick gold projects in central Victoria, Australia, has eight licence applications outstanding including two licence applications lodged in eastern Victoria. (Tambo gold project). MGA is currently drilling at both the Bailieston (EL5433) and Creswick (EL6148) projects and has an experienced exploration team with significant local knowledge in the Victoria Goldfields and wider region.

 

https://mercatorgold.com.au/

 

ECR also owns 100% of an Australian subsidiary LUX Exploration Pty Ltd (“LUX”) which has three licence applications covering 900 km2 covering a relatively unexplored area in Queensland, Australia.

 

https://luxexploration.com/

 

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

 

ECR holds a 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, which has a 43-101 compliant resource. ECR also holds a royalty on the SLM gold project in La Rioja Province, Argentina and can potentially receive up to US$2.7 million in aggregate across all licences.

ECR Minerals #ECR – Approval of Two New Exploration Tenements in Victoria, Australia

ECR Minerals plc (LON: ECR), the gold exploration and development company focussed on gold exploration in Australia, is pleased to announce the granting of two gold exploration tenements in Victoria, Australia.

ECR Minerals plc has 100% ownership of the Bailieston Project (EL5433) and the Creswick Project (EL006184), both of which are currently undergoing intense exploration by ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”).

ECR Chairman David Tang commented: “On behalf of the board and our team on the ground in Victoria, I am very pleased to announce that we can confirm the award of exploration licenses EL006907 and EL007484. In particular, the granting of license EL006907 linking Creswick to Ballarat East-Nerrina goldfield was something our former CEO Craig Brown always viewed as a key step in developing our Creswick interests and our understanding of the Dimocks Main Shale. With the data and knowledge base we have amassed now, I know our team on the ground, headed by Adam Jones are very keen to start work in the new area and bring Craig’s vision to fruition.

Licence EL007484 is an important addition to our enlarged footprint to the east of Victoria in the Tambo region. With a second drilling machine due to arrive any day now, I look forward to reporting further exploration progress as our intensive exploration and drilling campaigns expand and develop.

Our board are actively engaged in a search for a new CEO, and I look forward to reporting back with developments here in the near term.”  

SUMMARY:

  • Two new tenements recently granted for undertaking exploration work within Victoria, Australia. ‘MGA’ now has a total of 523 km2 of ground granted for exploration for gold within Victoria.
  • One tenement (EL006907) is strategically placed between the historical rich Ballarat East-Nerrina goldfield and the current exploration licence ‘EL006148’. This tenement is host to the continued strike of the Dimocks Main Shale (“DMS”) horizon, believed to host the source veining for much of the alluvial gold within the Creswick deep lead alluvial system.
  • The second tenement (EL007484) is situated 50km north of Bairnsdale in the east of the state of Victoria encompassing the alluvial fields of Swifts Creek and the Mid to Upper reaches of the Tambo River.

EL006907 (Creswick)

MGA is pleased to report that Exploration licence 006907 was granted on 26/11/2021 for a period of five years, with the added possibility of an extension, provided expenditure requirements, (a minimum of $160,050 AUD over the five-year term), are met. The licence lies midway between the current Creswick lease of EL006184 and the Ballarat East and Nerrina goldfields, with a total ground area of 81km2.

EL006907 contains the southern strike extension of the DMS horizon believed to host the source rocks to the abundant historical alluvial gold production within the region. Although the true figures of alluvial gold produced are not known, the Geological Survey of Victoria estimates the region has produced in excess of one million ounces of gold, with most of the production occurring between the period of 1852-1930. Around 4km of DMS strike length is believed to be within this tenement.

Records of past exploration show that no known extensive drilling or geochemical surveys have been undertaken within the tenement.

EL007484 (Tambo North)

Licence EL007484 was also granted on 26/11/2021 for a five-year term. The total land area covers 374 km2, and covers the historic alluvial goldfields of the Tambo River and Swifts Creek. Exploration work for both precious metals and base metals has been undertaken previously, added to which the region is known for intrusives that may offer opportunity for discovering new deposits.

The figure showing location of both tenements are shown in the link below;

https://www.ecrminerals.com/images/fig1_mga_new_tenements_12_21.jpg

FORWARD LOOKING STATEMENTS

We are delighted that the long-awaited license grants for these two tenements have been awarded to MGA. MGA is still awaiting the final grant of EL006713 (Creswick) and EL007486 (Tambo South), which are both adjacent to the newly approved tenements. If approved, MGA will have exploration licenses covering the majority of the ground linking Ballarat and Creswick – an exciting and challenging prospect given the historical abundance of alluvial gold and under-explored nature of the region. Initially, the company intends to define geochemical patterns related to known alluvial gold dispersion to help define the optimum method to locate the ‘blind’ gold ‘shoots’ the central Victorian region is known for. Best outcomes will be followed up by drilling using MGA owned and operated equipment. The MGA team are very well aware that many of the gold deposits at Creswick are ‘spotty’ and coarse in nature, but this consideration is always in balance with the potential rewards.

MGA will continue to prioritise EL5433 (Bailieston) into the new year as this tenement is reaching maturity. Staff will be transitioning into exploration within the Creswick area which will include follow-up work on the recently drilled EL006184. Exploration opportunities are also available on the companies owned land also within EL006184.

REVIEW OF ANNOUNCEMENT BY QUALIFIED PERSON

This announcement has been reviewed by Adam Jones, a director of ECR Minerals plc. Adam Jones is a professional geologist and is a Member of the Australian Institute of Geoscientists (MAIG). He is a qualified person as that term is defined by the AIM Note for Mining, Oil and Gas Companies.

MARKET ABUSE REGULATIONS (EU) No. 596/2014

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

FOR FURTHER INFORMATION, PLEASE CONTACT:

 

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

info@ecrminerals.com

Website: www.ecrminerals.com
WH Ireland Ltd Tel: +44 (0) 161 832 2174
Nominated Adviser
SI Capital Ltd Tel: +44 (0) 1483 413500
Broker
Nick Emerson
Novum Securities Limited  Tel: +44 (0) 20 7399 9425
Broker

Jon Belliss

Blytheweigh Tel: +44 (0) 207 138 3204
Public Relations
Tim Blythe

 

 

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 including one licence application lodged in eastern Victoria. (Tambo gold project). MGA is currently exploring at both the Bailieston (EL5433) and Creswick (EL6148) projects and has an experienced exploration team with significant local knowledge in the Victoria Goldfields and wider region.

 

https://mercatorgold.com.au/

 

ECR also owns 100% of an Australian subsidiary LUX Exploration Pty Ltd (“LUX”) which has three licence applications covering 900 km2 covering a relatively unexplored area in Queensland, Australia.

 

https://luxexploration.com/

 

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

ECR holds a 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, which has a 43-101 compliant resource. ECR also holds a royalty on the SLM gold project in La Rioja Province, Argentina and can potentially receive up to US$2.7 million in aggregate across all licences.

ECR Minerals #ECR – Initial Results From The First Ever Drilling Campaign at Cherry Tree (HR4) Identify Anticlinal Hinge Anomaly

ECR Minerals plc (LON: ECR), the gold exploration and development company focussed on gold exploration in Australia, is pleased to announce initial results from its first drilling campaign at Cherry Tree (“Historic reserve number 4”, “HR4”, “Cherry Tree”) at the Bailieston Project in central Victoria, Australia.

ECR Minerals plc has 100% ownership of Bailieston Project which is operated under its Australian owned subsidiary Mercator Gold Australia Pty Ltd (“MGA”).

Craig Brown, Chief Executive Officer of ECR Minerals plc, commented:

“Following the purchase of our second drilling rig, ECR’s strong funding position and growing local infrastructure ensures the Company can continue to maintain a series of aggressive drilling campaigns across the Victoria Goldfields. We have also made a small bit of history; ECR’s Australian subsidiary MGA completed the first ever diamond drillhole at Cherry Tree (HR4) and I am delighted to report a highly significant early result there from hole BCTDD003, both in terms of the geological setting and the gold mineralisation identified.”

“As the data continues to arrive, our senior geologists are working hard to ascertain structural geological interpretations. It is widely accepted that culminations in folded strata cut by shears and faults are favoured locations for deposition of thrust-reef style lode gold deposits, and with the cross-striking faults at this anticline filled with quartz-gold-bearing fluids in Holes BCTDD001, BCTDD002 and BCTDD003, there is encouraging early evidence. We are keen to see what the next raft of data will reveal so we can determine our next exploration steps.”

HIGHLIGHTS:

  • Hole BCTDD001, the first ever diamond drilling work undertaken at HR4 has delineated an anticlinal hinge striking through the centre of the goldfield.
  • Holes BCTDD002 and BCTDD003 were drilled to define cross striking faults. Drilling continues using orientated diamond drill-core for structural geological interpretation
  • Hole BCTDD003 shows broad zones of low-grade gold mineralisation, often associated with anomalously high Arsenic (pXRF readings). The best intercept includes 0.5m @ 11.02 g/t Au from 98.85m depth.

PROGRESS AT CHERRY TREE

Hole BCTDD001, the first ever diamond drillhole completed at HR4 has delineated an anticlinal hinge striking through the centre of the goldfield. This anticline forms the geological backbone of mineralisation at Cherry Tree where cross-striking faults to this anticline have filled with quartz-gold-bearing fluids. Holes BCTDD002 and BCTDD003 were drilled to define such cross striking faults.

MGA continues to drill orientated diamond core to gain structural geological information, and recently drilled holes BCTDD004 and BCTDD005 were designed to test the interpreted position of multiple cross-striking faults. Geological logging of BCTDD004 and BCTDD005 is currently in progress.

Hole BCTDD003 shows broad zones of low-grade mineralisation, often associated with high Arsenic (pXRF readings). The best intercept includes 0.5m @ 11.02 g/t Au from 98.85m depth.

DETAILS OF ALL INTERCEPTS CONTAINING REPORTABLE LEVELS OF GOLD GREATER THAN 0.1 G/T – HOLES BCTDD001-003

BCTDD001
From

(m)

To

(m)

Grade Au g/t Interval

(m)

BCTDD001 No significant intercepts 0.1 g/t Au
Results greater than 0.1 g/t Au
From

(m)

To

(m)

Grade Au g/t Interval

(m)

BCTDD002 65.6 66.1 1.08 0.5 Associated with high Arsenic pXRF
BCTDD002 87 88 1.14 1 Associated with high Arsenic pXRF
BCTDD002
Other broad mineralised zones results noted
From

(m)

To

(m)

Grade Au g/t Interval

(m)

BCTDD002 68.3 69.3 0.11 1 Broad LG zone associated with
BCTDD002 69.3 70.3 0.22 1 higher arsenic. 4m @ 0.19 g/t Au
BCTDD002 70.3 71.3 0.2 1
BCTDD002 71.3 72.3 0.24 1
BCTDD003
Results greater than 0.1 g/t Au
From

(m)

To

(m)

Grade Au g/t Interval

(m)

BCTDD003 74.9 75.5 1.11 0.6 0.6m @ 1.11 g/t Au
BCTDD003 79.7 80 1.01 0.3 0.3m @ 1.01 g/t Au
BCTDD003 98.85 99.35 11.02 0.5 0.5m @ 11.02 g/t Au

 

REVIEW OF ANNOUNCEMENT BY QUALIFIED PERSON

This announcement has been reviewed by Adam Jones, a director of ECR Minerals plc. Adam Jones is a professional geologist and is a Member of the Australian Institute of Geoscientists (MAIG). He is a qualified person as that term is defined by the AIM Note for Mining, Oil and Gas Companies.

MARKET ABUSE REGULATIONS (EU) No. 596/2014

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

OR 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
SI Capital Ltd Tel: +44 (0)1483 413500
Broker

Nick Emerson

 

Novum Securities Limited  

Broker

Jon Belliss

                                            Tel: +44 (0)20 7399 9425

 

Brand Communications

Public Relations                                                                 Tel: +44 (0) 7976 431608

Alan Green

 

NOTES AND FULL INTERCEPT SUMMARY

 

BCTDD001
From

(m)

To

(m)

Grade Au g/t Interval

(m)

BCTDD001 No significant intercepts 0.1 g/t Au
Results greater than 0.1 g/t Au
From

(m)

To

(m)

Grade Au g/t Interval

(m)

BCTDD002 65.6 66.1 1.08 0.5 Associated with high Arsenic pXRF
BCTDD002 87 88 1.14 1 Associated with high Arsenic pXRF
BCTDD002
Other broad mineralised zones results noted
From

(m)

To

(m)

Grade Au g/t Interval

(m)

BCTDD002 68.3 69.3 0.11 1 Broad LG zone associated with
BCTDD002 69.3 70.3 0.22 1 higher arsenic. 4m @ 0.19 g/t Au
BCTDD002 70.3 71.3 0.2 1
BCTDD002 71.3 72.3 0.24 1
BCTDD003
Results greater than 0.1 g/t Au
From

(m)

To

(m)

Grade Au g/t Interval

(m)

BCTDD003 74.9 75.5 1.11 0.6 0.6m @ 1.11 g/t Au
BCTDD003 79.7 80 1.01 0.3 0.3m @ 1.01 g/t Au
BCTDD003 98.85 99.35 11.02 0.5 0.5m @ 11.02 g/t Au
Other broad mineralised zones results noted
From

(m)

To

(m)

Grade Au g/t Interval

(m)

BCTDD003 28 29 0.24 1 1.3m @ 0.24 g/t Au
BCTDD003 29 29.3 0.23 0.3
BCTDD003 31 32 0.22 1 LG zone 20.3m @ 0.35 g/t
BCTDD003 32 32.7 0.23 0.7
BCTDD003 32.7 33.2 0.9 0.5
BCTDD003 33.2 34.2 0.94 1
BCTDD003 34.2 35.1 0.16 0.9
BCTDD003 35.1 36.1 0.1 1
BCTDD003 36.1 36.5 0.48 0.4
BCTDD003 36.5 37.5 0.53 1
BCTDD003 37.5 38.5 0.34 1
BCTDD003 38.5 39 0.36 0.5
BCTDD003 39 40 0.6 1
BCTDD003 40 41 0.55 1
BCTDD003 41 42 1.13 1
BCTDD003 42 42.5 0.17 0.5
BCTDD003 42.5 43.5 0.14 1
BCTDD003 43.6 44.5 0.13 0.9
BCTDD003 44.5 45.1 0.29 0.6
BCTDD003 45.1 46.1 0.11 1
BCTDD003 46.1 47.1 0.21 1
BCTDD003 47.1 48.1 0.14 1
BCTDD003 48.1 49.1 0.16 1
BCTDD003 49.1 50.1 0.21 1
BCTDD003 50.1 51.4 0.11 1.3
BCTDD003 54.1 55.1 0.37 1 LG zone 17m @ 0.21 g/t Au
BCTDD003 55.1 56.1 0.23 1
BCTDD003 56.1 57.1 0.1 1
BCTDD003 57.1 58.1 0.1 1
BCTDD003 58.6 59.6 0.28 1
BCTDD003 59.6 59.9 0.48 0.3
BCTDD003 59.9 60.4 0.5 0.5
BCTDD003 60.4 60.9 0.16 0.5
BCTDD003 60.9 61.4 0.41 0.5
BCTDD003 61.4 62 0.74 0.6
BCTDD003 62 62.5 0.14 0.5
BCTDD003 62.5 63.2 0.33 0.7
BCTDD003 63.2 63.8 0.15 0.6
BCTDD003 63.8 64.5 0.13 0.7
BCTDD003 64.5 65.3 0.1 0.8
BCTDD003 65.3 66.1 0.12 0.8
BCTDD003 66.1 66.7 0.13 0.6
BCTDD003 66.7 67.4 0.13 0.7
BCTDD003 67.4 68.4 0.15 1
BCTDD003 68.4 69 0.16 0.6
BCTDD003 69 70 0.1 1
BCTDD003 70 70.6 0.11 0.6
BCTDD003 70.6 71.6 0.15 1
BCTDD003 89.6 89.8 0.82 0.2 11m @ 1.14 g/t Au
BCTDD003 89.8 90.05 1.4 0.25 (incl 0.5m @ 11.02 g/t Au from 98.85m)
BCTDD003 90.05 90.9 0.54 0.85
BCTDD003 90.9 91.9 0.31 1
BCTDD003 91.9 92.4 1.17 0.5
BCTDD003 92.4 93.4 0.1 1
BCTDD003 93.4 94.4 0.1 1
BCTDD003 94.4 94.9 1.65 0.5
BCTDD003 94.9 95.4 0.48 0.5
BCTDD003 95.4 96.4 0.34 1
BCTDD003 96.4 96.9 0.26 0.5
BCTDD003 96.9 97.8 0.15 0.9
BCTDD003 97.8 98.4 0.1 0.6
BCTDD003 98.4 98.85 0.12 0.45
BCTDD003 98.85 99.35 11.02 0.5
BCTDD003 99.35 100 0.27 0.65
BCTDD003 100 100.6 0.15 0.6

ABOUT ECR MINERALS PLC

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

ECR also owns 100% of an Australian subsidiary LUX Exploration Pty Ltd (“LUX”) which has three licence applications covering 900 km2 covering a relatively unexplored area in Queensland, Australia. https://luxexploration.com

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

ECR 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, which has a 43-101 compliant resource. ECR also holds a royalty on the SLM gold project in La Rioja Province, Argentina and can potentially receive up to US$2.7 million in aggregate across all licences.

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

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

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

Craig Brown, Chief Executive Officer, commented:

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

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

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

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

COMMENCEMENT OF DRILLING AT CRESWICK GOLD PROJECT

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

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

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

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

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

PROGRESS AT BAILIESTON GOLD PROJECT

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

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

SOIL SAMPLING

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

REVIEW OF ANNOUNCEMENT BY QUALIFIED PERSON

This announcement has been reviewed by Adam Jones, a director of ECR Minerals plc.  Adam Jones is a professional geologist and is a Member of the Australian Institute of Geoscientists (MAIG).  He is a qualified person as that term is defined by the AIM Note for Mining, Oil and Gas Companies.

MARKET ABUSE REGULATIONS (EU) No. 596/2014

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

FOR FURTHER INFORMATION, PLEASE CONTACT:

 

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

info@ecrminerals.com

Website: www.ecrminerals.com
WH Ireland Ltd Tel: +44 (0)161 832 2174
Nominated Adviser
 

Novum Securities Limited

Broker

Jon Belliss

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

Nick Emerson

 

ABOUT ECR MINERALS PLC

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

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

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

ECR Minerals #ECR CEO Interview – Alan Green talks to Craig Brown

Brand Comms CEO Alan Green talks to ECR Minerals #ECR CEO Craig Brown about the company’s flagship gold exploration projects in the heart of Australia’s Victoria Goldfields.

Craig talks about the recent placing to raise a further £2m with Novum Securities at 2.2p, and elaborates on the rationale behind it, before discussing the initial drilling results at the Bailieston Historic Reserve 3 prospect, that led to a fall in the share price despite identifying gold and gold mineralisation.

We look at slides from the current company presentation, and examine the scale of the operations and historic gold grades from the other Bailieston prospects including Blue Moon, Black Cat, HR4 (Cherry Tree, Cherry Tree South) and Yellow & Red Moon.

We move to Creswick and discuss the Dimocks Main Shale geological feature, the historical (2019) grades, license applications and JV implications and the upcoming drilling campaign. Craig then updates on the Tambo Project, and the connection with ECR’s Head Geologist Dr Rodney Boucher before we discuss the Bendigo HQ operation.

Alan and Craig then summarise by looking at the current company valuation vs. assets and work underway.

ECR Minerals #ECR – High-Grade Drilling Results at Bailieston Gold Project, Victoria Goldfields, Australia

ECR Minerals plc (LON: ECR), the gold exploration and development company, is pleased to announce high-grade drilling results from the Bailieston gold project in the Victoria Goldfields, Australia. The Bailieston project is 100% owned by ECR’s wholly owned Australian subsidiary Mercator Gold Australia (“MGA”).

Craig Brown, Chief Executive Officer of ECR Minerals plc, commented: “These are the first results generated by our new drilling rig, and to our knowledge they are also the first diamond drilling results ever obtained from the HR3 area. The extra geological insight afforded by diamond drilling will be of great use in vectoring further work, and this is an advantage which previous explorers have not had.

As is to be expected with early-stage exploration drilling, not all holes reported today have intersected significant gold mineralisation, but we are very encouraged by the fact that BH3DD001 returned two high-grade intercepts, including one of 0.5 metres at 19 g/t gold, and all holes have provided data which will feed into our evolving geological model for the area. Drilling is continuing and we look forward to reporting the next round of results.

We remain as excited as ever about the potential of the Bailieston gold project, which is located around 30 kilometres from the Fosterville gold mine owned by Kirkland Lake Gold and which includes the Blue Moon gold discovery confirmed by high-grade results from previous drilling by ECR.”

HIGHLIGHTS:

  • Five diamond drillholes across the Historic Reserve #3 (HR3) area covering the Byron and Maori reef lines have been completed for a total of 1082m. Drilling at Byron shows west dipping sediments whereas drilling at Maori intersected all east (and south-east) dipping beds, indicating the possibility of anticline-related gold mineralisation between the two reefs.
  • Drilling of BH3DD006 is currently in progress to test a hypothesised anticline that may exist in the vicinity of the Dan Genders-Scoulers line of workings. Historic shallow gold workings may be small reefs linking and coalescing to a much larger fault related anticline system at depth.
  • Drilling to date has been on the periphery of a central mineralised system (Byron and Maori Reef lines). Drilling has been through mostly shales, however sandy bedding, which is best for brittle vein development is expected to be more likely in the central part of the HR3 goldfield.
  • Drillhole BH3DD001 into the Byron Reef returned a high-grade intersection of 0.5m @ 19 g/t Au from 110.9m downhole. Furthermore, a potentially new mineralised system was intersected at 157m (1m @ 4.25 g/t Au). Rubbly quartz from this same intersection assayed 21.1 g/t Au.
  • Drilling of BH3DD005 into the Maori Reef shows an increase in sandy bedding and sulphide development compared to the Byron Mine area. Final assay results for this hole are pending.
  • Geochemical soil sampling has been completed over half of the HR3 goldfield. Some 720 samples have been taken with 229 samples currently being analysed for key gold pathfinder elements, and these results will assist with drill targeting.

SUMMARY OF DRILLING TO DATE

(fig. 1) – Plan showing locations of 2021 drilling, historical gold workings and reef lines.

https://www.ecrminerals.com/images/0421fig1.jpg

BYRON REEF

908m of the 1082m total drilling to date has been drilled into the Byron Reef surrounding the historic Byron Mine. Production records show the Byron Mine to have produced a total of 8698 tonnes for 4416 oz (average 15.5 g/t Au), indicating it was the biggest producer within the HR3 goldfield. On this basis and considering the relative ease of drilling access at Byron, holes BH3DD001 to BH3DD004 were drilled into this reef.

BH3DD001

This hole was designed to test the down-dip mineralisation underneath the historic Byron Mine and understand the structural context of the orebody. The target (Byron Main Reef) intersected a milky, massive-vuggy quartz reef with laminated margins, 5.3m in apparent thickness. A visible speck of gold was seen when sampling the core. Results show the laminated hanging-wall portion of this reef contains the gold with assay returning (0.5m @ 19.0 g/t Au) from 110.9m. The massive-vuggy portion of the reef did not return gold. Additionally, a newly discovered potential mineralised position occurs in thin, overturned sands containing perpendicular veins that returned (1m @ 4.25 g/t Au) from 157m. Furthermore, cave-in (rubbly quartz) resulting from a drill bit change within these veins at the same depth of 157m returned 21.1 g/t Au. Drilling continued into the footwall of the reef to end of hole at 296.6m depth. The entire hole was drilled down the western limb of a large anticline, likely to exist at an unknown distance to the east. A parallel reef system known as ‘Scoulers Reef’ may be situated on such an anticline.

BH3DD002

BH3DD002 was drilled to test the vertical down-dip extension of the Byron Main Reef intersected in BH3DD001. The reef was drilled through at 144m down hole where the vein had narrowed to 25cm in width. Assay results show no significant intercepts with gold below the detection limit (BDL). There is 40m in vertical difference between the reef intersection in BH3DD001 and BH3DD002. Drilling continued to test the hypothesis that the reef may be bedding-parallel and be dipping back under eastwards, however no additional quartz related mineralisation was intersected. No sulphides were visible and portable XRF (pXRF) readings failed to identify any significant pathfinder elements in the quartz or surrounding wall-rock. This hole ended at 242.5m depth.

(fig. 2) – Geological interpretation and best results are shown.

https://www.ecrminerals.com/images/0421fig2.jpg

BH3DD003

BH3DD003 was designed to test the hypothesised down-plunge shoot extension of the Byron Main Reef to the north of BH3DD001 and BH3DD002. In reference to the deepest known historical workings in the Byron Mine on long-section and the down-dip direction of mined stopes, the productive mineralised portion of the reef, known as a ‘shoot’ possibly plunges to the north (fig. 3). The reef was intersected at 126.3m downhole where flexures in the bedding caused a large body of quartz-sulphide development. This mineralisation continued to 147.5m. Best results were 0.8m @ 1.19 g/t Au from 135.8m depth.

https://www.ecrminerals.com/images/0421fig3.jpg

BH3DD004

BH3DD004 was drilled to test the vertical extent of the large quartz-sulphide dilation intersected in BH3DD003. The conclusion of this drillhole, as with BH3DD002, was that the width of the Byron Reef narrows and has no grade continuity at this depth.

(fig. 4) – Geological interpretation of BH3DD003 and BH3DD004 shown.

https://www.ecrminerals.com/images/0421fig4.jpg

MAORI REEF

BH3DD005

BH3DD005 was designed to test the structural context of the Maori Reef. Bedding is shown to be dipping towards the east and south-east directions. Between 76 and 151 metres the host rocks are more sand dominated and below this zone a 40cm wide laminated quartz vein was intersected. This hole was drilled to a final depth of 174.3 metres. Assays results are pending for this hole.

ANTICLINE HYPOTHESIS

BH3DD006

Drilling to date covers the western and eastern boundaries of the currently known mineralisation within the HR3 goldfield. Geological observations of drilling to date confirms the lithology of the bedding to be more sand dominant in the vicinity of the Maori Reef. Bedding dips towards the west at the Byron Mine and dips east to south-east at the Maori Reef, suggesting a main anticline hinge zone to exist between these two reef lines. It is likely the north-west striking Dan Genders Reef and Scoulers Reef systems may be linked to a potential larger anticline-system at depth. (refer to fig. 1 for reef locations). Similar anticline-related faulting is seen at the nearby old Bailieston open pit (located 2.8km to the north) and characteristic elsewhere in Central Victoria. BH3DD006 is currently being drilled across strike of the Dan Genders Reef to test this hypothesis.

(fig. 5) – Hypothesised Central Anticline Model.

https://www.ecrminerals.com/images/0421fig5.jpg

Table A Details of current drilling and significant intercepts to date (April 2021).

HOLE ID

EASTING (GDA

Zone 55)

NORTHING (GDA

Zone 55)

DIP

AZIMUTH (True North)

TOTAL DEPTH (metres)

SIGNIFICANT INTERCEPTS

BH3DD001

326313

5931394

-60

060

296.6

0.5m @ 19.0 g/t Au from 110.9m

1m @ 4.25 g/t Au from 157m*

*rubbly quartz from this zone re-assayed 21.1 g/t Au

BH3DD002

326313

5931394

-70

060

242.5

No significant intercepts (below detection limit)

BH3DD003

326313

5931394

-60

023

165.6

0.8m @ 1.19 g/t Au from 135.8m

BH3DD004

326313

5931394

-67

023

203

No significant intercepts

All samples were assayed by Gekko Systems Pty Ltd in Ballarat, Australia.

Review of Announcement by Qualified Persons

The Exploration Results in this report have been compiled by Adam Jones and Dr Rodney Boucher.

Adam Jones is a Member of the Australian Institute of Geoscientists (MAIG). Adam Jones has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. He consents to the inclusion in this report of these matters based on the information in the form and context in which it appears.

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 Regulation (EU) No. 596/2014 (MAR) (as in force in the United Kingdom pursuant to the European Union (Withdrawal) Act 2018). 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

Joint Broker

Nick Emerson

Novum Securities Limited

Tel: +44 (0) 20 7399 9400

Joint Broker

Jon Belliss

ABOUT ECR MINERALS PLC
ECR Minerals 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, and two license applications lodged in eastern Victoria for the Tambo Gold project. ECR is currently drilling high priority targets on the Bailieston gold project using the Company’s own diamond drill rig, backed by a support network at the company’s central Victoria HQ at Bendigo. ECR has an experienced exploration team with significant local knowledge in the Victoria Goldfields and wider region.

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

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

ECR Minerals #ECR – Placing of shares to raise £2m, acceleration & expansion of drilling campaign

ECR Minerals plc (LON: ECR), the gold exploration and development company focussed on Australia, is pleased to announce the placing of 90,909,091 new ordinary shares of 0.001p at a Placing price of 2.2p per share to raise gross proceeds of £2,000,000.

The net proceeds of the Placing, which is conditional on admission of the Placing Shares to trading on AIM, will be used to ramp-up drilling and exploration activities on ECR’s 100%-owned gold exploration projects in Victoria, Australia and for working capital purposes. The Placing was arranged by the Company’s joint-broker Novum Securities.

Drilling with the Company’s own diamond drill rig is continuing in the HR3 area of the Bailieston gold project in Victoria. Five drill holes have been completed, and a sixth hole is in progress. ECR expects to be in a position to report assay results from initial holes later this month. Visible gold has been noted in the hole first drilled at the Byron prospect (see announcement dated 12 February 2021).

Placees will receive one warrant for every two Placing Shares and accordingly, subject to the Placing completing, 45,454,545 Warrants will be issued by the Company. Each Warrant permits the holder to subscribe for one new ordinary share in ECR Minerals plc at a price of 3.75p for a period of 24 months from the date of Admission. If all the Warrants were to be exercised, this would generate proceeds of approximately £1.7 million for the Company, although there can be no guarantee that this would occur.

Craig Brown, Chief Executive Officer, commented:

“We are delighted by the tremendous show of support for ECR from investors in the placing announced today. We believe this reflects both the high degree of market interest in Victorian gold projects generally, and ECR’s success in assembling a highly prospective portfolio of projects and establishing an in-house drilling capability which is being put to full use.

The net proceeds of the placing announced today will take the Company’s cash position to in excess of £5.8 million and, in addition to funding a modest expansion of our operational capabilities at our Bendigo HQ in Central Victoria, will enable ECR to drive hard towards its twin targets of establishing a maiden JORC compliant gold resource at the Bailieston project and completing further drilling at the Creswick project. The funds raised will also provide ECR with the financial flexibility to consider potential new opportunities as they arise. We are now fully funded for these programmes and don’t envisage requiring additional equity financing for quite some time.”

ADMISSION OF NEW SHARES AND TOTAL VOTING RIGHTS

Admission of the Placing Shares to trading on AIM is expected to occur on or around 30 April 2021. Following admission, ECR’s issued ordinary share capital will comprise 985,528,390 ordinary shares of 0.001p. This number will represent the total voting rights in the Company, and, following admission of the Placing Shares, may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules. The new shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.

MARKET ABUSE REGULATION

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 (MAR) (as in force in the United Kingdom pursuant to the European Union (Withdrawal) Act 2018). Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information is now considered to be in the public domain.

FOR FURTHER INFORMATION, PLEASE CONTACT:

ECR Minerals plc

Tel: +44 (0)20 7929 1010

David Tang, Non-Executive Chairman

Craig Brown, Director & CEO

Email:

info@ecrminerals.com

Website: www.ecrminerals.com

WH Ireland Ltd

Tel: +44 (0)207 220 1666

Nominated Adviser

Katy Mitchell and James Sinclair-Ford

Novum Securities Limited

Broker

Jon Belliss

Tel: +44 (0)20 7399 9425

SI Capital Ltd

Tel: +44 (0)1483 413500

Broker

Nick Emerson

ABOUT ECR MINERALS PLC

ECR 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. ECR is currently drilling high priority targets on the Bailieston gold project using the Company’s own diamond drill rig. ECR has an experienced exploration team with significant local knowledge in the Victoria Goldfields.

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 – Annual Financial Report & Audited Financial Statements for Y/E 30 September 2020

AUDITED FINANCIAL STATEMENTS FOR YEAR ENDED 30 SEPTEMBER 2020

ECR Minerals plc is pleased to announce its audited financial statements for the year ended 30 September 2020. The information presented below has been extracted from the Company’s Annual Report and Accounts 2020.

Copies of the Annual Report and Accounts 2020 with the notice of annual general meeting will be posted to shareholders tomorrow and will be available on the Company’s website www.ecrminerals.com. The Company intends to holds its annual general meeting at 9am on 19 April 2021 at Chester House, 81-83 Fulham High Street, Fulham Green, London SW6 3JA. As a result of the current crisis of COVID-19 and the UK Government’s restrictions on public gatherings, the holding of the Company’s AGM will be facilitated by the Company to ensure a quorum is present. Shareholders should therefore not attend the meeting in person and instead are strongly encouraged to submit their proxy vote, appointing the Chairman of the meeting as their proxy to ensure that their votes are registered. This can be done by completing their form of proxy which must be received before the proxy voting deadline of 9.00 a.m. on 15 April 2021.

Market Abuse Regulations (EU) No. 596/2014

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

FOR FURTHER INFORMATION, PLEASE CONTACT:

ECR Minerals plc

Tel: +44 (0)20 7929 1010

David Tang, Non-Executive Chairman

Craig Brown, Director & CEO

Email:

info@ecrminerals.com

Website: www.ecrminerals.com

WH Ireland Ltd

Tel: +44 (0)207 220 1666

Nominated Adviser

Katy Mitchell/James Sinclair-Ford

SI Capital Ltd

Tel: +44 (0)1483 413500

Joint Broker

Nick Emerson

Novum Securities Limited

Tel: +44 (0)2073 999400

Joint Broker

Jon Belliss

ABOUT ECR MINERALS PLC

ECR Minerals 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, and two license applications lodged in eastern Victoria for the Tambo Gold project. ECR is currently drilling high priority targets on the Bailieston gold project using the Company’s own diamond drill rig, backed by a support network at the company’s central Victoria HQ at Bendigo. ECR has an experienced exploration team with significant local knowledge in the Victoria Goldfields and wider region.

Following the sale of the Avoca, Moormbool and Timor gold projects in Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX), 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.

FORWARD LOOKING STATEMENTS

This announcement may include forward looking statements. Such statements may be subject to numerous known and unknown risks, uncertainties and other factors that could cause actual results or events to differ materially from current expectations. There can be no assurance that such statements will prove to be accurate and therefore actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements. Any forward-looking statements contained herein speak only as of the date hereof (unless stated otherwise) and, except as may be required by applicable laws or regulations (including the AIM Rules for Companies), the Company disclaims any obligation to update or modify such forward-looking statements because of new information, future events or for any other reason.

The Directors of ECR Minerals plc (the “Directors” or the “Board”) present their report and audited financial statements for the year ended 30 September 2020 for ECR Minerals plc (“ECR”, the “Company” or the “Parent Company”) and on a consolidated basis (the “Group”)

Chairman’s Statement

Despite the COVID-19 pandemic, the financial year ended 30 September 2020 and the period since the year-end have been a time of much progress for ECR. The centre of the Group’s operations remains the state of Victoria in Australia, where ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”) is concentrating on two highly promising gold exploration projects: Bailieston and Creswick.

As I write, MGA is drilling at the Baillieston gold project using its newly purchased diamond drill rig. The focus of initial drilling activity is the Historic Reserve #3 (HR3) area, 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, with Byron the first to be tested.

With the benefit of the Group’s strong cash position, which at the date of this report is approximately £3.955m, the intention is that in-house drilling activity will be sustained for a long period and the Directors believe this programme has the potential to generate transformational results for the Group. We therefore look to the future with great optimism.

MGA disposed of several non-core projects in Victoria during the year but retains exposure to potential upside from those projects by way of contingent payments of up to A$2 million in total. We remain open to the possibility of further transactions in relation to MGA’s assets in Victoria, and we have also taken steps to add to MGA’s Victorian gold project portfolio by applying for two exploration licences in eastern Victoria, which will comprise the Tambo project, and by applying for a licence surrounding the operating Ballarat gold mine.

Finally, I am pleased to welcome Adam Jones as a non-executive director of the Company. Adam, is an experienced gold geologist who is based in Victoria within easy reach of the Bailieston and Creswick gold projects. He already has detailed knowledge of these projects, having assisted MGA as a consultant since 2018, and I am sure as a director of ECR he will make a significant contribution to the success of our activities.

Weili (David) Tang

Chairman

23 March 2021

Chief Executive Officer’s Report

With the gold price having exceeded USD 2,000/oz last year and trading largely in a range between USD 1,700 and USD 1,900 in recent months, these are exciting times for gold explorers such as ECR. We are also fortunate to have experienced no significant operational disruption as a result of the COVID-19 pandemic, which has not affected Australia to the same extent as, for example, the UK.

As in the previous year, the centre of the Group’s operations was Victoria, Australia, with activities concentrated on the Bailieston and Creswick gold projects. Several non-core projects in Victoria were disposed of by ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”), and a number of new exploration licences were applied for in order to rejuvenate MGA’s project portfolio and maintain a pipeline of opportunities for the future.

Interest from a number of third parties in joint venture or earn-in type transactions in relation to either Bailieston or Creswick was explored extensively during the financial year under review, and the Company continues to consider opportunities as they arrive.

Following the year under review, in January 2021, MGA commenced drilling in the Historic Reserve #3 (HR3) area of the Bailieston project, having taken delivery of a new Cortech CSD1300G diamond drill rig in November 2020. Drilling can now continue on a bespoke basis, supported by ECR’s strong cash position.

Exploration at Bailieston and Creswick Projects

Notable outcomes of exploration work during the year ended 30 September 2020 included positive findings of an alteration study on reverse circulation (RC) drill cuttings from the Creswick project, announced in March 2020, and confirmation of high-grade gold mineralisation at Creswick by the completion of ‘full bag’ testing, announced in November 2019.

At Bailieston, work during the year has included field mapping and geochemistry across numerous gold prospects, which has enabled MGA’s geologists to define a number of drill-ready targets. Drilling has now commenced at the Byron prospect in the HR3 area, and after Byron, it is planned that drilling will continue in the same area to test the Maori, Dan Genders, Scoulars and Hard-Up reefs. This drilling will aim to provide for the first time a framework of the geological structures hosting the reefs, which will be used to attempt to target coalescing reef intersections.

From HR3, it is currently planned that the rig will be moved to test the Cherry Tree prospect, or for further drilling at the Blue Moon discovery. Cherry Tree and Blue Moon are also within the Bailieston project. The results of 2019 drilling at Blue Moon by MGA included intersections of 15 metres at 3.81 g/t gold and 11 metres at 2.42 g/t gold (announced on 14 March 2019).

MGA is also keen to follow up on previous drilling results at Creswick, where individual samples returned assays as high as 80.97 g/t gold over one metre (announced on 5 November 2019). Further drill sites at Creswick have already been determined and approval has been received from the relevant government authorities. In addition, after the end of the period under review, in the final quarter of calendar year 2020, MGA completed a soil geochemistry survey of the Jackass Reef prospect at Creswick, the results of which, the Directors believe, will assist drill targeting in that area at the appropriate time.

Overview of Victorian Exploration Licence Portfolio

At the end of the financial year under review, MGA held six granted mineral exploration licences in Victoria (EL5387, EL5433, EL006184, EL006280, EL006278 and EL006913).

In April 2020 MGA entered into an agreement for the sale of exploration licences EL5387 (the Avoca project), EL006278 (the Timor project), plus EL006280 and EL006913 (the Moormbool project), and after the end of the period under review, these licences were formally transferred to Currawong Resources Pty Ltd.

At the time of this report, MGA has a total of eight exploration licence applications pending in Victoria, and holds two granted exploration licences (EL5433 and EL006184), which respectively forms part of the Bailieston and Creswick projects. These are augmented, in the case of Bailieston, by exploration licence applications EL006911, EL006912 and EL007296; and in the case of Creswick, exploration licence applications EL006713 and EL006907.

In November 2020, MGA lodged exploration licence application EL007537 for an area which surrounds mining licences MIN5396 and MIN4847. These mining licences, which are not held by MGA, contain the operating Ballarat gold mine. The area of EL007537 includes the southern extension of the Dimocks Main Shale, which is the principal target of exploration at MGA’s Creswick gold project located a short distance to the north, the northern extension of the Ballarat East line and the depth extensions of the Ballarat West line. EL007537 is a competitive bid with three other applicants.

New Gold Project: Tambo

In September 2020, MGA lodged two new exploration licence applications in eastern Victoria, EL007484 and EL007486, to comprise the Tambo gold project, which covers a sizeable area of prospective geology near historic goldfields and has received little contemporary exploration.

The applications cover portions of the historic Swifts Creek/Omeo and Haunted Stream goldfields. These goldfields have recorded historical gold production of 205,000 and 25,000 oz respectively, according to figures published by the Geological Survey of Victoria. MGA considers the application areas to be prospective for orogenic reef gold and additionally for intrusion-related gold and base metal systems.

Sale of Exploration Licences to Currawong Resources Pty Ltd

In April 2020 MGA entered into an agreement for the sale of exploration licences EL5387, EL006280, EL006913 and EL006278 in Victoria (the “Licences”) to Currawong Resources Pty Ltd, a wholly owned subsidiary of Fosterville South Exploration Ltd (“Fosterville South”), which listed on the TSX Venture Exchange in April 2020, for the following consideration:

1. A$500,000 in cash, which was paid to MGA immediately;

2. A further payment of A$1 for every ounce of gold or gold equivalent of measured resource, indicated resource or inferred resource estimated within the area of one or more of the Licences in any combination or aggregation of the foregoing, up to a maximum of A$1,000,000 in aggregate;

3. A further payment of A$1 for every ounce of gold or gold equivalent produced from within the area of one or more of the Licences, up to a maximum of A$1,000,000 in aggregate.

All of the Licences had been formally transferred to Currawong by January 2021.

In February 2021, Leviathan Gold Ltd (“Leviathan”) listed on the TSX Venture Exchange. Leviathan is a ‘spin-out’ from Fosterville South, and has acquired rights to EL5387 (the Avoca project) and EL006278 (the Timor project) from Currawong. MGA still has the right to further payments in respect of EL5387 and/or EL006278 based on resource estimation or production, as set out above.

Disposal of Ochre Mining SA and SLM Gold Project

In February 2020, the Company sold its wholly owned Argentine subsidiary Ochre Mining SA, which holds the SLM gold project in La Rioja, Argentina. The sale allows ECR to focus on its core gold exploration activities in Australia. The purchaser, Hanaq Argentina SA (“Hanaq”), is a Chinese-owned company engaged in lithium, base and precious metals exploration in Northwest Argentina including Salta, Jujuy and La Rioja, with a highly experienced management team.

ECR retains an NSR royalty of up to 2% to a maximum of USD 2.7 million in respect of future production from the SLM gold project. The Directors believe that Hanaq has the operational capabilities and access to Chinese investment capital necessary to put the SLM project into production, subject to the usual prerequisites such as further exploration and feasibility studies being successfully completed (if deemed necessary by Hanaq) and to the necessary permits for production being obtained.

The founder and CEO of Hanaq Group, of which Hanaq Argentina SA is part, is Mr Xiaohuan (Juan) Tang, who has a substantive track record in Latin America, including responsibility for the successful permitting of the Pampa de Pongo iron ore project in Peru in his former capacity as General Manager of Jinzhao Mining Peru. Pampa de Pongo is one of the largest iron ore deposits in Latin America. Mr Tang has degrees from Tsinghua University in China, and Imperial College, Cambridge University and Oxford University in the UK.

Danglay Gold Project, Philippines

ECR is entitled to a 25% interest in the Danglay gold project in the Philippines, which is held by a Philippine corporation called Cordillera Tiger Gold Resources, Inc. (“Cordillera Tiger”) under an Exploration Permit, the renewal of which is pending. The issuance of a 25% shareholding in Cordillera Tiger to the Company is expected in due course, but has been delayed since 2016, largely due to a court case filed by an individual who is a minority shareholder and former director of Cordillera Tiger. The court issued a decision in the case in June 2020 which is discussed in the Strategic Report.

The Directors believe the political climate for the minerals industry in the Philippines is on course to improve in future, and consider that the Danglay gold project, which is located in a prolific gold and copper mining district in the north of the country, has potential for further exploration to build upon the existing inferred mineral resource estimate of 63,500 ounces of gold at 1.55 g/t gold. This resource was reported by ECR in 2015 to the Canadian NI43-101 standard, based on exploration carried out at Danglay by ECR during 2014 and 2015. In addition to the resource, an NI43-101 target for further exploration (conceptual potential quantity and grade of mineralisation expressed as ranges) of 95,000 to 170,000 ounces of gold at 5 to 7.5 g/t was reported. Further information regarding Cordillera Tiger and the Danglay gold project is provided in the Strategic Report.

FINANCIAL RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2020

For the year to 30 September 2020 the Group recorded a total comprehensive loss of £2,595,002, compared with £762,586 for the year to 30 September 2019.

The largest contributor to the total comprehensive loss was the loss on disposal of Ochre Mining SA and the SLM gold project which amounted to £1,986,469. Excluding the loss on disposal of Ochre Mining SA and the SLM gold project the loss for the year to 30 September 2020 was less than the total comprehensive loss for the year to 30 September 2019. Although the disposal resulted in a loss the Group has the potential to recover more than this loss through future royalty payments from Ochre Mining SA.

The Group’s net assets at 30 September 2020 were £3,563,819, in comparison with £3,640,604 at 30 September 2019. The decrease is due to the disposal of Ochre Mining and SLM gold project during the year. The increase is due to increased exploration assets as a result of the capitalisation of exploration expenditure during the year, and an increase in cash as a consequence of the sale of projects by MGA to Currawong Resources Pty Ltd and the exercise of share warrants issued by the Company in previous years. At the time of writing, the Group cash position is approximately £4m.

Craig Brown

Chief Executive Officer

23 March 2021

Independent Auditor’s Report

For the year ended 30 September 2020

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

Opinion

We have audited the financial statements of ECR Minerals Plc (the ‘parent company’) and its subsidiaries (the ‘group’) for the year ended 30 September 2020 which comprise the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated and Parent Company Statements of Financial Position, the Consolidated and Parent Company Statements of Changes in Equity, the Consolidated and Parent Company Statements of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is international accounting standards in conformity with the Companies Act 2006 and as regards the parent company financial statements, as applied in accordance with the provisions of the Companies Act 2006.

In our opinion:

  • the financial statements give a true and fair view of the state of the group’s and of the parent company’s affairs as at 30 September 2020 and of the group’s and parent company’s loss for the year then ended;
  • the group financial statements have been properly prepared in accordance with international accounting standards in conformity with the Companies Act 2006;
  • the parent company financial statements have been properly prepared in accordance with international accounting standards in conformity with the Companies Act 2006 and as applied in accordance with the provisions of the Companies Act 2006; and
  • the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

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

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

Our application of materiality

The scope of our audit was influenced by our application of materiality. The quantitative and qualitative thresholds for materiality determine the scope of our audit and the nature, timing and extent of our audit procedures. Group materiality was £55,000 (2019: £60,000) based upon 2% of gross assets. We consider gross assets to be the main driver of the business as the group is still in the exploration stage and therefore no revenues are currently being generated, and that current and potential investors will be most interested in the recoverability of the exploration and evaluation assets. The parent company materiality was £45,000 (2019: £40,000) based upon an average of 2% of gross assets and 5% of adjusted loss before tax.

Whilst materiality for the financial statements as a whole was set at £55,000, each significant component of the group was audited to an overall materiality ranging between £40,000 – £45,000 with performance materiality set at 70% for all entities.

We agreed with the audit committee that we would report to the committee all audit differences identified during the course of our audit in excess of £2,750 (2019: £3,000) as well as differences below these thresholds that, in our view, warranted reporting on qualitative grounds.

An overview of the scope of our audit

In designing our audit, we determined materiality and assessed the risk of material misstatement in the financial statements. In particular, we looked at areas requiring the directors to make subjective judgements, for example in respect of significant accounting estimates including the carrying value of intangible assets and the consideration of future events that are inherently uncertain. We also addressed the risk of management override of internal controls, including evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

An audit was performed on the financial information of the group’s operating entities which for the year ended 30 September 2020 were located in the United Kingdom and Australia. The Argentine operations which were previously held by the group were disposed of during the year. The audit work on each significant component was performed by us as group auditor based upon materiality or risk profile, or in response to potential risks of material misstatement to the group.

Key audit matters

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

Key Audit Matter

How the scope of our audit responded to the key audit matter

Recoverability of intangible assets – exploration and evaluation assets (refer to note 10)

The group as at 30 September 2020 had ongoing early stage exploration projects in the Philippines and Australia.

There is a risk that the expenditure is not correctly capitalised in accordance with IFRS 6. There is also a risk that the capitalised exploration costs are not recoverable and should be impaired. The carrying value of intangible exploration and evaluation assets as at 30 September 2020, which is tested annually for impairment, is £1,869,184. The impairment assessment requires management judgement and estimation of a range of applicable factors.

Specifically, there is an ongoing dispute over the Danglay Project (Philippines) where ECR believe they have fulfilled the criteria of the Earn-in and JV Agreement such that ECR has earned a 25% interest.

Relevant disclosures in the financial statements are made in Note 2 surrounding critical accounting judgements, and in Note 10 for Intangible assets.

Our work in this area included:

▪ Sample testing of exploration and evaluation expenditure to assess their eligibility for capitalisation under IFRS 6 by corroborating to the original source documentation.

▪ Inspection of the current exploration licences to verify they remained valid and that the group held good title.

▪ Review of correspondence (where applicable) with licensing authorities to ensure compliance and assess the risk of non-renewal. We assessed the sampling results and progress of the projects and whether they indicate the existence of commercially viable projects.

▪ Review and challenge of management’s documented consideration of impairment by individual project.

▪ Establishing the intention of the Board to undertake future exploration work.

▪ Review of any internal / external resource estimates produced during the year.

▪ Discussion of status of all projects with management.

As disclosed in Note 10 to the financial statements, the group has not yet formally acquired title to its 25% interest in Cordillera Tiger Gold Resources, Inc. (“Cordillera”) which is the holder of the exploration permit for the Danglay gold project in the Philippines. The conditions for the earn-in have been satisfied but the relevant shareholding has yet to be issued, despite the Board of Cordillera authorising the issue. In addition, the exploration permit for the Danglay gold project held by Cordillera expired on 30 September 2015. Cordillera is currently waiting for the Philippine authority to formally grant its renewal application. This indicates the existence of a material uncertainty over the recoverability of the carrying value of the Danglay gold project, which amounted to £1,185,297 as at 30 September 2020.

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

Matters on which we are required to report by exception

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

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

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

Responsibilities of directors

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

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

Auditor’s responsibilities for the audit of the financial statements

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

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

Use of our report

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

David Thompson (Senior Statutory Auditor) 15 Westferry Circus

For and on behalf of PKF Littlejohn LLP Canary Wharf

Statutory Auditor London E14 4HD

23 March 2021

Consolidated Income Statement

For the year ended 30 September 2020

Year ended

Year ended

30 September 2020

30 September 2019

Note

£

£

Proceeds from disposal of licenses

275,701

Less: expenditure on licences disposed

(169,509)

Gain on disposal

106,192

Continuing operations

Other administrative expenses

(799,585)

(833,203)

Currency exchange differences

(33,497)

(6,051)

Gain from hyperinflation adjustment

113,310

Total administrative expenses

(833,082)

(725,944)

Operating loss

3

(726,890)

(725,944)

Other financial assets – fair value movement

9

13,683

(8,112)

Aborted transaction option fee

(25,000)

(713,207)

(759,056)

Financial income

7

478

1,846

Other income

8,316

Finance income and costs

8,794

1,846

Loss for the year before taxation

Income tax

5

(704,413)

(757,210)

Loss for the year from continuing operations

(704,413)

(757,210)

Loss on disposal of subsidiary

(1,986,469)

Loss for the year from discontinued operations

(1,986,469)

Loss for the year – all attributable to owners of the parent

(2,690,882)

(757,210)

Earnings per share – basic and diluted

On continuing operations

4

(0.14)p

(0.18)p

On discontinued operations

(0.39)p

The notes set out below are an integral part of these financial statements.

Consolidated Statement of Comprehensive Income

For the year ended 30 September 2020

Year ended

Year ended

30 September 2020

30 September 2019

£

£

Loss for the year

(2,690,882)

(757,210)

Items that may be reclassified subsequently to profit or loss

Gain/(Loss) on exchange translation

95,880

(5,375)

Other comprehensive gain/(loss) for the year

95,880

(5,375)

Total comprehensive loss for the year

(2,595,002)

(762,586)

Attributable to: –

Loss on continuing operations

(608,533)

(762,586)

Loss on discontinued operations

(1,986,469)

The notes set out below are an integral part of these financial statements.

Consolidated & Company Statement of Financial Position

At 30 September 2020

Group

Company

30 September

30 September

30 September

30 September

Note

2020 £

2019

£

2020 £

2019

£

Assets

Non-current assets

Property, plant and equipment

8

183,539

1,041

2,737

548

Investments in subsidiaries

9

852,728

Intangible assets

10

1,869,184

3,295,996

1,333,282

2,272,553

Other receivables

11

1,029,067

983,864

2,052,723

3,297,037

2,365,086

4,109,694

Current assets

Trade and other receivables

11

108,617

108,654

726,689

616,190

Financial assets at fair value through profit or loss

9

26,870

13,187

26,870

13,187

Cash and cash equivalents

12

1,497,231

268,517

1,207,190

227,508

1,632,718

390,358

1,960,749

856,885

Total assets

3,685,441

3,687,395

4,325,835

4,966,578

Current liabilities

,

Trade and other payables

14

121,622

46,791

93,848

22,990

121,622

46,791

93,848

22,990

Total liabilities

121,622

46,791

93,848

22,990

Net assets

3,563,819

3,640,604

4,231,987

4,943,589

Equity attributable to owners of the parent

Share capital

13

11,286,928

11,284,845

11,286,928

11,284,845

Share premium

13

47,090,048

45,391,202

47,090,048

45,391,202

Exchange reserve

531,453

(394,876)

Other reserves

440,706

742,698

440,706

742,698

Retained losses

(55,785,316)

(53,383,265)

(54,585,695)

(52,475,157)

Total equity

3,563,819

3,640,604

4,231,987

4,943,589

The Company has elected to take the exemption under section 408 of the Companies Act 2006 from presenting the parent company profit and loss account. The loss for the parent company for the year was £2,399,369 (2019: £623,683 loss).

The notes set out below are an integral part of these financial statements. The financial statements were approved and authorised for issue by the Directors on 23 March 2021 and were signed on its behalf by:

Weili (David) Tang Craig Brown

Non–Executive Chairman Director & Chief Executive Officer

Consolidated Statement of Changes in Equity

For the year ended 30 September 2020

Share capital

Share premium

Exchange reserve

Other reserves

Retained reserves

(Note 13)

(Note 13)

Total

£

£

£

£

£

£

Balance at 30 September 2018

11,283,756

44,460,171

(389,501)

1,381,998

(53,084,878)

3,651,546

Loss for the year

(757,120)

(757,120)

Loss on exchange translation

(5,375)

(5,375)

Total comprehensive loss

(5,375)

(757,120)

(762,586)

Shares issued

1,039

737,745

738,784

Share issue costs

(38,040)

(38,040)

Lapsed or expired share-based payments

180,476

(639,300)

458,824

Shares issued in payment of creditors

50

50,850

50,900

Total transactions with owners,

recognised directly in equity

1,089

931,031

(639,300)

458,824

751,644

Balance at 30 September 2019

11,284,845

45,391,202

(394,876)

742,698

(53,383,264)

3,640,604

Loss for the year

(2,690,882)

(2,690,882)

Gain on exchange translation

95,880

95,880

Total comprehensive loss

95,880

(2,690,882)

(2,595,002)

Shares issued

2,067

1,754,986

1,757,053

Share issue costs

(77,000)

(77,000)

Share based payments

13,161

(301,992)

288,831

Recycled through profit or loss on disposal of subsidiary

830,449

830,449

Share issued in payment of creditors

15

7,699

7,714

Total transactions with owners, recognised directly in equity

2,083

1,698,846

830,449

(301,992)

288,831

2,518,216

Balance at 30 September 2020

11,286,928

47,090,048

531,453

440,706

(55,785,316)

3,563,819

The notes set out below are an integral part of these financial statements.

Company Statement of Changes in Equity

For the year ended 30 September 2020

Share capital

Share premium

Other reserves

Retained reserves

(Note 13)

(Note 13)

Total

£

£

£

£

£

Balance at 30 September 2018

11,283,756

44,460,171

1,381,998

(52,310,297)

4,815,628

Loss for the year

(623,682)

(623,682)

Total comprehensive expense

(623,682)

(623,682)

Shares issued

1,039

737,745

738,784

Share issue costs

(38,040)

(38,040)

Lapsed or expired share based payments

180,476

(639,300)

458,824

Shares issued in payment of creditors

50

50,850

50,900

Total transactions with owners, recognised directly in equity

1,089

931,031

(639,300)

458,824

751,644

Balance at 30 September 2019

11,284,845

45,391,202

742,698

(52,475,156)

4,943,589

Loss for the year

(2,399,369)

(2,399,369)

Total comprehensive expense

(2,399,369)

(2,399,369)

Shares issued

2,067

1,754,986

1,757,054

Share issue costs

(77,000)

(77,000)

Share based payment

13,161

(301,992)

288,831

Shares issued in payment of creditors

15

7,699

7,714

Total transactions with owners, recognised directly in equity

2,083

1,698,846

(301,992

) 288,831

1,687,768

Balance at 30 September 2020

11,286,928

47,090,048

440,706

(54,585,695)

4,231,987

The notes set out below are an integral part of these financial statements.

Consolidated & Company Cash Flow Statement

For the year ended 30 September 2020

Group

Company

Year ended 30 September

Year ended 30 September

Year ended 30 September

Year ended 30 September

Note

2020

£

2019

£

2020

£

2019

£

Net cash used in operations

20

(668,377)

(773,318)

(694,408)

(761,915)

Investing activities

Purchase of property, plant & equipment

8

(186,307)

(5,963)

Increase in exploration assets

10

(180,653)

(436,522)

(16,244)

Proceeds from disposal of licenses

275,701

R&D tax credits on exploration

307,818

Loan to subsidiary

(455,370)

Interest income

7

478

1,846

1,268

Net cash generated from / (used in) investing activities

217,037

(434,676)

(5,963)

(460,346)

Financing activities

Proceeds from issue of share capital (net of issue costs)

1,680,054

700,744

1,680,054

700,744

Net cash from financing activities

1,680,054

700,744

1,680,054

700,744

Net change in cash and cash equivalents

1,228,714

(507,250)

979,682

(521,517)

Cash and cash equivalents at beginning of the year

268,517

781,142

227,508

749,025

Effect of changes in foreign exchange rates

(5,375)

Cash and cash equivalents at end of the year

12

1,497,231

268,517

1,207,190

227,508

Non-cash transactions:

1. Settlement of creditors of £7,715 (2019: £89,684) with ordinary shares.

The notes on pages 28 to 44 are an integral part of these financial statements.

Notes to the Financial Statements

For the year ended 30 September 2020

1 General information

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

The Company is a public limited company incorporated and domiciled in England. The registered office of the Company and its principal place of business is Unit 119, Chester House, 81-83 Fulham High Street, Fulham Green, London SW6 3JA. The Company is quoted on the Alternative Investment Market (AIM) of the London Stock Exchange.

2 Accounting policies

Overall considerations

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

Basis of preparation

a) Statement of compliance

The consolidated financial statements have been prepared in accordance with international accounting standards in conformity with the Companies Act 2006. The financial statements are prepared on the historical cost basis or the fair value basis where the fair valuing of relevant assets or liabilities has been applied.

b) (i) New and amended standards, and interpretations issued and effective for the financial year beginning 1 October 2019

There were no new standards, amendments or interpretations effective for the first time for periods beginning on or after 1 October 2019 that had a material effect on the Group or Company financial statements

(ii) New standards, amendments and interpretations in issue but not yet effective

At the date of approval of these financial statements, the following standards and interpretations which have not been applied in these financial statements were in issue but not yet effective (and in some cases had not been adopted by the EU):

  • Amendments to References to Conceptual Framework in IFRS Standards – effective 1 January 2020
  • Definition of Material (Amendments to IAS 1 and IAS 8) – effective 1 January 2020
  • Amendment to IFRS 3 Business Combinations – effective 1 January 2020
  • Amendments to IFRS 9, IAS 39 and IFRS 17: Interest Rate Benchmark Reform – effective 1 January 2020
  • Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16: Interest Rate Benchmark Reform – Phase 2 – effective 1 January 2021*
  • Amendment to IFRS 3 Business Combinations – Reference to the Conceptual Framework – effective 1 January 2022*
  • Amendments to IAS 37: Provisions, Contingent Liabilities and Contingent Assets – effective 1 January 2022*
  • Annual Improvements to IFRS Standards 2018-2020 Cycle – effective 1 January 2022*
  • Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current and Amendments to IAS 1: Classification of Liabilities as Current or Non-current – Deferral of Effective Date – effective 1 January 2023*

*subject to EU endorsement

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

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and one of its subsidiaries made up to 30 September 2020. Subsidiary undertakings acquired during the period are recorded under the acquisition method of accounting and their results consolidated from the date of acquisition, being the date on which the Company obtains control, and continue to be consolidated until the date such control ceases.

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

Going concern

It is the prime responsibility of the Board to ensure the Group and Company remains a going concern. At 15 March 2021, the Group has cash and cash equivalents of £3,954,919 and no borrowings.

The Group’s financial projections and cash flow forecasts covering a period of at least twelve months from the date of approval of these financial statements show that the Group will have sufficient available funds in order to meet its contracted and committed expenditure. Further details are included in Note 21 to the financial statements.

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

Cash and cash equivalents

Cash includes petty cash and cash held in current bank accounts. Cash equivalents include short–term investments that are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value.

Property, plant and equipment

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

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

Office equipment 3 years

Furniture and fittings 5 years

Machinery and equipment 5 years

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

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

Exploration and development costs

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

The recoverability of all exploration and development costs is dependent upon continued good title to relevant assets being held (or, in the case of the Company’s interest in the Danglay gold project, to good title being secured), the discovery of economically recoverable reserves, the ability of the Group to obtain necessary financing to complete the development of reserves and future profitable production or proceeds from the disposition thereof.

Impairment testing

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

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

Provisions

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

Leased assets

Assets and liabilities arising from a lease are initially measured on a present value basis. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the lessee’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset. Lease payments are allocated between principal and finance cost. All other short term leases are regarded as operating leases and the payments made under them are charged to the income statement on a straight-line basis over the lease term.

Taxation

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

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

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

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

Investments in subsidiaries

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

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

Equity

Equity comprises the following:

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

Foreign currency translation

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

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

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

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

Share–based payments

The Company awards share options to certain Company Directors and employees to acquire shares of the Company. Additionally, the Company has in previous years issued warrants to providers of equity finance.

All goods and services received in exchange for the grant of any share–based payment are measured at their fair values. Where employees are rewarded using share–based payments, the fair values of employees’ services are determined indirectly by reference to the fair value of the instrument granted to the employee.

The fair value is appraised at the grant date and excludes the impact of non–market vesting conditions. Fair value is measured by use of the Black Scholes model. The expected life used in the model has been adjusted, based on management’s best estimate, for the effects of non–transferability, exercise restrictions, and behavioural considerations.

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

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

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

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

Financial instruments

Financial assets

The Group’s financial assets comprise equity investments held as financial assets at fair value through profit or loss as required by IFRS 9, and financial assets at amortised cost, being cash and cash equivalents and receivables balances. Financial assets are assigned to the respective categories on initial recognition, based on the Group’s business model for managing financial assets, which determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both.

Financial assets at amortised cost are non–derivative financial assets with fixed or determinable payments that are not quoted in an active market. These assets are initially measured at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment under the expected credit loss model.

The Group’s receivables fall into this category of financial instruments. Discounting is omitted where the effect of discounting is immaterial.

Equity investments are held as financial assets at fair value through profit or loss. These assets are initially recognised at fair value and subsequently carried in the financial statements at fair value, with net changes recognised in profit or loss.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e., removed from the Group’s consolidated statement of financial position) when:

• The rights to receive cash flows from the asset have expired

Or

• The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Impairment of financial assets

The Group recognises an allowance for ECLs for all debt instruments not held at fair value through profit or loss.

The amount of the expected credit loss is measured as the difference between all contractual cash flows that are due in accordance with the contract and all the cash flows that are expected to be received (i.e. all cash shortfalls), discounted at the original effective interest rate (EIR).

For trade receivables (not subject to provisional pricing) and other receivables due in less than 12 months, the Group applies the simplified approach in calculating ECLs, as permitted by IFRS 9. Therefore, the Group does not track changes in credit risk, but instead, recognises a loss allowance based on the financial asset’s lifetime ECL at each reporting date.

Financial liabilities

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Group’s financial liabilities include trade and other payables and are held at amortised cost. After initial recognition, trade and other payables are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in the statement of profit or loss and other comprehensive income when the liabilities are derecognised, as well as through the EIR amortisation process.

Derecognition

A financial liability is derecognised when the associated obligation is discharged or cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in profit or loss and other comprehensive income.

Critical accounting estimates and judgements

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

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

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

Capitalisation and recoverability of exploration costs (Note 10):

Capitalised exploration and evaluation costs consist of direct costs, licence payments and fixed salary/consultant costs, capitalised in accordance with IFRS 6 “Exploration for and Evaluation of Mineral Resources”. The group and company recognises expenditure as exploration and evaluation assets when it determines that those assets will be successful in finding specific mineral assets. Exploration and evaluation assets are initially measured at cost. Exploration and evaluation costs are assessed for impairment when facts and circumstances suggest that the carrying amount of an asset may exceed its recoverable amount. Any impairment is recognised directly in profit or loss.

Recoverability of investment in subsidiaries including intra group receivables (Note 9 and 11)

The recoverability of investments in subsidiaries, including intra group receivables, is directly linked to the recoverability of the exploration assets in those entities, which is subject to the same estimates and judgements as explained above.

3 Operating loss

Year ended

30 September 2020

Year ended
30 September
2019

The operating loss is stated after charging:

£

£

Depreciation of property, plant and equipment

3,809

1,701

Operating lease expenses

23,768

23,746

Auditors’ remuneration – fees payable to the Company’s auditor for the audit of

the parent company and consolidated financial statements

25,750

21,500

4

Earnings per share

Basic and Diluted

Year ended 30 September

2020

Year ended 30 September

2019

Weighted number of shares in issue during the year

512,411,527

423,047,928

£

£

Loss from continuing operations attributable to owners of the parent

(704,413)

(757,210)

Loss from discontinued operations attributable to owners of the parent

(1,986,469)

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

Details of share options and warrants that could potentially dilute earnings per share in future periods is set out in Note 1.

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