ECR MINERALS plc
(“ECR Minerals”, “ECR” or the “Company”)
US OTC: MTGDY
POSITIVE DRILLING AND TRENCHING RESULTS FROM ITOGON GOLD PROJECT, PHILIPPINES
LONDON: 18 JUNE 2015 - The directors of ECR Minerals plc (the “Directors”) are pleased to announce positive results from diamond drilling and trenching at the Itogon epithermal gold project, northern Philippines. The drilling was completed in January-April 2015 and comprised six diamond drill holes totalling 808m as detailed in Table 2 below. Mineralised intervals from the drilling are presented in Table 1 below. In addition, partial results of the ongoing trenching programme at Itogon are presented in Table 3 below.
* Mineralised intervals from diamond drilling (apparent width) include:
4.4m at 2.12 g/t gold from surface in EDD004
7.5m at 0.89 g/t gold from 3.8m in EDD005
8.0m at 2.25 g/t gold from 77.0m in EDD005
10.6m at 1.03 g/t gold from surface in EDD006
5.0m at 1.38 g/t from 48.0m in EDD006
* Results from trenching include a mineralised interval (apparent width) of 42.0m at 2.54 g/t gold; trenching is continuing and further assay results are pending
* The diamond drilling and trenching results indicate the potential for an extensive supergene enriched oxide gold resource from surface in the main prospect area at the Itogon project
Discussion of Results
All diamond drill holes except EDD003 intersected near surface gold mineralisation, with intercepts including 4.4m at 2.12 g/t gold from surface in EDD004, 7.5m at 0.89 g/t gold from 3.8-11.3m and 2.9m at 1.55 g/t gold from 13.8-16.7m in EDD005, and 10.6m at 1.03 g/t gold from surface in EDD006.
These intercepts represent part of a widespread supergene enriched oxide gold blanket. ECR is presently undertaking an extensive trenching program (11 trenches/test pit lines), the results of which will provide additional data regarding the grade and distribution of this mineralisation.
To date, assay results have been received in respect of two trenches and include mineralised intervals of 12m at 0.43 g/t gold in TR08 and 42m at 2.54 g/t gold in TR09. Further assay results are pending, including additional assays from TR09, which may mean that a longer mineralised interval in that trench is reported in due course.
Supergene intercepts from ECR’s April 2014 reverse circulation (RC) drilling programme, the results of which were announced in May 2014, included 30.0m at 1.63g/t gold from surface in ERC004 and 16.0m at 17.14g/t gold from 2.0m in ERC008.
Beneath the zone of supergene enrichment, five of the six diamond drill holes intercepted steeply dipping zones of gold mineralisation over apparent widths of between 2.0 and 8.0m, the most promising intercept being 8.0m at 2.25 g/t gold from 77.0-85.0 m in EDD005. This suggests that drilling to date has only tested the uppermost parts of the epithermal system and not the main feeder structures. This is significant as the high grade intercepts to date are associated with narrow, moderately silicified quartz veins, which indicates the potential for more strongly silicified feeder structures which may be associated with significant gold mineralisation.
The diamond drilling has also provided important structural information with respect to key controls on mineralisation. Specifically, it appears that NE-SW trending structures may have exerted an important control on mineralisation, an observation consistent with the structural setting of other gold deposits in the district.
Overall, the grades reported from diamond drilling were lower than those from the Company’s earlier RC drilling programme. Whilst core recovery was high in all diamond holes, the core was highly fractured. As supergene gold often presents as flecks within oxidized fractures, the loss of high pressure diamond drilling fluids down the hole may have partly flushed the fractures in the drill core. A petrological study is planned to consider this possibility.
Stephen Clayson, Chief Executive Officer of ECR, commented:
“With the benefit of the results reported today and further trenching results, when these become available, the Directors expect to be in a position to proceed with an initial, inferred category resource estimate to serve as a first quantification by ECR of the supergene enriched oxide gold mineralisation which occurs from surface in the main prospect area. In aid of this objective, an aerial topographical survey of the main prospect area was completed earlier this month.
In addition, further exploration with a view to more fully testing the potential of deeper level feeder structures and the distribution of grade within the supergene zone is now being planned.”
Table 1: Mineralised Intervals, January-April 2015
Diamond Drilling, Itogon Gold Project, Philippines
|EDD003||No significant intercepts|
Table 2: Details of ECR Diamond Drill Holes,
Itogon Gold Project, Philippines
|Table 3: Mineralised Intervals, Trenches TR08-09 Itogon Gold Project, Philippines|
Mineralised intervals were calculated as weighted averages using a cut-off grade of 0.30 g/t gold and a maximum of 2.0m internal dilution. As a result certain reported intervals contain discrete higher grade intervals that are separated by lower grade mineralisation. In these cases the internal higher grade intervals are also reported. No top cut has been applied in calculating mineralised intervals. All widths given in this announcement are apparent width.
A map showing the location of the drill holes and trenches may be viewed at: http://www.ecrminerals.com/drill-holes-and-trenching-programme
A secure chain of custody was maintained in the transport and storage of all samples, which were shipped to and analysed by Intertek Testing Services Philippines, Inc. (“Intertek”), an internationally accredited independent analytical laboratory in Metro Manila. Sampling was carried out under geological supervision. Upon arrival at Intertek samples were sorted, dried (if necessary), crushed, split and pulverised. The method of analysis for gold was fire assay (50g charge) with AAS finish.
QA/QC measures including the use of certified standards were implemented by ECR and separately by Intertek in relation to the analysis of the samples. The assay data reported is considered acceptable in the context of these measures. Assay values have been expressed in this news release as g/t gold but are received from Intertek expressed as ppm gold. For the purposes hereof ppm gold and g/t can be considered equivalent.
The contents of this announcement have been reviewed by Dr Chris Wilson PhD, FAusIMM (CP), FSEG, a geologist with the consultancy Exploration Alliance, which has been engaged by ECR in connection with the Itogon project.
ECR is a mineral exploration and development company with, among other interests, the right to earn a 50% interest in the Itogon gold project in the Philippines. Itogon is an advanced exploration project located in a gold and copper mining district in the north of the Philippines.
ECR has a 100% interest in the SLM gold project in La Rioja Province, Argentina, the exploration strategy for which is to delineate multiple medium to high grade, low tonnage deposits suitable for advancement to production on a relatively low capital, near term basis.
ECR continues to review potential new investments on a highly selective basis, with a concentration on precious, base and strategic metals projects in Asia and South America.
FOR FURTHER INFORMATION PLEASE CONTACT:
ECR Minerals plc Tel: +44 (0)20 7929 1010
William (Bill) Howell, Non-Executive Chairman
Stephen Clayson, Director & CEO
Richard (Dick) Watts, Technical Director
Cairn Financial Advisers LLP Tel: +44 (0)207 148 7900
Emma Earl/Jo Turner
Daniel Stewart & Company plc Tel: +44 (0)20 7776 6550
FORWARD LOOKING STATEMENTS
This announcement may include forward looking statements. Such statements may be subject to a number of 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 as a result of new information, future events or for any other reason.
AAS: atomic absorption spectroscopy
assay: a test performed on a sample of ores or minerals to determine the amount of valuable metals contained
diamond drilling: a type of rotary drilling that utilises a fluid lubricated and cooled cylindrical diamond drill bit. As the drill bit cuts into the rock a cylindrical core of rock is recovered in the core barrel
epithermal: mineralisation produced by near surface hydrothermal fluids related to igneous activity; originally defined as having formed in the range 50-300°C
feeder zone: a structure or fracture up which mineralizing fluids travel. In the context of an epithermal mineralized system, feeder zone refers to a potentially high grade mineralized zone, which acted as the conduit for significant fluid flow
g/t: grams per tonne
oxidation: a chemical reaction caused by exposure to oxygen that results in a change in the chemical composition of a mineral
oxide gold blanket: said of gold that has been liberated from sulphides during the process of oxidation to form a surficial, sub-horizontal to horizontal zone or ‘blanket’
ppm: parts per million
RL: reduced level; calculated elevation in relation to a particular datum
trench: a long, narrow excavation dug through the upper parts of the soil profile or overburden to expose bedrock veins and structures
silicification: a hydrothermal alteration assemblage dominated by silica
supergene enrichment: said of a mineral deposit formed at or just below the Earth’s surface, generally through downward percolation of rainwater, resulting in liberation of gold through oxidation of sulphides, and its concentration and enrichment within a given horizon
vein: material which was chemically deposited by fluids within a rock fracture; veins exhibit a range of textures and minerals, depending primarily on the temperature, depth, and composition of the fluid and host rock; may also contain a small amount (<10%) of entrained host rock and/or vein clasts