ECR MINERALS plc
(“ECR Minerals”, “ECR” or the “Company”)
UPDATE ON GOLD EXPLORATION IN VICTORIA, AUSTRALIA
LONDON: 20 February 2018 - The directors of ECR Minerals plc are pleased to provide the following update regarding gold exploration in Central Victoria, Australia being carried out by ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”).
* All prospects within MGA’s four exploration licence areas reviewed and re-prioritised by Dr Rodney Boucher
* Geological mapping completed in selected zones, and geochemical surveys underway
* Drilling programme to include multiple target areas being planned
MGA’s on the ground activities in Victoria are now being led by Dr Rodney Boucher, who has extensive geological experience in Victoria, including many years of involvement with Perseverance Corporation, the original developers of the million-ounce Fosterville gold mine which is now owned by Kirkland Lake Gold. The Fosterville mine is located in the same district as MGA’s Bailieston and Moormbool licences.
Dr Boucher has completed a review of all available data regarding MGA’s four exploration licences, visited most of the known prospects and carried out geological mapping in key zones. A programme of geochemical sampling at the higher priority prospects commenced earlier this month, the purpose of which is to augment existing data and help define drill targets.
A drilling programme to commence in the first half of 2018 is being planned and will include multiple target areas. MGA currently intends to drill in the HR3 area and at the Blue Moon and Black Cat prospects within the Bailieston licence (EL5433); at the Monte Christo and Bung Bong prospects within the Avoca licence (EL5387); and to drill test the magnetic anomaly within the Moormbool licence (EL006278).
A map showing the location of these and other target areas can be viewed at the following link: https://www.ecrminerals.com/images/Location_Map_2.jpg
Drilling in each area is subject to satisfactory results from the geochemical surveys which began this month, and receipt of all necessary government and landowner consents. All required consents have already been obtained for drilling in the HR3 area and at the Black Cat prospect within the Bailieston licence. The Company will announce the final composition of the drilling programme and the intended start date after the planning has been finalised.
Based on Dr Boucher’s work so far, some potentially significant geological insights have emerged, as outlined below.
Bailieston exploration licence (EL5433)
* HR3 area
This area encompasses the Byron, Maori, Scoulars, Dan Genders, Hard Up and Scanlon’s reefs, and forms the largest area of historical workings (700m by 300m) within the tenement package, especially when considered as part of a larger system connected to the Bailieston open pit located outside the northern boundary. MGA’s exploration objective at HR3 will be to investigate the possibility of integrating the various reefs at depth to arrive at a meaningful modern-day resource.
There is a gap in the historical workings from the HR3 area for approximately 800m to Cherry Tree to the south and for approximately 400m to the tenement boundary to the north, and there is potential in these zones for undiscovered mineralisation, particularly at depth. This is supported by the limited previous geochemical sampling.
* Cherry Tree and Cherry Tree South prospects
The Cherry Tree historical workings cover an area 600m by 200m, while the Cherry Tree South workings extend over an area 250m by 60m, with a wider geochemical footprint and encouraging previous geochemical results across the full width of the sampling.
* Blue Moon prospect
There is potential at Blue Moon for a previously unrecognised finely-disseminated gold system. Previous encouraging rock chip and soil geochemical results extend over an area approximately 350m across and open at both ends. There are only a few small workings at surface, and this may be an indication of finely-disseminated gold, which is more likely to be suitable for modern bulk mining methods than the coarse gold targeted by most historical mining in Victoria.
* Black Cat prospect
Black Cat is characterised by previously defined widespread anomalous geochemical results, especially to the northeast, which are not due to downhill dispersion from the main reefs and therefore must come from hitherto undiscovered sources.
Avoca exploration licence (EL5387)
* Monte Christo prospect
This prospect is of significant interest as it hosts historical workings extending over a strike length of approximately 1,000m, punctuated by alluvial cover.
* Bung Bong prospect
Bung Bong features a series of historical shafts on shoots up to 100m long punctuated by barren zones and gullies. Road cuttings on the nearby highway show multiple west-dipping faults linked by associated quartz vein networks that may have the potential for a broad zone of significant tonnage.
* Surprise prospect
There are numerous historical shafts at Surprise and some noteworthy historical (late 1990s) drilling results (including 2m at 3.27g/t gold from 18m in SPAC04 and 5m at 1.4g/t gold from 26m in SPAC06). The presence of molybdenum with gold in breccia raises the conceptual possibility of a high tonnage porphyry deposit. Landowner consent is currently being sought for field mapping and geochemical surveying, which will enable this concept to be considered further.
Moormbool exploration licence (EL006278)
Modelling carried out on behalf of MGA by Terra Resources Pty Ltd has delineated the magnetic body at depth. The magnetic anomaly has horizontal dimensions of approximately 3.15km x 3.5km. The corresponding body may be unmineralised, but there is considered to be some potential for mineralisation styles such as Woods Point/Walhalla dyke-associated gold or a VMS (volcanogenic massive sulphide)/Cobar-style polymetallic deposit as found in central New South Wales. Alternatively, the anomaly may represent weak magnetite alteration within a porphyry, similar to the Cadia gold-copper- porphyry-related deposits in central New South Wales.
ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia has acquired 100% ownership of the Avoca, Bailieston, Moormbool and Timor gold exploration licences in Central Victoria, Australia.
ECR has earned a 25% interest in the Danglay epithermal gold project, an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines. An NI43-101 technical report was completed in respect of the Danglay project in December 2015, and is available for download from ECR’s website.
ECR’s wholly owned Argentine subsidiary Ochre Mining has 100% ownership of the SLM gold project in La Rioja, Argentina. Exploration at SLM has focused on identifying small tonnage mesothermal gold deposits which may be suitable for relatively near-term production.
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|
|WH Ireland Ltd||Tel: +44 (0)161 832 2174|
|Katy Mitchell/James Sinclair-Ford|
|Optiva Securities Ltd||Tel: +44 (0)203 137 1902|
|FlowComms||Tel: +44 (0)7891 677 441|
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.