ECR is a mineral exploration and development company, incorporated in the UK.

ECR’s wholly owned Australian subsidiary Mercator Gold Australia (MGA) has agreed to acquire 100% ownership of the Avoca and Bailieston gold projects in Victoria, Australia. Mercator Gold Australia is estimated to have tax losses of approximately AUD 66M as at 30 June 2015, which may be available, subject to certain conditions (as described in ECR’s announcement dated 4 December 2014), to reduce MGA’s future taxable profits.

ECR has the right to earn a 50% interest in the Danglay epithermal gold project in the Philippines. Danglay is 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 subsidiary Ochre Mining has a 100% interest in the SLM gold project in La Rioja Province, Argentina. Exploration at SLM has focused on identifying small tonnage mesothermal gold deposits which may be suitable for relatively near term production.

 

ECR shares are listed on the AIM market of the London Stock Exchange with the symbol ECR.

The following information pertaining to the Avoca gold project should be read in conjunction with the relevant ECR regulatory announcements

The Avoca project is centred on mesothermal quartz vein hosted gold and related placer-style ‘deep lead’ gold mineralisation. There is a considerable local history of mining both kinds of deposit. The term ‘deep lead’ refers to buried auriferous river bed deposits.

Currawong has also identified an opportunity to reprocess a number of historical mine dumps located within EL5387 to recover gold, with potential for the sale of by-products (gravel and sand) as construction material. On the basis of this concept, Currawong has conducted preliminary economic studies in relation to certain historical dumps at Avoca, reprocessing of which may have the potential to generate relatively near term revenue (12-24 months from today) with relatively low capital costs (less than AUD 1M).

The aforementioned timescale and capital cost estimate are subject to confirmation, but are derived from the results of prior studies by Currawong. These studies are preliminary, and further work will be required to provide conclusive results. Currawong has estimated mineral resources in respect of a number of dumps located up to 1km apart. As yet, these resources do not comply with any Standard, as that term is defined by the AIM Note for Mining and Oil & Gas Companies, and are therefore not being disclosed.