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.

 

ECR MINERALS plc
(“ECR Minerals”, “ECR” or the “Company”)

 

AIM: ECR
US OTC: MTGDY

London: 21 May 2012 ECR Minerals plc is pleased to announce the following results of drilling at the El Abra prospect within the Company’s Sierra de las Minas gold project area in La Rioja Province, Argentina.

 

Highlights

  • Assay results for all significant mineralised intersections of recently completed drilling programme now received
  • Best overall intersection of programme 3.9m downhole at 11.6g/t Au in hole 9, including 0.2m at 109.1g/t Au

 

Patrick Harford, Managing Director of ECR Minerals plc, comments:

“Together with the earlier results of this first drilling programme at El Abra, the results reported today are very promising and have confirmed the presence at depth of high grade gold mineralisation within quartz veining over a 500m strike length. The mineralisation remains open along strike and down dip.

Further drilling is merited at El Abra in order to better define the mineralisation encountered and, dependent on the success of such drilling, to obtain sufficient data to complete an initial resource estimate.

In light of the structural and geological complexity of the El Abra mineralisation and in order to obtain maximum value from future drilling the Company intends to complete a detailed structural study along with additional surface geochemical sampling before planning a second drilling programme. This work will enable a better understanding of the style and orientation of the mineralisation at El Abra ahead of further drilling.”

 

Results of Drilling

Assay results in respect of gold mineralisation intersected by holes 9, 10 and 13 of the drilling programme are disclosed in the table below. Holes 4, 11 and 12 did not intersect significant gold mineralisation. Results of drilling for holes 1, 2, 3, 5, 6, 7 and 8 were reported by the Company on 27 April 2012.

A 13th hole was completed in addition to the 12 holes originally planned and a total of 1,112m was drilled in the programme. All 13 holes were targeted to test the continuity at depth of high grade quartz vein hosted gold mineralisation identified from surface sampling over a strike length of approximately 500m on the principal vein/shear at El Abra.

Hole Mineralised
intersection
(m)
From
(m)
To
(m)
True width
(m)
Grade
(Au g/t)
Vertical
depth of intersection
(m)
Total depth of hole
(m)
Declination
(degrees)
9 3.9 39.5 42.65 2.8 11.6 35.0 67.75 45
inc. 0.2


109.1


10 2.0 60.7 62.7 1.0 1.4 60.0 71.3 60
13 3.0 27.6 29.6 1.1 11.1 21.9 47.1 49
inc. 1.0


20.5


 

All assays were carried out at the internationally accredited AcmeLabs laboratory in Mendoza, Argentina.

A plan of the El Abra prospect showing the approximate location of each drilling location, drill hole and surface sample site is available here

Summary of Programme

Of 13 holes drilled:

  • Holes 2, 9 and 13 intersected very high grade gold mineralisation
  • Four more holes intersected mineralisation grading in excess of 1g/t Au

Drilling took place from four separate locations targeting mineralisation contained in a shear zone trending SW to NE. This shear zone is now thought to be interrupted by splays and faults oriented NW to SE.

Drilling from location A was targeted beneath surface mineralisation and historical workings at two surface sample points known as Riel and Buho (three holes: 1, 2 and 11).

Drilling from location B (250m NE of location A) was targeted beneath mineralisation and historical workings at two surface sample points known as IV and V (four holes: 3, 4, 5 and 6).

Drilling from location C (250m SW of location A) was targeted beneath mineralisation and historical workings at two surface sample points known as Las Abejas and Chiflon (four holes: 7, 8, 9 and 10), and a final hole (13) drilled from location C targeted the area between Las Abejas and Chiflon.

Drilling from location D (40m NE of location A) was targeted beneath mineralisation and historical workings at surface sample point Campamento (one hole: 12).

 

Location A

Holes 1 and 2
Targeted beneath sample point Riel, from which a surface sample grading 4.64g/t Au over 1m was previously obtained.

Hole 11
Targeted beneath sample point Buho, from which a surface sample grading 3.18g/t Au over 1m was previously obtained.

 

Location B

Holes 3 and 4
Targeted beneath sample point V, from which a surface sample grading 11.8g/t Au over 1m was previously obtained.

Holes 5 and 6
Targeted beneath sample point IV, from which a surface sample grading 6.55g/t Au over 1m was previously obtained.

 

Location C

Holes 7 and 8
Targeted beneath sample point Las Abejas, from which a surface sample grading 80.14g/t Au over 1m was previously obtained.

Holes 9 and 10
Targeted beneath sample point Chiflon, from which a surface sample grading 6.77g/t Au over 1m was previously obtained.

Hole 13
Targeted the area between sample points Las Abejas and Chiflon.

 

Location D

Hole 12
Targeted beneath sample point Campamento, from which a surface sample grading 20.08g/t Au over 1m was previously obtained.

 

About the Sierra de las Minas Project Area

ECR holds 100% of the exploration rights to the Sierra de las Minas project area and 100% of the exploitation rights to a number of prospects within it, including the El Abra prospect. Exploration rights for other prospects may be converted to exploitation rights by application to the government of La Rioja Province. The El Abra and Jazmin prospects are subject to a 2% net smelter return royalty from production. In the case of exploitation rights, commencement of mining activities is subject to receipt of the necessary environmental permissions from the provincial government.

The project area is located approximately 800km north west of Buenos Aires and is the site of significant historical small scale gold mining. Access to the project area is possible via paved highways from the cities of Mendoza, San Juan and Cordoba. Local access is by paved and unpaved provincial routes.

 

About ECR Minerals plc

ECR is a mineral development company with interests in Argentina, the USA, Indonesia, Thailand and Australia.

 

For further information please contact:

ECR Minerals plc
Patrick Harford, Executive Chairman
Stephen Clayson, Director & Chief Financial Officer
Email:This email address is being protected from spambots. You need JavaScript enabled to view it.
Daniel Stewart & Company plc
Paul Shackleton/Tessa Smith/David Hart Tel: +44 (0) 20 7776 6550
Old Park Lane Capital plc
Michael Parnes Tel: +44 (0) 20 7493 8188
Blythe Weigh Communications
Matthew Neal/Tim Blythe/Paul Weigh Tel: +44 (0)20 7138 3204

 

The contents of this announcement have been reviewed by Richard Watts B.Eng. Mining, Fellow of the South African Institute of Mining & Metallurgy, a technical adviser to the Company with more than 40 years of experience in the mining and exploration industry.

Glossary

m: metre
g/t: grams per tonne
Au: gold