ECR MINERALS plc
(“ECR Minerals”, “ECR” or the “Company”)
US OTC: MTGDY
LONDON: 2 APRIL 2014 - ECR Minerals plc is pleased to announce that the Company has entered into an agreement for the provision of services (the “Agreement”) with Quest Exploration Drilling (Philippines), Inc. (“QED”).
The Agreement provides for the completion by QED, for ECR, of up to 24 drill holes comprising 3,850m of diamond and reverse circulation (RC) drilling at the Itogon gold-silver project in the Philippines. The drilling will be completed in three phases: a first phase of 1,050m of RC drilling; a second phase of 1,800m of RC drilling or 1,000m of diamond drilling; and a third phase consisting of RC or diamond drilling not completed in the second phase.
It is anticipated that the first phase of drilling will commence on or around 7 April 2014. Completion of the first phase is expected by the end of April 2014 and assay results from this phase are expected to be available by the end of May 2014.
The Company has the option to terminate the Agreement after the first phase or the second phase and for no further drilling to be completed pursuant thereto. The second and third phases are dependent on satisfactory results from prior phases, but may be completed simultaneously if requested by the Company and if deemed practical by QED.
Summary of drilling programme
As previously announced, an extensive 3,850m diamond and RC drilling programme (the “Drilling Programme”) has been designed for the Itogon project based on available historical information and site inspections. The Drilling Programme is aimed at intersecting all the currently interpreted sub-parallel quartz vein structures across the width of the main prospect area, which is characterised by a prominent ridge trending approximately northwest. The ridge is bound by steeply incised tributaries of the Danglay River.
The multiple sub-parallel veins are hosted in hornblende diorite, strike along the ridge and have been mapped historically over a length of 450m, with vein outcrop mapped a further 150m down the ridge at the Danglay River valley floor. Historical sampling has identified significant gold-silver mineralisation in the veins as well as their alteration haloes, in intervening quartz veinlet stockworks and in the host rock. The exposed veins are steeply dipping and the width of the mineralised zone has been mapped historically at up to 250m.
The Drilling Programme is intended to generate information as to the overall grade of the deposit, as well as to assess its cohesiveness and whether it can be mined in bulk, either by open pit or underground techniques, or as discrete higher grade zones mineable underground. The Drilling Programme is also aimed at establishing an open pit type resource along and below the ridge as well as seeking to identify high grade underground type ore enclosed within the lower grade ore. The situation of the deposit within the ridge is expected to prove favourable for either an open pit or underground mining scenario. Subject to the results of the Drilling Programme, the generation of a resource model using the drilling results will allow engineering studies to be carried out to consider mining options as well as other parameters.
The full Drilling Programme is composed of 24 angled holes up to 200m deep and on seven sections 50 to 80m apart along strike. Most of the planned holes are 150m deep and all are -60 degree inclination.
Stephen Clayson, Chief Executive Officer of ECR, commented:
“The first phase of our 3,850m 2014 drilling programme for the Itogon project is about to commence following an intensive period of preparatory work, which has included negotiations with relevant surface claimants, community relations activities and extensive road and access improvements.
Assay results from this first phase of drilling will be a very important indicator as to the potential of the Itogon project, particularly as all historical drilling is reported to have been completed vertically and therefore does not provide a proper test of the steeply dipping veins identified at Itogon.”
ECR is a mineral exploration and development company with, among other interests, the right to earn a 50% interest in the Itogon gold-silver project in the Philippines. Itogon is an advanced exploration project located in a gold and copper mining district on the island of Luzon in the north of the Philippines, and benefits from an extensive historical dataset.
ECR has a 100% interest in the Sierra de las Minas gold project in La Rioja Province, Argentina, the exploration strategy for which is to delineate multiple high grade, low tonnage deposits suitable for advancement to production on a relatively low capital, near term basis.
ECR holds a substantial minority stake in THEMAC Resources Group Ltd (TSX-V: MAC), which is focused on the development of the Copper Flat copper-molybdenum-gold-silver porphyry project in New Mexico, USA.
FOR FURTHER INFORMATION PLEASE CONTACT:
|ECR Minerals plc|
|Paul Johnson, Non-Executive Chairman||Tel:||+44 (0)20 7929 1010|
|Stephen Clayson, Director & Chief Executive Officer|
|Daniel Stewart & Company plc|
|David Hart/James Thomas (Nominated Adviser)||Tel:||+44 (0)20 7776 6550|
Colin Rowbury (Broker)
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.