ECR MINERALS plc
(“ECR Minerals”, “ECR” or the “Company”)
US OTC: MTGDY
LONDON: 24 JUNE 2014 - ECR Minerals plc is pleased to provide the following update on activities at the SLM gold project in Argentina. The SLM project area is 100% held by ECR’s wholly owned Argentine subsidiary Ochre Mining SA (“Ochre”).
- 3D modelling of historical drilling data indicates that the JV-14 zone may have attractive resource potential in the context of Ochre’s strategy of seeking to bring high grade, low tonnage gold deposits at SLM into production relatively quickly and at a relatively modest capital cost
- A programme of cleaning and sampling historical exploration trenches is underway at JV-14; assay results are expected in July 2014
- A drilling programme is planned for the JV-14 zone, subject to the results of trench sampling
- Two rock chip samples were taken by Ochre from the JV-14 zone in January 2014, one of which returned a very high grade of 67.9 g/t gold (as previously announced)
Stephen Clayson, Chief Executive Officer of ECR, commented:
“It has been several months since ECR provided an update on activities at SLM, but work has been ongoing. The most important task completed has been the sourcing and interpretation of significant historical exploration data. This has led to the planning of a drilling programme for the JV-14 zone. However, in order to de-risk the proposed drilling a programme of cleaning and sampling historical trenches has begun and results are expected next month. These results will help decide whether drilling is to go ahead, and if so, help make sure the drilling programme is planned as efficiently as possible.”
Update on Activities
Detailed review of historical exploration data including the results of diamond drilling has led Ochre to focus on a prospect within the SLM project area known as the JV-14 zone, which lies in the northern part of the Corral 1 tenement. Historical drilling in the JV-14 zone has been insufficient for resource estimation, but numerous encouraging mineralised intercepts have been interpreted from historical data and modelled for Ochre, as summarised in the table below.
TABLE 1: SIGNIFICANT INTERCEPTS FROM HISTORICAL DIAMOND DRILLING IN JV-14 ZONE, SLM GOLD PROJECT, ARGENTINA -
|Hole ID||From |
The intercepts in Table 1 have been calculated for Ochre using a cut-off grade of 0.50 g/t Au, a maximum of 1m internal dilution and a minimum length of 0.5m. No top cut has been applied.
Additional information regarding the historical drill holes listed in Table 1 is provided in Table 2 below. The information in Table 1 and Table 2 is derived from historical exploration data. Historical exploration data have not been verified by ECR and may not be accurate or complete, and therefore the information in the tables should not be relied upon.
Historical data indicates that the JV-14 zone contains four auriferous quartz veins, and includes a section in which the sub-parallel Main, West 1 and West 2 veins occur over a strike length of approximately 150m, which is the principal area of interest. It is also indicated that the Main Vein dips to the SE at approximately 80 degrees and the West 1 and 2 veins dip to the NW at approximately 70 degrees, away from the outcrop of the main vein. An additional vein striking almost at right angles to the other three veins and dipping near vertically is indicated to occur nearby. This vein, which is known as Oblique, is also of interest to Ochre.
Near surface portions of the Main, West 1 and West 2 veins may be suitable for mining within a single open pit. The modelling completed for Ochre indicates that there is also exploration potential in this section for high grade mineralisation that may be suitable for underground mining. The planning of any mining operation is conditional on positive results being obtained from further exploration. All the potential ore zones modelled require drilling to confirm their potential and extend or close off the mineralisation.
A programme of diamond drilling totalling 700m, aimed at confirming and extending the mineralisation in the JV-14 zone and enabling the estimation of an open pit type resource, has been designed for Ochre. However, prior to any drilling, a programme of cleaning and sampling historical exploration trenches is being undertaken. The planned drilling programme may be modified after the results of trench sampling are available.
Sampling will provide information as to the grade and width of any mineralisation exposed in the trenches, grade and width being two of the main determinants as to whether the mineralisation is likely to be economic. In addition, data from trench sampling can be incorporated into any future resource model. While historical trench sampling data exists, it is appropriate for Ochre to add to and seek to verify this data by means of its own sampling.
Drilling in the JV-14 zone by Ochre is contingent on positive results from the trench sampling programme. Assay results from trench sampling are expected to be available in July 2014. A number of historical trenches located to the NW of JV-14 will also be cleaned and sampled.
A topographical survey of the JV-14 zone and surrounds, covering an area approximately 0.75km by 1.5km, is now underway, and will provide important data for Ochre’s geological model and for implementation of the planned drilling programme.
A map of the JV-14 zone may be viewed at:
The map viewable via the link above is derived in part from historical exploration data which may not be accurate or complete. The map should therefore not be relied upon.
Images of historical trenches to be sampled may be viewed at:
TABLE 2: DETAILS OF HISTORICAL DIAMOND DRILL HOLES IN JV-14 ZONE, SLM GOLD PROJECT, ARGENTINA -
|Hole ID||Total Depth |
* “RL” refers to reduced level; calculated elevation in relation to a particular datum
The content of this news release has been reviewed by Neil Motton MAusIMM (CP), a geological consultant to ECR. Assay values have been expressed in this news release as g/t (grams per tonne) gold but are expressed in the relevant historical data as ppm (parts per million) gold. For the purposes hereof ppm and g/t can be considered equivalent.
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 on the island of Luzon in the north of the Philippines.
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/Harrison Clarke (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.