Positive Results from Surface & Underground Channel Sampling at Itogon Gold Project, Philippines

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

 

AIM: ECR

US OTC: MTGDY

 

LONDON: 19 MAY 2014 - ECR Minerals plc is pleased to announce positive assay results from surface and underground channel sampling at the Itogon gold project in the Philippines.

HIGHLIGHTS

  • Mineralised intercepts by surface channels include 18m at 8.006 ppm Au, 40m at 2.338 ppm Au and 22m at 1.883 ppm Au
  • Sampling within underground workings has returned grades of up to 48.4 ppm Au
  • Assay results from recently completed drilling at Itogon expected later this month

 

Stephen Clayson, Chief Executive Officer of ECR, commented:

“These channel sampling results support our view that the epithermal gold mineralisation at Itogon is likely to be of significant economic interest, subject to the results of further exploration.

The grades and extent of the outcropping mineralisation tested by our surface channels are encouraging, as are the grades returned by our sampling underground.

Assay results from the recently completed drilling at Itogon are expected later this month and will provide further insight into the potential of the project.”

 

Table 1:  Surface Channel Sampling, Itogon Gold Project, Philippines -
Channel Lengths and Average Grades plus Significant Intervals

Channel

From

To

Length

Average Grade

(m)

ppm Au

Glory Hole

0

20

20

2.004

including 6m at 2.273 ppm Au (0-6m) and 8m at 2.297 ppm Au (8-16m)

MP-01-A

0

4

4

0.908

MP-01-B

0

9

9

2.902

including 3.5m at 5.808 ppm Au (1.5-5m)

MP-01-C

0

5.5

5.5

1.076

including 3.5m at 1.235 ppm Au (2-5.5m)

MP-01-D

0

20

20

1.083

including 4m at 2.584 ppm Au (0-4m)

MP-01-E

0

7

7

1.187

including 6m at 1.271 ppm Au (0-6m)

MP-04-A

0

4

4

4.459

including 2m at 6.579 ppm Au (2-4m)

MP-04-B

0

22

22

1.883

including 8m at 2.776 ppm Au (6-14m) and 6m at 1.626 ppm Au (16-22m)

MP-05-A

0

5.5

5.5

0.450

MP-05-B

0

14

14

0.709

including 2m at 2.550 ppm Au (4-6m)

MP-06-A

0

40

40

2.338

including 16m at 3.525 ppm Au (0-16m), 8m at 2.386 ppm Au (24-32m) and 6m at 1.399 ppm Au (34-40m)

MP-06-B

0

16

16

0.744

including 2m at 1.749 ppm Au (6-8m) and 2m at 1.470 ppm Au (12-14m)

MP-06-C

0

42

42

0.872

including 8m at 2.131 ppm Au (16-24m)

MP-07

0

18

18

8.006

including 7m at 14.859 ppm Au (0-7m), 9m at 4.274 ppm Au (9-18m) and 1m at 92.200 ppm Au (6-7m)

MP-08-A

0

22

22

1.846

including 2m at 1.049 ppm Au (0-2m), 4m at 8.193 ppm Au (10-14m)

MP-08-B

0

18

18

0.689

including 2m at 1.579 ppm Au and 2m at 2.160 ppm Au (4-6m)

MP-09

0

20

20

0.210

MP-10

0

37

37

0.878

including 4m at 2.555 ppm Au (6-10m)

 

A set of four maps relating to the exploration results disclosed in this news release may be viewed at: http://www.ecrminerals.com/itogon-project-channel-sampling-maps

NB:
For the purposes of this news release ppm Au and g/t Au can be considered equivalent.
Intervals reported in Table 1 and elsewhere in this news release are apparent thickness rather than true thickness.

Summary of Activity

Channel sampling was carried out after a GPS based, compass and tape complemented geological mapping exercise. The mapping highlighted altered, mineralised and/or intensely oxidised outcrops for sampling. Accessible underground mine workings were also mapped. A total of eighteen outcrops and four underground workings were mapped and subsequently channel sampled.

Table 1 shows the average Au grade for the entire length of each surface channel and significant intervals within the channels. Appendix A is a register of all samples (171 surface and 41 underground channel samples) with locations and Au assay results.

In addition to the samples comprising the channels identified in Table 1, a further five 2m long channel samples were collected. The five samples were separate from the channels identified in Table 1 and from each other. Assay results for the five samples are included in Appendix A and are denoted by the symbol “ss” in the column headed “Channel”.

The various outcrops can generally be described as intensely fractured and oxidised (FeOx-limonite-hematite) silicified zones with quartz veins, chalcedony and vein breccia. Specks, stringers and/or dark coloured hairline veinlets occur and contain base metal sulphides (galena-pyrite-chalcopyrite-sphalerite). Quartz is grey coloured and milky white containing specks of sulphides with suspected native gold dusts. Open-space, drussy, saccharoidal and massive textures are noted within quartz vein and/or vein breccia zones.

Discussion of Results

Glory Hole Outcrop
The outcrop is located 35m due north of ERC007 (ECR drill hole) and RC010 (historical drill hole). Glory Hole is an intensely oxidised and altered zone composed of silica-clay-FeOx cut in parts by narrow (<2cm) quartz-pyrite-galena-chalcopyrite veinlets and/or stringers.

A single channel cut generally trending NNE-SSW and cutting NNW trending structures was sampled and returned an average grade of 2.004 ppm Au over 20m including 6m at 2.273 ppm Au (from 0-6m) and 8m at 2.297 ppm Au (from 8 to 16m).

Outcrop MP-01
The outcrop starts 45m NNW of Glory Hole, trends SSW towards Glory Hole and is characterised by intensely oxidised and altered zones with sections of chlorite-epidote altered diorite. Narrow quartz-pyrite-galena veinlets and/or stringers were noted within the oxidised and altered zones. These structures generally trend NNW.

MP-01 was sampled by five separate channels totalling 45.5m and yielding an average grade of 1.443 ppm Au over the five channels combined. Significant intervals within the five channels are summarized in Table 1 and include 3.5m at 5.808 ppm Au (from 1.5 to 5m) within MP-01-B.

Outcrop MP-04
The outcrop is located 50m WSW of Glory Hole and is the western most outcrop within the northern section of the main prospect area at Itogon. It is a moderately to intensely oxidised and altered diorite outcrop with narrow (<2 cm) quartz-pyrite-galena veinlets and/or stringers trending NNW.

MP-04 was sampled by two channels, MP-04-A and MP-04-B. MP-04-A returned an average grade of 4.459 ppm Au over 4m including 6.579 ppm Au over 2m (from 2 to 4m). The section intersected N-S to NNW trending fractures with quartz-pyrite veinlets/stringers.

MP-04-B returned an average grade of 1.883 ppm Au over 22m including 8m at 2.776 ppm Au (from 6 to 14m) and 6m at 1.626 ppm Au (from 16 to 22m). This channel generally trended SSW and exposed NNW trending fractures and quartz-pyrite veinlets/stringers.

Outcrop MP-05
The outcrop is located 45m NNE of MP-01 and is the eastern most outcrop within the northern section of the main prospect area. It is a NE-SW trending outcrop cutting NNW structures (veinlets and fractures) characterised by moderately to intensely oxidised and altered diorite.

MP-05 was sampled by two channels, MP-05-A, a 5.5m channel which returned an average grade of 0.450 ppm Au, and MP-05-B, a 14m channel which returned an average grade of 0.709 ppm Au including 2m at 2.550 ppm Au (from 4 to 6m).

Outcrop MP-06
MP-06 forms the central altered and oxidised zone of the northern section of the main prospect area. It is located immediately west of Glory Hole and trends NE-SW. This zone is characterised by intense oxidation and alteration with NNW trending fractures, minor faults and quartz-pyrite-galena-chalcopyrite veinlets and stringers.

The outcrop was sampled by three channels as follows. MP-06-A returned an average grade of 2.338 ppm Au over 40m including 16m at 3.525 ppm Au (from 0 to 16m), 8m at 2.386 ppm Au (from 24 to 32m) and 6m at 1.399 ppm Au (from 34 to 40m). MP-06-B returned an average grade of 0.744ppm Au over 16m including 1.749 ppm Au over 2m (from 6 to 8m) and 1.470 ppm Au over 2m (from 12 to 14m). MP-06-C returned an average grade of 0.872 ppm Au over 42m including 4.910 ppm Au over 2m (from 16 to 18m).

Outcrop MP-07
The outcrop is immediately above collapsed small scale underground mine workings and is situated NNW of MP-01. MP-07 is trending NNE-SSW cutting WNW fractures and quartz-pyrite-base metal veinlets and stringers. A single channel cut returned an average grade of 8.006 ppm Au over 18m including 1m at 92.200 ppm Au (from 6 to 7m), 2m at 11.050 ppm Au (from 9 to 11m) and 2m at 4.755 ppm Au (from 12 to 14m). Other significant intervals include 7m at 14.859 ppm Au (from 0 to 7m) and 9m at 4.274 ppm Au (from 9 to 18m).

Outcrop MP-08
The outcrop lies within the central section of the main prospect area at Itogon. It is a NW-SE outcropping trend controlled by a collapsed small scale underground mine working and characterised by chlorite-epidote altered sections and moderate to intense silica-clay-FeOx mineral assemblage. Subtle N-S trending and flat lying quartz-carbonate stringers were noted.

MP-08 was sampled by two channels, MP-08-A and MP-08-B. MP-08-A returned an average grade of 1.846 ppm Au over 22m including 2m at 13.287 ppm Au (from 12 to 14m). Also included in MP-08-A is a low grade interval of 8m at 0.178 ppm Au (from 2 to 10m). MP-08-B returned an average grade of 0.689 ppm Au over 18m including 2.160 ppm Au over 2m (from 4 to 6m).

Outcrop MP-09
The outcrop is located 80m SE of MP-08 and is characterised by low angle sub-parallel quartz-carbonate stringers hosted in weakly silicified and moderately oxidised diorite. A single channel cut returned an average grade of 0.210 ppm Au over 20m including 2m at 0.554 ppm Au.

Outcrop MP-10
The outcrop lies between MP-08 and MP-09, and is initially E-W trending with a section extending NE. MP-10 is characterised by low angle quartz-carbonate stringers in moderately oxidised and weakly silicified diorite. A single channel cut returned an average grade of 0.878 ppm Au over 37m including 2m at 3.270 ppm Au (from 6 to 8m).

Adit 1
A WNW trending small scale working approximately 30m long located within the northern section of the main prospect area. The walls of the adit are characterised by moderate to intense silica-clay-FeOx alteration cutting N-S trending faulted or gouge zones and quartz-pyrite-galena-chalcopyrite veinlets and stringers. The most significant sample from the adit was a 1.5m channel sample from within a faulted zone that returned 1.129 ppm Au.

Adit 2
A WSW trending small scale working approximately 40m long located in the northern most zone of the northern section. The adit cuts through NW trending faulted zones and quartz-pyrite-galena-chalcopyrite veinlets and stringers.

Samples from the adit include: a 1m channel across a faulted quartz-pyrite vein trending NNE and approximately 1m wide, which returned 48.400 ppm Au; a 2m channel across a faulted quartz-pyrite vein trending WNW and approximately 2m wide, which returned 10.014 ppm Au; a 1m channel across a NNE trending quartz-pyrite vein approximately 1m wide, which returned 7.369 ppm Au; and an additional seven samples returning between 1.400 ppm Au and 3.000 ppm Au.

Adit 3
A NW trending small scale working approximately 30m long and following a faulted and gougy zone with crushed quartz-sulphide fragments. A total of seven 1m channel samples were collected and returned an average grade of 3.490 ppm Au including one sample grading 14.594 ppm Au.

Portal 1
An exploration tunnel developed and abandoned by a previous holder of exploration rights to the area, and now maintained by small scale miners.

The tunnel is WSW trending and approximately 120m in length, and has accessed a very strong NW (320°) trending and 50°-60° SW dipping faulted zone of around 2m in width. An initial four samples within the fault zone returned an average grade of 1.025 ppm Au over an average sampling width of 1.2m. The footwall structures were observed to be generally sub-horizontal quartz-pyrite stringers.

QA/QC

A secure chain of custody was maintained in the transport and storage of all samples, which were shipped to and analysed by Intertek Testing Services Philippines, Inc. (“Intertek”), an internationally accredited analytical laboratory in Metro Manila. The method of analysis for gold was fire assay.

QA/QC measures including the use of blanks and standards were implemented by ECR and separately by Intertek in relation to the analysis of the samples. The assay data reported is considered acceptable in the context of these measures. Due to the insertion of QA/QC samples, the sample numbers in Appendix A do not form a continuous series.

The contents of this announcement have been reviewed by Andrew Tunningley MAusIMM (CP), a consulting geologist engaged by ECR in connection with the Itogon project.

ABOUT ECR

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, 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    
Email:This email address is being protected from spambots. You need JavaScript enabled to view it.    
Website: www.ecrminerals.com    
     
     
Daniel Stewart & Company plc    
David Hart/Harrison Clark(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.

Click here to view Appendix A to this announcement entitled: Sample Registry and Au (ppm) Assay Result.