LONDON (Alliance News) - ECR Minerals PLC said a technical report in relation to the Avoca and Bailieston gold projects in Victoria, Australia, has been published, and the company will continue to develop a "measured and carefully controlled" exploration strategy for the projects as recommended by the report.
The report was prepared by Snowden Mining Industry Consultants.
ECR Minerals' wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd has agreed to acquire a 100% of the Avoca and Bailieston projects with Currawong Resources Pty Ltd, although this remains conditional on government authorisation and the registration and transfer of the projects.
"In accordance with the recommendations of the report, the directors intend that MGA will continue to develop and implement a measured and carefully controlled exploration strategy for the Avoca and Bailieston projects, while prioritising the generation of short-term cash flow from the proposed reprocessing of historical mine dumps at the Avoca project to produce gold, with saleable gravel and sand as by-products," said Chief Executive Officer Stephen Clayson in a statement.
"The directors are optimistic regarding MGA's ability to progress in this manner, particularly in view of Victoria's status as a mining friendly jurisdiction with a rich history of gold mining, and which does not levy a government royalty on gold production," Clayson added.
Shares in ECR were down 14% at 0.0215 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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