RNS3 Oct 2025 07:28
· Granted Mining Lease: the Raglan Project includes a granted mining lease over approximately 300 acres and 2.9km of main creek systems, allowing operations to commence in the nearer-term following completion of the Proposed Acquisition
· Turnkey Infrastructure: the Proposed Acquisition includes a near-new 60 tonne per hour wash plant, gold room, water supply, camp, mobile mining fleet and supporting facilities - the due diligence site visit has provided confidence for management estimating that the second hand value of this equipment alone may be near to the A$1.1m purchase price for the Proposed Acquisition
· Nearer-Term Revenue Potential: existing equipment and mining lease could enable gold production and cashflow in the nearer-term, with the results of due diligence indicating the potential for more than 200 working days per year
· Exploration Upside: Bulk sampling during the site visit confirms coarse nuggety gold and grades that may be consistent with ECR's nearby Blue Mountain Project, with potential for both further alluvial resources and a hard-rock source.
The Raglan Project
The Raglan Project lies approximately 40 minutes west of Gladstone, Queensland, close to mechanical services and infrastructure. The lease has historically produced coarse, nuggety gold and test pits excavated duringthe due diligence confirmed recoveries from both upper gravels and deeper bedrock wash. Mining at the Raglan Project to date has been largely small scale with several untested areas and depths within the property area.
The due diligence site visit was conducted by ECR's Chief Geologist, Adam Jones, who assessed the mining lease, plant and equipment, and overall development potential. The equipment, including the gravity processing plant, was tested during the due diligence and found to be in good working order. Equally importantly, the test pits that were processed earlier this week yielded quantities of gold that the Board believes supports the commercial potential of the Raglan Project. The pits were dug in different parts of the property and the recovery from them, coupled with exploration upside observed on site, confirms to the Board that the Raglan Project has the potential to be a valuable asset for the Company.
Around three quarters of the gold produced during ECR's due diligence was in small nuggets (up to 0.5 gramme pieces) with the Raglan Project's fine gravity concentrator recovering the balance as fine gold. The gold produced during the due diligence at Raglan was coarse, often with sharp edges potentially indicating a local source. Similarly, some particles of gold were observed attached to quartz, also indicating that a local source of the gold may be in the upper part of the lease area.
Completion of the Proposed Acquisition would provide ECR with plant and equipment that is estimated by management to be valued near to the purchase price alone, including a 60 tonne per hour gravity proce
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