ECR Minerals Regulatory News (ECR)

RNS Number : 2674O

ECR Minerals PLC

02 October 2023

 

ECR MINERALS plc

("ECR Minerals", "ECR" or the "Company")

Extension of option to acquire the Hurricane Project

Encouraging First Round Rock Chip Results

ECR Minerals plc (LON: ECR), the exploration and development company focused on gold in Australia, is pleased to announce an extension to its option to acquire Placer Gold Pty Limited, the owner of the Hurricane Project, as well as the latest exploration developments at the project. The Hurricane Project is located approximately 200km west of Cairns in North Queensland, Australia.

HIGHLIGHTS

·      4-week extension of deadline to exercise the option to 26 October 2023 allows ECR further time to analyse and review the project.

·      Discussions to date with the vendors have also set an expectation that ECR will propose revised terms and conditions to the option.

·      125 Rock chip results have been received for the first batch of laboratory samples that cover the Tornado, Cyclone and part of the Holmes vein systems.

·      Best results include a gold equivalent of 31.3 g/t Au and 30.13 g/t Au (Holmes). 28 of the results have gold values greater than 2 g/t Au. All samples from outcrop.

·      The strategic critical mineral, Stibnite (Antimony Sulphide) has been visible in samples taken from the Holmes veins.

ECR Managing Director Nick Tulloch commented: "The Hurricane Project has been a key part of ECR's strategic planning over the past year. The Hodgkinson Province in which is it located hosts several goldfields which together have produced more than 45 tonnes of gold from alluvial workings and mines. With that pedigree, the costs of purchase and development also represent a significant commitment for us and, with Mike Whitlow and I still only a few weeks into our new roles, we requested and were granted further time by the vendors both to fully assess the project area and also to ensure the commercial terms reflect the value of the opportunity. The previous rock chip sampling data from the Bannister group provides some encouraging reference points and the antimony readings and chip samples obtained last month from our limited time in the field are most certainly of interest to the Board and the geology team. We look forward to the rest of the sample results."

An Overview of the location of the rock chip sample and vein systems can be found below:

Figure One: https://www.ecrminerals.com/images/2023/Fig1_Hurricane_231002

EXTENSION OF OPTION TO ACQUIRE Placer Gold Pty Limited

On 27 October 2022, ECR announced that it had been granted an option to acquire the entire issued share capital of Placer Gold Pty Limited ("Placer Gold") (the "Option"), the beneficial holder of three granted mining tenements (EPM 27518, EPM 25855 and EPM 19437) located in NE Queensland, together known as the Hurricane project ("Hurricane Project" or "Hurricane").

As drafted, if the Option is exercised, the purchase price is made up of cash and share payments, in part based on certain milestones being reached as well as a future royalty. Full details are set out in the announcement of 27 October 2022. The deadline for ECR to exercise the Option was 30 September 2023 but, through negotiations with the vendors, the Company has secured a four week extension to 26 October 2023.

During this time it is the Board's intention to thoroughly analyse the merits of the Hurricane Project against the costs of purchase and development to assess the value to the Company and its shareholders. As explained below, work is already underway in this respect. Discussions to date with the vendors have also set an expectation that ECR will propose revised terms and conditions to the Option.

EXPLORATION DEVELOPMENTS

Further to the Company's announcement on 21 September 2023, the ECR technical team has been conducting an infield technical survey of the Hurricane project tenements to establish the prospectivity of gold and antimony mineralisation. The mineralised vein systems currently established at Hurricane are known as the Holmes, Tornado, Cyclone, Pedersons, Bouncer, Typhoon and the Hurricane North and South.

During the month of August 2023, outcrop mapping and rock chip sampling was completed as part of the due diligence process. The objective was to confirm previous results from historic rock chip sampling and to map the extent of outcrop. To date, ECR has received the following information and data for the Tornado, Cyclone and part of the Holmes veins. The position of the veins in relation to each other are shown in Figure One above.

HOLMES VEIN

The Holmes vein is the dominant vein system at the Project. Not only is gold present within the vein, Antimony (present as Stibnite) is visible and has been seen numerous times in outcrop. The Holmes vein consists of at least two main quartz stockwork zones up to 10m wide and is bounded on the western edge by a shear zone up to 1m in width and can be traced along strike for at least 300m. The best Antimony values are obtained close to this shear. To date, ECR has only received the results for a limited number of surface outcrops sampled, with these situated adjacent to and along strike of the shear zone. Best results include 8.19 g/t Au and 7.67 g/t Au and Antimony values up to 29% (290000 ppm Sb).

A gold equivalent value has been calculated by converting the present price of Antimony to the equivalent value in g/t Au. The estimated equivalent value being 3 g/t Au for every 1% Sb (Antimony), and this calculation is similar to the current formulae used by other Australian producers of Gold and Antimony. This would convert the best Antimony results to 31.3 g/t Au and 30.13 g/t Au Eq.

The importance of Antimony is well documented. As one of the listed critical metals, there are limited current sources of Antimony in the western world.

TORNADO VEIN

Previous rock chip sampling by the Bannister Group Pty Ltd. included results up to 17.6 g/t Au. The eastern end of the outcrop also previously returned the best results up to 6.88 g/t Au. ECR geologists re-sampled these zones and have verified the eastern end of the Tornado vein to contain the best values with best results to include 6.95 g/t Au and 5.05 g/t Au

CYCLONE VEIN

The Cyclone vein can be traced in outcrop along the surface for a distance of approximately 500m in strike. The southern end of the outcrop is at its widest point of around 4 metres in width while the northern end thins out to less than 1 metre in width. Sampling work has recovered the best results from a section of the northern outcrop where rock chips taken across the width have returned 0.3m @ 4.65 g/t Au and 0.3m @ 3.93 g/t Au. ECR is awaiting further results from the southern and widest part of the vein.

NEXT STEPS

The Board will continue to evaluate the prospectivity of the project and report these findings as more information is received. The Hurricane results are consistent with the positive visual references noted by the team on the ground and both the field team and the Board believe that this part of Queensland is highly prospective. Further updates will be provided in due course as required.

REVIEW OF ANNOUNCEMENT BY QUALIFIED PERSON

This announcement has been reviewed by Adam Jones, Technical Director of Exploration at ECR Minerals plc. Adam Jones is a professional geologist and is a Member of the Australian Institute of Geoscientists (MAIG). He is a qualified person as that term is defined by the AIM Note for Mining, Oil and Gas Companies.

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

 

ECR Minerals plc		Tel: +44 (0) 20 7929 1010
David Tang, Non-Executive Chairman Nick Tulloch, Managing Director Andrew Scott, Director
Email: info@ecrminerals.com
Website: www.ecrminerals.com
WH Ireland Ltd	Â	Tel: +44 (0) 207 220 1666
Nominated Adviser Katy Mitchell / Andrew de Andrade
SI Capital Ltd		Tel: +44 (0) 1483 413500
Broker
Nick Emerson
Novum Securities LimitedÂ		Tel: +44 (0) 20 7399 9425
Broker Jon Belliss
Brand Communications		Tel: +44 (0) 7976 431608
Public & Investor Relations        Â
Alan Green

                                                               

ABOUT ECR MINERALS PLC

 

ECR Minerals is a mineral exploration and development company. ECR's wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd ("MGA") has 100% ownership of the Bailieston and Creswick gold projects in central Victoria, Australia, has six licence applications outstanding which includes one licence application lodged in eastern Victoria (Tambo gold project).

 

ECR also owns 100% of an Australian subsidiary LUX Exploration Pty Ltd ("LUX") which has three approved exploration permits covering 946 km2 over a relatively unexplored area in Lolworth Range, Queensland, Australia. The Company also has an option to acquire 100% of Placer Gold, which wholly owns the Hurricane Project, a later stage gold and antimony project located west of Cairns in the Hodgkinson Province, NE Queensland.

 

Following the sale of the Avoca, Moormbool and Timor gold projects in Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX) and the subsequent spin-out of the Avoca and Timor projects to Leviathan Gold Ltd (TSX-V: LVX), Mercator Gold Australia Pty Limited has the right to receive up to A$2 million in payments subject to future resource estimation or production from projects sold to Fosterville South Exploration Limited.

 

ECR holds a 90% interest in the Danglay gold project; an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines, which has a 43-101 compliant resource. ECR also holds a royalty on the SLM gold project in La Rioja Province, Argentina and can potentially receive up to US$2.7 million in aggregate across all licences.

 

 

APPENDIX ONE

Table One: All results from the rock chip sampling programme, arranged by prospect and highest to lowest value Au g/t Au. (- denotes no result), Locations stated in GDA94 Z55 grid.

 

SampleID	Vein	Easting	Northing	Au g/t	Sb g/t	Sb %
HURC012	Tornado	253627	8148872	6.95	69	-
HURC036	Tornado	253797	8148878	5.05	89	-
HURC045	Tornado	253795	8148879	4.27	82	-
HURC010	Tornado	253627	8148873	4.2	88	-
HURC056	Tornado	253772	8148877	3.39	76	-
HURC011	Tornado	253626	8148872	3.33	56	-
HURC049	Tornado	253777	8148876	3.22	74	-
HURC057	Tornado	253772	8148876	3.01	79	-
HURC021	Tornado	253561	8148881	2.98	77	-
HURC061	Tornado	253761	8148876	2.76	98	-
HURC042	Tornado	253790	8148878	2.55	72	-
HURC055	Tornado	253773	8148878	2.44	70	-
HURC060	Tornado	253769	8148873	2.44	56	-
HURC037	Tornado	253797	8148879	2.31	45	-
HURC059	Tornado	253768	8148877	2.08	35	-
HURC009	Tornado	253641	8148807	2.01	25	-
HURC013	Tornado	253616	8148873	1.94	18	-
HURC063	Tornado	253747	8148875	1.63	84	-
HURC058	Tornado	253773	8148876	1.55	40	-
HURC041	Tornado	253790	8148878	1.48	40	-
HURC035	Tornado	253797	8148877	1.37	51	-
HURC054	Tornado	253772	8148879	1.36	71	-
HURC002	Tornado	253618	8148831	1.23	30	-
HURC030	Tornado	253476	8148917	1.14	140	-
HURC006	Tornado	253632	8148837	0.98	43	-
HURC017	Tornado	253581	8148875	0.93	80	-
HURC029	Tornado	253480	8148914	0.85	69	-
HURC031	Tornado	253465	8148919	0.85	93	-
HURC024	Tornado	253510	8148905	0.84	88	-
HURC019	Tornado	253574	8148878	0.8	79	-
HURC038	Tornado	253797	8148880	0.8	23	-
HURC018	Tornado	253573	8148875	0.72	93	-
HURC015	Tornado	253586	8148875	0.67	74	-
HURC004	Tornado	253628	8148834	0.65	29	-
HURC020	Tornado	253567	8148880	0.65	69	-
HURC050	Tornado	253777	8148876	0.64	34	-
HURC053	Tornado	253772	8148880	0.64	34	-
HURC047	Tornado	253776	8148874	0.62	35	-
HURC048	Tornado	253777	8148875	0.6	34	-
HURC005	Tornado	253630	8148829	0.59	18	-
HURC003	Tornado	253624	8148834	0.57	22	-
HURC034	Tornado	253796	8148875	0.49	18	-
HURC022	Tornado	253550	8148883	0.46	101	-
HURC028	Tornado	253491	8148911	0.46	112	-
HURC007	Tornado	253637	8148816	0.44	18	-
HURC062	Tornado	253749	8148877	0.43	38	-
HURC033	Tornado	253457	8148925	0.41	68	-
HURC052	Tornado	253777	8148878	0.41	24	-
HURC001	Tornado	253616	8148832	0.37	31	-
HURC032	Tornado	253460	8148924	0.3	56	-
HURC016	Tornado	253588	8148881	0.27	66	-
HURC023	Tornado	253541	8148888	0.24	83	-
HURC027	Tornado	253493	8148910	0.24	74	-
HURC046	Tornado	253777	8148873	0.21	27	-
HURC026	Tornado	253500	8148904	0.18	80	-
HURC040	Tornado	253789	8148877	0.18	18	-
HURC064	Tornado	253741	8148876	0.18	38	-
HURC051	Tornado	253777	8148878	0.16	21	-
HURC043	Tornado	253791	8148875	0.11	24	-
HURC025	Tornado	253503	8148907	0.09	39	-
HURC008	Tornado	253626	8148814	0.03	13	-
HURC044	Tornado	253793	8148876	0.03	17	-
HURC014	Tornado	253603	8148874	0.02	18	-
HURC039	Tornado	253802	8148879	0.01	22	-
HURC079	Cyclone	253033	8148688	4.65	200	-
HURC080	Cyclone	253037	8148683	3.93	143	-
HURC071	Cyclone	253346	8148402	2.12	261	-
HURC083	Cyclone	-	-	2	1270	-
HURC073	Cyclone	253312	8148440	1.9	231	-
HURC087	Cyclone	-	-	1.9	52	-
HURC076	Cyclone	253251	8148489	1.84	74	-
HURC085	Cyclone	-	-	1.61	492	-
HURC065	Cyclone	253367	8148384	1.54	164	-
HURC084	Cyclone	-	-	1.53	100	-
HURC072	Cyclone	253319	8148434	1.5	217	-
HURC066	Cyclone	253365	8148382	0.99	159	-
HURC082	Cyclone	253021	8148692	0.97	118	-
HURC081	Cyclone	253009	8148698	0.89	180	-
HURC070	Cyclone	253352	8148395	0.77	219	-
HURC069	Cyclone	253355	8148393	0.64	155	-
HURC068	Cyclone	253360	8148387	0.61	88	-
HURC088	Cyclone	-	-	0.58	57	-
HURC067	Cyclone	253364	8148377	0.55	139	-
HURC086	Cyclone	-	-	0.36	122	-
HURC077	Cyclone	253236	8148504	0.35	92	-
HURC074	Cyclone	253285	8148463	0.32	194	-
HURC089	Cyclone	-	-	0.29	40	-
HURC075	Cyclone	253262	8148480	0.22	102	-
HURC090	Cyclone	-	-	0.18	21	-
HURC078	Cyclone	253234	8148506	0.16	84	-
HURC091	Cyclone	-	-	0.11	32	-
HURC100	Holmes	252504	8148026	8.19	704	-
HURC106	Holmes	252532	8148018	7.67	4260	-
HURC111	Holmes	252533	8148016	6.92	4270	-
HURC120	Holmes	252507	8148047	3.17	8050	-
HURC112	Holmes	252537	8148011	2.93	1615	-
HURC123	Holmes	252514	8148053	2.92	1070	-
HURC103	Holmes	252500	8148027	2.3	>10000	29.0
HURC107	Holmes	252533	8148018	2.2	1545	-
HURC108	Holmes	252534	8148018	2.09	4180	-
HURC119	Holmes	252532	8148028	1.88	1490	-
HURC121	Holmes	252509	8148047	1.86	1755	-
HURC109	Holmes	252535	8148017	1.23	9600	-
HURC097	Holmes	252512	8148027	1.17	182	-
HURC101	Holmes	252501	8148027	1.13	>10000	29.0
HURC122	Holmes	252514	8148050	0.97	500	-
HURC099	Holmes	252509	8148029	0.6	145	-
HURC115	Holmes	252535	8148034	0.57	706	-
HURC118	Holmes	252532	8148028	0.5	288	-
HURC093	Holmes	252507	8148030	0.45	128	-
HURC124	Holmes	252516	8148034	0.43	635	-
HURC117	Holmes	252534	8148035	0.36	132	-
HURC104	Holmes	252501	8148028	0.34	2680	-
HURC116	Holmes	252534	8148035	0.33	200	-
HURC098	Holmes	252513	8148029	0.25	163	-
HURC102	Holmes	252505	8148024	0.24	190	-
HURC095	Holmes	252507	8148027	0.21	236	-
HURC092	Holmes	252507	8148032	0.14	100	-
HURC094	Holmes	252507	8148028	0.14	102	-
HURC114	Holmes	252535	8148034	0.14	535	-
HURC096	Holmes	252509	8148026	0.13	103	-
HURC113	Holmes	252536	8148025	0.06	295	-
HURC110	Holmes	252536	8148021	0.04	200	-
HURC105	Holmes	252536	8148025	0.03	468	-
HURC125	Holmes	252527	8148205	0.02	17	-

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.