REG - ECR Minerals PLC - Creswick drill results indicate larger ore bodies

ECR MineralsAnnouncement

08/04/2024 07:15

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RNS Number : 6491J  ECR Minerals PLC  08 April 2024

ECR MINERALS plc

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

Creswick drilling results

Illustrates potentially extensive presence of larger ore bodies

ECR Minerals plc (LON: ECR), the exploration and development company focused
on gold in Australia, is pleased to provide additional results from its
drilling programme at the Kuboid Hill site in its Creswick tenement.
Significantly, this drilling campaign has demonstrated quartz/gold
mineralisation continuity in the Creswick area with results having the
hallmarks of a potential future small scale operation.

HIGHLIGHTS

●     Two high grade results of 8.87g/t Au and 8.06g/t Au over 1 metre.

●     Far more significant is the extensive broad mineralisation
demonstrated in several holes where contiguous gold is present at 3.05g/t Au
over 3 metres, 2.25g/t Au over 4 metres and 1g/t Au over 5 metres.

●     This compares very favourably with historical mining operations
elsewhere in Victoria with broad mineralisation where those grades averaged
around 0.7 g/t Au.

●     Aggregated 51 metres of mineralized quartz.

●     The drilling returned significant intercepts with evidence of
anomalous gold within 14 of the 15 holes drilled.

●     Bulk sample testing at Creswick has indicated in the past both
greater prevalence and higher grades of gold and this is being carried out now
on the results for Kuboid Hill.

A total of 1,025 metres of reverse circulation drilling was completed at
Kuboid Hill on 16 February 2024 ("Kuboid Hill Programme"). This was the
second part of an extended reverse circulation drilling programme, following
on from an original drilling programme of 522 metres completed at Davey Road
where ECR reported a best overall grade gold of 41.03g/t Au (for full details
of the results see announcement dated 12 February 2024). The Kuboid Hill
Programme was designed to follow up on the Company's anomalous gold soil
sampling campaign that was completed in 2022 which indicated the potential for
a broader system which can now be seen in the today's results. The drilling
also tested best practices for first pass drilling evaluation at Creswick
where operators have had historical challenges of reporting a representative
broad mineralisation gold grade due to the coarse and random nature of gold
that is very often present in Central Victoria.

ECR has now received laboratory results for 15 out of the 17 holes drilled at
Kuboid Hill, comprising leaching and fire assay. As with the Davey Road
analysis, due to the nature of the course gold expected in this region, ECR
then utilises dry-blowing and pan concentration on the 'leftovers' from the
preliminary drilling results to reduce the gold bias and potentially coalesce
the overall Au g/t result. These bulk samples results will follow in due
course with the results from the final two holes also anticipated very soon.
I.

The best individual grades so far are from two holes: 1m @ 8.87g/t Au (hole
KHRC001) and 1m @ 8.06g/t Au (hole KHRC016).

Details of current drilling and significant intercepts > 1g/t

 HOLEID   From (m)  To (m)  Interval (m)  Sample ID  Au g/t
 KHRC001  9         10      1             CRC1538    8.87
 KHRC016  50        51      1             CRC1146    8.06
 KHRC012  30        31      1             CRC718     3.11
 KHRC010  24        25      1             CRC547     2.23
 KHRC009  23        24      1             CRC608     2.18
 KHRC007  20        21      1             CRC1183    1.96
 KHRC010  23        24      1             CRC546     1.95
 KHRC011  27        28      1             CRC789     1.28
 KHRC014  42        43      1             CRC853     1.25

 

However, what is far more significant is the extensive broad mineralisation
demonstrated in several holes where contiguous gold is present at 3.05g/t Au
over 3 metres, 2.25g/t Au over 4 metres and 1g/t Au over 5 metres. The
drilling recorded intercepts greater than 0.5 g/t Au average over a total of
51 metres with the broadest identified mineralised zone being over 15 metres
(KHRC010). All intercepts align along strike and dip to the same mineralised
zone under Kuboid Hill. Previous drilling campaigns within the Creswick
project have only identified narrow veins (often less than 1 metre) and
high-grade gold mineralisation styles.

Identified Broad Mineralised Zones with intercepts

 HOLEID   From (m)  To (m)  Interval (m)  SampleID  Au g/t  Drilled intercept composite grade
 KHRC001  9         10      1             CRC1538   8.87    4m @ 2.41 g/t Au
 KHRC001  10        11      1             CRC1539   0.03
 KHRC001  11        12      1             CRC1540   0.26
 KHRC001  12        13      1             CRC1541   0.46
 KHRC006  7         8       1             CRC1218   0.96    4m @ 0.52 g/t Au
 KHRC006  8         9       1             CRC1219   0.03
 KHRC006  9         10      1             CRC1220   0.63
 KHRC006  10        11      1             CRC1221   0.45
 KHRC007  19        20      1             CRC1182   0.77    6m @ 0.57 g/t Au
 KHRC007  20        21      1             CRC1183   1.96
 KHRC007  21        22      1             CRC1184   0.12
 KHRC007  22        23      1             CRC1185   0.05
 KHRC007  23        24      1             CRC1186   0.32
 KHRC007  24        25      1             CRC1187   0.2
 KHRC009  17        18      1             CRC601    0.45    8m @ 0.52 g/t Au
 KHRC009  18        19      1             CRC602    0.12
 KHRC009  19        20      1             CRC604    0.03
 KHRC009  20        21      1             CRC605    0.14
 KHRC009  21        22      1             CRC606    0.58
 KHRC009  22        23      1             CRC607    0.03
 KHRC009  23        24      1             CRC608    2.18
 KHRC009  24        25      1             CRC609    0.59
 KHRC010  20        21      1             CRC543    0.51    15m @ 0.51 g/t Au
 KHRC010  21        22      1             CRC544    0.2
 KHRC010  22        23      1             CRC545    0.03
 KHRC010  23        24      1             CRC546    1.95
 KHRC010  24        25      1             CRC547    2.23
 KHRC010  25        26      1             CRC548    0.22
 KHRC010  26        27      1             CRC549    0.14
 KHRC010  27        28      1             CRC550    0.03
 KHRC010  28        29      1             CRC551    0.35
 KHRC010  29        30      1             CRC552    0.32
 KHRC010  30        31      1             CRC553    0.03
 KHRC010  31        32      1             CRC554    0.41
 KHRC010  32        33      1             CRC555    0.79
 KHRC010  33        34      1             CRC556    0.03
 KHRC010  34        35      1             CRC557    0.43
 KHRC012  27        28      1             CRC715    0.76    5m @ 1.00 g/t Au
 KHRC012  28        29      1             CRC716    0.26
 KHRC012  29        30      1             CRC717    0.21
 KHRC012  30        31      1             CRC718    3.11
 KHRC012  31        32      1             CRC719    0.67
 KHRC014  42        43      1             CRC853    1.25    3m @ 0.53 g/t Au
 KHRC014  43        44      1             CRC854    0.13
 KHRC014  44        45      1             CRC855    0.2
 KHRC016  46        47      1             CRC1142   0.27    6m @ 1.55 g/t Au
 KHRC016  47        48      1             CRC1143   0.03
 KHRC016  48        49      1             CRC1144   0.38
 KHRC016  49        50      1             CRC1145   0.42
 KHRC016  50        51      1             CRC1146   8.06
 KHRC016  51        52      1             CRC1147   0.16

 

Whilst this is still early stage, this drilling campaign at Kuboid Hill is the
first time that ECR has demonstrated that broad-scale quartz/gold
mineralisation exists in the Creswick area. Also significantly broad
mineralisation is also present at shallow vertical depths. This compares very
well with historical small-scale commercial mining operations elsewhere in
Victoria with similar broad mineralisation where those grades averaged around
0.7 g/t Au (examples being the Bailieston open pit and the Nagambie open pit).
Furthermore these previous mines were established when the gold price was much
lower than it is today.

Drilling at Kuboid Hill was some 8km west of previous exploration undertaken
at Davey Road which is associated with, or close to, the Dimocks Main Shale
corridor ("DMS"). Kuboid Hill falls within another parallel mineralised system
approximately 8km west of the DMS and shows early signs of the potential to
generate a low-grade, bulk tonnage proposition. This is the first type of
modern exploration applied within this part of Creswick.

ECR's next steps are to dry-blow bulk sampling of anomalous and broad
mineralisation zones as described above. This follow-on step at Davey Road
produced some enhancement of the results there.  These preliminary results
from Kuboid Hill took some time to assemble given the extent of mineralisation
zones but the Company anticipates the results of the final two drill holes and
the bulk sampling will be completed more quickly.  A further announcement
will be made in due course.

Mike Whitlow Chief Operating Officer said: "These results point to, what the
directors believe is, a significant breakthrough at Creswick where the
geological features demonstrate a distinct difference from the challenges
historically faced in the region which we have previously understood to be
predominated by the sporadic or random nature of coarse nuggety gold.  With
this new analysis what we now understand is that Kuboid Hill has a potentially
extensive presence of larger ore bodies from much broader quartz/gold
mineralised zones.

"Our Creswick tenement covers a total of 192 square kilometres and investors
will be aware that ECR has undertaken a considerable amount of work on our
prospects there.  We still have more to do but, importantly, what we can now
see is the commercial potential in the aggregated 51 metres of mineralized
quartz.  Investors may recall a video released in January of this year
featuring our Chairman, Nick Tulloch, and Chief Geologist, Adam Jones,
standing in front of the former open pit gold mine just to the north of our
Baileston tenement.  To set today's results in context, that Baileston mine
produced approximately 20,000 oz at an average grade of around 0.7g Au/t, and
whilst ECR's Creswick tenement is still early stage, and there can be no
guarantee it will produce gold, we consider this indicative of the potential
in this area.

"We look forward to reporting our bulk samples shortly and, further to the
placing we announced on 14 March 2024, we will shortly finalise and announce
our 2024 work programme in Victoria and Queensland."

REVIEW OF ANNOUNCEMENT BY QUALIFIED PERSON

This announcement has been reviewed by Adam Jones, Chief Geologist 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
 Nick Tulloch, Chairman

 Andrew Scott, Director

 Email:

 info@ecrminerals.com (mailto:info@ecrminerals.com)
 Website: www.ecrminerals.com
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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 has also submitted a license application at Kondaparinga which is
approximately 120km2 in area and located within the Hodgkinson Gold
Province, 80km NW of Mareeba, North 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), MGA 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.  MGA also has approximately A$75
million of unutilised tax losses incurred during previous operations.

 

ECR holds a 90% interest in the Danglay gold project in the Philippines and a
royalty on the SLM gold project in La Rioja Province, Argentina which could
potentially receive up to US$2.7 million in aggregate across all licences.

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