REG-ECR Minerals plc Drilling Success at Creswick Gold Project, Victoria, Australia

ECR MineralsAnnouncement

19/07/2021 09:00

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Drilling Success at Creswick Gold Project, Victoria, Australia

 

ECR MINERALS plc

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

ONGOING DRILLING SUCCESS AT CRESWICK GOLD PROJECT PROVIDES A DEEPER
UNDERSTANDING OF DIMOCKS MAIN SHALE PROSPECTIVITY

ECR Minerals plc (LON: ECR), the gold exploration and development company
focused on Australia, is pleased to announce a drilling update from the
Creswick Gold project (the “Project”), in the Victoria Goldfields,
Australia. The Project is 100%-owned by ECR’s wholly owned Australian
subsidiary Mercator Gold Australia Pty Ltd (“MGA”).

HIGHLIGHTS


 * Diamond drilling along the Dimock Main Shales (DMS) trend has continued to
delineate gold mineralisation along the strike zone in a southerly direction
from the first drill hole at CSD001. This is outlined in detail under
‘Technical Information’ and at Figure 1 and Figure 2 below.


 * To date six holes have been completed, four holes have been fully assayed,
with final gold assays now received for holes (CSD001, CSD002, CSD003 and
CSD004).


 * Drill holes have tested near the centre and near the southern end of the
tenement to gain a full overview of the prospectivity of the trend across the
whole tenement. The drilling in the centre of the tenement (CSD003 &
CSD004) tested a portion of the system with no historic mining.


 * All holes drilled to date have hit multiple and significant zones of quartz
and all holes with assays returned have intercepted gold, with the best
results from CSD003 drilled where there were no historic workings.


 * Assay results received include; 1m @ 4.78 g/t Au from hole (CSD002) and 0.95m
@ 9.93 g/t and 0.95m @ 23.58 g/t Au both respectively from (CSD003).


 * Diamond drilling has just been completed for holes CJD001 and CSD005,
confirming structures hosting quartz, parallel to and within the Dimocks Main
Shales, are persistent along strike to the south of CSD001 and CSD002. Assays
results will be provided following receipt and interpretation.

Craig Brown, Chief Executive Officer, commented:

“I am pleased to report continued positive progress for the Creswick drill
programme. The aggressive drilling campaign undertaken by our contractors at
Creswick continues apace, and the consequential raft of core data and
intelligence processed by the core shed in Bendigo is now providing our
geological team with a much deeper understanding of the prospectivity of the
trend across our license areas.

I am also pleased to report that assay results from hole CSD001, the first
drill hole of the campaign, show we have intersected gold, a factor that is
particularly significant considering that CSD001 is the first diamond hole
into the DMS in the entire tenement.

We are delighted with Holes CSD003 and CSD004, which have provided our best
gold intersections yet on this 2021 diamond drilling programme of 9.93g/t and
23.58g/t gold. The work undertaken in the current campaign has enabled us to
locate and confirm the position of the DMS, and increase our understanding of
the types of folding and faulting within the system to assist with ongoing
drill targeting.

To date 6 drill holes have been completed successfully and safely at the
Project, with 4 holes now assayed and all containing gold.

Overall, the assay results to date have delivered the outcome we were all
hoping for, and I would like to put on record my thanks to Adam Jones, Dr. Rod
Boucher and the drilling and core shed teams for their hard work that has
delivered a considerable amount of data and information in a very short space
of time. I look forward to reporting to the market with regard to further
assay results, and their geological significance following analysis.”

TECHNICAL INFORMATION

Note: Quartz develops in the thicker shales, particularly where intercepted by
east-dipping faults. As previously hypothesised by the company, the geology is
complex and some work is needed to fully understand the faulting and folding.

Preliminary interpretations of the latest three holes are provided below.

All quartz zones show variable sericite-carbonate-chlorite alteration but are
low in sulphides.

CSD002

Following on from the success of CSD001, hole CSD002 was drilled from the same
site, but at a steeper dip to CSD001. CSD002 was collared 10m to the west of
CSD001 and drilled to test projected parasitic folding and an interpreted low
angle fault hosting gold mineralisation as seen at 131.9m in CSD001. CSD002
drilled through the projected fault with associated significant quartz
mineralisation at a depth of 108.5m. Assay results show this section of quartz
to contain no significant gold mineralisation despite visual similarities to
the gold-bearing quartz in the first hole. Drilling passed through further
quartz and pyrite at a depth of 173.2m. Gold is present within this structure,
with assays returning 1m @ 4.78 g/t Au from 173.1m. CSD002 was drilled to a
final length of 215.2m.

Geological correlation between CSD001 and CSD002 shows gold mineralisation to
have some spatial interplay between sub-vertical quartz veining and the offset
of the low angle fault. The faulting and folding in the holes is complex and
work is ongoing to fully map these out and better define targets.

Figure 1 showing the preliminary geological interpretation between CSD001 and
CSD002:

https://mercatorgold.com.au/images/fig1_CSD002_210713c.jpg
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fmercatorgold.com.au%2Fimages%2Ffig1_CSD002_210713c.jpg&esheet=52461726&newsitemid=20210719005262&lan=en-US&anchor=https%3A%2F%2Fmercatorgold.com.au%2Fimages%2Ffig1_CSD002_210713c.jpg&index=1&md5=504b2621ccf19a14b8855708fd25a845)

CSD003 and CSD004

CSD003 and CSD004 were drilled 900m on strike to the south from CSD001 and
CSD002. This drill location has no known historical gold workings nearby, the
closest workings being over 200m to the north.

CSD003 was collared in at a dip of -65 and drilled towards the east. The
drillhole passed through multiple parasitic folds on a larger west dipping
fold similar as noted in CSD001 and CSD002. Bedding parallel quartz with
associated carbonate bleaching was passed through at a depth of 83.2m. A
second, parallel zone of quartz was passed through at 89.05m depth. These two
quartz intersections returned 0.95m @ 9.93 g/t Au from 84.2m and 0.95m @ 23.58
g/t Au from 89.05m. Drilling continued to a depth of 191.9m. These
intersections represent the true width of the gold quartz veins.

CSD004 was collared as a scissor hole to CSD003 to test for the westward
continuation of the main structural zone and to drill beneath veins
outcropping down the adjacent hillslope. Structures hosting quartz
mineralisation were drilled through at 114m and at 124.7m depth. Veining was
found to have widths of up to 1 metre and consisted of chlorite and carbonate
bleaching. Only one assay returned anomalous gold; 1m @ 0.18 g/t Au from
125.7m. CSD004 ended at 207.1m

With the success of CSD003, there are plans for additional drillholes to
follow the continuity of the high gold mineralisation.

Figure 2 showing geological interpretation section through CSD003 and CSD004:
https://mercatorgold.com.au/images/fig2_CSD003_004_210714.jpg
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fmercatorgold.com.au%2Fimages%2Ffig2_CSD003_004_210714.jpg&esheet=52461726&newsitemid=20210719005262&lan=en-US&anchor=https%3A%2F%2Fmercatorgold.com.au%2Fimages%2Ffig2_CSD003_004_210714.jpg&index=2&md5=622fe5e90649d2b4015ec97ee7f942ad)

Table 1 Intercepts from holes CSD002, CSD003 and CSD004
 HOLE ID  EASTING (GDA Zone 54)  NORTHING (GDA Zone 54)  Dip  AZIMUTH (True North)  TOTAL DEPTH (metres)  AVERAGE GRADES OF MINERALISATION*   
 CSD002   759261                 5854636                 -65  101                   215.2                 -1m @ 4.78 g/t Au from 173.1m       
                                                                                                          
                                   
                                                                                                          -0.6m @ 0.22 g/t Au from 65.9m      
                                                                                                          
                                   
                                                                                                          -0.35m @ 0.39 g/t Au from 179.85m   
 CSD003   759244                 5853704                 -65  096                   191.9                 -0.95m @ 23.58 g/t Au from 89.05m   
                                                                                                          
                                   
                                                                                                          -0.95m @ 9.93 g/t from 84.2m        
                                                                                                          
                                   
                                                                                                                                              
 CSD004   759253                 5853702                 -67  281                   207.1                 1m @ 0.18 g/t Au from 125.7m        


*no other intercepts returned significant levels of gold.

FURTHER INFORMATION

A total of 6 drillholes have been completed to date on the Creswick gold
project. Out of these, assays have been returned from 4 of the holes and each
of these contain gold, including the scissor hole (CSD004) that was drilled in
the opposing direction away from the main structural zone to test peripheral
structures. In particular two of these show high-grades (CSD001 CSD003).
Current drilling activity is focussing on assessing the strike extent of
quartz mineralisation associated with a series of shallow historical gold
workings along the Dimocks Main Shale trend between sites CSD001-CSD002 and
CSD003-004. There is a strike length of 900m between these two initial drill
sites that has not been drilled before. The Directors believe Mercator Gold
Australia (MGA) is the first company in history to undertake such mineral
exploration in this region to such a high level, and plans are underway to
cover the shallow, up-dip extensions of drilled quartz reefs by soil
geochemistry.

Results are pending for recently drilled CJD001, which is our most southerly
drilled hole along strike to date (2km south of CSD001-CSD002). Significant
quartz veining has been intersected within this hole.

Visual evidence of the limited extent of hard-rock gold workings and the
mapped extent of eroded alluvial gold workings leading up to the Dimocks Main
Shale area provide a practical demonstration to show the potential strike
length of this gold system (see announcement 25 September 2018 -
https://www.investegate.co.uk/ecr-minerals-plc--ecr-/bus/exploration-mapping-reveals-large-gold-system---creswick-australia/20180925090000Z6056/
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.investegate.co.uk%2Fecr-minerals-plc--ecr-%2Fbus%2Fexploration-mapping-reveals-large-gold-system---creswick-australia%2F20180925090000Z6056%2F&esheet=52461726&newsitemid=20210719005262&lan=en-US&anchor=https%3A%2F%2Fwww.investegate.co.uk%2Fecr-minerals-plc--ecr-%2Fbus%2Fexploration-mapping-reveals-large-gold-system---creswick-australia%2F20180925090000Z6056%2F&index=3&md5=05d1018bf25e46eff5ac648e0022a4b1)
). Furthermore, as announced on 23 March 2021
(https://www.investegate.co.uk/ecr-minerals-plc/bus/annual-financial-report/20210323132000Z3358/
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.investegate.co.uk%2Fecr-minerals-plc%2Fbus%2Fannual-financial-report%2F20210323132000Z3358%2F&esheet=52461726&newsitemid=20210719005262&lan=en-US&anchor=https%3A%2F%2Fwww.investegate.co.uk%2Fecr-minerals-plc%2Fbus%2Fannual-financial-report%2F20210323132000Z3358%2F&index=4&md5=536c8eaf9eb54ac920d46889d59e23bd)
), MGA has applied for additional licenses EL006713 and EL006907 on the
southern extension of this vein system to the south.

REVIEW OF ANNOUNCEMENT BY QUALIFIED PERSON

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

MARKET ABUSE REGULATIONS (EU) No. 596/2014

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 (MAR). Upon the publication of this announcement via
Regulatory Information Service (RIS), this inside information is now
considered to be in the public domain.

FOR FURTHER INFORMATION, PLEASE CONTACT:
 ECR Minerals plc                                                                                                                                                                                                                                        Tel: +44 (0)20 7929 1010      
 David Tang, Non-Executive Chairman                                                                                                                                                                                                                                                    
 Craig Brown, Director & CEO                                                                                                                                                                                                                                                           
 Email:                                                                                                                                                                                                                                                                                
 
                                                                                                                                                                                                                                                                                     
 info@ecrminerals.com (mailto:info@ecrminerals.com)                                                                                                                                                                                                                                    
 Website: www.ecrminerals.com                                                                                                                                                                                                                                                          
 (https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.ecrminerals.com%2F&esheet=52461726&newsitemid=20210719005262&lan=en-US&anchor=www.ecrminerals.com&index=5&md5=824b8c06d4a86b6610fe65a1ac670c76)                                                                 
                                                                                                                                                                                                                                                                                       
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Brand Communications

Public Relations Tel: +44 (0) 7976 431608

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 eight licence applications outstanding including two
licence applications lodged in eastern Victoria. (Tambo gold project). MGA is
currently drilling at both the Bailieston and Creswick projects and has an
experienced exploration team with significant local knowledge in the Victoria
Goldfields and wider region.

https://mercatorgold.com.au/
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fmercatorgold.com.au%2F&esheet=52461726&newsitemid=20210719005262&lan=en-US&anchor=https%3A%2F%2Fmercatorgold.com.au%2F&index=6&md5=d15bb393125dba97b6e4e895e24607e9)

ECR also owns 100% of an Australian subsidiary LUX Exploration Pty Ltd
(“LUX”) which has three licence applications covering 900 km2 covering a
relatively unexplored area in Queesnland, Australia.

https://luxexploration.com/
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fluxexploration.com%2F&esheet=52461726&newsitemid=20210719005262&lan=en-US&anchor=https%3A%2F%2Fluxexploration.com%2F&index=7&md5=6d5e88d5a1fde9966d7efd3ff2c6b766)

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 has earned a 25% 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 resources. 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.



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ECR Minerals plc


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