REG - ECR Minerals PLC - Hurricane Option Extension & Rock Chip Results
02/10/2023 07:15
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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
(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 (mailto:info@ecrminerals.com)
Website: www.ecrminerals.com
(http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.ecrminerals.com%2F&esheet=51817334&newsitemid=20180605005810&lan=en-US&anchor=www.ecrminerals.com&index=1&md5=820ad49dc1fc2c84a0538453c017bc1b)
WH Ireland Ltd 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 Limited Tel: +44 (0) 20 7399 9425
Broker
Jon Belliss
Brand Communications Tel: +44 (0) 7976 431608
Public & Investor Relations
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 km(2) 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 -
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