REG - ECR Minerals PLC - Operational Update - Tambo Gold Project, Victoria

ECR MineralsAnnouncement

20/12/2024 07:00

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RNS Number : 8447Q  ECR Minerals PLC  20 December 2024

ECR MINERALS PLC

 

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

 

Operational Update - Tambo Gold Project, Victoria

 

ECR Minerals plc (LON: ECR), the exploration and development company focused
on gold in Australia, is pleased to provide an update on its recently
concluded diamond drilling campaign at the Duke of Cornwall Prospect within
the Tambo Gold Project in Victoria, Australia (the "Tambo Gold Project"),
including the results from Drill Holes DOCD001 and DOCD005.

 

Summary Of Drilling Results

 

·    Drill Hole DOCD005 returned 1 metre @ 0.72 g/t Au from 108 metres

·    Drill Hole DOCD001 returned no significant intercepts

·    Best results from the overall programme include 0.4 metres @ 8.51 g/t
Au from Drill Hole DOCD002 and 0.15 metres at 10.6 g/t Au from Drill Hole
DOC004

 

Tambo Gold Project

 

The diamond drilling campaign consisted of five diamond drill holes (DOCD001 -
DOCD005) over a total depth of 428 metres. The campaign's objective was to
investigate the structural controls on gold mineralisation and associated
geochemical haloes, particularly beneath and adjacent to the historical Duke
of Cornwall mine workings.

 

Drilling Program Overview (see figure 1 below)

 

DOCD005 - Northern Extension

 

DOCD005 was drilled to a total depth of 117.8 metres and intersected two
quartz veins at the northern extremities of the Duke of Cornwall Lode system,
approximately 70 metres below the historical mine workings. Mineralisation was
encountered at one interval (1 metre @ 0.72 g/t Au from 108 metres), with no
significant gold intercepts reported from the other intervals tested.
Geochemical analysis suggests that the DOCD005 mineralisation area lies
outside the primary gold-bearing system which indicates a secondary control
plunging the mineralisation along strike. The results are considered to
indicate the potential for mineralisation in untested areas which are now
better understood from this drilling campaign.

 

DOCD002 - High-Grade Opportunity

 

As announced on 20 November 2024, Drill hole DOCD002 was drilled to a total
depth of 84.35 metres at the southern end of the Lode and returned a
significant best intercept of 0.4 metres @ 8.51 g/t Au, indicating the
potential for high-grade zones at depth. This area remains a high-priority
target for follow-up drilling to test for continuity and extensions at depth.

 

DOCD001

 

No significant gold intercepts have been reported from the intervals tested
from drill hole DOCD001 which was drilled to a total depth of 69.7 metres.

 

Structural Insights

 

The campaign provided valuable structural data, confirming the association of
gold mineralisation with quartz veining adjacent to the main shear zone. A
secondary control, possibly plunging concentrations of mineralisation along
strike, is starting to be evidenced by the drilling and will be studied in
more detail. The Duke of Cornwall Lode system remains largely untested, with
approximately 80% of its strike length unexplored.

 

Programme Summary

 

The drilling campaign successfully demonstrated that mineralisation continues
at depth below the old mine workings in key areas and considerably enhanced
the Company's geological understanding of the prospect. The structural
insights gained will inform the design of future campaigns aimed at targeting
high-grade zones and testing the unexamined central portions of the Lode. Even
holes that encountered no gold mineralisation, DOCD001 and DOCD003, are
considered to have added valuable insights, including in the case of DOCD003,
delineating the location of the shear zone and controls on mineralisation. It
is noted that at surface the rock chip channel sample from the Eastern Cut
(0.25 metres @ c. 25 g/t Au as illustrated in Figure 1 in the announcement on
20 November 2024) plots only 10 metres east of the trace of DOCD003, showing
the likely secondary controls that have been partially discovered by this
first pass drilling programme.

 

Next Steps

 

ECR intends to design a follow-up drilling campaign focusing on deeper
exploration beneath the high-grade zones identified in DOCD002 and DOCD004 as
well as incorporating the structural and geochemical insights gained to
explore central portions of the Lode, which remain prospective for gold
mineralisation. The Company remains committed to advancing its exploration
assets at the Tambo Gold Project while continuing to evaluate potential
corporate opportunities. Further updates will be provided in due course.

 

Lolworth Project update

 

A number of additional rock chip samples from Lolworth have been sent for
laboratory analysis, with the results expected in January 2025. The results
from geochemical analysis on samples taken from the Oaky Creek prospect in the
central-north area of the Lolworth Project will be announced in due course
once received.

 

The Directors are optimistic regarding the potential of the Lolworth Project
and, as announced on 25 November 2024, part of the net proceeds of the
Company's recent fundraise are intended to be used to re-start the field
campaign in Lolworth in the second quarter of 2025, drawing on the Company's
partnership with the Geological Survey of Queensland to further investigate
the critical minerals potential at the project. On 29 November 2024, the
Company announced a collaboration with James Cook University in relation to
analysing and interpreting the mineral data from the Lolworth Project area to
enhance the understanding of its rare earth elements potential.

 

Update on potential sale of non-core assets

 

Further to the Company's announcement on 26 November 2024 and previously,
discussions with the potential buyer of ECR's subsidiary, Mercator Gold
Australia Pty Ltd ("MGA"), in order to effect a sale of the Company's A$75
million of tax losses continue to progress and the Company expects to reach an
agreement in principle on the proposed transaction structure in the coming
weeks. Thereafter, it is anticipated that the parties' respective legal
advisers will prepare the formal sale documentation with completion expected
within the exclusivity timeframe to 31 January 2025, as previously announced.

 

As previously announced, the proposed transaction is likely to necessitate a
restructuring of MGA as such that it comprises only non-core assets. There can
be no certainty that final binding terms will be agreed, nor as to the timings
or final terms, structure or quantum of the potential disposal. Depending on
the final terms that are agreed for any transaction to realise the tax losses,
as well as the structure of the transaction, it is possible, but not
guaranteed, that the potential disposal of MGA may be a fundamental change of
business pursuant to Rule 15 of the AIM Rules for Companies. If applicable,
this would require, amongst other items, the transaction to be conditional on
the consent of shareholders being given in a general meeting; a shareholders
circular detailing the terms of the transaction and certain other disclosures
as set out in the AIM Rules. Further updates on the way forward will be
provided in due course as matters are progressed.

 

Adam Jones, ECR's Chief Geologist, said: "The initial drilling at Duke of
Cornwall has provided valuable structural insights, confirming that
mineralisation extends 70 metres below the old workings, though outside the
main Lode. The standout result from DOCD002, with 0.4 metres @ 8.51 g/t Au,
highlights the potential for high-grade zones at depth, making it a key target
for follow-up drilling. Coupled with the promising earlier rock chip results,
the Tambo Gold Project demonstrates the significant potential within ECR's
portfolio. The structural and geochemical data from this campaign will play a
vital role in advancing our exploration strategy, and we look forward to
updating shareholders as we progress."

 

Technical Disclosure

 

All sampling and drilling were conducted in accordance with industry best
practice, and all assays were performed by an independent, accredited
laboratory.

 

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.

Figure 1: Plan View of Drilling Locations At Duke Of Cornwall Lode

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

 

 ECR Minerals Plc                                                                                                                                                                                                                                                     Tel: +44 (0) 1738 317 693
 Nick Tulloch, Chairman

 Andrew Scott, Director

 Email:

 info@ecrminerals.com
 Website: www.ecrminerals.com
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 Allenby Capital Limited                                                                                                                                                                                                                                              Tel: +44 (0) 3328 5656
 Nominated Adviser                                                                                                                                                                                                                                                    info@allenbycapital.com (mailto:info@allenbycapital.com)

 Nick Naylor / Alex Brearley / Vivek Bhardwaj

 Axis Capital Markets Limited                                                                                                                                                                                                                                         Tel: +44 (0) 203 026 0320
 Broker
 Ben Tadd / Lewis Jones

 SI Capital Ltd                                                                                                                                                                                                                                                       Tel: +44 (0) 1483 413500
 Broker
 Nick Emerson

 Brand Communications                                                                                                                                                                                                                                  Tel: +44 (0) 7976 431608
 Public & Investor Relations
 Alan Green

 

Glossary

 

 Au:    Gold
 g/t:   Grammes per Tonne (Metric)
 km:    Kilometres (Metric)
 km²:   Kilometre squared (Metric)
 Lode:  A deposit of metalliferous ore that fills a fissure

 

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 has also submitted a license application at Kondaparinga which is
approximately 120km(2) 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.

 

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