REG-ECR Minerals plc Proposed Acquisition of Blue Mountain Project, Queensland
05/04/2023 11:30
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Proposed Acquisition of Blue Mountain Project, Queensland
ECR MINERALS plc
(“ECR Minerals”, “ECR” or the “Company”)
Proposed Acquisition of Blue Mountain Project, Queensland
ECR Minerals plc (LON: ECR), the exploration and development company focused
on gold in Australia is pleased to announce it has today entered into a
conditional agreement to acquire, through its subsidiary Lux Exploration Pty
Limited, a 100% interest in the Blue Mountain Project, Queensland, Australia,
which also includes the Denny Gully Gold project (the “Proposed
Acquisition”). The total consideration under the agreement is GBP200,000
which is to be settled by the issue of 31,913,196 ordinary shares at a price
of 0.6267p (being the 30-day VWAP prior to the date of the Agreement), if the
condition precedent is satisfied.
The Proposed Acquisition is conditional upon ECR obtaining Australian
Ministerial approval for the transfer of the tenements comprising the Blue
Mountain Project.
Background
The Blue Mountain project consists of exploration permits EPM 27175 and EPM
27183, situated some 95 kilometres south southwest of the Gladstone port and
industrial complex and, more specifically, lies about 35 kilometres southeast
of Biloela, the small regional pastoral- agricultural-coal mining centre in
Queensland (see Figure 1 below).
Based on reports from previous explorers, the directors believe that there is
significant nascent potential at the project.
HIGHLIGHTS
* Conditional agreement to acquire Blue Mountain project, Queensland, Australia,
which includes the Denny Gully Gold project, for 31,913,196 Ordinary Shares in
the Company.
* Ordinary Shares priced at the Issue Price, being an amount equivalent to the
Volume Weighted Average Price (VWAP) of trading in ECR’s shares on AIM over
the 30 days prior to execution of the agreement.
ECR CEO Andrew Haythorpe commented: “In laying out our vision for ECR in the
strategy presentations in 2022, the Board were clear that ECR would not only
examine and consider potentially accretive acquisitions, but that we would
also shortlist projects enabling us to maximise logistical efficiencies in
regard to our areas of operation.”
“The Blue Mountain marks our third and most southerly project in Queensland.
The Board is of the opinion that with our extensive Queensland knowledge and
experience we believe the project can be explored for the primary (hard rock)
source of the gold in the coming months. We look forward to getting on the
ground at Blue Mountain and Denny Gully and reporting back as soon as
possible.”
Details of the Transaction
Panther Metals plc and Bluekebble Pty Limited (together, the Sellers), who
between them hold 100% interest in the Tenements EPM27175 and EPM27183
(Panther Metals 30% and Bluekebble 70%), have agreed to sell the two tenements
to Lux Exploration Pty Limited, a subsidiary of ECR. These are exploration
assets and no turnover or profit attaches to them, and they have a negligible
book value (unaudited accounts of Bluekebble for the twelve months ended 30
June 2022 and audited accounts of Panther Metals for the twelve months ended
31 December 2021). The total consideration is GBP200,000, will be satisfied by
the issue of 31,913,196 Ordinary Shares at a price of 0. 0.6267p (being the
VWAP for trading in ECR’s shares on AIM in the 30 days prior to the date of
the agreement). However, as set out above, the Proposed Acquisition is
conditional upon Australian Ministerial approval being granted for the
transfer of the tenements. If this condition is not satisfied or waived by 5
June 2023 (being 60 days from the date of execution of the agreement), then
either the Sellers or Lux may terminate the agreement by written notice.
A further announcement will be made if the condition is satisfied, or if the
agreement terminates. At this stage there can be no guarantee that the
Proposed Acquisition will complete.
Relevant Images
Figure 1 – Blue Mountain Topographic Map
https://www.ecrminerals.com/images/2023/Fig1_Blue_Mountain.png
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Figure 2 - Blue Mountain Project – Regional Geology Map showing gold bearing
areas
https://www.ecrminerals.com/images/2023/Fig2_Blue_Mountain.png
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Figure 3 – Gold Location and Potential Resource Estimates
https://www.ecrminerals.com/images/2023/Fig3_Blue_Mountain.png
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.ecrminerals.com%2Fimages%2F2023%2FFig3_Blue_Mountain.png&esheet=53375655&newsitemid=20230405005490&lan=en-US&anchor=https%3A%2F%2Fwww.ecrminerals.com%2Fimages%2F2023%2FFig3_Blue_Mountain.png&index=3&md5=5b0bebb9df59e4426963bd0e8adbf25f)
Blue Mountain Project Background and History:
The Blue Mountain tenements are situated some 95 kilometres south southwest of
the Gladstone port and industrial complex and, more specifically, about 35
kilometres southeast of Biloela, the small regional pastoral-agricultural-coal
mining centre.
The tenement is accessed from the nearby Burnett Highway and access within the
license areas is generally good by way of station tracks and fence-lines (see
Figure 1 above). The natural vegetation is open eucalypt forest with the
flatter areas having been partially or completely cleared for grazing. The
climate is warm and dry with an annual average rainfall at Biloela of 950 mm.
The Exploration Permit lies within pastoral ground.
The Directors of ECR understand that, historically, the Cania & Kroombit
Mineral Field has been described as a gold producer. Discovery of alluvial
gold was in 1871 with a steady fall in alluvial mining by 1875. In 1879 the
discovery of nearby gold bearing quartz reefs triggered a short-term revival.
Independent work from BlueKebble suggests that over 1,000 ounces of gold (reef
and alluvial) were recovered in 1880. By the mid late 20(th) century, many of
the major Australian and multi-national mining houses focused their 1957-89
exploration activities towards the detection of large, low-tenor
“porphyry” style Cu-Mo deposits amenable to bulk mining techniques. In
1993, it is understood that Western Goldfields concentrated its exploration
activities on testing and mining the auriferous streambed alluvials in and
around Denny’s Gully and the nearby Tertiary paleo-placers, particularly the
“Hilltop” deposit. Several programmes of test pitting and bulk sampling
carried out defined alluvial Ore Reserves and Resource Potentials near the
head of South Kariboe Creek.
Whilst ECR has not undertaken any on-ground verification work at the
tenements, the Board believes that there is an excellent opportunity to
investigate the hard rock potential source of the alluvial gold, based on
internal reports provided by Bluekebble. The information from Bluekebble has
not been verified by ECR (and accordingly it cannot be relied upon and there
can be no guarantee the findings are correct), however the following key
points from Bluekebble’s internal reports have helped inform the board as to
the potential at this site:
* The whole area is believed to host shallow gold mineralisation evidenced by
trenches carrying gold.
* An area 1 km by 2km was systematically tested and Bluekebble believe they can
show visible gold to be present in the volcanic basalts to the south and
within the metasediments to the north.
* Bluekebble have utilised a Wilfley Table to make a heavy mineral concentrate
to calculate additional alluvial gold resources within Denny Gully. This table
concentrates alluvial gravels down to a heavy mineral concentrate. This
concentrate is analysed for gold. The results are back calculated to a
meaningful grade per cubic metre of alluvial gravel equivalent.
* Bluekebble believed that nearby sources of the alluvial gold could be hosted
in the northern section proximal to the creeks where Bluekebble observed
visible coarse and nuggetty gold during their Wilfley Table testing.
* Bluekebble believe that good gold grades could be hosted within the volcanic
basalts within the tenement.
* Bluekebble believed that shallow mineralisation down to 4 metres could
potentially yield over 100,000 oz Gold
Exploration Potential and Next Steps
The Board have identified the following exploration opportunities:
* Another 7 to 10 km of untested drainage system requires more trenching
downstream from the Three Gums Dam area.
* Another 10 to 15 trenches which would provide the total strike length of the
gold bearing zones in the Karrawong and Clarke’s Prospect areas (see Figure
2 above).
* The German Gully on the western zone of the area tested (see Figure 3 above)
could yield more gold mineralisation on the western flank – 3 trenches would
test the potential of 1.2 km with each trench excavated every 400m along the
ridge.
* There are indications that the tenement hosts significant shallow alluvial
gold within recent streambed gravels and Tertiary paleo-placer detritus
grading 0.6 g/t per bank cubic metre (bcm). This would need to be confirmed.
The potential for gold bearing lithologies in this drainage also extends a
further 5.7 km upstream from the gorge.
* No systematic testing had been completed before 2020 – 80% of all the known,
potential rich gold zones are on the contact between alluvial material and
hard rock.
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.
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
Andrew Haythorpe, CEO
Email:
info@ecrminerals.com (mailto:info@ecrminerals.com)
Website: www.ecrminerals.com
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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). MGA
is currently drilling at the Bailieston Blue Moon Project (EL5433) and
undertaking geochemical exploration on the Creswick (EL6148) project and has
an experienced exploration team with significant local knowledge in the
Victoria Goldfields and wider region.
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 Queensland, Australia.
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.
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