REG-ECR Minerals plc Update Re SLM Gold Project <Origin Href="QuoteRef">ECRE.L</Origin>

ECR MineralsAnnouncement

14/05/2015 07:00

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LONDON--(Business Wire)--


The directors of ECR Minerals plc (the "Directors") are pleased to provide the
following update with regard to the SLM gold project in La Rioja Province,
Argentina. The SLM project is 100% held by ECR`s wholly owned Argentine
subsidiary Ochre Mining SA ("Ochre"). 

A privately owned Argentine company named Esperanza Resources SA ("Esperanza")
has constructed and is in the process of commissioning a mineral processing
plant (the "Plant") in the Sierra de las Minas region of La Rioja. The Plant is
configured to recover gold via gravity and flotation processes and is located
approximately 4km, 9km and 44km (straight line distances) from Ochre`s JV,
Maestro Agüero and El Abra gold prospects, respectively. Estimated distances by
road are 8km, 12km and 79km, respectively. 

The Plant was visited last week by Stephen Clayson, CEO of ECR, and a meeting
was held with the owners and managers of Esperanza. A non-binding memorandum of
understanding (the "MoU") was signed between Esperanza and Ochre which provides
for the parties to hold discussions aimed at forming a joint venture or other
commercial arrangement for the processing of ore from Ochre`s licence areas by
Esperanza. 

There can be no assurance that such discussions will reach a satisfactory
conclusion or that any arrangement will be entered into. Ochre will therefore
continue to investigate the viability and economics of other potential
processing options, such as heap leaching. Extraction of ore from any of Ochre`s
licence areas and the development of any processing facility by Ochre would be
subject to the necessary permits, including environmental permits, being
obtained. No such permits have yet been applied for. 

However, the Directors consider that the existence of the Plant and the
willingness of the owners and managers thereof to enter into discussions with
Ochre may constitute a significant opportunity in the context of the Company`s
stated exploration strategy for the SLM project, which is to delineate multiple
medium to high grade, low tonnage deposits suitable for advancement to
production on a relatively low capital, near term basis. A further announcement
will be made in due course, following the conclusion of discussions with
Esperanza. 

Ochre has been advised that the Plant is targeting total processing capacity of
50 tonnes of ore per day by the end of year, although there is no guarantee this
target will be achieved or that capacity will be available to process ore from
Ochre`s licence areas. The Plant is presently processing ore extracted from a
licence area located to the east of Ochre`s JV prospect. 

Further to the Company`s announcement of 1 May 2015, geological mapping at the
JV prospect will commence in the second half of May 2015 as planned. The results
of bulk sampling carried out at the Maestro Agüero prospect in March 2015 are
now expected in the first half of June 2015. Both the mapping and bulk sampling
results will inform discussions with Esperanza and decisions by ECR as to the
next steps for the SLM project. 

Stephen Clayson, Chief Executive Officer of ECR, commented:

"It is encouraging to see the development of a modern processing plant close to
Ochre`s gold prospects. The Plant is not located immediately adjacent to any
deposit and has good road access for the trucking of feed material from various
sources. Whilst there is no certainty at this stage that Ochre will enter into
an agreement with Esperanza, we believe the potential synergy between
Esperanza`s operations and our strategy for the SLM project area is readily
apparent, as is the potential for cooperation between Ochre and Esperanza to
enable that strategy to develop more quickly." 

This announcement has been reviewed by Richard Watts B.Eng. Mining, Fellow of
the South African Institute of Mining & Metallurgy, a director of the Company
with more than 40 years of experience in the mining industry. 

ABOUT ECR

ECR is a mineral exploration and development company with, among other
interests, the right to earn a 50% interest in the Itogon gold project in the
Philippines. Itogon is an advanced exploration project located in a gold and
copper mining district in the north of the Philippines. 

ECR has a 100% interest in the SLM gold project in La Rioja Province, Argentina,
the exploration strategy for which is to delineate multiple medium to high
grade, low tonnage deposits suitable for advancement to production on a
relatively low capital, near term basis. 

ECR continues to review potential new investments on a highly selective basis,
with a concentration on precious, base and strategic metals projects in Asia and
South America. 

FOR FURTHER INFORMATION PLEASE CONTACT: 
 
 ECR Minerals plc                            Tel: +44 (0)20 7929 1010  
 Paul Johnson, Non-Executive Chairman                                  
 Stephen Clayson, Director & CEO                                       
 Richard (Dick) Watts, Technical Director                              
                                                                       
 Email: info@ecrminerals.com                                           
 Website: www.ecrminerals.com                                          
                                                                       
 Cairn Financial Advisers LLP                Tel: +44 (0)207 148 7900  
 Nominated Adviser                                                     
 Emma Earl/Jo Turner                                                   
                                                                       
 Daniel Stewart & Company plc                Tel: +44 (0)20 7776 6550  
 Broker                                                                
 Martin Lampshire                                                      
 
 
FORWARD LOOKING STATEMENTS

This announcement may include forward looking statements. Such statements may be
subject to a number of known and unknown risks, uncertainties and other factors
that could cause actual results or events to differ materially from current
expectations. There can be no assurance that such statements will prove to be
accurate and therefore actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward looking statements. Any forward looking statements
contained herein speak only as of the date hereof (unless stated otherwise) and,
except as may be required by applicable laws or regulations (including the AIM
Rules for Companies), the Company disclaims any obligation to update or modify
such forward looking statements as a result of new information, future events or
for any other reason. 
 
ECR Minerals plc 

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