The highlight find was 3.9 metres with 11.6 g/t (grammes per tonne) gold, including 0.2 metres at 109.1 g/t of the precious metal.

Further drilling is now merited at the project to better define the mineralisation, with a view to producing a first resource estimate.

"The mineralisation remains open along strike and down dip," said the firm's managing director Patrick Harford.

"In light of the structural and geological complexity of the El Abra mineralisation and in order to obtain maximum value from future drilling the company intends to complete a detailed structural study along with additional surface geochemical sampling before planning a second drilling programme. 

"This work will enable a better understanding of the style and orientation of the mineralisation at El Abra ahead of further drilling.”

 In total, 1,112 metres was drilled in the programme and the first results from El Abra, within the company's wholly-owned Sierras de las Minas project were unveiled last month.

In those findings, significant gold mineralisation was confirmed in five holes, while no significant gold mineralisation was intersected in two holes.

Today, the company said that of the total 13 holes sunk, three hit "very high grade" gold mineralisation, while four more hit gold mineralisation with grades of more than 1 g/t of the yellow metal.

Last week, ECR revealed it had issued and allotted shares to a UK-based investment fund to raise capital for its gold exploration activities in Argentina.

YA Global SPV will gain 13,500,168 shares at a price of 0.667 pence per share totalling £90,000.

ECR is a mineral development company with interests in Argentina, the US, Indonesia, Thailand and Australia.

YA Global SPV will gain 13,500,168 shares at a price of 0.667 pence per share totalling £90,000.

ECR Minerals said the funding will be used to provide working capital for the company’s gold exploration activities in Argentina and for general corporate purposes.

Last week the company said it had completed the most recent drilling programme at its El Abra prospect in Argentina, having drilled 12 holes at the prospect. It is awaiting the assay results from the four most recently drilled holes.

ECR is a mineral development company with interests in Argentina, the US, Indonesia, Thailand and Australia.

Earlier today the company said Keith Donald Irons, who is currently chairman of Bridgecreek Resources Ltd, would become non-executive chairman of ECR with immediate effect.

The share price was 0.55 pence at the close of trade.

We are back in familiar territory after a hugely entertaining non-resources event last week. Joining us at the Chesterfield Hotel on Thursday (May 17) will be ZincOx (LON:ZOX), Caledonia Mining (LON:CMCL), ECR Minerals (LON:ECR) and New Guinea Energy Energy (ASX:NGE).

*REGISTER YOR ATTENDANCE HERE*

ZincOx Resources has very much delivered on the plan set out by chairman Andrew Woollett when he last joined us.

The zinc recycling specialist has a 10-year off-take agreement with Korea Zinc for its product from the first plant.

Initial testing of the operation, which has now received a start-up permit, delivered very promising results with zinc recovery in the range 87 per cent to 96 per cent.

Woollett said recently: "We are delighted with the results from this first operation which prove that the process works in line with our expectations. 

"We are looking forward to optimising the operating conditions and ramping up to full production over the next few months and at the same time preparing to press ahead with our expansion plans both in Korea and elsewhere".

Caledonia Mining’s first quarter results announced earlier this month charted a period of transition financially and operationally for the gold miner.

And crucially it also marked the implementation of the first phase of a landmark indigenization deal brokered with the Zimbabwe authorities.

Operationally it was a mixed picture. Blanket’s production was down on the previous quarter at 9,164 ounces due to scheduled maintenance on the Number 4 Shaft.

In April, however, it bounced back to 3,722 ounces, or an annualized equivalent rate of 44,664 ounces. Caledonia is targeting a 40,000 ounce annual production rate.

The lower production and certain “anticipated non-recurring costs” meant the cash cost increased to US$648 an ounce from US$521 in the preceding quarter.

However, Caledonia weighed in with a net profit for the quarter of US$7.11 million, up from US$1.36 million in the previous quarter and US$1.89 million at the same point last year.

It now has cash and equivalents of US$16.3 million, up from US$2.2 million a year ago. 

Next on our list is the mining investment company ECR Minerals, which owns the El Abra prospect in La Rioja Province, Argentina

It recently completed its 1,000 metre diamond drilling programme and is awaiting assay results.

However last month ECR confirmed that surface high-grade gold mineralisation at the prospect extends to depth after receiving assay results from seven of the 12 holes.

Chairman Patrick Harford said at the time: “It is apparent that further drilling to follow on from this first programme is merited in order to more fully appraise the economic potential of El Abra in the context of ECR's high grade, low tonnage production strategy.” 

Finally, we will be joined by ASX-listed explorer New Guinea Energy, owner of petroleum licences in Papua New Guinea.

Mitsubishi Corporation recently farmed into two of its licences, which is obviously exciting news. 

It also gave an objective benchmark valuation for NGE stake in the acreage which is well above the company’s current market cap

“The valuations help for us to demonstrate that this is really the value of the licences even if our market cap isn’t representing that. It helps our ability to raise funds,” chief executive Grant Worner said.

ECR is awaiting assay results, which were sent to AcmeLabs labroratory in Mendoza, from holes 9, 10, 11 and 12. Results are also pending in respect of hole 4.

On 27 April ECR confirmed that surface high-grade gold mineralisation at the prospect extends to depth after receiving assay results from seven of the 12 holes.

On receipt of those results chairman Patrick Harford said: “It is apparent that further drilling to follow on from this first programme is merited in order to more fully appraise the economic potential of El Abra in the context of ECR's high grade, low tonnage production strategy.” 

The El Abra prospect is located at the company’s wholly-owned Sierra de las Minas gold project in La Rioja Province. The project area is located approximately 800 kilometres north west of Buenos Aires

The company said assay results for the outstanding holes will be announced in due course.

Managing director Patrick Harford had originally handed in his notice last Tuesday for personal reasons, a decision the ECR board accepted.

But ahead of ECR’s AGM on Saturday, the firm announced that Harford had decided to return as executive chairman having sorted out his personal matters while chairman Michael Silver was now standing down.

Silver also ceased to be a director following the AGM when he and non–executive Luca Tenuta were not re-elected to the board.

ECR unveiled a major cost cutting programme last week and Michael Silver’s decision was in order to reduce costs further, ECR added.

The original plan was for Silver to take a reduction in his salary to £50,000 while other employees also take salary reductions and cuts in administrative costs.

The reorganisation and savings are to allow ECR to overhaul its operational management.

ECR’s current drilling programme, Sierra de las Minas in Argentina which will now continue to be supervised by Harford recently started drilling at its El Abra prospect.

If the results of the programme indicate the presence of a sufficient tonnage of high grade, near-surface mineralisation, small scale production will start at El Abra during the second half of 2012.

The share price is 0.9 pence.

Managing director Patrick Harford, who was in charge of Sierra de las Minas, has resigned from the company though he will oversee the project as a consultant until the drilling is completed.

ECR added that drilling had now started at the El Abra prospect at Sierra de las Minas.

Two holes have been completed and a total of 208 metres had been drilled out of an initial programme of 12 holes totalling approximately 1,000 metres.

Both holes drilled so far have intercepted the target vein at the target depths, confirming the vertical vein orientation, ECR said.

The drilling is intended to high grade gold mineralisation identified by surface sampling continues to depth.

If the results of the programme indicate the presence of a sufficient tonnage of high grade, near-surface mineralisation, small scale production will start at El Abra during the second half of 2012.

The firm also has an option to drill a further 1,000 metres.

Michael Silver, executive chairman, said ECR has high hopes for the current drilling programme and if successful: "The company will have added substantial value to the El Abra prospect and the wider project area.”

ECR added it has put its 70 per cent stake in Thai metal products business ACS Asia up for sale.

The management change will also reduce its general and administrative costs, it said. 

Michael Silver has also agreed to reduce his salary to £50,000 per annum while other employees have agreed to substantial salary reductions.

The group added it wants to find a highly qualified geologist to find and evaluate other projects that will fit ECR's strategy.

In addition to its gold project in Argentina, it has an interest in the Copper Flat project in New Mexico that is owned and managed by THEMAC Resources, while the Derewo River gold project in Papua, Indonesia is being managed and funded by West Wits Mining.

ECR Minerals (LON:ECR, OTC:MTGDY) has raised £200,000 under its equity line with YA Global to go towards paying back a loan.

The funds will be used towards a  repayment of US$1.5 million from YA Global, which was announced in August last year.

It will also provide additional working capital to Thai metals business ACS Asia, in which ECR holds a 70 per cent stake.

ACS Asia is currently servicing a substantial order received from the Middle East and expects to secure a number of other sizable orders in the coming months, ECR said.

The company issued over 19 million shares at 1.0469 pence per share to YA Global in connection with the advance of £200,000 under the SEDA (Standby Equity Distribution Agreement), it said.

ECR is a mineral development company with interests in Argentina, the USA, Indonesia, Thailand and Australia.

Broker Old Park Lane welcomed the “extremely encouraging” resource upgrade, claling it a key milestone for the project’s development. Analyst Phil Swinfen has made no change to his current Copper Flat net asset value (NAV) estimate of US$79 million, valuing ECR’s 19 percent stake at US$15 million.

However, the analyst said he will review the NAV when the results of the upcoming drill programme and the pre-feasibility study (PFS) are released.

Swinfen noted that in addition to a higher level of confidence, the new resource could significantly improve the economics of the project as it will serve as the basis for the upcoming PFS. In particular, said the analyst, the addition of gold and silver into the mix has increased the possibility of by-product credits during processing.

“The total contained one billion pounds of copper positions Copper Flat favourably within the global group of known porphyry deposits,” said Swinfen.

Swinfen added that the high grade core provides an opportunity for early development as a high grade starter pit, which could increase the net present value (NPV) of the project.

ECR holds a 4% direct stake in West Wits and an indirect stake through its 26% holding in Paniai Gold, which owns performance shares and options.

Paniai’s performance shares relate to the Derewo River gold project in Papua Province, Indonesia which is 50% owned by West Wits.

They convert if the project, which covers approximately 129,000 hectares in Indonesia, achieves production of 20,000oz gold by 28 July 2013. Full conversion of the performance shares and options would give Paniai an 18% stake in West Wits.

ECR injected its interest in Derewo River into Paniai Gold in 2009. Paniai subsequently sold the project onto to West Wits.

Patrick Harford, ECR managing director, said today’s news vindicated that decision.

“West Wits now looks set to substantially improve its financial position without the issue of new equity and has stated that the proceeds of the sale of the four leases will be principally applied to development of the Derewo River project, the objectives of which include the commencement of alluvial gold production in the near future.”

“We note that technical due diligence has already been carried out to the satisfaction of the consortium purchasing the South African leases, leaving only legal due diligence outstanding, and on this basis we feel confident that the sale of the leases will proceed to completion,” he added.

ECR is a mineral development company with interests in Argentina, the USA, Indonesia, Thailand and Australia.