Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

ECR Minerals poised for near term revenue after acquisition

ECR Minerals’ subsidiary has bought two gold projects in Australia with the potential to generate near term revenue from processing historic dumps at one of them.
ECR Minerals poised for near term revenue after acquisition
Mercator has identified an opportunity at Avoca to reprocess dumps to recover gold, with potential for the sale of by-products (gravel and sand) as construction material

ECR Minerals’ (LON:ECR) subsidiary has bought two gold projects in Australia with the potential to generate near term revenue from processing historic dumps at one of them.

Snowden consultants are currently preparing a JORC technical report on the Avoca and Bailieston projects in Victoria after ECR subsidiary Mercator Gold Australia struck a deal with Currawong Resources.

The latter has identified an opportunity at Avoca to reprocess dumps to recover gold, with potential for the sale of by-products (gravel and sand) as construction material.

Early studies show this could generate relatively near term revenue 12 -24 months from today at less than A$1mln.

Both projects lie less than 200km from  the Victorian state capital Melbourne, with good road access, and are in the major orogenic Lachlan Fold Belt (LFB).

The Fosterville gold mine, owned by Toronto- listed Newmarket Gold is some 20km to the west of the Bailieston project, and is currently the largest producing gold mine in Victoria.

It recently celebrated the production of its one millionth ounce of gold.

Mandalay's Costerfield gold-antimony mine is 30km southwest of the Bailieston project.

To pay for it, ECR must pay up to A$250,000 worth of its shares, based on certain milestones being reached, and a net profits interest royalty of 20% in respect of mine dumps and 10% in respect of other deposits, capped at A$3.5mln.

Generating near term revenue would be advantageous to the ECR subsidiary since it had estimated tax losses of approximately A$66 mln as at June 30 last year, which may be available, subject to certain conditions  to reduce its future taxable profits.

Giles_55af4ddca6481.jpg
Why Invest In ECR Minerals PLC? Read More Here

Register here to be notified of future ECR Company articles
View full ECR profile

ECR Minerals PLC Timeline

Big Picture
November 20 2015

Related Articles

1-186979.jpg
October 02 2015
“Based on new drilling - on surface drilling, on deep drilling - it was established that this was actually a polymetallic mine, and so a new mine plan was developed.”
drill_rig.png
May 29 2015
Tough markets mean depressed share prices, and in mining markets haven’t been tougher than they are now for a good few years. But SolGold chief Nick Mather remains upbeat on its flagship project.
metalsExpl2.png
June 04 2015
First ore to be loaded shortly with all construction work scheduled to complete by August.

© Proactive Investors 2016

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.