Shares in () soared after its associate THEMAC Resources () released more positive drilling results from its Copper Flat project in New Mexico.
THEMAC, in which ECR has a 21 per cent interest, said the results from its wholly owned copper-molybdenum-gold-silver porphyry project continued to show “excellent continuity in mineralisation” and expansion of the known higher-grade central zone to the northeast.
The company said the extension of the higher-grade mineralisation at depth came as a “welcome surprise”.
Drill hole assays returned results including 0.45 per cent copper and 0.16 ounces per tonne of silver over 449 feet.
ECR shares leapt 25 per cent to 0.763 pence each.
“With the higher-grade mineralization being extended considerably below the current pit design, a very deep hole, CF12-15, scheduled to a depth of 2,000 feet, is underway and currently at a depth of 1000 feet has become much more important. Seeing the higher-grade mineralization continue at depth is significant,” THEMAC added.
In an effort to optimise the overall mine plan, the company is now working towards a more refined mineral definition model, which will ultimately form part of the definitive feasibility study (DFS).
A further three to five more drill holes are planned to finish the 2012 programme.
After the strong set of results in June and the positive prefeasibility study (PFS) results in July, THEMAC is hopeful that the update due out this autumn will result in an increase to the deposit’s reserves, resources and by-product credits.
“It is great to see another strong set of drill results from Copper Flat,” said ECR’s managing director Patrick Harford.
“As well as demonstrating the Copper Flat deposit’s excellent continuity of mineralisation, the results released today have achieved a significant expansion of the higher grade core zone.”
Copper Flat has proven and probable reserves of 98.118 million tons containing 608.5 million pounds of copper, 18.1 million pounds of molybdenum, 295,000 ounces of gold and 6.48 million ounces of silver.