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ECR Minerals PLC RNS Release

Drill Results - Bailieston Gold Project, Australia


Drill Results - Bailieston Gold Project, Australia

AIM: ECR
US OTC: MTGDY

ECR MINERALS plc
(“ECR Minerals”, “ECR” or the “Company”)

DRILL RESULTS - BAILIESTON GOLD PROJECT, AUSTRALIA

LONDON: 24 July 2017 - The directors of ECR Minerals plc are pleased to announce the results of the recently completed reverse circulation (RC) exploration drilling programme at the Bailieston gold project in Victoria, Australia.

HIGHLIGHTS

* A total of 592 m RC drilling completed in June 2017, for a total of seven holes.

* Three targets tested, being the old Byron Shaft workings, the Scoulars trend and the Maori trend.

* Results for the Scoulars and Maori trends are consistent with the geological model, whilst drilling around the Byron Shaft did not intersect the target mineralisation. All three targets warrant continued exploration along the identified geochemical anomalies.

Craig Brown, CEO of ECR, commented:

“The drilling successfully confirmed our overall geological model for the Bailieston project, and we look forward to planning the next phase of exploration, building on these first-pass results. We are currently looking at the results in the context of ECR’s wider strategy in Victoria, where the Company now has 100% ownership of four Exploration Licences containing numerous gold prospects, and will update shareholders in due course regarding next steps.”

RESULTS OF DRILLING

The drilling programme was designed as a low-cost verification of the geological model for the Bailieston project as a whole. Hence, the programme was limited to six shallow drill holes with one deeper hole. Although no high-grade mineralisation was intersected, this is not unexpected given the relatively small size of the programme and the fact that it was spread over three prospects.

The mineralisation at the Byron Shaft appears to be a short zone of high grade mineralisation that ends abruptly at the southern end where the two drillholes on this target were placed. Drillhole MGARC02 intersected a cavity at 141 m downhole as well as weak mineralisation at 125 m downhole. It is interpreted that the cavity intersected at 141 m was the southern extension of the old workings where a narrow extension of the Byron Shaft mineralisation was mined.

o Drillhole MGARC02: 1 m at 0.93 g/t Au from 125 m downhole

Drilling on the Scoulars trend confirmed the Company’s geological model. Drillholes MGARC04 and MGARC05 intersected broader and shallow low-grade mineralisation in a zone interpreted to be several hundred metres long. Two of the three exploratory drillholes at Scoulars intersected gold mineralisation:

o MGARC04: 9 m at 0.48 g/t Au from 15 m downhole including 1 m at 1.13 g/t

o MGARC04: 6 m at 0.57 g/t Au from 34 m downhole including 1 m at 1.25 g/t

o MGARC05: 13 m at 0.85 g/t Au from 10 m downhole including 4 m at 1.46 g/t

o MGARC05: 2 m at 3.16 g/t Au from 47 m downhole

Drilling on the Maori trend provided the highest grade results with drillhole MGARC07 intersecting 2 m at 6.21 g/t Au with lower grade mineralisation either side in a zone associated with some old workings:

o MGARC07: 4 m at 3.29 g/t Au from 39 m downhole including 2 m at 6.21 g/t

COMPETENT PERSONS STATEMENT

The information in this announcement that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Ivor W O Jones, a Competent Person who is a Fellow and Chartered Professional (Geology) of The Australasian Institute of Mining and Metallurgy. Mr Jones is Executive Director and Chief Operating Officer of ECR and a full-time employee of the Company. Mr Jones has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Jones consents to the inclusion in the announcement of the material based on his information in the form and context in which it appears.

ABOUT ECR

ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia has acquired 100% ownership of the Avoca, Bailieston, Moormbool and Timor gold projects in Victoria, Australia.

ECR has earned a 25% interest in the Danglay epithermal gold project, an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines. An NI43-101 technical report was completed in respect of the Danglay project in December 2015, and is available for download from ECR’s website.

ECR’s wholly owned Argentine subsidiary Ochre Mining has 100% ownership of the SLM gold project in La Rioja, Argentina. Exploration at SLM has focused on identifying small tonnage mesothermal gold deposits which may be suitable for relatively near-term production.

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.

GLOSSARY

Au:     gold
g/t: grams per tonne
m: metre
 

FOR FURTHER INFORMATION, PLEASE CONTACT:

ECR Minerals plc Tel: +44 (0)20 7929 1010
William (Bill) Howell, Non-Executive Chairman
Craig Brown, Director & CEO

Ivor Jones, Director & COO

 

Email: [email protected]

Website: www.ecrminerals.com

 
Cairn Financial Advisers LLP Tel: +44 (0)20 7213 0880
Nominated Adviser
Emma Earl / Jo Turner
 
Optiva Securities Ltd Tel: +44 (0)203 137 1902
Broker
Graeme Dickson
 
FlowComms Tel: +44 (0)7891 677 441
Investor Relations

Sasha Sethi

FORWARD LOOKING STATEMENTS

This announcement may include forward looking statements. Such statements may be subject to numerous 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 because of new information, future events or for any other reason.

Table 1 Collar and target information for the June 2017 Bailieston drilling

                             
Hole ID   Date drilled   GPS Easting   GPS Northing   Azimuth   Dip   Depth   Target
MGARC01   16/06/2017   326363   5931327   60   60   75 m   Byron
MGARC02   17/06/2017   326322   5931321   60   60   164 m   Byron
MGARC03   14/06/2017   326355   5931532   62   60   75 m   Scoulars
MGARC04   21/06/2017   326459   5931414   58   60   60 m   Scoulars
MGARC05   16/06/2017   326503   5931326   50   60   60 m   Scoulars
MGARC06   21/06/2017   326615   5931371   53   55   80 m   Maori
MGARC07   22/06/2017   326635   5931319   60   60   78 m   Maori
             

Table 2 Intersections of mineralisation from the June 2017 Bailieston drilling

                     
Location   Hole ID   From (m)   To (m)   Length (m)   Grade (g/t Au)
Byron Shaft   MGARC01   No significant intersections        
Byron Shaft   MGARC02   141   141.5   0.5   Cavity
Byron Shaft   MGARC02   125   126   1   0.93
Scoulars trend   MGARC03   No significant intersections        
Scoulars trend   MGARC04   15   24   9   0.48
            including   1   1.13
Scoulars trend MGARC04 34 40 6 0.57
            including   1   1.25
Scoulars trend MGARC05 10 23 13 0.85
            including   4   1.46
Scoulars trend   MGARC05   47   49   2   3.16
Maori trend   MGARC06   No significant intersections        
Maori trend MGARC07 39 43 4 3.29
            including   2   6.21
 

Section 1 Sampling Techniques and Data (JORC CODE, 2012 EDITION – TABLE 1)

         
Criteria   Classification Code explanation   Commentary
Sampling techniques  
  • Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
  • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
  • Aspects of the determination of mineralisation that are Material to the Public Report.
  • In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.
 
  • Reverse circulation (‘RC’) drilling has been used to obtain 1 m samples from which 4 to 5 kg of sample was taken. The 4-5kg sample was split and a 1.2 kg subsample fully pulverised, and a 50 g charge initially fire assayed. Subsequently, 1 kg was reassayed using a bulk leach.
Drilling techniques  
  • Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).
 
  • RC holes were completed with a 5 inch face sampling hammer.
Drill sample recovery  
  • Method of recording and assessing core and chip sample recoveries and results assessed.
  • Measures taken to maximise sample recovery and ensure representative nature of the samples.
  • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
 
  • RC total sample was collected before any preparation.
  • There is no information on whether or not there is a relationship between sample recovery and grade.
Logging  
  • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
  • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.
  • The total length and percentage of the relevant intersections logged.
 
  • Each 1m chip sample was systematically logged.
  • Samples have not been photographed as yet.
Sub-sampling techniques and sample preparation  
  • If core, whether cut or sawn and whether quarter, half or all core taken.
  • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
  • For all sample types, the nature, quality and appropriateness of the sample preparation technique.
  • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
  • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
  • Whether sample sizes are appropriate to the grain size of the material being sampled.
 
  • RC samples were split using a 3 stage Jones riffle splitter in order to obtain a 4-5 kg sub-sample. Where samples were wet, a tube was used to collect as good a sample as possible.
  • Nearly all samples were collected dry. Very few samples were wet.
  • The Bendigo sample preparation facility was inspected by Ivor Jones during a 2017 site visit and found to be suitable for purpose.
  • Select samples were also assayed using a bulk leach to test for appropriateness of the size of the subsample being assayed and a much larger sample being assayed. There was very little difference between the bulk assay and the fire assay technique.
Quality of assay data and laboratory tests  
  • The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
  • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
  • Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.
 
  • 1 in every 25 samples was blank material, 1 in every 25 samples was a CRM. 62 pulp samples (~ 10%) were re-assayed using a BLEG technique.
  • Based on the analysis of the results from the QAQC processes, it can be concluded that sample assay determination accuracy and precision is within accepted industry standards and contamination during sample preparation was not an issue. It is the author’s opinion that the sample preparation and assay determinations provided by On-Site assay laboratory are acceptable.
Verification of sampling and assaying  
  • The verification of significant intersections by either independent or alternative company personnel.
  • The use of twinned holes.
  • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
  • Discuss any adjustment to assay data.
 
  • There has been no twinned holes or other verification of data reported here.
  • There has been no adjustment to the assays.
Location of data points  
  • Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
  • Specification of the grid system used.
  • Quality and adequacy of topographic control.
 
  • Collar locations were recorded by GPS measurements.
  • Down-hole surveys were systematically performed every 30m.
  • Geographical data were obtained and reported according to the UTM zone 55S (WGS84).
  • Elevation and accurate coordinates will be determined when the collars are surveyed.
Data spacing and distribution  
  • Data spacing for reporting of Exploration Results.
  • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.
  • Whether sample compositing has been applied.
 
  • Data spacing varies between 50 m and 200 m along strike.
  • Data spacing and distribution is not sufficient for the evaluation of mineral resources.
  • Sample compositing has been applied for exploration results reporting.
Orientation of data in relation to geological structure  
  • Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.
  • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
 
  • Drilling was performed towards the northeast whilst the mineralisation is northwest-southeast striking. Drilling intersects the mineralisation at a relatively high angle and is not expected to cause any issues in the evaluation of the project.
Sample security  
  • The measures taken to ensure sample security.
 
  • Samples were individually bagged and sealed in larger bags of 10; the bags were under the direct supervision of ECR until they were delivered to the laboratory, and always on the same day as the sample was drilled.
Audits or reviews  
  • The results of any audits or reviews of sampling techniques and data.
 
  • There has been no external review of the sampling and assaying procedures.
   

Section 2 Reporting of Exploration Results (JORC CODE, 2012 EDITION – TABLE 1)

         
Criteria   Classification Code explanation   Commentary
Mineral tenement and land tenure status  
  • Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
  • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.
 
  • The Bailieston project falls within ECR’s Bailieston (EL5433) tenement. The tenement largely falls within Crown Land.
  • EL5433 is due for renewal in March 2018.
  • EL5433 is subject to a royalty agreement with Currawong Resources Pty Ltd.
Exploration done by other parties  
  • Acknowledgment and appraisal of exploration by other parties.
 
  • Work completed by earlier companies has been used to guide the Company’s exploration on the Maori trend. However, exploration has been very limited on the Scoulars trend.
Geology  
  • Deposit type, geological setting and style of mineralisation.
 
  • Mineralisation appears to be a disseminated style of mineralisation associated with disseminated and oxidized hematite with minor quartz.
Drill hole Information  
  • A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:
    • easting and northing of the drill hole collar
    • elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar
    • dip and azimuth of the hole
    • down hole length and interception depth
    • hole length.
  • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
 
  • Drill hole information has been tabulated as a part of this report.
Data aggregation methods  
  • In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.
  • Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
  • The assumptions used for any reporting of metal equivalent values should be clearly stated.
 
  • Exploration results have been averaged over the entire intersection of interest using a value of 0.2 g/t to define the limits of the low-grade intersections.
  • There are no metal equivalent values considered.
Relationship between mineralisation widths and intercept lengths  
  • These relationships are particularly important in the reporting of Exploration Results.
  • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
  • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).
 
  • The drill intercepts are interpreted to have intersected the mineralised packages at a high angle.
Diagrams  
  • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.
 
  • A plan of the Bailieston project area showing geochemical results and interpretations has been made available previously.
Balanced reporting  
  • Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
 
  • This has been incorporated in the tabulation of the results in this report.
Other substantive exploration data  
  • Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.
 
  • A plan of the Bailieston project area showing geochemical results and interpretations has been made available previously.
Further work  
  • The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).
  • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
 
  • Exploration should continue along the geochemical anomalies to test for any significant mineralisation.
  • Whilst the grade at Scoulars is relatively low, the mineralisation is relatively thick and shallow. It is recommended that this mineralisation is further tested to see if a bulk low grade resource can be identified.
  • Follow-up drilling on the Maori trend should also be considered.
  • Additional exploration should cover the Byron Shaft area.
   

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