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ECR Minerals PLC (LON:ECR)

ECR Minerals PLC (LON:ECR)


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ECR Minerals PLC RNS Release

Gold System Identified at Blue Moon Australia


Gold System Identified at Blue Moon Australia

AIM: ECR

ECR MINERALS plc

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

Gold System Identified at Blue Moon Australia

LONDON: 6 JULY 2018 - ECR Minerals plc (AIM:ECR) is pleased to announce the results of diamond core drilling at its 100% owned Blue Moon gold prospect in Central Victoria, Australia.

The drilling programme at Blue Moon was undertaken to confirm the presence of gold mineralisation based on the Company’s technical work which had indicated potential for an extensive mineralised system.

For clarity the paramount objective of this drill programme was to identify the presence of gold, ratifying the internal exploration model and enabling further work to ascertain the mineralised structure and identify the potential for commercial development.

HIGHLIGHTS:

  • The assay results received provide evidence of a significant near surface mineralised system, with large mineralised gold intercepts up to 39.5 metres (apparent width) just 24.2 metres from surface in hole BBM003 in a host rock sandstone that outcrops at the surface;
  • All three holes intercepted gold mineralisation and the results support MGA’s hypothesis that Blue Moon is a disseminated gold system comparable to some of the mineralisation exploited at the 1Moz+ Fosterville mine;
  • Given the deep weathering at Blue Moon and potential for gold depletion in the oxidised sulphides, higher grades may be encountered at depth in fresh rock;
  • The Company has requested multi-element assay data to complement the gold results received and we will provide a further update to market when this additional assay data is been received;
  • The ECR technical team are undertaking additional work to move the Blue Moon target forward as rapidly as possible, reflecting the findings announced today.

Craig Brown, Chief Executive Officer of ECR Minerals commented: “Australia in general and Central Victoria region continues to experience a gold exploration boom and ECR are building a material presence in that region.

The results today provide an exciting opportunity for the Company and we are keen to push ahead with our work to ascertain the size and nature of the mineralised system we have identified.

I expect to be able to release further updates to the market in the near term.”

Further Information – Blue Moon & Drill Results

The drilling formed part of a larger diamond drilling programme across three prospects in Central Victoria: Bung Bong, Monte Christo and Blue Moon, all of which are 100% owned by the Company's wholly owned subsidiary Mercator Gold Australia Pty Ltd (“MGA”). The Blue Moon prospect is part of the Bailieston project area (EL5433).

Drill hole data and significant intercepts from the three holes drilled at Blue Moon (BBM001 to BBM 003) are disclosed in Table A below. Intercepts are apparent width.

BBM001 and BBM002 were designed to establish the dip of the host sandstones and assess the potential for gold mineralisation. Intercepts of 5.45m at 0.12 g/t Au from 33.95m and 10.0m at 0.16 g/t Au from 43.8m were obtained in BBM001 and BBM002, respectively. Upon drilling faulted, stockworked sandstone in the first two holes, BBM003 was drilled down dip to test the nature of the cross-cutting faults and veins and to obtain a large number of samples for analysis. An intercept of 39.5m at 0.3 g/t Au from 24.2m, including 2.7m at 1.12 g/t Au from 60m, was obtained in BBM003.

The gold mineralisation intercepted is hosted in a 5.5m wide medium-grained sandstone within a thick bioturbated shale (see figure 1, for BBM003 which may be viewed at the following link: https://bit.ly/2lXAWv9). Diorite sills have intruded along the margins of the sandstone. The sandstone is metamorphosed to quartzite and the brittle host showed stockwork vein development in each of the three holes. Small iron-oxide pseudomorphs thought to be of arsenopyrite and pyrite are disseminated throughout the quartzite. Deep weathering of the sandstone has meant that no fresh samples have been seen to verify the minerals.

The high repeatability of the assay results, evident from MGA’s QA/QC procedures (which include the repetition of a certain number of assays), support MGA’s hypothesis that the Blue Moon prospect is a disseminated gold system comparable to some of the mineralisation exploited at the Fosterville mine approximately 50 km away. Given the deep weathering and the potential for gold depletion in the oxidised sulphides, it is possible that higher grades may be encountered at depth in the fresh rock.

COMPETENT PERSON STATEMENT

The information in this announcement that relates to Exploration Results is based on information compiled by Dr Rodney Boucher of Linex Pty Ltd. Linex Pty Ltd provides geological services to Mercator Gold Australia Pty Ltd, including the services of Dr Boucher, who has a PhD in geology, is a Member and RPGeo of the Australian Institute of Geoscientists and is a Member of the Australian Institute of Mining and Metallurgy. Dr Boucher 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’. Dr Boucher 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 100% ownership of the Avoca, Bailieston, Creswick, Moormbool and Timor gold exploration licences in central 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.

FOR FURTHER INFORMATION, PLEASE CONTACT:

ECR Minerals plc   Tel: +44 (0)20 7929 1010
David Tang, Non-Executive Chairman
Craig Brown, Director & CEO
Email:

[email protected]

Website: www.ecrminerals.com

 
WH Ireland Ltd Tel: +44 (0)161 832 2174
Nominated Adviser
Katy Mitchell/James Sinclair-Ford
 
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 A

Drill hole data and significant intercepts from 2018 diamond drilling at Blue Moon prospect, EL5433, Central Victoria, Australia by Mercator Gold Australia Pty Ltd

        Drill hole data (MGA 94 Zone 55)   Intercepts
Hole ID Core size Easting (m)   Northing (m)   RL (m)   Dip   Az   TD (m) From (m)   To (m)   Width (m)   Au (g/t)
BBM001 HQ 326228 5922578 160 -60 222 79.2 33.95 39.40 5.45 0.12
BBM002 HQ 326187 5922552 163 -60 180 83.7 43.80 53.80 10.00 0.16
BBM003 HQ 326195 5922522 162 -85 11 73.2 24.20 63.70 39.50 0.30
              Inc. 60.00 62.70 2.70 1.12

JORC Table 1

Section 1 Sampling Techniques and Data

Criteria   JORC 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.
  • All sampling and logging has been supervised and conducted by Dr Rodney Boucher of Linex Pty Ltd and by Linex staff at the Linex core processing facility or on site at the drill rig. Linex provided geological services to Mercator Gold Australia Pty Ltd, including the services of Dr Boucher.
  • All material was collected in commercially available diamond core trays.
  • Diamond core was cleaned and marked metre-by-metre.
  • The geologist determines which parts of the drill hole were to be sampled using criteria such as presence of quartz and mineral occurrence. Sample intervals were based on lithology and veining but in general were 1m.
  • The samples were cut with a core saw, with half collected for laboratory submission, and the remaining half transferred back to the core tray for storage.
  • No intervals were less than 0.30m or greater than 1.0m.
  • The diamond drill samples were submitted to Onsite Laboratory Services in Bendigo, Victoria. Sample preparation involved sample crush to 2mm, pulverise and then screen to 75 microns and split off 50g for analysis. Any samples that return grades >1 g/t Au are screen fire assayed.
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).
  • All holes were drilled using a truck mounted Sandvik 710DE drill rig diamond coring from surface. Holes drilled were HQ.
  • All holes were surveyed with a single shot camera, nominally every 30m where practicable.
  • Core is orientated to geology. Due to the known strike of the outcrop at surface the bedding and vein measurements are taken relative to this orientation. Data were plotted on stereonets to confirm the orientation and the drilling of three holes with differing azimuths and dips assisted these plots. Beds were correlated between holes and surface outcrop for further confirmation.
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.
  • Core recoveries were measured by the geologist after each drill run, comparing length of core recovered versus drill depth. Core recovery was logged and recorded in the database.
  • The driller was under instruction to monitor recovery and rectify core loss by adjusting drill rig operation.
  • No strong relationship between core recovery and grade is evident.
  • Drilling has occurred on day shift and night shift at various times during the programme.
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.
  • All core was geologically logged at 10 centimetre intervals to a standard that follows industry common practice and is suitable for future use in interpretation and resource estimation.
  • Logging of samples included but was not limited to lithology, mineralogy, alteration, veining, weathering and structure.
  • Drill core structural measurements were logged prior to cutting/sampling. Bedding, joint and fault orientations were measured.
  • All core was photographed wet and dry.
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.
  • Half core was sampled using a core saw. The right half of the core (viewed down hole) was submitted for assay.
  • Linex Pty Ltd core cutting and sampling procedures were followed to ensure sampling consistency.
  • 1m of non-mineralised material from either side of significant mineralised zones was submitted with the samples to the laboratory as part of the quality control process.
  • No second half sampling has been conducted.
  • The sample sizes are considered to be appropriate for the type of mineralisation in this area.
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.
  • The sample preparation and analytical procedures are considered appropriate for the style of mineralisation.
  • Onsite Laboratory Services provided details of their routine quality controls.
  • 10% of samples were duplicate assayed and 10% of assays were repeated for quality control and quality assurance testing.
  • One standard sample was inserted per approximately 20 samples dispatched for assay.
  • Laboratory standards and blanks were inserted for quality control and quality assurance testing.
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.
  • All assay and drillhole data were imported and stored in a database.
  • Significant intersections were verified by the logging geologist and Dr Boucher.
  • No twinned holes have been drilled.
  • Primary data for drill holes was compiled onto paper based logging templates and was then transferred into a database and validated by Linex Pty Ltd personnel. Back up digital copies of all paper log sheets were also kept.
  • No adjustments have been made to any assay data contained in this report.
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.
  • All drill hole location coordinates were measured using handheld GPS.
  • Collar surveying was performed by Linex Pty Ltd personnel. This was considered appropriate for the stage of exploration.
  • All drill holes were downhole surveyed. Down hole single shot surveys were conducted by the drilling contractor every 30m down hole and at end of hole where possible.
  • Drilling orientation was established prior to collaring with clinometer and compass.
  • The grid system used is GDA MGA 94 Z55.
  • The RL was recorded for each drill hole from the GPS and verified using publicly available satellite and aerial imagery.
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.
  • The drill hole spacing at Blue Moon is approximately 30 m.
  • Sample intervals were based on lithology but in general were 1 m.
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.
  • Two drill holes at Blue Moon were orientated at -60 degrees towards 222 and 180 degrees, with the third hole orientated at -85 degrees towards 11 degrees.
  • BBM001 & BBM002 holes were designed with the aim of crossing the host sandstone at a high angle.
  • BBM003 was designed to drill at a low angle to the lithology to gain maximum samples for analysis and to investigate the presence of cross faults and veins.
  • There is insufficient drilling data to determine if any bias can be detected in the data.
Sample security
  • The measures taken to ensure sample security.
  • All core drilled has been processed and cut at the Linex core processing facility by Linex Pty Ltd personnel. Core is then dispatched by Linex Pty Ltd personnel.
  • All sample reject is retained by Linex Pty Ltd.
  • Sample number receipt information from the laboratory is cross- referenced and rationalised against sample number dispatch information.
Audits or reviews
  • The results of any audits or reviews of sampling techniques and data.
  • No processes or data used in developing the release of exploration results have been subject to audit or review by non-Linex Pty Ltd personnel or contractors so as to reduce timelines for reporting.

Section 2 Reporting of Exploration Results

Criteria   JORC 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.
  • Blue Moon is within the vicinity of Nagambie, Victoria.
  • Blue Moon is located on EL5433 and is 100% owned by Mercator Gold Australia Pty Ltd.
  • Exploration activities at Blue Moon were in open paddocks on private land.
Exploration done by other parties
  • Acknowledgment and appraisal of exploration by other parties.
  • There has been no contemporary exploration at Blue Moon. There are small historic pits and shafts at Blue Moon.
  • Previous soil and rock chip geochemistry has been conducted by Mercator Gold geologists.
Geology
  • Deposit type, geological setting and style of mineralisation.
  • The host rocks at Blue Moon are marine sandstones and shales intruded by dolerite dykes. Gold is hosted associated with quartz veining within the sandstone.
  • Outcrop at Blue Moon reveals sandstone and dolerite associated with quartz veins. Drilling confirmed the observations.
  • Bedding strikes west-north-west and dips to the north. Bedding is transected by a series of west-dipping faults.
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.
  • No material drill hole information has been excluded.
  • See Table A above

 

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.
  • Averages of results through each intersection have been reported.
  • No cut-off grades have been applied.
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’).
  • Mineralisation widths are based on down hole lengths.
  • There is insufficient drilling data to determine continuity of mineralised domains.
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.
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.
  • All gold values have been reported.
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.
  • All relevant data is presented in the text, tables and diagrams.
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.
  • Future drilling will be dependent on future company direction.

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