ECR Minerals PLC (AIM:ECR) has reported positive early drilling results at its Blue Mountain Project in Queensland, Australia.
The company is, meanwhile, leasing a percussion drill rig to prepare for work at its Lolworth Project later this month.
Drilling at Blue Mountain has revealed visible gold in drill chips from an unmined creek flat measuring about 200 metres by 27 metres by three metres. The company estimates an in-situ gold value of over US$1.1 million based on current gold prices.
The findings support an earlier projection of potential monthly revenues of A$544,000 (US$350,000) using a 25 tonne per hour wash plant.
Larger capacity wash plants could increase potential monthly revenue to A$1.31 million. ECR said it has received expressions of interest from possible third-party production partners.
"I spent much of the last two weeks in Australia on a trip that covered Melbourne, our office in Bendigo, Sydney and finally the Blue Mountain Project in Queensland,” said ECR chair Nick Tulloch.
“Our decision to bring a drill rig onto the site has immediately paid off, with our understanding of the Blue Mountain Project already considerably increased.
Tulloch added: "This has been an efficient and accurate means of making preparations for the location of trenches and, as we have illustrated in today's announcement, is enabling us to map out the scale of the opportunity.