Echo Resources (ASX: EAR) has been granted a trading halt by the ASX, pending a capital raising announcement, with the company's shares placed in pre-open.
Echo has not yet indicated where the potential new inflow of funds will be allocated, but last month the company announced a 3D geological assessment has identified a major gold conduit, known as the Bungara Worm, which trends through the company's tenements in the Yandal Province of Western Australia.
The Yandal Province hosts massive gold deposits including Newmont Mining’s (NYSE: NEM) Jundee Deposit containing 5.4 million ounces of gold, and Barrick Gold’s (NYSE: ABX) Darlot Deposit containing 2.9 million ounces of gold.
The Bungara Worm trends north-northeast across Echo tenements and appears to mark a deep-seated shear zone or contact extending over a strike length of at least 20 kilometres, penetrating to at least 30 kilometres.
Other Echo prospects adjacent to the Bungara Worm include Orpheus and Shady Well both hosting high grade gold intersections.
Previous highlights at the Orpheus Prospect include:
- 8 metres at 12.9g/t gold;
- 7 metres at 11.0g/t gold; and
- 6 metres at 4.5g/t gold.
Previous highlights at the Shady Well Prospect include:
- 10 metres at 15.5g/t gold;
- 2 metres at 10.3g/t gold; and
- 6 metres at 10.2g/t gold.