ECR Minerals PLC (LON:ECR) said it has seen positive geochemical results and has begun a drilling programme at the Bung Bong gold prospect at its Avoca tenement in Victoria.
The AIM-listed gold miner said geochemical results and geological observations at Bung Bong indicated several fault-related quartz and quartz spurs to test as potential high-volume targets for gold mineralisation at the surface.
READ: ECR Minerals focuses on gold exploration in Victoria while ‘remaining on a strong financial footing’
ECR added that the number of quartz-related structures and a paucity of deep workings at Bung Bong provides opportunity for an open cut operation and that road cutting to the north of the workings has exposed seven west-dipping faults over a 40m zone with associated quartz veining.
One hypothesis is that the geochemical pattern could correspond to the seven faults branching from an anticline.
The Avoca tenement, owned by ECR’s subsidiary Mercator Gold Australia Ltd (MGA), is home to several prospects in which the company intends to conduct drilling programmes.
A first pass diamond drilling programme of six holes to 70m depth to assess the nature and continuity of the faults and associated quartz veining and gold mineralisation is scheduled to begin 15 April 2018 at Bung Bong.
ECR said early indications from pipeline of geochemical surveys carried out at additional prospects within MGA’s four licence areas are highly encouraging, indicating potential for disseminated (Fosterville-style) and nuggetty (Bendigo\Ballarat-style) gold.
Craig Brown, ECR chief executive, commented: “In order to maximise the chances of drilling success, MGA has invested time and effort in developing a geological understanding of our multiple target areas within this prolific gold producing region of Victoria prior to further exploring these further. We are now excited to be imminently commencing with an initial drill programme pass of six holes of up to 70m in depth at our Bung bong prospect within our Avoca licence area.
He added: “The anticipated outcome of this first programme is to establish if the fault, fold and quartz geometries and mineralising relationships are indicative for a significant orebody for follow-up RC resource drilling. We look forward to updating the market in due course.”
Shares in ECR Minerals were up 6.2% at 0.85p in early trading Friday.
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