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ECR Minerals eyes substantial prizes in Victoria gold belt

The Dimocks Main Shale targets sit between two large gold producing areas in Victoria, Australia
gold nuggets
Sampling has produced impressive grades

Significant gold discoveries have been made in Australia over the past year and ECR Minerals Limited (LON:ECR) is keen to add its name to the list.

In September, ECR announced it had found a large gold system in the Dimocks Main Shale (DMS) exploration targets, part of the wider Creswick project.

Dimocks Main Shale

The Dimocks Main Shale targets sit between two large gold producing areas in Victoria, Australia, where it is estimated historically 15 million ounces of gold have been produced.

ECR Minerals holds a 100% interest in the Creswick project.

The DMS is 25 metres wide and runs for over seven kilometres through ECR’s tenements for an estimated 15Km in total, including adjacent tenements.

ECR Minerals will now drill test the DMS to establish the gold endowment. Rock chip sampling is already underway.

“We are excited by this discovery of a potentially large gold system at Creswick which has been identified by our technical team, led by Dr Rodney Boucher, and is the outcome of many years of detailed study,” said chief executive Craig Brown.

Other prospects in Victoria include Avoca, Bailieston, Moormbool and Timor.

Newmont takes an interest nearby

Interest in the region has grown sufficiently for US giant Newmont to apply for a permit to explore a large area bordering the Bailieston and Moormbool gold projects.

Sample at Bailieston returned grades up to 67.4g/t gold.

A £680,000 fundraising in December has provided cash to fund the exploration programme in Australia until the second quarter of 2020.

Shares were issued at 0.7p per share and came with a warrant exercisable at 1.125p.

The money will cover 4,000 metres of reverse circulation drilling at the Blue Moon, Creswick and Black Cat prospects and 1,400 metres of scout drilling at Avoca.

 “We believe our gold interests in Victoria region in Australia have been validated by the large licence application submitted by Newmont Mining Pty Limited adjacent to our Bailieston and Moormbool projects,” said Brown.

“Moreover work at our Creswick project has revealed, through exploration mapping, a large gold system with exciting potential.

Directors visit Argentina

Elsewhere, ECR has earned a 25% interest in the Danglay epithermal gold project in the north of the Philippines.

An NI43-101 technical report was completed there in December 2015.

ECR’s wholly owned Argentine subsidiary Ochre Mining also 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.

Directors visited the prospect in December and new on the plans for the prospect are expected in the New Year.

Ahead of the latest fundraising, ECR was valued at £2.3mln at 0.68p.

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