RNS Reach (“ECR Minerals”, “ECR” or the “Company”)
Asset Overview and Evaluation
ECR Minerals plc (LON: ECR), the exploration and development company focused on gold in Australia, is pleased to announce that the new directors are already conducting a comprehensive review of all exploration activities currently being undertaken. In addition a detailed evaluation of the existing asset base is underway, including the Company’s property, plant and other readily realisable assets.
A summary of the Company’s exploration assets, royalty assets, property and plant follows:
North Queensland assets:
- Lolworth Project – An extensive fieldwork campaign of soil sampling and rock chips has already been successfully completed. However, ECR’s geological team continues to concentrate on areas of high potential to help delineate a series of future high-priority zones and drill targets.
- Hurricane Project - Following a campaign of fieldwork undertaken during August and early
September 2023, the Company is awaiting the highly anticipated sampling programme results to prove the near-term development potential of Hurricane.
- Blue Mountain Project - Following the announcement of the conditional acquisition of the project in April 2023, initial studies have yet to commence. Based on reports from previous explorers, the Board believes that the project has potential for a gold discovery.
- Creswick Project - The new directors are reviewing all of the Company’s assets at Creswick where ECR plans to seek a secondary (technical) opinion of its opportunities in Victoria. This will run alongside plans to investigate the discovery of two potential 100m gold ‘shoots’ at the Quartz Hill prospect and potential for further shoots along the Dimocks Main Shale strike and south towards Ballarat, further exploration work at the Davey Road prospect, Bush Inn Road prospect and at the Kuboid Hill and Mills Reef prospects.
- Bailieston – The Company believes that the Bailieston licenses still hold considerable nascent value. Further work at the HR3 prospect at Bailieston tenement EL5433 is planned, including a soil geochemistry programme and follow-up drilling to the north of HR3.
- Tambo Project - Following an initial field visit to the Tambo project, the rock chip sample results from the Duke of Cornwall prospect will be assessed prior to taking any next steps.
- Danglay gold project – ECR owns 90% of an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines, which has a 43-101 compliant resource. The Company is currently considering how best to extract value from this asset.
- Fosterville South Exploration Ltd (TSX-V: FSX) (“Fosterville South”) - Following the sale of the Avoca, Moormbool and Timor gold projects in Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX) and the subsequent spin-out of the Avoca and Timor projects to Leviathan Gold Ltd (TSX-V: LVX), ECR has the right to receive up to A$2m in payments subject to future resource estimation or production from the projects sold to Fosterville South (see announcement dated 20 April 2020).
- SLM gold project, La Rioja Province, Argentina – ECR holds a royalty and can potentially receive up to US$2.7 million in aggregate across all licences.
- ECR owns a property at 35 Brewing Lane, Springmount, Australia. The property consists of 16 acres and is located within the Company’s existing 100% owned Creswick license area. The Board are considering a sale of the property, which is currently being used as a base for Creswick operations.
- ECR owns several items of valuable mechanical equipment. All options including future deployment, plant rental or disposal are being considered by the Company.
ECR Managing Director Nick Tulloch commented: “It is very evident that ECR owns a valuable
and diverse portfolio of assets which we believe in time have the potential to offer considerable upside. This factor was certainly a catalyst in driving the recently announced board changes and the share subscription that is of course subject to approval at our forthcoming General Meeting. We hope to have a comprehensive technical view of both our historical projects as well as the conclusion of our latest work programme on Queensland in the coming weeks.”
ECR Chief Operations Officer Mike Whitlow added: “The Board are engaged in an intensive review of all of ECR’s assets and operations. Our primary objective is to ensure the Company is on a secure financial footing for all future activities, and we will be making a series of decisions that will be announced to our shareholders in the coming weeks. I would like to take this opportunity to thank our shareholders for their patience and steadfastness in these matters, and I look forward to reporting back to you on these next steps as they occur.”