ECR Minerals plc Drill Results - Bailieston Gold Project, Australia

 
TIDMECR 
 
 

AIM: ECRUS OTC: MTGDY

ECR MINERALS plc("ECR Minerals", "ECR" or the "Company")

DRILL RESULTS - BAILIESTON GOLD PROJECT, AUSTRALIA

LONDON: 24 July 2017 - The directors of ECR Minerals plc are pleased to announce the results of the recently completed reverse circulation (RC) exploration drilling programme at the Bailieston gold project in Victoria, Australia.

HIGHLIGHTS

* A total of 592 m RC drilling completed in June 2017, for a total of seven holes.

* Three targets tested, being the old Byron Shaft workings, the Scoulars trend and the Maori trend.

* Results for the Scoulars and Maori trends are consistent with the geological model, whilst drilling around the Byron Shaft did not intersect the target mineralisation. All three targets warrant continued exploration along the identified geochemical anomalies.

Craig Brown, CEO of ECR, commented:

"The drilling successfully confirmed our overall geological model for the Bailieston project, and we look forward to planning the next phase of exploration, building on these first-pass results. We are currently looking at the results in the context of ECR's wider strategy in Victoria, where the Company now has 100% ownership of four Exploration Licences containing numerous gold prospects, and will update shareholders in due course regarding next steps."

RESULTS OF DRILLING

The drilling programme was designed as a low-cost verification of the geological model for the Bailieston project as a whole. Hence, the programme was limited to six shallow drill holes with one deeper hole. Although no high-grade mineralisation was intersected, this is not unexpected given the relatively small size of the programme and the fact that it was spread over three prospects.

The mineralisation at the Byron Shaft appears to be a short zone of high grade mineralisation that ends abruptly at the southern end where the two drillholes on this target were placed. Drillhole MGARC02 intersected a cavity at 141 m downhole as well as weak mineralisation at 125 m downhole. It is interpreted that the cavity intersected at 141 m was the southern extension of the old workings where a narrow extension of the Byron Shaft mineralisation was mined.

o Drillhole MGARC02: 1 m at 0.93 g/t Au from 125 m downhole

Drilling on the Scoulars trend confirmed the Company's geological model. Drillholes MGARC04 and MGARC05 intersected broader and shallow low-grade mineralisation in a zone interpreted to be several hundred metres long. Two of the three exploratory drillholes at Scoulars intersected gold mineralisation:

o MGARC04: 9 m at 0.48 g/t Au from 15 m downhole including 1 m at 1.13 g/t

o MGARC04: 6 m at 0.57 g/t Au from 34 m downhole including 1 m at 1.25 g/t

o MGARC05: 13 m at 0.85 g/t Au from 10 m downhole including 4 m at 1.46 g/t

o MGARC05: 2 m at 3.16 g/t Au from 47 m downhole

Drilling on the Maori trend provided the highest grade results with drillhole MGARC07 intersecting 2 m at 6.21 g/t Au with lower grade mineralisation either side in a zone associated with some old workings:

o MGARC07: 4 m at 3.29 g/t Au from 39 m downhole including 2 m at 6.21 g/t

COMPETENT PERSONS STATEMENT

The information in this announcement that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Ivor W O Jones, a Competent Person who is a Fellow and Chartered Professional (Geology) of The Australasian Institute of Mining and Metallurgy. Mr Jones is Executive Director and Chief Operating Officer of ECR and a full-time employee of the Company. Mr Jones has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Jones consents to the inclusion in the announcement of the material based on his information in the form and context in which it appears.

ABOUT ECR

ECR is a mineral exploration and development company. ECR's wholly owned Australian subsidiary Mercator Gold Australia has acquired 100% ownership of the Avoca, Bailieston, Moormbool and Timor gold projects in Victoria, Australia.

ECR has earned a 25% interest in the Danglay epithermal gold project, an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines. An NI43-101 technical report was completed in respect of the Danglay project in December 2015, and is available for download from ECR's website.

ECR's wholly owned Argentine subsidiary Ochre Mining 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.

MARKET ABUSE REGULATIONS (EU) No. 596/2014

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (MAR). Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information is now considered to be in the public domain.

GLOSSARY

 
Au:     gold 
g/t:    grams per tonne 
m:      metre 
 
 

FOR FURTHER INFORMATION, PLEASE CONTACT:

 
ECR Minerals plc                               Tel: [phone] 
William (Bill) Howell, Non-Executive Chairman 
Craig Brown, Director & CEO 
Ivor Jones, Director & COO 
Email: [e-mail] 
Website: www.ecrminerals.com 
Cairn Financial Advisers LLP                   Tel: [phone] 
Nominated Adviser 
Emma Earl / Jo Turner 
Optiva Securities Ltd                          Tel: [phone] 
Broker 
Graeme Dickson 
FlowComms                                      Tel: [phone] 
Investor Relations 
Sasha Sethi 
 
 

FORWARD LOOKING STATEMENTS

This announcement may include forward looking statements. Such statements may be subject to numerous known and unknown risks, uncertainties and other factors that could cause actual results or events to differ materially from current expectations. There can be no assurance that such statements will prove to be accurate and therefore actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements. Any forward-looking statements contained herein speak only as of the date hereof (unless stated otherwise) and, except as may be required by applicable laws or regulations (including the AIM Rules for Companies), the Company disclaims any obligation to update or modify such forward-looking statements because of new information, future events or for any other reason.

Table 1Collar and target information for the June 2017 Bailieston drilling

 
Hole ID   Date        GPS Easting  GPS       Azimuth  Dip  Depth  Target 
          drilled                  Northing 
MGARC01   16/06/2017  326363       5931327   60       60   75 m   Byron 
MGARC02   17/06/2017  326322       5931321   60       60   164 m  Byron 
MGARC03   14/06/2017  326355       5931532   62       60   75 m   Scoulars 
MGARC04   21/06/2017  326459       5931414   58       60   60 m   Scoulars 
MGARC05   16/06/2017  326503       5931326   50       60   60 m   Scoulars 
MGARC06   21/06/2017  326615       5931371   53       55   80 m   Maori 
MGARC07   22/06/2017  326635       5931319   60       60   78 m   Maori 
 
 

Table 2Intersections of mineralisation from the June 2017 Bailieston drilling

 
Location         Hole ID  From (m)  To (m)                Length (m)  Grade (g/t Au) 
Byron Shaft      MGARC01  No significant intersections 
Byron Shaft      MGARC02  141       141.5                 0.5         Cavity 
Byron Shaft      MGARC02  125       126                   1           0.93 
Scoulars trend   MGARC03  No significant intersections 
Scoulars trend   MGARC04  15        24                    9           0.48 
                                    including             1           1.13 
Scoulars trend   MGARC04  34        40                    6           0.57 
                                    including             1           1.25 
Scoulars trend   MGARC05  10        23                    13          0.85 
                                    including             4           1.46 
Scoulars trend   MGARC05  47        49                    2           3.16 
Maori trend      MGARC06  No significant intersections 
Maori trend      MGARC07  39        43                    4           3.29 
                                    including             2           6.21 
 
 

Section 1 Sampling Techniques and Data (JORC CODE, 2012 EDITION - TABLE 1)

 
Criteria                                                  Classification Code explanation                                                                                                                                                                                                                                    Commentary 
Sampling techniques                                       Nature and quality of sampling (eg cut channels, random  chips, or specific specialised industry standard measurement  tools appropriate                                                                                                                         Reverse circulation ('RC') drilling has been used to obtain 1  m samples from which 4 to 5 kg of sample was taken. The 4-5kg  sample was split 

                                                          to the minerals under investigation, such as  down hole gamma sondes, or handheld XRF instruments, etc). These  examples                                                                                                                                         and a 1.2 kg subsample fully pulverised, and a  50 g charge initially fire assayed. Subsequently, 1 kg was  reassayed using a bulk leach. 
                                                          should not be taken as limiting the broad meaning of  sampling.Include reference to measures taken to ensure sample  representivity and the appropriate calibration of any  measurement tools or systems used.Aspects of the determination of mineralisation 
                                                          that are  Material to the Public Report.In cases where 'industry standard' work has been done this  would be relatively simple (eg 
                                                          'reverse circulation drilling was  used to obtain 1 m samples from which 3 kg was pulverised to  produce a 30 g charge for fire 
                                                          assay'). In other cases more  explanation may be required, such as where there is coarse gold  that has inherent sampling problems. Unusual commodities or  mineralisation types (eg submarine nodules) may warrant  disclosure of detailed information. 
Drilling techniques                                       Drill type (eg core, reverse circulation, open-hole hammer,  rotary air blast, auger, Bangka, sonic, etc) and details (eg  core diameter, triple                                                                                                                 RC holes were completed with a 5 inch face sampling hammer. 
                                                          or standard tube, depth of diamond tails,  face-sampling bit or other type, whether core is oriented and if  so, by what method, etc). 
Drill sample recovery                                     Method of recording and assessing core and chip sample  recoveries and results assessed.Measures taken to maximise sample recovery and ensure  representative nature of the                                                                                      RC total sample was collected before any preparation.  There is no information on whether or not there is a  relationship between sample recovery and grade. 
                                                          samples.Whether a relationship exists between sample recovery and  grade and whether sample bias may have occurred due to  preferential loss/gain of fine/coarse material. 
Logging                                                   Whether core and chip samples have been geologically and  geotechnically logged to a level of detail to support  appropriate Mineral Resource estimation, mining studies and  metallurgical                                                                     Each 1m chip sample was systematically logged.  Samples have not been photographed as yet. 
                                                          studies.Whether logging is qualitative or quantitative in nature.  Core (or costean, channel, etc) photography.The total length and percentage of the relevant intersections  logged. 
Sub-sampling techniques and sample preparation            If core, whether cut or sawn and whether quarter, half or all  core taken.If non-core, whether riffled, tube sampled, rotary split, etc  and whether sampled wet                                                                                                 RC samples were split using a 3 stage Jones riffle splitter in  order to obtain a 4-5 kg sub-sample. Where samples were wet, a  tube was used to collect as good a 
                                                          or dry.For all sample types, the nature, quality and appropriateness  of the sample preparation technique.Quality control procedures adopted for all sub-sampling                                                                                                 sample as possible.  Nearly all samples were collected dry. Very few samples were wet.  The Bendigo sample preparation facility was inspected by Ivor  Jones 
                                                          stages to maximise representivity of samples.Measures taken to ensure that the sampling is representative  of the in situ material collected, including                                                                                                           during a 2017 site visit and found to be suitable for  purpose.  Select samples were also assayed using a bulk leach to test for  appropriateness of the size 
                                                          for instance  results for field duplicate/second-half sampling.Whether sample sizes are appropriate to the grain size of the  material being sampled.                                                                                                            of the subsample being assayed and a  much larger sample being assayed. There was very little  difference between the bulk assay and the fire assay technique. 
Quality of assay data and laboratory tests                The nature, quality and appropriateness of the assaying and  laboratory procedures used and whether the technique is  considered partial or total.For                                                                                                            1 in every 25 samples was blank material, 1 in every 25 samples  was a CRM. 62 pulp samples ( 10%) were re-assayed using a BLEG  technique. 
                                                          geophysical tools, spectrometers, handheld XRF  instruments, etc, the parameters used in determining the  analysis including instrument make                                                                                                                     Based on the analysis of the results from the QAQC processes, it  can be concluded that sample assay determination accuracy 
                                                          and model, reading times,  calibrations factors applied and their derivation, etc.Nature of quality control procedures adopted (eg standards,  blanks,                                                                                                           and  precision is within accepted industry standards and  contamination during sample preparation was not an issue. It is  the author's opinion that the sample preparation and assay  determinations provided by On-Site assay laboratory are  acceptable. 
                                                          duplicates, external laboratory checks) and whether  acceptable levels of accuracy (ie lack of bias) and precision  have been established. 
Verification of sampling and assaying                     The verification of significant intersections by either  independent or alternative company personnel.The use of twinned holes.Documentation of                                                                                                                   There has been no twinned holes or other verification of data  reported here.  There has been no adjustment to the assays. 
                                                          primary data, data entry procedures, data  verification, data storage (physical and electronic) protocols.Discuss any adjustment to assay data. 
Location of data points                                   Accuracy and quality of surveys used to locate drill holes  (collar and down-hole surveys), trenches, mine workings and  other locations used in Mineral Resource estimation.Specification of the grid system used.Quality and adequacy of topographic control.  Collar locations were recorded by GPS measurements.  Down-hole surveys were systematically performed every 30m.  Geographical data were obtained 
                                                                                                                                                                                                                                                                                                                             and reported according to the  UTM zone 55S (WGS84).  Elevation and accurate coordinates will be determined when the  collars are surveyed. 
Data spacing and distribution                             Data spacing for reporting of Exploration Results.Whether the data spacing and distribution is sufficient to  establish the degree of geological and grade continuity                                                                                             Data spacing varies between 50 m and 200 m along strike.  Data spacing and distribution is not sufficient for the  evaluation of mineral resources.  Sample compositing has been applied for exploration results  reporting. 
                                                          appropriate for the Mineral Resource and Ore Reserve estimation  procedure(s) and classifications applied.Whether sample compositing has been applied. 
Orientation of data in relation to geological structure   Whether the orientation of sampling achieves unbiased  sampling of possible structures and the extent to which this is  known, considering the deposit type.If the relationship between                                                                          Drilling was performed towards the northeast whilst the  mineralisation is northwest-southeast striking. Drilling  intersects the mineralisation at a relatively high angle and is  not expected to cause any issues in the evaluation of the  project. 
                                                          the drilling orientation and the  orientation of key mineralised structures is considered to have  introduced a sampling bias, this should be assessed and reported  if material. 

Sample security                                           The measures taken to ensure sample security.                                                                                                                                                                                                                      Samples were individually bagged and sealed in larger bags of  10; the bags were under the direct supervision of ECR until they  were delivered to the laboratory, and always on the same day as  the sample was drilled. 
Audits or reviews                                         The results of any audits or reviews of sampling techniques  and data.                                                                                                                                                                                            There has been no external review of the sampling and assaying  procedures. 
 
 

Section 2 Reporting of Exploration Results (JORC CODE, 2012 EDITION - TABLE 1)

 
Criteria                                                           Classification Code explanation                                                                                                                                       Commentary 
Mineral tenement and land tenure status                            Type, reference name/number, location and ownership including  agreements or material issues with third parties                                                      The Bailieston project falls within ECR's Bailieston (EL5433)  tenement. The tenement largely falls within Crown Land. 
                                                                   such as joint  ventures, partnerships, overriding royalties, native title  interests, historical                                                                    EL5433 is due for renewal in March 2018.  EL5433 is subject to a royalty agreement with Currawong  Resources Pty Ltd. 
                                                                   sites, wilderness or national park and  environmental settings.The security of the tenure held at the 
                                                                   time of reporting  along with any known impediments to obtaining a licence to  operate in the area. 
Exploration done by other parties                                  Acknowledgment and appraisal of exploration by other parties.                                                                                                         Work completed by earlier companies has been used to guide the  Company's exploration on 
                                                                                                                                                                                                                                         the Maori trend. However, exploration  has been very limited on the Scoulars trend. 
Geology                                                            Deposit type, geological setting and style of mineralisation.                                                                                                         Mineralisation appears to be a disseminated style of  mineralisation associated with disseminated and oxidized  hematite with minor quartz. 
Drill hole Information                                             A summary of all information material to the understanding of  the exploration results including a tabulation of the following  information for all Material drill  Drill hole information has been tabulated as a part of this  report. 
                                                                   holes:easting and northing of the drill hole collarelevation or RL (Reduced Level - elevation above sea  level in metres) of the drill hole collardip and 
                                                                   azimuth of the holedown hole length and interception depthhole length.If the exclusion of this information is justified on the  basis that the information is 
                                                                   not Material and this exclusion  does not detract from the understanding of the report, the  Competent Person should clearly explain why this is the case. 
Data aggregation methods                                           In reporting Exploration Results, weighting averaging  techniques, maximum and/or minimum grade truncations (eg cutting  of high grades) and                        Exploration results have been averaged over the entire  intersection of interest using a value of 0.2 g/t 
                                                                   cut-off grades are usually Material and  should be stated.Where aggregate intercepts incorporate short lengths of high  grade results                               to define the  limits of the low-grade intersections.  There are no metal equivalent values considered. 
                                                                   and longer lengths of low grade results, the  procedure used for such aggregation should be stated and some  typical examples of such 
                                                                   aggregations should be shown in detail.The assumptions used for any reporting of metal equivalent  values should be clearly stated. 
Relationship between mineralisation widths and intercept lengths   These relationships are particularly important in the  reporting of Exploration Results.If the                                                                       The drill intercepts are interpreted to have intersected the  mineralised packages at a high angle. 
                                                                   geometry of the mineralisation with respect to the  drill hole angle is known, its nature 
                                                                   should be reported.If it is not known and only the down hole lengths are  reported, there should 
                                                                   be a clear statement to this effect (eg  'down hole length, true width not known'). 
Diagrams                                                           Appropriate maps and sections (with scales) and tabulations  of intercepts should be included for any significant discovery  being reported.                        A plan of the Bailieston project area showing geochemical  results and interpretations has been made available previously. 
                                                                   These should include, but not be limited to a  plan view of drill hole collar locations and appropriate  sectional views. 
Balanced reporting                                                 Where comprehensive reporting of all Exploration Results is  not practicable, representative reporting of both low                                                   This has been incorporated in the tabulation of the results in  this report. 
                                                                   and high  grades and/or widths should be practiced to avoid misleading  reporting of Exploration Results. 
Other substantive exploration data                                 Other exploration data, if meaningful and material, should be  reported including (but not limited                                                                   A plan of the Bailieston project area showing geochemical  results and interpretations has been made available previously. 
                                                                   to): geological  observations; geophysical survey results; geochemical survey  results; bulk 
                                                                   samples - size and method of treatment;  metallurgical test results; bulk density, groundwater, 
                                                                   geotechnical and rock characteristics; potential deleterious or  contaminating substances. 
Further work                                                       The nature and scale of planned further work (eg tests for  lateral extensions or depth                                                                              Exploration should continue along the geochemical anomalies to  test for any significant mineralisation.  Whilst 
                                                                   extensions or large-scale step-out  drilling).Diagrams clearly highlighting the                                                                                      the grade at Scoulars is relatively low, the  mineralisation is relatively thick and shallow. It is  recommended 
                                                                   areas of possible  extensions, including the main geological interpretations and                                                                                     that this mineralisation is further tested to see if  a bulk low grade resource can be identified.  Follow-up drilling 
                                                                   future drilling areas, provided this information is not  commercially sensitive.                                                                                     on the Maori trend should also be considered.  Additional exploration should cover the Byron Shaft area. 
 
 
 
 

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July 24, 2017 02:00 ET (06:00 GMT)