ECR Minerals plc Gold System Identified at Blue Moon Australia

 
TIDMECR 
 
 

AIM: ECR

ECR MINERALS plc

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

Gold System Identified at Blue Moon Australia

LONDON: 6 JULY 2018 - ECR Minerals plc (AIM:ECR) is pleased to announce the results of diamond core drilling at its 100% owned Blue Moon gold prospect in Central Victoria, Australia.

The drilling programme at Blue Moon was undertaken to confirm the presence of gold mineralisation based on the Company's technical work which had indicated potential for an extensive mineralised system.

For clarity the paramount objective of this drill programme was to identify the presence of gold, ratifying the internal exploration model and enabling further work to ascertain the mineralised structure and identify the potential for commercial development.

HIGHLIGHTS:

 
 
    -- The assay results received provide evidence of a significant near 

surface mineralised system, with large mineralised gold intercepts up

to 39.5 metres (apparent width) just 24.2 metres from surface in hole

BBM003 in a host rock sandstone that outcrops at the surface;

 
    -- All three holes intercepted gold mineralisation and the results 

support MGA's hypothesis that Blue Moon is a disseminated gold system

comparable to some of the mineralisation exploited at the 1Moz+

Fosterville mine;

 
    -- Given the deep weathering at Blue Moon and potential for gold 

depletion in the oxidised sulphides, higher grades may be encountered

at depth in fresh rock;

 
    -- The Company has requested multi-element assay data to complement the 

gold results received and we will provide a further update to market

when this additional assay data is been received;

 
    -- The ECR technical team are undertaking additional work to move the 

Blue Moon target forward as rapidly as possible, reflecting the

findings announced today.

Craig Brown, Chief Executive Officer of ECR Minerals commented: "Australia in general and Central Victoria region continues to experience a gold exploration boom and ECR are building a material presence in that region.

The results today provide an exciting opportunity for the Company and we are keen to push ahead with our work to ascertain the size and nature of the mineralised system we have identified.

I expect to be able to release further updates to the market in the near term."

Further Information - Blue Moon & Drill Results

The drilling formed part of a larger diamond drilling programme across three prospects in Central Victoria: Bung Bong, Monte Christo and Blue Moon, all of which are 100% owned by the Company's wholly owned subsidiary Mercator Gold Australia Pty Ltd ("MGA"). The Blue Moon prospect is part of the Bailieston project area (EL5433).

Drill hole data and significant intercepts from the three holes drilled at Blue Moon (BBM001 to BBM 003) are disclosed in Table A below. Intercepts are apparent width.

BBM001 and BBM002 were designed to establish the dip of the host sandstones and assess the potential for gold mineralisation. Intercepts of 5.45m at 0.12 g/t Au from 33.95m and 10.0m at 0.16 g/t Au from 43.8m were obtained in BBM001 and BBM002, respectively. Upon drilling faulted, stockworked sandstone in the first two holes, BBM003 was drilled down dip to test the nature of the cross-cutting faults and veins and to obtain a large number of samples for analysis. An intercept of 39.5m at 0.3 g/t Au from 24.2m, including 2.7m at 1.12 g/t Au from 60m, was obtained in BBM003.

The gold mineralisation intercepted is hosted in a 5.5m wide medium-grained sandstone within a thick bioturbated shale (see figure 1, for BBM003 which may be viewed at the following link: https://bit.ly/2lXAWv9). Diorite sills have intruded along the margins of the sandstone. The sandstone is metamorphosed to quartzite and the brittle host showed stockwork vein development in each of the three holes. Small iron-oxide pseudomorphs thought to be of arsenopyrite and pyrite are disseminated throughout the quartzite. Deep weathering of the sandstone has meant that no fresh samples have been seen to verify the minerals.

The high repeatability of the assay results, evident from MGA's QA/QC procedures (which include the repetition of a certain number of assays), support MGA's hypothesis that the Blue Moon prospect is a disseminated gold system comparable to some of the mineralisation exploited at the Fosterville mine approximately 50 km away. Given the deep weathering and the potential for gold depletion in the oxidised sulphides, it is possible that higher grades may be encountered at depth in the fresh rock.

COMPETENT PERSON STATEMENT

The information in this announcement that relates to Exploration Results is based on information compiled by Dr Rodney Boucher of Linex Pty Ltd. Linex Pty Ltd provides geological services to Mercator Gold Australia Pty Ltd, including the services of Dr Boucher, who has a PhD in geology, is a Member and RPGeo of the Australian Institute of Geoscientists and is a Member of the Australian Institute of Mining and Metallurgy. Dr Boucher 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'. Dr Boucher 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 100% ownership of the Avoca, Bailieston, Creswick, Moormbool and Timor gold exploration licences in central 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.

FOR FURTHER INFORMATION, PLEASE CONTACT:

 
ECR Minerals plc                     Tel: [phone] 
David Tang, Non-Executive Chairman 
Craig Brown, Director & CEO 
Email: 
[e-mail] 
Website: www.ecrminerals.com 
WH Ireland Ltd                       Tel: [phone] 
Nominated Adviser 
Katy Mitchell/James Sinclair-Ford 
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 A

Drill hole data and significant intercepts from 2018 diamond drilling at Blue Moon prospect, EL5433, Central Victoria, Australia by Mercator Gold Australia Pty Ltd

 
                     Drill hole data (MGA 94 Zone 55)                     Intercepts 
Hole ID   Core size  Easting (m)  Northing (m)  RL (m)  Dip  Az   TD (m)  From (m)  To (m)  Width (m)  Au (g/t) 
BBM001    HQ         326228       5922578       160     -60  222  79.2    33.95     39.40   5.45       0.12 
BBM002    HQ         326187       5922552       163     -60  180  83.7    43.80     53.80   10.00      0.16 
BBM003    HQ         326195       5922522       162     -85  11   73.2    24.20     63.70   39.50      0.30 
                                                                  Inc.    60.00     62.70   2.70       1.12 
 
 

JORC Table 1

Section 1 Sampling Techniques and Data

 
Criteria                                                  JORC Code explanation                                                                                                                                                                                                                                                                                          Commentary 
Sampling techniques                                       Nature and quality of sampling (eg cut channels, random  chips, or specific specialised industry standard measurement  tools appropriate to the minerals under investigation, such as  down hole gamma sondes, or handheld XRF instruments, etc). These  examples                                              All sampling and logging has been supervised and conducted by Dr  Rodney Boucher of Linex Pty Ltd and by Linex staff at the Linex  core processing facility or on site at the drill rig. Linex  provided geological services to Mercator Gold Australia Pty Ltd,  including the services of Dr 
                                                          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                                                   Boucher.  All material was collected in commercially available diamond  core trays.  Diamond core was cleaned and marked metre-by-metre.  The geologist determines which parts of the drill hole were to  be sampled using criteria such as presence of quartz and mineral  occurrence. Sample 
                                                          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                                             intervals were based on lithology and veining  but in general were 1m.  The samples were cut with a core saw, with half collected for  laboratory submission, and the remaining half transferred back  to the core tray for storage.  No intervals were less than 0.30m or greater than 1.0m. 
                                                          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.                                                       The diamond drill samples were submitted to Onsite Laboratory  Services in Bendigo, Victoria. Sample preparation involved  sample crush to 2mm, pulverise and then screen to 75 microns and  split off 50g for analysis. Any samples that return grades >1  g/t Au are screen fire assayed. 
Drilling techniques                                       Drill type (eg core, reverse circulation, open-hole hammer,  rotary air blast, auger, Bangka, sonic, etc) and details (eg  core diameter, triple or standard tube, depth of diamond tails,  face-sampling bit or other type, whether core is oriented and if  so, by what method, etc).                        All holes were drilled using a truck mounted Sandvik 710DE drill  rig diamond coring from surface. Holes drilled were HQ.  All holes were surveyed with a single shot camera, nominally  every 30m where practicable.  Core is orientated to geology. Due to the known strike of the  outcrop at surface the bedding 
                                                                                                                                                                                                                                                                                                                                                                         and vein measurements are taken  relative to this orientation. Data were plotted on stereonets to  confirm the orientation and the drilling of three holes with  differing azimuths and dips assisted these plots. Beds were  correlated between holes and surface outcrop for further  confirmation. 
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                                                                                                                                    Core recoveries were measured by the geologist after each drill  run, comparing length of core recovered versus drill depth. Core  recovery was logged and recorded in the database.  The driller was under instruction to monitor 
                                                          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.                                                                                                                                     recovery and  rectify core loss by adjusting drill rig operation.  No strong relationship between core recovery and grade is  evident.  Drilling has occurred on day shift and night shift at various  times during the programme. 
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                                                                                                                    All core was geologically logged at 10 centimetre intervals to a  standard that follows industry common practice and is suitable  for future use in interpretation and resource estimation.  Logging of samples included but was not limited to lithology, 
                                                          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.                                                                                                                          mineralogy, alteration, veining, weathering and structure.  Drill core structural measurements were logged prior to  cutting/sampling. Bedding, joint and fault orientations were  measured.  All core was photographed wet and dry. 
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 or                                                                                                                                            Half core was sampled using a core saw. The right half of the  core (viewed down hole) was submitted for assay.  Linex Pty Ltd core cutting and sampling procedures were followed  to ensure sampling consistency.  1m of non-mineralised material from either side of 
                                                          dry.For all sample types, the nature, quality and appropriateness  of the sample preparation technique.Quality control procedures adopted for all sub-sampling                                                                                                                                                 significant  mineralised zones was submitted with the samples to the  laboratory as part of the quality control process.  No second half sampling has been conducted.  The sample sizes are considered to be appropriate for the type  of mineralisation in this area. 
                                                          stages to maximise representivity of samples.Measures taken to ensure that the sampling is representative  of the in situ material collected, including for instance  results for field duplicate/second-half sampling.Whether sample sizes are appropriate to the grain size of the  material being sampled. 
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 geophysical tools, spectrometers, handheld XRF  instruments, etc, the parameters used in determining the  analysis including instrument make             The sample preparation and analytical procedures are considered  appropriate for the style of mineralisation.  Onsite Laboratory Services provided details of their routine  quality controls.  10% of samples were duplicate assayed and 10% of assays were 
                                                          and model, reading times,  calibrations factors applied and their derivation, etc.Nature of quality control procedures adopted (eg standards,  blanks, duplicates, external laboratory checks) and whether  acceptable levels of accuracy (ie lack of bias) and precision  have been established.              repeated for quality control and quality assurance testing.  One standard sample was inserted per approximately 20 samples  dispatched for assay.  Laboratory standards and blanks were inserted for quality  control and quality assurance testing. 
Verification of sampling and assaying                     The verification of significant intersections by either  independent or alternative company personnel.The use of twinned holes.Documentation of primary data, data entry procedures, data  verification, data storage (physical and electronic) protocols.Discuss any adjustment to assay data.                All assay and drillhole data were imported and stored in a  database.  Significant intersections were verified by the logging geologist  and Dr Boucher.  No twinned holes have been drilled.  Primary data for drill holes was compiled onto paper based 

                                                                                                                                                                                                                                                                                                                                                                         logging templates and was then transferred into a database and  validated by Linex Pty Ltd personnel. Back up digital copies of  all paper log sheets were also kept.  No adjustments have been made to any assay data contained in  this report. 
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.                                                All drill hole location coordinates were measured using handheld  GPS.  Collar surveying was performed by Linex Pty Ltd personnel. This  was considered appropriate for the stage of exploration.  All drill holes were downhole surveyed. Down hole single shot  surveys were conducted by the drilling contractor 
                                                                                                                                                                                                                                                                                                                                                                         every 30m down  hole and at end of hole where possible.  Drilling orientation was established prior to collaring with  clinometer and compass.  The grid system used is GDA MGA 94 Z55.  The RL was recorded for each drill hole from the GPS and  verified using publicly available satellite and aerial imagery. 
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                                                                                                                                          The drill hole spacing at Blue Moon is approximately 30 m.  Sample intervals were based on lithology but in general were 1 m. 
                                                          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                                                                                                                        Two drill holes at Blue Moon were orientated at -60 degrees  towards 222 and 180 degrees, with the third hole orientated at  -85 degrees towards 11 degrees.  BBM001 & BBM002 holes were designed with the aim of crossing the  host sandstone at a high angle. 
                                                          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.                                                                                                                              BBM003 was designed to drill at a low angle to the lithology to  gain maximum samples for analysis and to investigate the  presence of cross faults and veins.  There is insufficient drilling data to determine if any bias can  be detected in the data. 
Sample security                                           The measures taken to ensure sample security.                                                                                                                                                                                                                                                                  All core drilled has been processed and cut at the Linex core  processing facility by Linex Pty Ltd personnel. Core is then  dispatched by Linex Pty Ltd personnel.  All sample reject 
                                                                                                                                                                                                                                                                                                                                                                         is retained by Linex Pty Ltd.  Sample number receipt information from the laboratory is cross-  referenced and rationalised against sample number dispatch  information. 
Audits or reviews                                         The results of any audits or reviews of sampling techniques  and data.                                                                                                                                                                                                                                         No processes or data used in developing the release of  exploration results have been subject to audit or review by  non-Linex Pty Ltd personnel or contractors so as to reduce  timelines for reporting. 
 
 

Section 2 Reporting of Exploration Results

 
Criteria                                                           JORC Code explanation                                                                                                                                          Commentary 
Mineral tenement and land tenure status                            Type, reference name/number, location and ownership including  agreements or material issues with third parties                                                Blue Moon is within the vicinity of Nagambie, Victoria.  Blue Moon is located on EL5433 and is 100% owned by Mercator 
                                                                   such as joint  ventures, partnerships, overriding royalties, native title  interests, historical                                                               Gold Australia Pty Ltd.  Exploration activities at Blue Moon were in open paddocks on  private land. 
                                                                   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.                                                                                                  There has been no contemporary exploration at Blue Moon. There  are small historic pits and shafts at Blue 
                                                                                                                                                                                                                                  Moon.  Previous soil and rock chip geochemistry has been conducted by  Mercator Gold geologists. 
Geology                                                            Deposit type, geological setting and style of mineralisation.                                                                                                  The host rocks at Blue Moon are marine sandstones and shales  intruded by dolerite dykes. Gold is hosted 
                                                                                                                                                                                                                                  associated with  quartz veining within the sandstone.  Outcrop at Blue Moon reveals sandstone 
                                                                                                                                                                                                                                  and dolerite associated  with quartz veins. Drilling confirmed the observations.  Bedding strikes west-north-west 
                                                                                                                                                                                                                                  and dips to the north. Bedding  is transected by a series of west-dipping faults. 
Drill hole Information                                             A summary of all information material to the understanding of  the exploration results                                                                         No material drill hole information has been excluded.  See Table A above 
                                                                   including a tabulation of the following  information for all Material drill 
                                                                   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                   Averages of results through each intersection have been reported.  No cut-off grades have been applied. 
                                                                   cut-off grades are usually Material and  should be stated.Where aggregate intercepts incorporate short lengths of high  grade results 
                                                                   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                                                                 Mineralisation widths are based on down hole lengths.  There is insufficient drilling data to determine continuity of  mineralised domains. 
                                                                   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                             Refer to figure 1.Link: https://bit.ly/2lXAWv9 
                                                                   reported 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                                                 All gold values have been reported. 
                                                                   low 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                                                             All relevant data is presented in the text, tables and diagrams. 
                                                                   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                                                                        Future drilling will be dependent on future company direction. 
                                                                   extensions or large-scale step-out  drilling).Diagrams clearly highlighting the 
                                                                   areas of possible  extensions, including the main geological interpretations and 
                                                                   future drilling areas, provided this information is not  commercially sensitive. 
 
 
 
 

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