ECR Minerals looks to expand into Western Australia with new exploration license applications (ECR)

ECR Minerals (LSE:ECR) announced today it is looking to expand operations into Western Australia having submitted nine new exploration license applications. The licenses cover a package of ground prospective for gold mineralisation across 1600 square Kilometres in the Yilgarn region and will be collectively called the Windidda gold project.

Previous exploration within the project area has targeted base metal and manganese deposits. Licence applications cover a significant proportion of an identified gravity-magnetic trend with known gold prospects along trend in outcropping greenstone to the south (not owned by ECR). These gravity-magnetic anomalies have not been targeted to date.

The under-cover greenstone gold exploration model has been successfully tested by Greatland Gold (LON:GGP) at its Ernest Giles project located approximately 125 kilometres east of the Windidda project.

When granted, the project will complement ECR’s existing extensive gold exploration portfolio in Victoria, Australia.

Map of ECR Minerals’ existing five licences in Victoria, Australia

Things appear to be hotting up in the region, and just recently mining giant Newmont applied for a license for a large area of ground in close proximity to licenses held by ECR.  Via it’s 100% owned operating vehicle Mercator Gold Australia Pty Limited, ECR recently submitted four new licenses in Victoria. Three of the applications relate to the Bailieston/Moormbool gold project area to augment existing licences and secure available ground just to the south of acreage applied for by Newmont.  The fourth license application has been submitted to add to the ground in the Creswick project area.

In December, ECR announced it had secured strategic funding of £680k, stating that, together with existing cash, the company now has sufficient working capital for operational plans until at least Q2 2020.

Craig Brown, Chief Executive Officer of ECR Minerals plc, commented: “I am particularly pleased to announce this strategic move into Western Australia, which, like Victoria, has exceptional gold exploration potential in a first world operating environment.

Greenstone-hosted gold trends in the Western Australian Yilgarn province are very tightly held and access to free ground, when it becomes available, is highly competitive. So, it is very encouraging that ECR has managed to compile a large land position of contiguous tenements covering untested gravity-magnetic anomalies representative of potential greenstone-hosted gold trends.

The funds secured by ECR in the strategic financings of July and December 2018 have enabled us to continue engaging aggressively with potential new initiatives, the Windidda project being one.

We are acquiring new ground in Australia at a time when many explorers and developers are financially weakened by market conditions. This, although unfortunate for the wider resource sector, is presenting ECR with multiple highly attractive options, and we intend to take full advantage.

Our work continues at pace and I look forward to updating our shareholders further with additional new developments in the near term.”

Author: Stuart Langelaan

Disclosure: The author does not own shares in the companies mentioned above 

Updated 03 Jan 2019

 

ECR Minerals secures strategic funding to expand exploration (ECR)

ECR minerals (LSE:ECR) announced it has secured strategic funding of £680k on Monday. The company states that together with existing cash, ECR now has sufficient working capital for operational plans until at least Q2 2020.

In addition to the new shares being issued at 0.70p, participants in the fundraise will also receive a warrant for each share subscribed, exercisable at 1.125p within two years.  Directors, David Tang and Craig Brown have also subscribed for a total of £20k on the same terms.

Chief Executive Officer, Craig Brown, commented: “I am pleased to announce this additional financing which adds to the money raised in July and considerably bolsters our balance sheet working capital at a key time for the ECR business.Market conditions in the resource sector have been challenging in the latter half of 2018, for companies of our size and we believe the ability to source additional financing at this time is a validation of our business model and plans. ECR is in a financially robust position and can now push ahead with exploration and development across the business. In this regard ECR has a portfolio of projects in Australia which have yielded highly positive exploration results during our 2018 work programmes and deserve a proactive exploration approach.”

The funds raised will partly be used to expand exploration at the company’s gold projects in Victoria, Australia. Things appear to be hotting up in the region, and just recently mining giant Newmont applied for a license for a large area of ground in close proximity to licenses held by ECR. In fact, ECR is looking to increase its territory in the vicinity via its 100% owned operating vehicle Mercator Gold Australia Pty Limited. Earlier this month, Mercator submitted three new license applications to augment existing licenses related to the Bailieston/Moormbool gold project area just south and southwest of Newmont’s potential license. A fourth license application has been submitted to add to the ground in the Creswick project area that sits between two large gold producing areas.

In its update Monday, ECR detailed some of the activities the placing will fund which include 4,000 metres of reverse circulation drilling at Blue Moon, Creswick and Black Cat prospects and 1,400 metres of scout drilling at the Avoca prospect.

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

We have added additional ground with complementary licence applications recently announced, and we have more opportunities for new licences and new corporate activity to further bolster our business. The extent of our new opportunity pipeline is such that we are taking time to carefully select the primary opportunities.

Notwithstanding challenging conditions of late and what we perceive to be a general retrenchment in activity across the resource sector due to funding limitations, shareholders in ECR can be assured that the Company is well financed and operationally active, and we look forward to updating shareholders in due course on our activities.”

Author: Stuart Langelaan

Disclosure: The author does not own shares in the company mentioned above

ECR Minerals applies for new licenses near Newmont application in Victoria (ECR)

ECR Minerals (LSE:ECR) announced on Tuesday that is has submitted a number of new license applications to potentially add to its existing gold exploration interests in the Victoria region of Australia.

The four new license applications have been submitted by ECR’s 100% owned Australian operating vehicle Mercator Gold Australia Pty Limited. Three of the applications relate to the Bailieston/Moormbool gold project area to augment existing licences and secure available ground south and south and south-west of an application submitted by Newmont Exploration Pty Limited in recent weeks. Newmont’s license application for a large area near to ECRs existing Bailiston gold project bodes well for ECR. A company of that size typically dedicates a great deal of resources to due diligence prior to securing new licenses and ECR extending its own acreage nearby could prove to be a very prudent move.

The other license application has been submitted to add to the ground in the Creswick project area and covers a southern portion of the Dimocks Main Shale (DMS). The DMS sits between two large gold producing areas where it is estimated historically, 15 million ounces of gold has been produced in Victoria, Australia. The Company’s technical team believes they have identified the hard rock source for a significant portion of the aforementioned 15 million ounces of gold production, although it notes further work is required to validate this proposition. 

Craig Brown, Chief Executive Officer of ECR Minerals plc commented: “I am delighted to announce today that the Company has successfully submitted four new applications which materially bolster our strategic ground holding and provide significant additional exploration opportunities for our Australian operations.

The recent application submitted by Newmont Exploration Pty Limited over a large area bordering our Bailieston and Moormbool gold projects is an important ratification of our strategic Australian gold positioning. The presence of Newmont adds weight to the potential prospectivity of the area.

ECR’s exploration work at Bailieston has recently demonstrated gold prospectivity as highlighted by the results of our Bailieston sampling programme announced on 28 September 2018 with gold grades up to 67.4g/t.

At Creswick and as announced on 25 September 2018 our exploration mapping revealed a large gold system, and reflecting our wider exploration work to date, we have taken the opportunity to secure more strategic ground south of our existing Creswick project area.

ECR continues to examine new opportunities and will move to secure additional ground where appropriate.”

Author: Stuart Langelaan

Disclosure: The author does not own shares in the company mentioned above