ECR Minerals (LSE:ECR) sat at 0.86p on Wednesday after announcing that it had begun drilling at its Black Cat gold prospect in Victoria, Australia.
The firm has signed a contract for 450m of rotary air blast (RAB) drilling at Black Cat, which is based in its Bailieston gold project. RAB is a low-cost drilling method, which ECR says is particularly well suited to the prospect. The business has mentioned previously that it expects the technique to gather geological information in an ‘efficient and cost-effective manner’.
Black Cat is among the high priority targets identified by geophysical interpretation and targeting studies completed by Terra Resources at Victoria in late 2017. The prospect is located immediately south of ground recently applied for by resources giant Newmont Exploration.
The site is yet to be drilled but contains 220m of historical workings along three known lines of quartz reef. This holds strong gold-in-soil anomalism that indicates unworked reefs could remain at depth. Meanwhile, rock chip sampling of quartz-poor material suggests the potential for disseminated gold, with grades of up to 11.3g/t of the precious metal.
In Wednesday’s update, ECR said composite samples representing 4m downhole lengths will be compiled from the site and assayed for gold. Once these have been received, composites that have returned anomalous gold grades will be re-sampled on a metre-by-metre basis. This second set of samples will then be sent for assay. ECR expects the turnaround time for these assays to be 2-6 weeks.
ECRs chief executive Craig Brown has previously said that Black Cat is located at the ‘epicentre’ of the current gold exploration boom in Victoria. He has highlighted the prospect’s proximity to the successful Fosterville mine, which is owned by Kirkland Lake Gold.
‘This point is underlined by the arrival of Newmont Exploration in the district with an application for ground immediately to the north of the Black Cat prospect,’ he said in an update earlier this month. ‘Notwithstanding our active operations we are keen to maintain strict budgetary cost control and it is notable that the use of RAB drilling at Black Cat is a particularly low-cost method of exploration and will enable us to gather geological information in an efficient and cost-effective manner.’
Wednesday’s update has come during a particularly busy period for ECR, with the business also preparing for two further drilling programmes in Victoria. At the end of last month, the firm announced that it had signed a contract for 4,000-6,000m of reverse circulation drilling in the region.
ECR said its first target is its Creswick Gold Project, where exploration mapping has identified a large gold system within the Dimocks Main Shale (DMS). The DMS is a 15km-long hard rock geological feature and the source of much alluvial and deep lead gold. Drilling will target multiple quartz vein orientations identified within the DMS.
Once this has completed, drilling will then move to the firm’s Blue Moon gold prospect, which is also located at Bailieston. Here, ECR will follow-up a significant near-surface gold intercept and evidence of a near-surface mineralised gold system. The drill target here is a sandstone that has been weathered heavily near the surface. However, ECR believes it may host higher grade gold mineralisation, including disseminated sulphides at deeper levels.
Alongside its various drilling updates, last month also saw ECR announce that it had submitted applications for the nine exploration licences that make up the Windidda gold project in the Yilgarn region of Australia. The area has been identified as a gold exploration opportunity because it has the potential to contain Archaean greenstones beneath shallow cover. Archaean greenstones host many of Western Australia and the world’s most prolific gold deposits.
The under-cover greenstone gold exploration model has already been tested successfully by Greatland Gold at its nearby Ernest Giles project. Furthermore, ECR’s licence applications also cover a large proportion of an identified gravity-magnetic trend with known gold prospects along trend to the south.
Previous exploration at Windidda has only targeted base metal and manganese deposit within cover sequences. ECR expects its target areas to be amenable to aircore drilling. It hopes this will enable it to make a rapid assessment of their potential for gold mineralisation.
Author: Daniel Flynn
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