Echo Resources Ltd (ASX:EAR) has received high grade gold results from its April drilling program at the Julius Gold Project in Western Australia’s Yandal Province.
The latest results from 26 holes indicate a high grade gold tenure and good widths with highlights including 24 metres at 3.46 g/t gold from 32 metres and 9 metres at 16.95 g/t gold from 30 metres.
Echo recently announced its initial Resource Estimate at Julius measuring 4.16 million tonnes at 1.69 g/t gold for 226,257 ounces of gold.
The recent drill results should enable the resource to grow significantly as there are a large number of significant gold intersections at depth and along strike which are not fully closed off.
Echo is now conducting a scoping study to assess the economics of a Stage One open pit at the Julius project.
There are toll treatment options that could be available for Echo with preliminary metallurgical test-work suggesting good gold recoveries via conventional CIP/CIL processing.
In February, Echo completed an aircore drilling program at its Zaphod Prospect in the Yandal Gold Belt which provided very high gold assays in outcrop and trench sampling.
Recently, Echo placed 19 million shares at $0.17 per share to institutional and sophisticated investors, raising $3.23 million. The issue was heavily oversubscribed due to the company’s success at the Julius Gold Project.
The results are further validation of the quality of Echo’s exploration assets, particularly the Julius project.
Echo held cash of $3.5 million in May 2016.
Shares in Echo are currently trading at $0.20, up from $0.07 on February 9, 2016.
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