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Progress Update - Creswick Gold Project Australia

--(BUSINESS WIRE)--LONDON

 

ECR MINERALS plc

(“ECR Minerals”, “ECR” or the “Company”)

Progress Update - Creswick Gold Project Australia

(LON:ECR), the precious metals exploration and development company, is pleased to announce a progress update from the testing of reverse circulation (“RC”) drilling sample bags taken from the Creswick gold project (the “Project”) in .ECR Minerals plcVictoria, Australia

As announced on and ECR are conducting whole of bag testing in order to increase the sample size to gain more representative results than from the original 2 kg assays.11 June 20198 May 2019

Images of recovered gold referenced in this announcement may be viewed through the following link:

https://www.ecrminerals.com/images/2019/08/22/gec_au_photos.jpg

“I am pleased to update shareholders with our progress in respect of the Creswick gold project., Chief Executive Officer commented:Craig Brown

Establishing the testing process was technically complex and, with the extremely poor winter weather in , took us longer than anticipated.Victoria

The good news is we are up and running with an established process and test results starting to flow into the company. It is positive to see results so far that overall demonstrate increased gold in the samples. These are the early results however and a significant amount of further information is required before conclusions can be drawn.

The results so far have demonstrated significant variability from the original assays, demonstrating that the small sample size can overstate and understate results. Notably the original 44.63 g/t assay from the 2 kg sample from CSR006 (15-16 m) is increased to 63.03 g/t.

Of particular importance is that we use the data gathered from our work generally, and the test results themselves, to understand the geological structures involved and the distribution of gold mineralisation.

In this regard I would like to welcome Dr Simon Dominy FGS(CGeol) FAusIMM(CPGeo) as a consultant to the Company. Simon has extensive relevant experience evaluating high-nugget effect gold deposits and will help assess our results and guide our future work programmes.

With our testing system now established and running further announcements are expected in the near future.”

HIGHLIGHTS:

Update on Bag Testing and Gold Recovery

Appointment of DrSimon Dominy

Table 1. Full-bag test results and comparison to the original 2 kg Leachwell assays (x = below detection).

COMPETENT PERSON STATEMENT

The information in this announcement that relates to Exploration Results is based on information compiled by Dr of provides geological services to , including the services of , who has a PhD in geology, is a Member and RPGeo of the and is a Member of the . 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’. consents to the inclusion in the announcement of the material based on his information in the form and context in which it appears.Rodney BoucherDr BoucherDr BoucherDr BoucherLinex Pty Ltd.Linex Pty LtdMercator Gold Australia Pty LtdAustralian Institute of GeoscientistsAustralasian Institute of Mining and Metallurgy

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 (RIS), this inside information is now considered to be in the public domain.Regulatory Information Service

FOR FURTHER INFORMATION, PLEASE CONTACT:

ABOUTECR MINERALS PLC

ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary has 100% ownership of the Avoca, Bailieston, Creswick, Moormbool and Timor gold exploration licences in central and the in the , .Mercator Gold Australia Pty LimitedWindidda Gold ProjectVictoria, AustraliaYilgarn RegionWestern 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 . An NI43-101 technical report was completed in respect of the Danglay project in and is available for download from ECR’s website.the PhilippinesDecember 2015

ECR’s wholly owned Argentine subsidiary Ochre Mining has 100% ownership of the SLM gold project in , . Exploration at SLM has focused on identifying small tonnage mesothermal gold deposits which may be suitable for relatively near-term production.La RiojaArgentina

ECR Minerals plc

Source:ECR Minerals plc

  • In the Company the confirmed it was evaluating methodologies to conduct full-bag testing of RC samples from Creswick;June 2019
  • Under the guidance of Resource Geologist, , ECR staff and contractors constructed a laboratory for gravity and electrostatic concentration of gold, referred to as GEC;Keith Whitehouse
  • GEC uses the dual processes of gravity and chargeability and is capable of removing coarse, fine and ultrafine particles of gold from the RC samples and is similar to commercially available electrostatic drywashers;
  • The process of retrieving samples, setting up the lab and processing the samples has been significantly slowed by the winter weather at Creswick, however testing is now moving forward and generating results which we can incorporate into a project model to understand the geology and gold mineralisation at Creswick;
  • Samples put through the GEC are logged, dried, sieved, weighed and a shroud is wrapped around the GEC to ensure no fine material is lost. The entire process adds some time to the testing period for each bag, but is essential for reliable data collection. Separate assaying of the processed sample by an independent laboratory takes additional time;
  • The process using the GEC separates the sample into four fractions:
  • (>3mm) is sieved, metal detected and assayed separatelyCoarse oversize material
  • off the GEC is assayed separatelyConcentrate
  • from the GEC are stored separately. When concentrate or oversize assays are high, the tails are assayed as well. (The tails are captured in a bucket below the GEC and because the GEC is a dry process, a considerable amount of dust is generated.)Tails
  • The entire system is enclosed and the tails dust is captured separately and selectively assayed with the remaining tails sample.Tails Dust:
  • Gold recovered from the process is logged and weighed to contribute to the total gold recovered from each bag tested;
  • The GEC has effectively captured small particles of gold as fine as 0.07 mm (refer to image link above);
  • The first batches of concentrate and oversize material has been tested at in Ballarat and the tails and tails dust have been subsequently tested with full results available from the first 17 samples (Table 1);Gekko Laboratories
  • The results from samples tested so far are from the quartz zones around the higher grade results from CSR006 and CSR012 and a single bag from CSR010. Key findings are:
  • The CSR006 sample from 15-16 m has been upgraded from 44.63 g/t to 63.03 g/t (6% of the gold in this sample was in the tails dust and over 50% in the tails overall indicating there is a significant component of very fine gold with the nuggets)
  • Upgrades in most bags processed with downgrades in 3 bags (Table 1);
  • Microscopic examination of the recovered coarse gold shows gold particles commonly up to 2 mm and this gold is both flat/leafy and ropey (refer to image link above).
  • Nuggets recovered by prospecting nearby dumps are a lattice network of ropey gold (refer to image link above) and such a nugget may break down to smaller fragments like those seen in CSR006 following hammering during drilling;
  • The testing process remains underway and further results will be provided in due course;
  • Fundamentally the Company is seeking to understand the particle size distribution/nugget effect and which geological structures/veins preferably host gold to enable follow on work programmes to be devised with a view to ultimately ascertaining the potential for commercial production.
  • To assist with the Company’s Project review ECR has engaged Dr , a mining geologist-geometallurgist with over 25 years’ experience to evaluate the results, review the sampling process and guide future exploration & project development work;Simon Dominy
  • is a Principal Advisor and Qualified Person to Novo Resources Corp. providing technical input across sampling and resource development activities for the Karratha and Beaton’s Creek conglomerate, and Egina alluvial gold projects in the Pilbara of ;Dr DominyWestern Australia
  • He has worked extensively in nuggety gold projects throughout central and as well as goldfields across , and .VictoriaAustraliaEuropeSouth AmericaGreenland

HoleID

From (m)

To (m)

Interval (m)

Original 2 kg assay (g/t)

Full-bag test (g/t)

CSR006

13

14

1

x

X

CSR006

14

15

1

0.12

0.11

CSR006

15

16

1

44.63

63.03

CSR006

16

17

1

0.11

0.17

CSR006

17

18

1

0.15

0.18

CSR006

18

19

1

0.06

0.30

CSR006

20

21

1

x

0.12

CSR006

21

22

1

x

0.01

CSR006

22

23

1

0.39

1.38

CSR006

23

24

1

x

0.00

CSR010

85

86

1

0.27

1.32

CSR012

49

50

1

x

0.01

CSR012

50

51

1

x

0.01

CSR012

51

52

1

x

0.00

CSR012

52

53

1

2.49

2.28

CSR012

53

54

1

0.28

0.24

CSR012

54

55

1

x

0.03

ECR Minerals plc

 

Tel: +44 (0)20 7929 1010

, Non-Executive ChairmanDavid Tang

, Director & CEOCraig Brown

Email:

[email protected]

Website:www.ecrminerals.com

 

WH Ireland Ltd

Tel: +44 (0)161 832 2174

Nominated Adviser

/Katy MitchellJames Sinclair-Ford

 

SI Capital Ltd

 

Tel: +44 (0)1483 413500

 

Broker

 

 

 

Nick Emerson

 

 

 

 

 

 

Quick facts: ECR Minerals PLC

Price: 0.77

Market: AIM
Market Cap: £4.25 m
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