Hurricane Option Extension & Rock Chip Results

ECR Minerals PLC
02 October 2023
 

ECR MINERALS plc

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

Extension of option to acquire the Hurricane Project

Encouraging First Round Rock Chip Results

ECR Minerals plc (LON: ECR), the exploration and development company focused on gold in Australia, is pleased to announce an extension to its option to acquire Placer Gold Pty Limited, the owner of the Hurricane Project, as well as the latest exploration developments at the project. The Hurricane Project is located approximately 200km west of Cairns in North Queensland, Australia.

HIGHLIGHTS

·      4-week extension of deadline to exercise the option to 26 October 2023 allows ECR further time to analyse and review the project.

·      Discussions to date with the vendors have also set an expectation that ECR will propose revised terms and conditions to the option.

·      125 Rock chip results have been received for the first batch of laboratory samples that cover the Tornado, Cyclone and part of the Holmes vein systems.

·      Best results include a gold equivalent of 31.3 g/t Au and 30.13 g/t Au (Holmes). 28 of the results have gold values greater than 2 g/t Au. All samples from outcrop.

·      The strategic critical mineral, Stibnite (Antimony Sulphide) has been visible in samples taken from the Holmes veins.

ECR Managing Director Nick Tulloch commented: "The Hurricane Project has been a key part of ECR's strategic planning over the past year.  The Hodgkinson Province in which is it located hosts several goldfields which together have produced more than 45 tonnes of gold from alluvial workings and mines.  With that pedigree, the costs of purchase and development also represent a significant commitment for us and, with Mike Whitlow and I still only a few weeks into our new roles, we requested and were granted further time by the vendors both to fully assess the project area and also to ensure the commercial terms reflect the value of the opportunity. The previous rock chip sampling data from the Bannister group provides some encouraging reference points and the antimony readings and chip samples obtained last month from our limited time in the field are most certainly of interest to the Board and the geology team. We look forward to the rest of the sample results."

An Overview of the location of the rock chip sample and vein systems can be found below:

Figure One: https://www.ecrminerals.com/images/2023/Fig1_Hurricane_231002

A map of a hurricane Description automatically generated

EXTENSION OF OPTION TO ACQUIRE Placer Gold Pty Limited

On 27 October 2022, ECR announced that it had been granted an option to acquire the entire issued share capital of Placer Gold Pty Limited ("Placer Gold") (the "Option"), the beneficial holder of three granted mining tenements (EPM 27518, EPM 25855 and EPM 19437) located in NE Queensland, together known as the Hurricane project ("Hurricane Project" or "Hurricane").

As drafted, if the Option is exercised, the purchase price is made up of cash and share payments, in part based on certain milestones being reached as well as a future royalty.  Full details are set out in the announcement of 27 October 2022.  The deadline for ECR to exercise the Option was 30 September 2023 but, through negotiations with the vendors, the Company has secured a four week extension to 26 October 2023.

During this time it is the Board's intention to thoroughly analyse the merits of the Hurricane Project against the costs of purchase and development to assess the value to the Company and its shareholders.  As explained below, work is already underway in this respect. Discussions to date with the vendors have also set an expectation that ECR will propose revised terms and conditions to the Option.

EXPLORATION DEVELOPMENTS

Further to the Company's announcement on 21 September 2023, the ECR technical team has been conducting an infield technical survey of the Hurricane project tenements to establish the prospectivity of gold and antimony mineralisation. The mineralised vein systems currently established at Hurricane are known as the Holmes, Tornado, Cyclone, Pedersons, Bouncer, Typhoon and the Hurricane North and South.

During the month of August 2023, outcrop mapping and rock chip sampling was completed as part of the due diligence process. The objective was to confirm previous results from historic rock chip sampling and to map the extent of outcrop. To date, ECR has received the following information and data for the Tornado, Cyclone and part of the Holmes veins. The position of the veins in relation to each other are shown in Figure One above.

HOLMES VEIN

The Holmes vein is the dominant vein system at the Project. Not only is gold present within the vein, Antimony (present as Stibnite) is visible and has been seen numerous times in outcrop. The Holmes vein consists of at least two main quartz stockwork zones up to 10m wide and is bounded on the western edge by a shear zone up to 1m in width and can be traced along strike for at least 300m. The best Antimony values are obtained close to this shear. To date, ECR has only received the results for a limited number of surface outcrops sampled, with these situated adjacent to and along strike of the shear zone. Best results include 8.19 g/t Au and 7.67 g/t Au and Antimony values up to 29% (290000 ppm Sb).

A gold equivalent value has been calculated by converting the present price of Antimony to the equivalent value in g/t Au. The estimated equivalent value being 3 g/t Au for every 1% Sb (Antimony), and this calculation is similar to the current formulae used by other Australian producers of Gold and Antimony. This would convert the best Antimony results to 31.3 g/t Au and 30.13 g/t Au Eq.

The importance of Antimony is well documented. As one of the listed critical metals, there are limited current sources of Antimony in the western world.

TORNADO VEIN

Previous rock chip sampling by the Bannister Group Pty Ltd. included results up to 17.6 g/t Au. The eastern end of the outcrop also previously returned the best results up to 6.88 g/t Au. ECR geologists re-sampled these zones and have verified the eastern end of the Tornado vein to contain the best values with best results to include 6.95 g/t Au and 5.05 g/t Au

CYCLONE VEIN

The Cyclone vein can be traced in outcrop along the surface for a distance of approximately 500m in strike. The southern end of the outcrop is at its widest point of around 4 metres in width while the northern end thins out to less than 1 metre in width. Sampling work has recovered the best results from a section of the northern outcrop where rock chips taken across the width have returned 0.3m @ 4.65 g/t Au and 0.3m @ 3.93 g/t Au. ECR is awaiting further results from the southern and widest part of the vein.

NEXT STEPS

The Board will continue to evaluate the prospectivity of the project and report these findings as more information is received. The Hurricane results are consistent with the positive visual references noted by the team on the ground and both the field team and the Board believe that this part of Queensland is highly prospective. Further updates will be provided in due course as required.

REVIEW OF ANNOUNCEMENT BY QUALIFIED PERSON

This announcement has been reviewed by Adam Jones, Technical Director of Exploration at ECR Minerals plc. Adam Jones is a professional geologist and is a Member of the Australian Institute of Geoscientists (MAIG). He is a qualified person as that term is defined by the AIM Note for Mining, Oil and Gas Companies.

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

 

ECR Minerals plc


Tel: +44 (0) 20 7929 1010


David Tang, Non-Executive Chairman

Nick Tulloch, Managing Director

Andrew Scott, Director








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ABOUT ECR MINERALS PLC

 

ECR Minerals is a mineral exploration and development company. ECR's wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd ("MGA") has 100% ownership of the Bailieston and Creswick gold projects in central Victoria, Australia, has six licence applications outstanding which includes one licence application lodged in eastern Victoria (Tambo gold project).

 

ECR also owns 100% of an Australian subsidiary LUX Exploration Pty Ltd ("LUX") which has three approved exploration permits covering 946 km2 over a relatively unexplored area in Lolworth Range, Queensland, Australia. The Company also has an option to acquire 100% of Placer Gold, which wholly owns the Hurricane Project, a later stage gold and antimony project located west of Cairns in the Hodgkinson Province, NE Queensland.

 

Following the sale of the Avoca, Moormbool and Timor gold projects in Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX) and the subsequent spin-out of the Avoca and Timor projects to Leviathan Gold Ltd (TSX-V: LVX), Mercator Gold Australia Pty Limited has the right to receive up to A$2 million in payments subject to future resource estimation or production from projects sold to Fosterville South Exploration Limited.

 

ECR holds a 90% interest in the Danglay gold project; an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines, which has a 43-101 compliant resource. ECR also holds a royalty on the SLM gold project in La Rioja Province, Argentina and can potentially receive up to US$2.7 million in aggregate across all licences.

 



 

APPENDIX ONE

Table One: All results from the rock chip sampling programme, arranged by prospect and highest to lowest value Au g/t Au. (- denotes no result), Locations stated in GDA94 Z55 grid.

 

SampleID

Vein

Easting

Northing

Au g/t

Sb g/t

Sb %

HURC012

Tornado

253627

8148872

6.95

69

-

HURC036

Tornado

253797

8148878

5.05

89

-

HURC045

Tornado

253795

8148879

4.27

82

-

HURC010

Tornado

253627

8148873

4.2

88

-

HURC056

Tornado

253772

8148877

3.39

76

-

HURC011

Tornado

253626

8148872

3.33

56

-

HURC049

Tornado

253777

8148876

3.22

74

-

HURC057

Tornado

253772

8148876

3.01

79

-

HURC021

Tornado

253561

8148881

2.98

77

-

HURC061

Tornado

253761

8148876

2.76

98

-

HURC042

Tornado

253790

8148878

2.55

72

-

HURC055

Tornado

253773

8148878

2.44

70

-

HURC060

Tornado

253769

8148873

2.44

56

-

HURC037

Tornado

253797

8148879

2.31

45

-

HURC059

Tornado

253768

8148877

2.08

35

-

HURC009

Tornado

253641

8148807

2.01

25

-

HURC013

Tornado

253616

8148873

1.94

18

-

HURC063

Tornado

253747

8148875

1.63

84

-

HURC058

Tornado

253773

8148876

1.55

40

-

HURC041

Tornado

253790

8148878

1.48

40

-

HURC035

Tornado

253797

8148877

1.37

51

-

HURC054

Tornado

253772

8148879

1.36

71

-

HURC002

Tornado

253618

8148831

1.23

30

-

HURC030

Tornado

253476

8148917

1.14

140

-

HURC006

Tornado

253632

8148837

0.98

43

-

HURC017

Tornado

253581

8148875

0.93

80

-

HURC029

Tornado

253480

8148914

0.85

69

-

HURC031

Tornado

253465

8148919

0.85

93

-

HURC024

Tornado

253510

8148905

0.84

88

-

HURC019

Tornado

253574

8148878

0.8

79

-

HURC038

Tornado

253797

8148880

0.8

23

-

HURC018

Tornado

253573

8148875

0.72

93

-

HURC015

Tornado

253586

8148875

0.67

74

-

HURC004

Tornado

253628

8148834

0.65

29

-

HURC020

Tornado

253567

8148880

0.65

69

-

HURC050

Tornado

253777

8148876

0.64

34

-

HURC053

Tornado

253772

8148880

0.64

34

-

HURC047

Tornado

253776

8148874

0.62

35

-

HURC048

Tornado

253777

8148875

0.6

34

-

HURC005

Tornado

253630

8148829

0.59

18

-

HURC003

Tornado

253624

8148834

0.57

22

-

HURC034

Tornado

253796

8148875

0.49

18

-

HURC022

Tornado

253550

8148883

0.46

101

-

HURC028

Tornado

253491

8148911

0.46

112

-

HURC007

Tornado

253637

8148816

0.44

18

-

HURC062

Tornado

253749

8148877

0.43

38

-

HURC033

Tornado

253457

8148925

0.41

68

-

HURC052

Tornado

253777

8148878

0.41

24

-

HURC001

Tornado

253616

8148832

0.37

31

-

HURC032

Tornado

253460

8148924

0.3

56

-

HURC016

Tornado

253588

8148881

0.27

66

-

HURC023

Tornado

253541

8148888

0.24

83

-

HURC027

Tornado

253493

8148910

0.24

74

-

HURC046

Tornado

253777

8148873

0.21

27

-

HURC026

Tornado

253500

8148904

0.18

80

-

HURC040

Tornado

253789

8148877

0.18

18

-

HURC064

Tornado

253741

8148876

0.18

38

-

HURC051

Tornado

253777

8148878

0.16

21

-

HURC043

Tornado

253791

8148875

0.11

24

-

HURC025

Tornado

253503

8148907

0.09

39

-

HURC008

Tornado

253626

8148814

0.03

13

-

HURC044

Tornado

253793

8148876

0.03

17

-

HURC014

Tornado

253603

8148874

0.02

18

-

HURC039

Tornado

253802

8148879

0.01

22

-

HURC079

Cyclone

253033

8148688

4.65

200

-

HURC080

Cyclone

253037

8148683

3.93

143

-

HURC071

Cyclone

253346

8148402

2.12

261

-

HURC083

Cyclone

-

-

2

1270

-

HURC073

Cyclone

253312

8148440

1.9

231

-

HURC087

Cyclone

-

-

1.9

52

-

HURC076

Cyclone

253251

8148489

1.84

74

-

HURC085

Cyclone

-

-

1.61

492

-

HURC065

Cyclone

253367

8148384

1.54

164

-

HURC084

Cyclone

-

-

1.53

100

-

HURC072

Cyclone

253319

8148434

1.5

217

-

HURC066

Cyclone

253365

8148382

0.99

159

-

HURC082

Cyclone

253021

8148692

0.97

118

-

HURC081

Cyclone

253009

8148698

0.89

180

-

HURC070

Cyclone

253352

8148395

0.77

219

-

HURC069

Cyclone

253355

8148393

0.64

155

-

HURC068

Cyclone

253360

8148387

0.61

88

-

HURC088

Cyclone

-

-

0.58

57

-

HURC067

Cyclone

253364

8148377

0.55

139

-

HURC086

Cyclone

-

-

0.36

122

-

HURC077

Cyclone

253236

8148504

0.35

92

-

HURC074

Cyclone

253285

8148463

0.32

194

-

HURC089

Cyclone

-

-

0.29

40

-

HURC075

Cyclone

253262

8148480

0.22

102

-

HURC090

Cyclone

-

-

0.18

21

-

HURC078

Cyclone

253234

8148506

0.16

84

-

HURC091

Cyclone

-

-

0.11

32

-

HURC100

Holmes

252504

8148026

8.19

704

-

HURC106

Holmes

252532

8148018

7.67

4260

-

HURC111

Holmes

252533

8148016

6.92

4270

-

HURC120

Holmes

252507

8148047

3.17

8050

-

HURC112

Holmes

252537

8148011

2.93

1615

-

HURC123

Holmes

252514

8148053

2.92

1070

-

HURC103

Holmes

252500

8148027

2.3

>10000

29.0

HURC107

Holmes

252533

8148018

2.2

1545

-

HURC108

Holmes

252534

8148018

2.09

4180

-

HURC119

Holmes

252532

8148028

1.88

1490

-

HURC121

Holmes

252509

8148047

1.86

1755

-

HURC109

Holmes

252535

8148017

1.23

9600

-

HURC097

Holmes

252512

8148027

1.17

182

-

HURC101

Holmes

252501

8148027

1.13

>10000

29.0

HURC122

Holmes

252514

8148050

0.97

500

-

HURC099

Holmes

252509

8148029

0.6

145

-

HURC115

Holmes

252535

8148034

0.57

706

-

HURC118

Holmes

252532

8148028

0.5

288

-

HURC093

Holmes

252507

8148030

0.45

128

-

HURC124

Holmes

252516

8148034

0.43

635

-

HURC117

Holmes

252534

8148035

0.36

132

-

HURC104

Holmes

252501

8148028

0.34

2680

-

HURC116

Holmes

252534

8148035

0.33

200

-

HURC098

Holmes

252513

8148029

0.25

163

-

HURC102

Holmes

252505

8148024

0.24

190

-

HURC095

Holmes

252507

8148027

0.21

236

-

HURC092

Holmes

252507

8148032

0.14

100

-

HURC094

Holmes

252507

8148028

0.14

102

-

HURC114

Holmes

252535

8148034

0.14

535

-

HURC096

Holmes

252509

8148026

0.13

103

-

HURC113

Holmes

252536

8148025

0.06

295

-

HURC110

Holmes

252536

8148021

0.04

200

-

HURC105

Holmes

252536

8148025

0.03

468

-

HURC125

Holmes

252527

8148205

0.02

17

-

 

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