Gold System Identified at Blue Moon Australia
ECR Minerals plc
AIM: ECR
ECR MINERALS plc
(“ECR Minerals”, “ECR” or the “Company”)
Gold System Identified at Blue Moon Australia
LONDON: 6 JULY 2018 - ECR Minerals plc (AIM:ECR) is pleased to
announce the results of diamond core drilling at its 100% owned Blue
Moon gold prospect in Central Victoria, Australia.
The drilling programme at Blue Moon was undertaken to confirm the
presence of gold mineralisation based on the Company’s technical work
which had indicated potential for an extensive mineralised system.
For clarity the paramount objective of this drill programme was to
identify the presence of gold, ratifying the internal exploration model
and enabling further work to ascertain the mineralised structure and
identify the potential for commercial development.
HIGHLIGHTS:
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The assay results received provide evidence of a significant near
surface mineralised system, with large mineralised gold intercepts up
to 39.5 metres (apparent width) just 24.2 metres from surface in hole
BBM003 in a host rock sandstone that outcrops at the surface;
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All three holes intercepted gold mineralisation and the results
support MGA’s hypothesis that Blue Moon is a disseminated gold system
comparable to some of the mineralisation exploited at the 1Moz+
Fosterville mine;
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Given the deep weathering at Blue Moon and potential for gold
depletion in the oxidised sulphides, higher grades may be encountered
at depth in fresh rock;
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The Company has requested multi-element assay data to complement the
gold results received and we will provide a further update to market
when this additional assay data is been received;
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The ECR technical team are undertaking additional work to move the
Blue Moon target forward as rapidly as possible, reflecting the
findings announced today.
Craig Brown, Chief Executive Officer of ECR Minerals commented:
“Australia in general and Central Victoria region continues to
experience a gold exploration boom and ECR are building a material
presence in that region.
The results today provide an exciting opportunity for the Company and we
are keen to push ahead with our work to ascertain the size and nature of
the mineralised system we have identified.
I expect to be able to release further updates to the market in the near
term.”
Further Information – Blue Moon & Drill
Results
The drilling formed part of a larger diamond drilling programme across
three prospects in Central Victoria: Bung Bong, Monte Christo and Blue
Moon, all of which are 100% owned by the Company's wholly owned
subsidiary Mercator Gold Australia Pty Ltd (“MGA”). The Blue Moon
prospect is part of the Bailieston project area (EL5433).
Drill hole data and significant intercepts from the three holes drilled
at Blue Moon (BBM001 to BBM 003) are disclosed in Table A below.
Intercepts are apparent width.
BBM001 and BBM002 were designed to establish the dip of the host
sandstones and assess the potential for gold mineralisation. Intercepts
of 5.45m at 0.12 g/t Au from 33.95m and 10.0m at 0.16 g/t Au from 43.8m
were obtained in BBM001 and BBM002, respectively. Upon drilling faulted,
stockworked sandstone in the first two holes, BBM003 was drilled down
dip to test the nature of the cross-cutting faults and veins and to
obtain a large number of samples for analysis. An intercept of 39.5m at
0.3 g/t Au from 24.2m, including 2.7m at 1.12 g/t Au from 60m, was
obtained in BBM003.
The gold mineralisation intercepted is hosted in a 5.5m wide
medium-grained sandstone within a thick bioturbated shale (see figure 1,
for BBM003 which may be viewed at the following link: https://bit.ly/2lXAWv9).
Diorite sills have intruded along the margins of the sandstone. The
sandstone is metamorphosed to quartzite and the brittle host showed
stockwork vein development in each of the three holes. Small iron-oxide
pseudomorphs thought to be of arsenopyrite and pyrite are disseminated
throughout the quartzite. Deep weathering of the sandstone has meant
that no fresh samples have been seen to verify the minerals.
The high repeatability of the assay results, evident from MGA’s QA/QC
procedures (which include the repetition of a certain number of assays),
support MGA’s hypothesis that the Blue Moon prospect is a disseminated
gold system comparable to some of the mineralisation exploited at the
Fosterville mine approximately 50 km away. Given the deep weathering and
the potential for gold depletion in the oxidised sulphides, it is
possible that higher grades may be encountered at depth in the fresh
rock.
COMPETENT PERSON STATEMENT
The information in this announcement that relates to Exploration Results
is based on information compiled by Dr Rodney Boucher of Linex Pty Ltd.
Linex Pty Ltd provides geological services to Mercator Gold Australia
Pty Ltd, including the services of Dr Boucher, who has a PhD in geology,
is a Member and RPGeo of the Australian Institute of Geoscientists and
is a Member of the Australian Institute of Mining and Metallurgy. Dr
Boucher 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’. Dr Boucher consents to the
inclusion in the announcement of the material based on his information
in the form and context in which it appears.
ABOUT ECR
ECR is a mineral exploration and development company. ECR’s wholly owned
Australian subsidiary Mercator Gold Australia has 100% ownership of the
Avoca, Bailieston, Creswick, Moormbool and Timor gold exploration
licences in central Victoria, 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 the Philippines. An NI43-101 technical
report was completed in respect of the Danglay project in December 2015
and is available for download from ECR’s website.
ECR’s wholly owned Argentine subsidiary Ochre Mining has 100% ownership
of the SLM gold project in La Rioja, Argentina. Exploration at SLM has
focused on identifying small tonnage mesothermal gold deposits which may
be suitable for relatively near-term production.
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 Regulatory Information Service (RIS), this inside
information is now considered to be in the public domain.
FOR FURTHER INFORMATION, PLEASE CONTACT:
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ECR Minerals plc
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Tel: +44 (0)20 7929 1010
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David Tang, Non-Executive Chairman
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Craig Brown, Director & CEO
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Email:
info@ecrminerals.com
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Website: www.ecrminerals.com
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WH Ireland Ltd
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Tel: +44 (0)161 832 2174
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Nominated Adviser
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Katy Mitchell/James Sinclair-Ford
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Optiva Securities Ltd
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Tel: +44 (0)203 137 1902
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Broker
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Graeme Dickson
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FlowComms
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Tel: +44 (0)7891 677 441
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Investor Relations
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Sasha Sethi
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FORWARD LOOKING STATEMENTS
This announcement may include forward looking statements. Such
statements may be subject to numerous known and unknown risks,
uncertainties and other factors that could cause actual results or
events to differ materially from current expectations. There can be no
assurance that such statements will prove to be accurate and therefore
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place
undue reliance on forward looking statements. Any forward-looking
statements contained herein speak only as of the date hereof (unless
stated otherwise) and, except as may be required by applicable laws or
regulations (including the AIM Rules for Companies), the Company
disclaims any obligation to update or modify such forward-looking
statements because of new information, future events or for any other
reason.
TABLE A
Drill hole data and significant intercepts from 2018 diamond drilling at
Blue Moon prospect, EL5433, Central Victoria, Australia by Mercator Gold
Australia Pty Ltd
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Drill hole data (MGA 94 Zone 55)
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Intercepts
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Hole ID
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Core size
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Easting (m)
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Northing (m)
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RL (m)
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Dip
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Az
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TD (m)
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From (m)
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To (m)
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Width (m)
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Au (g/t)
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BBM001
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HQ
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326228
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5922578
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160
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-60
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222
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79.2
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33.95
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39.40
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5.45
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0.12
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BBM002
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HQ
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326187
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5922552
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163
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-60
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180
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83.7
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43.80
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53.80
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10.00
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0.16
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BBM003
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HQ
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326195
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5922522
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162
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-85
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11
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73.2
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24.20
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63.70
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39.50
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0.30
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Inc.
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60.00
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62.70
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2.70
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1.12
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JORC Table 1
Section 1 Sampling Techniques and Data
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Criteria
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JORC Code explanation
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Commentary
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Sampling techniques
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Nature and quality of sampling (eg cut channels, random
chips, or specific specialised industry standard measurement
tools appropriate to the minerals under investigation, such as
down hole gamma sondes, or handheld XRF instruments, etc). These
examples should not be taken as limiting the broad meaning of
sampling.
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Include reference to measures taken to ensure sample
representivity and the appropriate calibration of any
measurement tools or systems used.
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Aspects of the determination of mineralisation that are
Material to the Public Report.
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In cases where ‘industry standard’ work has been done this
would be relatively simple (eg ‘reverse circulation drilling was
used to obtain 1 m samples from which 3 kg was pulverised to
produce a 30 g charge for fire assay’). In other cases more
explanation may be required, such as where there is coarse gold
that has inherent sampling problems. Unusual commodities or
mineralisation types (eg submarine nodules) may warrant
disclosure of detailed information.
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All sampling and logging has been supervised and conducted by Dr
Rodney Boucher of Linex Pty Ltd and by Linex staff at the Linex
core processing facility or on site at the drill rig. Linex
provided geological services to Mercator Gold Australia Pty Ltd,
including the services of Dr Boucher.
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All material was collected in commercially available diamond
core trays.
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Diamond core was cleaned and marked metre-by-metre.
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The geologist determines which parts of the drill hole were to
be sampled using criteria such as presence of quartz and mineral
occurrence. Sample intervals were based on lithology and veining
but in general were 1m.
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The samples were cut with a core saw, with half collected for
laboratory submission, and the remaining half transferred back
to the core tray for storage.
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No intervals were less than 0.30m or greater than 1.0m.
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The diamond drill samples were submitted to Onsite Laboratory
Services in Bendigo, Victoria. Sample preparation involved
sample crush to 2mm, pulverise and then screen to 75 microns and
split off 50g for analysis. Any samples that return grades >1
g/t Au are screen fire assayed.
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Drilling techniques
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Drill type (eg core, reverse circulation, open-hole hammer,
rotary air blast, auger, Bangka, sonic, etc) and details (eg
core diameter, triple or standard tube, depth of diamond tails,
face-sampling bit or other type, whether core is oriented and if
so, by what method, etc).
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All holes were drilled using a truck mounted Sandvik 710DE drill
rig diamond coring from surface. Holes drilled were HQ.
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All holes were surveyed with a single shot camera, nominally
every 30m where practicable.
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Core is orientated to geology. Due to the known strike of the
outcrop at surface the bedding and vein measurements are taken
relative to this orientation. Data were plotted on stereonets to
confirm the orientation and the drilling of three holes with
differing azimuths and dips assisted these plots. Beds were
correlated between holes and surface outcrop for further
confirmation.
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Drill sample recovery
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Method of recording and assessing core and chip sample
recoveries and results assessed.
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Measures taken to maximise sample recovery and ensure
representative nature of the samples.
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Whether a relationship exists between sample recovery and
grade and whether sample bias may have occurred due to
preferential loss/gain of fine/coarse material.
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Core recoveries were measured by the geologist after each drill
run, comparing length of core recovered versus drill depth. Core
recovery was logged and recorded in the database.
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The driller was under instruction to monitor recovery and
rectify core loss by adjusting drill rig operation.
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No strong relationship between core recovery and grade is
evident.
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Drilling has occurred on day shift and night shift at various
times during the programme.
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Logging
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Whether core and chip samples have been geologically and
geotechnically logged to a level of detail to support
appropriate Mineral Resource estimation, mining studies and
metallurgical studies.
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Whether logging is qualitative or quantitative in nature.
Core (or costean, channel, etc) photography.
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The total length and percentage of the relevant intersections
logged.
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All core was geologically logged at 10 centimetre intervals to a
standard that follows industry common practice and is suitable
for future use in interpretation and resource estimation.
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Logging of samples included but was not limited to lithology,
mineralogy, alteration, veining, weathering and structure.
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Drill core structural measurements were logged prior to
cutting/sampling. Bedding, joint and fault orientations were
measured.
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All core was photographed wet and dry.
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Sub-sampling techniques and sample preparation
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If core, whether cut or sawn and whether quarter, half or all
core taken.
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If non-core, whether riffled, tube sampled, rotary split, etc
and whether sampled wet or dry.
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For all sample types, the nature, quality and appropriateness
of the sample preparation technique.
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Quality control procedures adopted for all sub-sampling
stages to maximise representivity of samples.
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Measures taken to ensure that the sampling is representative
of the in situ material collected, including for instance
results for field duplicate/second-half sampling.
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Whether sample sizes are appropriate to the grain size of the
material being sampled.
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Half core was sampled using a core saw. The right half of the
core (viewed down hole) was submitted for assay.
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Linex Pty Ltd core cutting and sampling procedures were followed
to ensure sampling consistency.
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1m of non-mineralised material from either side of significant
mineralised zones was submitted with the samples to the
laboratory as part of the quality control process.
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No second half sampling has been conducted.
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The sample sizes are considered to be appropriate for the type
of mineralisation in this area.
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Quality of assay data and laboratory tests
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The nature, quality and appropriateness of the assaying and
laboratory procedures used and whether the technique is
considered partial or total.
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For geophysical tools, spectrometers, handheld XRF
instruments, etc, the parameters used in determining the
analysis including instrument make and model, reading times,
calibrations factors applied and their derivation, etc.
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Nature of quality control procedures adopted (eg standards,
blanks, duplicates, external laboratory checks) and whether
acceptable levels of accuracy (ie lack of bias) and precision
have been established.
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The sample preparation and analytical procedures are considered
appropriate for the style of mineralisation.
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Onsite Laboratory Services provided details of their routine
quality controls.
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10% of samples were duplicate assayed and 10% of assays were
repeated for quality control and quality assurance testing.
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One standard sample was inserted per approximately 20 samples
dispatched for assay.
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Laboratory standards and blanks were inserted for quality
control and quality assurance testing.
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Verification of sampling and assaying
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The verification of significant intersections by either
independent or alternative company personnel.
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The use of twinned holes.
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Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic) protocols.
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Discuss any adjustment to assay data.
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All assay and drillhole data were imported and stored in a
database.
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Significant intersections were verified by the logging geologist
and Dr Boucher.
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No twinned holes have been drilled.
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Primary data for drill holes was compiled onto paper based
logging templates and was then transferred into a database and
validated by Linex Pty Ltd personnel. Back up digital copies of
all paper log sheets were also kept.
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No adjustments have been made to any assay data contained in
this report.
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Location of data points
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Accuracy and quality of surveys used to locate drill holes
(collar and down-hole surveys), trenches, mine workings and
other locations used in Mineral Resource estimation.
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Specification of the grid system used.
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Quality and adequacy of topographic control.
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All drill hole location coordinates were measured using handheld
GPS.
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Collar surveying was performed by Linex Pty Ltd personnel. This
was considered appropriate for the stage of exploration.
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All drill holes were downhole surveyed. Down hole single shot
surveys were conducted by the drilling contractor every 30m down
hole and at end of hole where possible.
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Drilling orientation was established prior to collaring with
clinometer and compass.
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The grid system used is GDA MGA 94 Z55.
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The RL was recorded for each drill hole from the GPS and
verified using publicly available satellite and aerial imagery.
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Data spacing and distribution
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Data spacing for reporting of Exploration Results.
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Whether the data spacing and distribution is sufficient to
establish the degree of geological and grade continuity
appropriate for the Mineral Resource and Ore Reserve estimation
procedure(s) and classifications applied.
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Whether sample compositing has been applied.
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The drill hole spacing at Blue Moon is approximately 30 m.
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Sample intervals were based on lithology but in general were 1 m.
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Orientation of data in relation to geological structure
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Whether the orientation of sampling achieves unbiased
sampling of possible structures and the extent to which this is
known, considering the deposit type.
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If the relationship between the drilling orientation and the
orientation of key mineralised structures is considered to have
introduced a sampling bias, this should be assessed and reported
if material.
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Two drill holes at Blue Moon were orientated at -60 degrees
towards 222 and 180 degrees, with the third hole orientated at
-85 degrees towards 11 degrees.
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BBM001 & BBM002 holes were designed with the aim of crossing the
host sandstone at a high angle.
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BBM003 was designed to drill at a low angle to the lithology to
gain maximum samples for analysis and to investigate the
presence of cross faults and veins.
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There is insufficient drilling data to determine if any bias can
be detected in the data.
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Sample security
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The measures taken to ensure sample security.
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All core drilled has been processed and cut at the Linex core
processing facility by Linex Pty Ltd personnel. Core is then
dispatched by Linex Pty Ltd personnel.
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All sample reject is retained by Linex Pty Ltd.
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Sample number receipt information from the laboratory is cross-
referenced and rationalised against sample number dispatch
information.
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Audits or reviews
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The results of any audits or reviews of sampling techniques
and data.
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No processes or data used in developing the release of
exploration results have been subject to audit or review by
non-Linex Pty Ltd personnel or contractors so as to reduce
timelines for reporting.
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Section 2 Reporting of Exploration Results
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Criteria
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JORC Code explanation
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Commentary
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Mineral tenement and land tenure status
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Type, reference name/number, location and ownership including
agreements or material issues with third parties such as joint
ventures, partnerships, overriding royalties, native title
interests, historical sites, wilderness or national park and
environmental settings.
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The security of the tenure held at the time of reporting
along with any known impediments to obtaining a licence to
operate in the area.
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Blue Moon is within the vicinity of Nagambie, Victoria.
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Blue Moon is located on EL5433 and is 100% owned by Mercator
Gold Australia Pty Ltd.
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Exploration activities at Blue Moon were in open paddocks on
private land.
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Exploration done by other parties
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Acknowledgment and appraisal of exploration by other parties.
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There has been no contemporary exploration at Blue Moon. There
are small historic pits and shafts at Blue Moon.
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Previous soil and rock chip geochemistry has been conducted by
Mercator Gold geologists.
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Geology
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Deposit type, geological setting and style of mineralisation.
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The host rocks at Blue Moon are marine sandstones and shales
intruded by dolerite dykes. Gold is hosted associated with
quartz veining within the sandstone.
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Outcrop at Blue Moon reveals sandstone and dolerite associated
with quartz veins. Drilling confirmed the observations.
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Bedding strikes west-north-west and dips to the north. Bedding
is transected by a series of west-dipping faults.
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Drill hole Information
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A summary of all information material to the understanding of
the exploration results including a tabulation of the following
information for all Material drill holes:
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easting and northing of the drill hole collar
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elevation or RL (Reduced Level – elevation above sea
level in metres) of the drill hole collar
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dip and azimuth of the hole
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down hole length and interception depth
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hole length.
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If the exclusion of this information is justified on the
basis that the information is not Material and this exclusion
does not detract from the understanding of the report, the
Competent Person should clearly explain why this is the case.
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No material drill hole information has been excluded.
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See Table A above
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Data aggregation methods
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In reporting Exploration Results, weighting averaging
techniques, maximum and/or minimum grade truncations (eg cutting
of high grades) and cut-off grades are usually Material and
should be stated.
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Where aggregate intercepts incorporate short lengths of high
grade results and longer lengths of low grade results, the
procedure used for such aggregation should be stated and some
typical examples of such aggregations should be shown in detail.
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The assumptions used for any reporting of metal equivalent
values should be clearly stated.
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Averages of results through each intersection have been reported.
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No cut-off grades have been applied.
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Relationship between mineralisation widths and intercept lengths
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These relationships are particularly important in the
reporting of Exploration Results.
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If the geometry of the mineralisation with respect to the
drill hole angle is known, its nature should be reported.
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If it is not known and only the down hole lengths are
reported, there should be a clear statement to this effect (eg
‘down hole length, true width not known’).
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Mineralisation widths are based on down hole lengths.
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There is insufficient drilling data to determine continuity of
mineralised domains.
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Diagrams
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Appropriate maps and sections (with scales) and tabulations
of intercepts should be included for any significant discovery
being reported These should include, but not be limited to a
plan view of drill hole collar locations and appropriate
sectional views.
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Balanced reporting
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Where comprehensive reporting of all Exploration Results is
not practicable, representative reporting of both low and high
grades and/or widths should be practiced to avoid misleading
reporting of Exploration Results.
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All gold values have been reported.
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Other substantive exploration data
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Other exploration data, if meaningful and material, should be
reported including (but not limited to): geological
observations; geophysical survey results; geochemical survey
results; bulk samples – size and method of treatment;
metallurgical test results; bulk density, groundwater,
geotechnical and rock characteristics; potential deleterious or
contaminating substances.
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All relevant data is presented in the text, tables and diagrams.
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Further work
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The nature and scale of planned further work (eg tests for
lateral extensions or depth extensions or large-scale step-out
drilling).
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Diagrams clearly highlighting the areas of possible
extensions, including the main geological interpretations and
future drilling areas, provided this information is not
commercially sensitive.
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Future drilling will be dependent on future company direction.
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