Trade Idea: ECR Minerals, recent raise and non-core asset disposals pave way to advance key Gold Projects
Existing Funding & Non-Core Asset Disposals Position ECR well to develop key Gold Projects
Trade Idea: ECR Minerals, recent raise and non-core asset disposals pave way to advance key Gold Projects
16 Jan 2025
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Sponge
Mining
ECR Minerals plc
ECR continues to make strides in advancing its portfolio of Australian gold exploration projects with the addition of Mike Parker, formerly of First Quantum Minerals, to the management team further strengthening ECR's operational and strategic capabilities
Introduction
ECR Minerals PLC, an AIM-listed exploration and development company, has continued to make strides in advancing its portfolio of Australian gold exploration projects.
During 2023 and 2024, the company achieved significant milestones at key projects, including Lolworth, Tambo, and Creswick.
Additionally, the addition of Mike Parker, formerly of First Quantum Minerals, to the management team has further strengthened its operational and strategic capabilities.
With a clear ambition to bring the Blue Mountain project into production with an initial target resource of 100,000 ounces of gold, ECR is positioning itself as a competitive player in the junior mining sector whilst advancing its resource potential.
Share Price Remains at an attractive entry-level considering the re-vitalised roadmap, funding recently at 0.33p and changes in Board and Strategy
Lolworth Project: Advancing Towards Drilling Readiness
The Lolworth Range project in North Queensland has been a major focus for ECR Minerals during 2023 and 2024. Lolworth has emerged as a promising gold and multi-element prospect, situated in a region known for its geological similarities to the nearby Ravenswood Mine and the historic Charters Towers Goldfield. ECR's exploration efforts have been methodical, leveraging surface geochemical sampling, mapping, and geophysical surveys to identify high-priority drill targets.
Key Developments at Lolworth:
1. Extensive Surface Sampling
Over 2,500 soil and rock chip samples were collected in 2023, revealing highly anomalous zones for gold, In addition to REE's reported in late 2023 of the Niobium bullseye discovery.
High-grade gold values up to 11 g/t Au were identified in multiple zones, particularly in the northeastern area of the project, with results of 13.75 g/t Au from rock chips and streams of 1395PPM at Gorge Creek along with 22 g/t Au in chips and 205 PPM in streams at Reedy Creek.
2. Geophysical Surveys
Magnetics and induced polarisation (IP) surveys were conducted to delineate subsurface structures that may host mineralisation.
Data indicated potential gold-bearing quartz veins along major structural corridors.
3. Preparation for Drilling
By late 2024, ECR had completed permitting and logistics planning, positioning the company to initiate its first drilling program at Lolworth in early 2025.
Initial drilling will target the most promising anomalies identified from surface work, with the aim of confirming the presence of gold mineralisation and defining the geometry of potential ore zones.
Successful Drilling Campaigns: Tambo and Creswick
Tambo Project
ECR achieved a significant breakthrough at the Tambo project in Victoria during 2024. Drilling targeted shear-hosted gold systems identified through the completion of its positive reconnaissance work programme.
Drill Results
Standout intercepts came from DOCH002 which reported 24 g/t Au over 0.15m and 8 g/t Au over 0.4m this is correlation of surface sampling at 180 g/t Au
Several additional intersections showed consistent grades above cut off including DOCH004 10 g/t Au, intercepting the mainlode at approx 63m depth suggesting a robust gold system.
Future Plans
Based on these encouraging results, ECR plans to expand its drilling footprint at Tambo, aiming to delineate a maiden resource in the coming years.
Creswick Project
Creswick, located in Victoria, remains an asset of interest for ECR, offering high-grade gold potential within the prolific Ballarat goldfield.
Drilling Highlights (2023-2024)
Infill and step-out drilling confirmed the presence of high-grade gold in the Dimocks Main Shale (DMS).
Key intercepts included 1.5m @ 12.7 g/t Au and 3m @ 7.5 g/t Au, underscoring the continuity of mineralisation.
Exploration Insights
Structural studies identified critical controls on gold deposition, helping refine future drill targets.
The project is considered a strong candidate for resource estimation, pending further drilling.
Strengthening the Team: Mike Parker Joins ECR
In a strategic move, ECR Minerals appointed Mike Parker as a key member of the management team in 2024. Parker brings extensive experience from his tenure at First Quantum Minerals, where he played a pivotal role in advancing large-scale mining projects.
His expertise in project development, operational management, and stakeholder engagement is expected to enhance ECR’s ability to transition its projects from exploration to production.
Strategic Impact of Parker’s Appointment:
Operational Efficiency
Parker has introduced new workflows and systems to optimise exploration and development activities across ECR’s portfolio.
Networking and Partnerships
Leveraging his industry connections, Parker has initiated discussions with potential joint venture partners and investors, broadening ECR’s technical insight and strategic opportunities.
Focus on Sustainability
Under Parker’s guidance, ECR has adopted improved environmental and community engagement practices, aligning with modern ESG standards.
Gekko Report and Blue Mountain Ambitions
ECR Minerals has outlined a bold vision to bring the Blue Mountain project into production, targeting annual gold output of 100,000 ounces. The Gekko Group, a renowned Australian engineering consultancy specialising in mineral processing, was commissioned to prepare a detailed report on the project’s development potential.
Key Findings from the Gekko Report:
1. Resource Potential
Preliminary modeling suggests Blue Mountain hosts a much higher gold recovery potential with trenching highlighting multiple zones of high-grade mineralisation.
2. Processing Recommendations
The report proposed a modular, gravity-based processing plant with significant capacity ensuring cost-effective operations.
3. Economic Viability
Initial scoping studies indicated a robust project with low operating costs and a quick return on investment.
Path to Production
Permitting and Infrastructure
ECR looks to advance permitting activities and initiated discussions with local authorities to secure access and utilities for the project. This will be a milestone for ECR and its maiden revenue generating operation.
Financing Options
The company is currently fully funded with addition of non-core disposals potentially significantly strengthening the balance sheet, having raised £950,000 in late 2024 at 0.33p in addition to agreeing disposals of non-core assets valued at $225,000 & $4.5m respectively.
Exploration Upside
Ongoing exploration aims to expand the resource base, potentially extending the mine life beyond the initial plan. Whilst further exploration drilling at Lolworth will continue to expand the future production story at the company.
Conclusion
ECR Minerals PLC has made substantial progress across its project portfolio during 2023 and 2024. The Lolworth project is poised to transition into the drilling phase, while successful campaigns at Lolworth,Tambo and Creswick have reinforced the company's exploration credentials.
The appointment of Mike Parker signals a commitment to operational excellence and strategic growth, and the Gekko report underscores the transformative potential of the Blue Mountain project.
ECR has formed key strategic collaborations with James Cook University in Queensland in addition to forming a strategic collaboration with the Geological Survey Queensland.
With funding in place, a clear roadmap for achieving production and a strengthened management team, ECR Minerals is well-positioned to deliver significant value to its shareholders in the year ahead.
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