ECR MINERALS plc
(“ECR Minerals”, “ECR” or the “Company”)
US OTC: MTGDY
London: 27 April 2012 - ECR Minerals plc is pleased to provide the following update on ongoing drilling at the El Abra prospect within the Company’s Sierra de las Minas gold project area in La Rioja Province, Argentina.
The current drilling programme has been designed to ascertain the extent to which high grade quartz vein hosted gold mineralisation identified at surface at El Abra extends to depth down dip over a strike length of approximately 500m.
- Assay results received in respect of 7 drill holes
- Extension of high grade gold mineralisation to depth confirmed
- Best intersection 3.0m in hole 2 grading 21.5 g/t gold including 1.0m at 50 g/t gold
- Drilling continuing and further assays pending
Assay results in respect of gold mineralisation intersected by 5 holes of the current drilling programme are disclosed in the table below. The results have been received from the internationally accredited AcmeLabs laboratory in Mendoza, Argentina. Depths and intervals given are downhole.
|Hole number||Interval |
|To (m)||Total |
|2 (1st intersection)||0.5||4.8||96.0||95.5||116.5||55|
|2 (2nd intersection)||3.0||21.5||99.0||102.0|
|7||No significant results||67.1||65|
|8||No significant results||65.0||45|
Significant alteration and mineralisation has been identified visually in all holes completed so far. To date 8 of 12 planned holes have been completed. The assay results received have confirmed the intersection of significant gold mineralisation in holes 1, 2, 3, 5 and 6. No significant gold mineralisation was intersected in holes 7 and 8. Assays are pending in respect of hole 4 and certain other information regarding this hole is included in the table above.
Drilling at El Abra recommenced on 26 April 2012 having paused for approximately 2 weeks while spare parts were awaited following a breakdown of the drill rig. It is anticipated that the current 1,000m programme will be completed within the next 2 weeks. Core samples from the remaining holes in the programme will be submitted for assay as soon as possible. Following the conclusion of the programme a map of the El Abra prospect showing the location of each drilling station will be made available on the Company’s website.
Patrick Harford, Executive Chairman of ECR Minerals plc, comments:
“We are very encouraged by these results, which demonstrate that gold mineralisation does continue to depth at the El Abra prospect and that this mineralisation is of high grade in at least one area.
While assay results from the remaining 5 holes of the current programme are not yet available it is apparent that further drilling to follow on from this first programme is merited in order to more fully appraise the economic potential of El Abra in the context of ECR’s high grade, low tonnage production strategy. A key objective of further drilling would be to improve the Company’s understanding of the high grade zone of mineralisation intersected by hole 2 of the current programme from 99m downhole.
It is becoming increasingly clear that the gold mineralisation at El Abra is structurally and geochemically complex, and a detailed structural study along with additional surface geochemical sampling is planned and is expected to be of great value in targeting future drill holes.
However numerous identified and promising drill targets remain untested and a decision on whether to retain the drill rig presently on site after the completion of the present 1,000m programme will be made shortly.”
Restoration of Trading
On 26 April 2012, ECR requested a temporary suspension of trading in the Company’s shares following press speculation regarding the results of the drilling programme set out in this announcement.
Following publication of this announcement, the Company has requested that trading in the Company’s shares on AIM be restored and it is expected that restoration of trading will take place at 7.30am today, 27 April 2012.
About the Sierra de las Minas Project Area
ECR holds 100% of the exploration rights to the Sierra de las Minas project area and 100% of the exploitation rights to a number of prospects within it, including the El Abra prospect. Exploration rights for other prospects may be converted to exploitation rights by application to the government of La Rioja Province. The El Abra and Jazmin prospects are subject to a 2% net smelter return royalty from production. Commencement of mining activities is subject to receipt of the necessary environmental permissions from the provincial government.
The project area is located approximately 800km north west of Buenos Aires, the capital city of Argentina, and is the site of significant historical small scale gold mining. Access to the project area is possible via paved highways from the cities of Mendoza, San Juan and Cordoba. Local access is by paved and unpaved provincial routes.
About ECR Minerals plc
ECR is a mineral development company with interests in Argentina, the USA, Indonesia, Thailand and Australia.
For further information please contact:
|ECR Minerals plc|
|Patrick Harford, Executive Chairman|
|Stephen Clayson, Director & Chief Financial Officer|
|Daniel Stewart & Company plc|
|Paul Shackleton/Tessa Smith/David Hart||Tel:||+44 (0) 20 7776 6550|
|Old Park Lane Capital plc|
|Michael Parnes||Tel:||+44 (0) 20 7493 8188|
|Blythe Weigh Communications|
|Matthew Neal/Tim Blythe/Paul Weigh||Tel:||+44 (0)20 7138 3204|
The contents of this announcement have been reviewed by Trevor Neale B.App.Sc. (Geol.), MAIG, a geological adviser to the Company with more than 35 years of experience in the mining and exploration industry.
g/t: grams per metric tonne