Danglay Gold Project, Philippines

In late April 2013 ECR entered into an earn-in and joint venture agreement (the “Agreement”) in relation to the Danglay gold project in the Philippines.  Cordillera Tiger Gold Resources, Inc. (“Cordillera Tiger”) is a Philippine corporation and the holder of the exploration permit (the “EP”) which represents the Danglay project.  

Activities under the Agreement commenced in December 2013 and ceased when the Earn-In Option (as that term is defined in the Agreement) was terminated in August 2016.  The Philippine mining industry is enduring a period of significant political and regulatory upheaval, which has been particularly intense and unpredictable since June 2016.  In light of this, termination of the Earn-In Option was considered a prudent step for the Company to take.    

The Agreement gave ECR the exclusive right and option to earn a 25% or 50% interest in Cordillera Tiger and thereby in the Danglay project. Under the terms of the Agreement, ECR was the operator of the Danglay project, through Cordillera Tiger.  The completion of various exploration programmes generated valuable data which is relevant to the assessment of the project’s economic potential.

In December 2015, the Company published an NI43-101 technical report (the “Report”) in relation to the Danglay project.  The Report also disclosed a target for further exploration, as permitted by NI43-101.  The Report supports the disclosure on 5 November 2015 of an inferred mineral resource estimate for oxide gold mineralisation at Danglay.  A copy of the Report can be downloaded here.

Under the Agreement, the estimation of this mineral resource and the making of expenditures exceeding US$500,000 in connection with the Danglay project entitle ECR to a 25% interest in Cordillera Tiger.  Both conditions have been satisfied, but the relevant shareholding has yet to be issued, despite a resolution of Cordillera Tiger’s board of directors authorising the issuance.  

One of the delaying factors is a lawsuit which has been filed in the Philippines against three members of the Cordillera Tiger board.  The lawsuit challenges, among other things, the resolution approving the issuance of shares in Cordillera Tiger to ECR.  The plaintiff in the suit is Patric Barry, a director of Cordillera Tiger.  The Company considers the lawsuit to be a transparent and unscrupulous attempt to obstruct Cordillera Tiger’s performance of its contractual obligations and deprive ECR of its rightful shareholding.  

Renewal of the EP for a further two-year term was applied for in September 2015, and in June 2016 the renewed EP was issued to Cordillera Tiger for signature and return to the Philippine authorities.  The final renewed EP has yet to be provided to Cordillera Tiger, and the status of the renewal is unclear.  Given the political and regulatory uncertainty affecting the mining sector in the Philippines, the delay is not unexpected.  

The Danglay project remains attractive from a technical standpoint, but due to the high level of political and regulatory risk affecting the Philippine mining sector, only limited efforts by ECR to enforce its rights in respect of Cordillera Tiger have to date been considered commercially justifiable.

Related News Releases

NI 43-101 Technical Report for Danglay Gold Project, Philippines 21-Dec-2015
Resource Estimate and Exploration Target for Danglay Gold Project, Philippines 05-Nov-2015
Update on Availability of NI43-101 Compliant Resource Estimate and Technical Report 30-Oct-2015
Amendment to Earn-in Agreement 20-Oct-2015
Update re Itogon Gold Project 19-Oct-2015
Update on Availability of NI43-101 Compliant Resource Estimate and Technical Report 30-Sep-2015
Further Positive Trenching Results from Itogon Gold Project, Philippines 21-Jul-2015
Unaudited Half-Yearly Results for the Six Months Ended 31 March 2015 and Update 29-Jun-2015
Positive Drilling and Trenching Results from Itogon Gold Project, Philippines 18-Jun-2015
Update on Expected Availability of Drilling Results 28-May-2015
Update on Exploration 01-May-2015
Update on Exploration 17-Apr-2015
Update on Exploration at Itogon Gold Project 12-Mar-2015
Update on Activities 27-Feb-2015
Drilling Commences at Itogon Gold Project, Philippines 22-Jan-2015
Update on Q4 2014 Exploration at Itogon Gold Project 23-Dec-2014
Drilling to Commence at Itogon Gold Project in January 2015 22-Dec-2014
Acquisition of Tiger Shares Increases ECR’s Exposure to Itogon Gold Project, Philippines 24-Nov-2014
Presentation to Philippine Mining Luncheon 13-Oct-2014
Positive Results from Phase 4 Channel Sampling at Itogon Gold Project, Philippines 26-Sep-2014
Further Positive Further Positive Results from Channel Sampling at Itogon Gold Project 01-Sep-2014
Further Positive Results from Channel Sampling at Itogon Gold Project, Philippines 17-Jul-2014
Update on Itogon Gold Project 26-Jun-2014
Positive Drilling Results from Itogon Gold Project, Philippines 29-May-2014
Positive Results from Surface & Underground Channel Sampling at Itogon Gold Project, Philippines 19-May-2014
Initial Drilling Completed at Itogon Gold-Silver Project, Philippines 29-Apr-2014
Drilling Commences at Itogon Gold-Silver Project, Philippines 14-Apr-2014
ECR Signs Drilling Contract for Itogon Gold-Silver Project, Philippines 02-Apr-2014
Update on Activities 22-Jan-2014
Commencement of Earn-In to Itogon Gold-Silver Project 09-Dec-2013
Itogon - Exploration Permit Renewal 22-Nov-2013
Update RE Itogon Gold-Silver Project, Mercator Gold Australia and Review of Potential New Projects 30-Aug-2013
Completion of Itogon Due Diligence & Amendments of CLN Redemption Terms 29-Jul-2013
ECR Secures Right to Earn 50% Interest in Itogon Gold-Silver Project, Philippines 29-Apr-2013

 

Latest Corporate Presentation

27 November 2015