SLM Gold Project, Argentina

The SLM gold project in La Rioja Province, Argentina, of which ECR has 100% ownership via Ochre Mining SA (“Ochre”), comprises three prospects: El Abra, JV and Maestro Agüero.

The following information pertaining to the SLM gold project should be read in conjunction with the relevant ECR regulatory announcements.

Exploration at the SLM project during 2015 focused on the Maestro Agüero prospect and included a bulk sampling programme, which returned lower grades than had been hoped for, but did demonstrate good recoveries from cyanidation of the surficial mineralisation sampled. No further exploration is planned for the SLM project in the immediate future.

The SLM project was initiated in 2010 based on an exploration strategy which aimed to identify a number of small gold deposits suitable for processing at a single plant in the Sierra de las Minas region. This concept has been validated and realised by a local company, Esperanza Resources SA (“Esperanza”), which has constructed such a plant in the vicinity of Ochre’s JV and Maestro Agüero prospects. The plant is configured to recover gold via gravity and flotation processes and is not located immediately adjacent to any deposit, being situated instead with good road access for the trucking of feed material from various sources.

A non-binding memorandum of understanding (the “MoU”) was signed between Ochre and Esperanza in May 2015. The MoU provides for discussions aimed at forming a joint venture or other commercial arrangement for the processing of ore from Ochre’s licence areas by Esperanza, and remains in place, albeit that there are no active discussions between Ochre and Esperanza at present.

Ochre is prepared to take a patient approach to see the value of its deposits realised, and, in view of the practicalities involved, ECR’s likely preference is for Ochre to partner with an Argentine group, such as Esperanza, in order to advance the SLM project towards production. Recent signs of interest in the SLM project from parties other than Esperanza are encouraging in this regard.

In November 2015, Argentina elected a new president who is seen to be relatively pro-business, and the new administration has moved to liberalise currency controls and remove export taxes on mined products. These welcome measures do much to improve the general viability of mining in Argentina, and are considered supportive of ECR and Ochre’s above-stated objective for the SLM project.



Related News Releases

ECR to Recommence Work on SLM Gold Project, Argentina 27-Jan-2017
Results of Bulk Sampling at Maestro Agüero Gold Prospect, Argentina 20-Jul-2015
Update on Expected Availability of Drilling Results 28-May-2015
Update Re SLM Gold Project 14-May-2015
Update on Exploration 01-May-2015
Update on Exploration 17-Apr-2015
Update on Activities 27-Feb-2014
Update on SLM Gold Project, Argentina 13-Nov-2014
Update on SLM Gold Project, Argentina 02-Sep-2014
Update on SLM Gold Project, Argentina 21-Jul-2014
Update on SLM Gold Project, Argentina 24-Jun-2014
Further Positive Assay Results received from Rock Chip Sampling at Sierra de las Minas Gold Project in Argentina 10-Feb-2014
Very High Grade Assay Results 06-Feb-2014
Update on Activities 22-Jan-2014
Update re Sierra de las Minas Gold Project, Argentina 12-Nov-2013
El Abra Gold Prospect Update 25-Oct-2012
Update on Activities 22-Oct-2012
Underground Sampling in Progress at El Abra Gold Prospect 18-Sep-2012
Progress Update - Sierra de las Minas 07-Aug-2012
Argentina Drilling Report 21-May-2012
Argentina Drilling Update 09-May-2012
Restoration of Trading/Drilling Report 27-Apr-2012
El Abra Gold Drilling Update 13-Apr-2012
Drilling Commences at El Abra Gold Prospect in Argentina 27-Mar-2012
Highly Positive Gold Metallurgical Results 07-Feb-2012
Argentina Project update 04-Jan-2012
Argentina Gold Project Update 12-Dec-2011
Argentina Gold Update 23-Sep-2011
Argentina Exploration Update 15-Sep-2011
Update 15-Aug-2011
Argentina Exploration Update 16-May-2011
ECR Agrees to Acquire El Abra Historic Gold Mine in La Rioja Province, Argentina 05-Jan-2011
Electrum Acquires Gold/Base Metal Projects 07-Oct-2010


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27 November 2015