13th Jun 2016 09:57
LONDON (Alliance News) - ECR Minerals PLC on Monday said it is continuing to consider its options for the Danglay and SLM gold projects, but its current focus is on demonstrating the viability of reprocessing historical waste dumps at the Avoca project to produce gold.
The mineral exploration and development company said gold resource estimates encompassing four waste dumps within its Avoca project area in Australia have been compiled in draft form, and are being refined with additional data as it becomes available.
However, ECR said it has experienced delays in receiving assay results from augur sampling at some of the dumps carried out in April, which has delayed some of the commissioning of metallurgical testwork on samples from the dumps. The results from this will be a key element of the planned economic study in relation to the reprocessing of dump material, ECR said, and completion of the study is expected in July.
ECR said it has also applied for two new exploration licences in Victoria, Australia, through its Australian subsidiary Mercator Gold Australia Pty Ltd, one of which is in the vicinity of its Avoca project. At this site, ECR said it intends to assess the suitability of the resulting waste dumps for reprocessing in order to extract remnant gold.
The other licence is in the vicinity of its Bailieston gold project. At its Bailieston gold project, ECR is planning a rotary air blast percussion drilling programme later this month, it said.
Both of its licence applications have been accepted by the Victorian government and the issuance of the licences, if granted, is expected in the second half of 2016.
Meanwhile at the Danglay gold project in the Philippines, the company said it expects the regulator Philippine Mines & Geosciences Bureau to renew the exploration permit for the site in due course. Cordillera Tiger Gold Resources Inc holds the exploration permit for the site, and ECR has the right to earn a 50% interest in the project.
ECR's wholly owned subsidiary Ochre Mining has a 100% interest in the SLM gold project in La Rioja Province, Argentina, where ECR said, currently, "it remains the preference of the directors for the SLM project to be advanced in partnership with a local group, and discussions in this regard are taking place under confidentiality".
"ECR's primary current objective is to demonstrate the viability of reprocessing historical waste dumps at the Avoca project to produce gold, and we are pleased to have taken steps to secure additional waste dumps nearby, by means of the new exploration licence application referred to above," said Chief Executive Stephen Clayson.
"The directors continue to consider the company?s options in relation to the Danglay and SLM gold projects, our objective being to ensure that the path forward for both projects offers the best possible scope to create value for ECR shareholders," Clayson added.
Shares in ECR were up 7.9% at 0.0170 pence on Monday.
By Hannah Boland; [email protected]; @Hannaheboland
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