ECR Minerals plc Update Re SLM Gold Project
14 May 2015 - 4:00PM
UK Regulatory
TIDMECR
The directors of ECR Minerals plc (the "Directors") are pleased
to provide the following update with regard to the SLM gold project
in La Rioja Province, Argentina. The SLM project is 100% held by
ECR's wholly owned Argentine subsidiary Ochre Mining SA
("Ochre").
A privately owned Argentine company named Esperanza Resources SA
("Esperanza") has constructed and is in the process of
commissioning a mineral processing plant (the "Plant") in the
Sierra de las Minas region of La Rioja. The Plant is configured to
recover gold via gravity and flotation processes and is located
approximately 4km, 9km and 44km (straight line distances) from
Ochre's JV, Maestro Agüero and El Abra gold prospects,
respectively. Estimated distances by road are 8km, 12km and 79km,
respectively.
The Plant was visited last week by Stephen Clayson, CEO of ECR,
and a meeting was held with the owners and managers of Esperanza. A
non-binding memorandum of understanding (the "MoU") was signed
between Esperanza and Ochre which provides for the parties to hold
discussions aimed at forming a joint venture or other commercial
arrangement for the processing of ore from Ochre's licence areas by
Esperanza.
There can be no assurance that such discussions will reach a
satisfactory conclusion or that any arrangement will be entered
into. Ochre will therefore continue to investigate the viability
and economics of other potential processing options, such as heap
leaching. Extraction of ore from any of Ochre's licence areas and
the development of any processing facility by Ochre would be
subject to the necessary permits, including environmental permits,
being obtained. No such permits have yet been applied for.
However, the Directors consider that the existence of the Plant
and the willingness of the owners and managers thereof to enter
into discussions with Ochre may constitute a significant
opportunity in the context of the Company's stated exploration
strategy for the SLM project, which is to delineate multiple medium
to high grade, low tonnage deposits suitable for advancement to
production on a relatively low capital, near term basis. A further
announcement will be made in due course, following the conclusion
of discussions with Esperanza.
Ochre has been advised that the Plant is targeting total
processing capacity of 50 tonnes of ore per day by the end of year,
although there is no guarantee this target will be achieved or that
capacity will be available to process ore from Ochre's licence
areas. The Plant is presently processing ore extracted from a
licence area located to the east of Ochre's JV prospect.
Further to the Company's announcement of 1 May 2015, geological
mapping at the JV prospect will commence in the second half of May
2015 as planned. The results of bulk sampling carried out at the
Maestro Agüero prospect in March 2015 are now expected in the first
half of June 2015. Both the mapping and bulk sampling results will
inform discussions with Esperanza and decisions by ECR as to the
next steps for the SLM project.
Stephen Clayson, Chief Executive Officer of ECR, commented:
"It is encouraging to see the development of a modern processing
plant close to Ochre's gold prospects. The Plant is not located
immediately adjacent to any deposit and has good road access for
the trucking of feed material from various sources. Whilst there is
no certainty at this stage that Ochre will enter into an agreement
with Esperanza, we believe the potential synergy between
Esperanza's operations and our strategy for the SLM project area is
readily apparent, as is the potential for cooperation between Ochre
and Esperanza to enable that strategy to develop more quickly."
This announcement has been reviewed by Richard Watts B.Eng.
Mining, Fellow of the South African Institute of Mining &
Metallurgy, a director of the Company with more than 40 years of
experience in the mining industry.
ABOUT ECR
ECR is a mineral exploration and development company with, among
other interests, the right to earn a 50% interest in the Itogon
gold project in the Philippines. Itogon is an advanced exploration
project located in a gold and copper mining district in the north
of the Philippines.
ECR has a 100% interest in the SLM gold project in La Rioja
Province, Argentina, the exploration strategy for which is to
delineate multiple medium to high grade, low tonnage deposits
suitable for advancement to production on a relatively low capital,
near term basis.
ECR continues to review potential new investments on a highly
selective basis, with a concentration on precious, base and
strategic metals projects in Asia and South America.
FOR FURTHER INFORMATION PLEASE CONTACT:
ECR Minerals plc Tel: +44 (0)20 7929 1010
Paul Johnson, Non-Executive Chairman
Stephen Clayson, Director & CEO
Richard (Dick) Watts, Technical Director
Email: info@ecrminerals.com
Website: www.ecrminerals.com
Cairn Financial Advisers LLP Tel: +44 (0)207 148 7900
Nominated Adviser
Emma Earl/Jo Turner
Daniel Stewart & Company plc Tel: +44 (0)20 7776 6550
Broker
Martin Lampshire
FORWARD LOOKING STATEMENTS
This announcement may include forward looking statements. Such
statements may be subject to a number of known and unknown risks,
uncertainties and other factors that could cause actual results or
events to differ materially from current expectations. There can be
no assurance that such statements will prove to be accurate and
therefore actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forward looking statements. Any
forward looking statements contained herein speak only as of the
date hereof (unless stated otherwise) and, except as may be
required by applicable laws or regulations (including the AIM Rules
for Companies), the Company disclaims any obligation to update or
modify such forward looking statements as a result of new
information, future events or for any other reason.
This information is provided by Business Wire
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