Echo Resources Limited (ASX: EAR), based in West Perth, is engaged in the exploration and development of gold properties in Australia. Its principal project is the Yandal Gold Project, which spans ~1,600 km2 across the Yandal greenstone belt in Western Australia.
On March 14th, the company released its Euroz Conference presentation, highlighting corporate snapshot, project overview, recent developments and the strategy ahead. As per the corporate snapshot, the net cash stands at AUD 5 million as of March 1st, 2019 with zero debt and an annual turnover of 70%. Also, the company’s major shareholders include Northern Star Resources (22.5%), Directors and management (3.0%) and other top 20 shareholders (60%). The overview suggests that the Yandal Gold Project lies in a highly endowed zone with 1.7 Moz gold resource and growing.
Echo Resources also announced to have executed a Native Title Agreement (NTA) with Tarlka Matuwa Piarku (Aboriginal Corporation) RNTBC. The NTA entails the entire span of Echo’s 100%-owned and highly advanced 20-km long Hadrian Trend tenement package. The Hadrian Trend extends from the Julius deposit in the south to Northern Star Limited’s (ASX: NST) Ramone deposit in the north. The analysis of the ground gravity surveying and first-pass geochemical sampling of historical drill spoils has been completed to date. As of now, the target generation work is underway to identify and prioritise drill targets for Echo’s first drilling campaign on the Hadrian Trend, which is scheduled to commence in Q2 2019 tentatively.
As per the revised Bankable Feasibility Study (BFS) status, all the key government permits have been received for the Mining Proposal and Mine Closure Plan for both the Julius and Orelia deposits at the Yandal Gold Project from the Department of Mines, Industry Regulation and Safety, West Australia. The BFS will be released in the current quarter shortly. Further project development is still subject to securing project funding and Echo Board approval. Meanwhile, Echo Resources has signed a conditional Letter of Intent with MACA Limited (ASX: MLD) for the Open Pit Mining and Mill Refurbishment contracts.
Recently, the company also announced the results of the reverse circulation drilling at the Mt Joel gold district, where it holds 70% interest, within the Yandal Gold Project. As per the company’s strategy, the drilling at Mt Joel was undertaken to add ounces close to the surface, that will in-turn supplement tentative restart of the Bronzewing Processing Facility shortly in 2019.
For the last quarter ended December 31st, 2018, the net cash and cash equivalents stood at AUD 5.33 million. There were net cash burns of AUD 3.28 million from operating activities primarily due to payments for exploration and evaluation (AUD 1.12 million), development (AUD 904K), staff and corporate costs (AUD 1.45 million). On the contrary, the financing activities resulted in net cash inflows of AUD 4 million on account of proceeds from the issues of shares.
EAR has a current market cap of AUD 123.96 million. At the end of the trading on March 14th, the EAR stock price closed at AUD 0.220, down 2.22% by AUD 0.005.
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