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Echo Resources Limited (ASX:EAR) is in the business of gold exploration with major operations in Eastern Goldfields of Western Australia. On 5th March 2019, the company has announced that the West Australian Department of Mines, Industry Regulation and Safety (DMIRS) has given approvals for the Mining Proposal and Mine Closure Plan for both the Julius and Orelia deposits at the Yandal Gold Project.
These were the final approvals required for the commencement of mining activities at the Yandal Project. The company has also signed a conditional Letter of Intent (LOI) with MACA Limited (ASX:MLD) for the Open Pit Mining and Mill Refurbishment contracts.
Currently, Echo Resources is working on completion of an updated Bankable Feasibility Study (BFS) for the Yandal Project which is expected to be completed and released in the first quarter ending March 2019. The development of the project will be impacted by securing project funding, outcomes of the revised BFS and approval of the Echo Resource board.
Mr Victor Rajasooriar, Managing Director and CEO stated that it is an important milestone for Echo Resources that they have received final key mining approvals ahead of the completion of the updated BFS. Now the company is in a stronger position to seek the final Board approval and securing project financing.
On 20th February 2019, the company announced a new issue of 1.5 million fully paid ordinary shares. These shares will be quoted and ranked equally with ordinary shares under the ASX code EAR. The shares will be issued upon exercise of unlisted options at the exercise price of $0.20 per Share which will amount to the total consideration of $300,000.
On 12th February 2019, the company reported a change in the shareholding of a substantial shareholder. Nero Resource Fund Pty Ltd ATF Nero Resource Fund has diluted its stake in the company and consequently sold 26.03 million fully paid ordinary shares containing voting rights of 1:1.
On 7th February 2019, the company announced its latest drilling results from reverse circulation (RC) at the MT Joel Gold project which is located approximately 12 kilometres northeast of the Bronzewing Processing Hub. The company reported that the drilling program in the Mt Joel district had been completed which targeted at delineation of quality, near the surface, oxide ounces. But the RC program was designed to further define and increase confidence in the mineralization defined from the air core (AC) drilling. Consistent, high-grade results such as 16m @ 24.10 g/t Au from 26m (MJRC119), 11m @ 5.92 g/t Au from 29m etc. were achieved.
The drilling results have increased the confidence that there is a potential to define significant, open-pittable resources in the Mt Joel district.
As of 5th March 2019, the stock closed more than 5% up at A$0.2 compared to the previous dayâs closing of A$0.19. The stock has been in a good uptrend from the last three months, giving a return of 66.2% (As on 04 March 2019). However, the last one-year performance is not that good, and the prices have fallen by more than 36%.
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