Sizeable Gold Exploration Potential at ECR Minerals’ Creswick Project

Summary

  • The Creswick project area with an abundance of DMS has a high potential for gold mineralisation
  • MGA’s 2019 RC (reverse circulation) drilling had classified quartz-carbonate composite chips in 5 drill holes and as Ferroan dolomite in wall rock
  • Dr Dennis Arne has been asked to do stain RC drill cuttings from 2019 drilling, to assess the existence of ferroan carbonates.
  • There had been good signs of hydrothermal fluid flow linked to gold mineralisation in several drill holes at Creswick project

The United Kingdom based, ECR Minerals PLC (LON: ECR) is a company engaged in metal and mineral exploration and advancement. The company is presently concentrating on the Victorian Gold Project, Australia.

Australia is the core focus for ECR Minerals for realising its objective to deliver the next multi-million-ounce gold resource, through its wholly owned Australia-based subsidiary Mercator Gold Australia Pty Ltd (MGA), who owns the Bailieston and Creswick gold projects in Central Victoria region of Australia.

The company at the Creswick gold project has found nuggety gold mineralisation, the management has already expressed its confidence of a significant potential upside in the project and has been working assiduously with hope to yield results. There has been continuing interest in Bailieston and Creswick projects with regards to a likely joint venture or earn in prospects.

Creswick Project And Its Significance

The Creswick project area is most suitable for gold mineralisation as it has an abundance of DMS (Dimocks Main Shale). The 15-km (kilometre) stretch of trend through the mining hub of Ballarat in the south and around 7 km of the trend is included in the project area of Creswick.

The Dimocks Main Shale comprising bedding and cleavage parallel gold-covering (auriferous) quartz veins are spread in a stretch of nearly 25 metres in the project area, which is the source of much alluvial and rich lead gold. Dimocks Main Shale is the key contributor of the Creswick, where the past alluvial production is calculated at up to 2.5 million ounces and around 11 million ounces in the area of Ballarat. Around 1.5k shallow primary mining operations have been proposed in the region from North Ballarat to Creswick,

Alteration Study at Creswick Gold Project

Dr Dennis Arne, a renowned consulting geochemist in Victoria, who has experience of past and on-going analyses of geochemistry at the very effective Kirkland Lake Gold owned Fosterville gold mine in Central Victoria, had been retained by MGA in February 2020, to carry out stain RC drilling at the Creswick project from its 2019 drilling.

At the Creswick gold project MGA’s 2019 RC (reverse circulation) drilling had classified quartz-carbonate composite chips in 5 drill holes (CSR008, 010, 012, 013 and 014) and as Ferroan dolomite in the wall rock. The occurrence of ferroan dolomite came as a definite sign of hydrothermal fluid pathways. For this study, a small portion of the total samples from drilling at RC Creswick was reviewed.

In late March 2020, the company announced the findings of the study, displaying strong signs of hydrothermal fluid flow associated with gold mineralisation in several drill holes at the project. The difference in the results, with some areas being prospective and others not, is helpful for spotting gold-bearing buds. The alteration study underlined significant gold exploration potential existing at Creswick.

Creswick Drilling Images (February 2019)

(Image Source- Company)

(Image Source- Company)

An outlook of the Creswick Project

Due to restrictions related to Covid-19 pandemic, there were activity disruptions at the company’s projects, but the team on the ground in Australia have resumed their operations at sites with the ease of such restrictions. The company has effectively commenced making progress with the exploration work, not only at Creswick but at the Bailieston project as well. Numerous prospects in both the project areas are currently underway.

MGA will soon be having its own new Cortech CSD1300G complete diamond drilling rig, efficient enough of drilling as deep as 1.3k metres. At Slades Reef, the Diamond drilling process can be used to test the structural hypothesis and the gold-bearing structures found. In a bid to demarcate the surface expression of shoots to the south encompassing Mills Reef and Jackass Reef ahead of the impended drilling of these levels can be done with the help of field mapping and geochemical sampling.

The alteration study outcome has indicated a good amount of hydrothermal fluid flow associated with gold mineralisation in several drill holes at the project, which has strengthened the significant gold exploration potential of the Creswick gold project. The company will soon be launching next stage exploration campaigns across its properties.

ECR Minerals PLC - Stock Price Performance

On 28 September 2020, the stocks of ECR Minerals PLC closed at GBX 1.78. It was having a market capitalisation of £11.54 million. The stock has posted a strong 145 per cent return on a YTD (Year to Date) return, while for the year it has returned over 136 per cent.

(Source: Refinitiv, Thomson Reuters)

(Source: Refinitiv, Thomson Reuters)

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