ECR Minerals plc (AIM: ECR) has outlined an initial Phase 1 mine plan for its Raglan alluvial gold project, targeting the recovery of around 938 ounces of gold over several years, with an illustrative gross in-situ value of about A$7 million at current prices.
The plan is based on a conservative assessment of a 162,000 m² area, with an average gravel depth of 1.5 metres and a grade of 0.12 g/m³, representing a potential seven-fold return on the project’s acquisition cost.
The company also sees significant upside in future phases through expansion into side creeks, strike extensions and deeper gravels, positioning Raglan as a near-term cash-generating asset and platform for growth.
Highlights
· Initial mineable area identified along the main historic river channel, forming the basis of the Company’s Phase 1 mining plan
· Internal analysis, which the Board considers conservative, indicates potential to recover approximately 938 ounces of gold in Phase 1 over a multi-year period, which would have an illustrative gross in-situ value of approximately A$7 million at prevailing gold prices
· Indicative revenue over the coming years represents a multiple of approximately seven times the Raglan Project acquisition price, based solely on the initial Phase 1 mine plan
· Phase 1 analysis excludes side creeks, extensions, deeper gravels and optimisation opportunities, which represent potential upside for future mining phases
· Results support Raglan Project’s role as a potential near-term cash-generating asset and a platform for multi-year operational growth
ECR’s Chairman, Nick Tulloch, commented: “This work gives us a clear and compelling starting point for mining at the Raglan Project. Using deliberately conservative assumptions and focusing only on the main historic river channel, the initial mining plan alone demonstrates the potential to deliver a strong multiple of our original acquisition cost in gold revenue over the coming years.
“What is particularly exciting is that this represents just the first phase. We have not factored in any contribution from side creeks, extensions along strike or deeper gravel horizons, all of which we intend to examine as operations progress. As we gain more operating data from site, we see a clear opportunity to refine and expand the mining plan over time, potentially extending the mine life and increasing overall returns.
“Against a historically strong gold price backdrop, and with plant, infrastructure and permitting already in place, we consider that the Raglan Project provides ECR with an excellent foundation for near-term cash generation and a platform from which to build a larger, longer-term alluvial operation in Queensland.”
