Victoria, Australia continues to enjoy a gold exploration boom, with continued third-party interest in ECR’s Creswick project in Victoria. Discussions are ongoing with respect to a potential commercial transaction in relation to the Creswick project.
Craig updates on an aggressive drilling programme, the sheer volume of core and data recovered, company finances, these are the questions we asked below.
- ECR Minerals PLC said it is currently in commercial discussions with third parties about its Creswick project in Victoria, Australia. are you allowed to update on how these talks are progressing?
- Your first hole of an ‘aggressive drilling programme’ at Creswick last week revealed a one-metre intercept at a grade of 9.68 g/t plus other gold anomalies. You guys must be happy with the current drilling programme?
- The ongoing pace and sheer volume of core and data recovered, along with the licence applications in N Queensland, plus half-year statement is showing 2021 has been a very productive year so far?
- At the end of March 2021, ECR held cash of £3.93mln, since when it has raised a further £2mln to take the position on 23 June to £5.2mln. So, the question investors will ask, no further dilution for the foreseeable future?
HIGHLIGHTS
- Late in 2020, the Company took delivery of its new Cortech CSD1300G diamond drill rig and at the same time established a new operational base at Bendigo in the Central Victoria Goldfields.
- The Company announced three new strategic licence applications, adding new exploration opportunities in North Queensland, Australia. Three applications for Exploration Permits – Minerals (“EPM”) licences have been submitted by LUX Exploration Pty Ltd, ECR’s 100% owned subsidiary.
- In January 2021, ECR’s 100% owned Australian subsidiary MGA commenced drilling operations at the Byron Prospect in the HR3 area of the Bailieston Project. The Company’s newly acquired ‘Midas’ drill rig was utilised to undertake the first of numerous planned drilling campaigns, all of which are being coordinated from ECR’s central exploration facility compound at Bendigo.
- Announced results from exploration activity in Victoria included immediate success at the first drill hole at Creswick, intersecting 1m @ 9.68 g/t and confirming high gold anomalies (up to 3.75 g/t Au) along with spatially associated antimony which is thought to be from the mineral stibnite which forms a close association with gold mineralisation. Furthermore, a total of 720 B-horizon soil samples were taken across the central and eastern part of the Bailieston Historic Reserve #3 (HR3) between February and March 2021.
- Post-period end, the Company’s cash position was strengthened by a £2,000,000 equity financing by Novum Securities in April 2021 to ramp-up drilling and exploration activities on ECR’s gold exploration projects.
- During the period, the Company issued an aggregate of 11,800,000 share options from the management and consultant option pool to certain key consultants and staff, and also issued an additional 235,420,387 shares from the exercise of warrants and options, receiving a total of £3,289,520.
- Group total comprehensive expenses of £468,112 are reported for the six months ended 31 March 2021 (£1,846,202 for the six months ended 31 March 2020) and net assets of £6,442,465 at 31 March 2021 (£2,206,211 at 31 March 2020).
- A Group Operating Loss is reported for the six months ended 31 March 2021 of £403,079, compared with £369,102 for the six months ended 31 March 2020.
- Adam Jones appointed as a Non-Executive Director.
- Despite the effect of the COVID-19 pandemic on the global economy, ECR is in a robust financial position and continues to provide shareholders with exposure to an exciting range of gold projects.
FINANCIAL RESULTS
For the six months ended 31 March 2021 the unaudited financial statements of the Group record a total comprehensive expense of £468,112.
The Group’s total assets were £6,522,307 at 31 March 2021, compared with £2,275,479 at 31 March 2020. The increase in total assets has occurred largely due to the increase in purchase of property, plant and equipment and exercise of warrants during the period.
The Group held £3,928,905 of cash and cash equivalents at 31 March 2021, compared with £166,852 at 31 March 2020. Post the period end, the Group’s cash position benefited from a £2,000,000 equity financing completed by the Company in April 2021. Cash at 23 June 2021 is £5,242,081.
