ECR Minerals plc (LON: ECR), the exploration and development company focused on gold in Australia, is pleased to provide an update on the second drilling rig.
A contract announced on July 27 2021 (see RNS here) agreed the purchase of a new Cortech CMR1000 multi-purpose drilling rig for a total of US$402,957.
The Board subsequently made the decision to delay completion of the rig purchase to allow for the appointment of CEO Andrew Haythorpe and the completion of a new strategic plan announced on July 6 2022 (see RNS here).
The rig purchase has now been completed, following the agreement of a meaningful discount, on what the board consider to be competitive and attractive terms. Arrangements are currently being made for the rig to be loaded onto a ship for delivery to Melbourne Port.
ECR CEO Andrew Haythorpe commented: “I am delighted that we have now completed the purchase of our long awaited second drill rig, and on very attractive terms. Our MIDAS drill rig has proved its value in the field time and time again.’
I believe the new Cortech, multi-purpose rig will significantly enhance our on-the-ground capabilities, offering both RC and diamond drilling systems. As Technical Director Adam Jones works on expanding our existing drill campaign plans, I look forward to announcing details of the rig’s maiden deployment once it arrives at Melbourne.”
ECR Chairman David Tang added: “I am pleased that we have finally secured our new Cortech rig on very preferential terms. Given the challenges that regional operators face in scheduling drill teams and equipment, the board considers that the new rig is a solid investment that will ramp up our operational capability and flexibility. In addition, this could also provide ECR with potential rig hire income should a suitable opportunity arise in the future.”
BACKGROUND
A contract for the purchase of a new Cortech CMR1000 multi-purpose drilling rig was initially signed for a total of US$402,957 in 2021. This followed the purchase of the Midas Drilling Rig (“MIDAS”) currently engaged in the diamond drilling programme currently underway at the Blue Moon project, Bailieston.
The Cortech CMR1000 is a high capacity, heavy duty multi-purpose drill rig which is highly effective in diamond coring, reverse circulation and rotary drilling techniques. It has been purchased complete with spares and all downhole equipment and is capable of drilling as deep as 2,000 metres*.
ECR has an experienced team of drilling personnel to operate the rig, and along with Midas, the addition of the new CMR1000 rig should increase the Company’s flexibility in the field. Owning and operating the two rigs is expected to accelerate future drilling schedules and enable drill programmes to be completed at lower cost, and should a suitable opportunity arise, provide ECR with rig rental income.
*Factory data sheet specification http://cortech.cn/product_show.asp?id=2&lan=en
FOR FURTHER INFORMATION, PLEASE CONTACT:
ECR Minerals plc
Tel: +44 (0) 20 7929 1010
David Tang, Non-Executive Chairman
Andrew Haythorpe, CEO
Email: [email protected]
Website: www.ecrminerals.com
