LONDON (ShareCast) - (Sharecast News) - ECR Minerals said Monday it has identified several gold-bearing zones at its Blue Mountain project in Queensland, with initial laboratory assays expected in early September.
The AIM-traded company reported that its alluvial channel drilling programme at Denny Gully was now three-quarters complete, covering 2.5 kilometres of strike.

Drilling at the Lower Patterson area revealed visible gold across a flat measuring about 205 metres by 100 metres and up to three metres deep, which the board believes could contain 35,000 to 40,000 bank cubic metres of gold-bearing gravels.

An upstream section identified a further 170 metres by 17 metres zone with additional potential of around 6,000 bank cubic metres.

Samples from both areas had been sent for assay.

Further samples were also being prepared from the lower end of Denny's Gully, where visible gold was again observed.

Results would help establish gold grades and inform future exploration across the project, where ECR said it holds tenure over an additional six kilometres of prospective ground downstream along South Kariboe Creek.

"We continue to be very encouraged by our findings at the Blue Mountain Project and our decision to use the percussion drill rig for site investigations remains a success," said chairman Nick Tulloch.

"While laboratory assays remain pending, the extent of visual gold already observed in multiple channel flats highlights the potential scale of this system - which even now is only partly explored.

"By running material through the trial wash plant, we will be able to confirm the relationship between drilling results and actual recoveries and thereafter develop a detailed mining plan for the project."

The company added that drilling at its Lolworth gold and rare earths project, also in Queensland, had been rescheduled to the last week of August.

Once that work starts, ECR said it was planning to excavate and wash material from Blue Mountain to test whether drilling results provide a reliable indication of recoveries.

At 1514 BST, shares in ECR Mineras were up 1.19% at 0.21p.

Reporting by Josh White for Sharecast.com.

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