Tesoro Metallurgical Results

Echo Energy PLC

08 July 2024

 

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

8 July 2024

Echo Energy PLC

("Echo" or the "Company")

Tesoro Metallurgical Results

Over 90% gold recovery rates and grades of up to 21.36 g/t Au

Echo (LON:ECHO), the Latin America focused natural resources company, announces preliminary results of metallurgical testing of gold samples from mining shafts at the Tesoro Gold Concession ("Tesoro"), southern Peru, which is held by the Company's 50%-owned Peruvian joint venture, Boku Resources SAC ("Boku").

Highlights:

·    Two composite samples taken from two main shafts corresponding to the "Bonanza" and "La Dorada" vein systems at a depth of approximately 10m returned high gold grade values of 21.36 g/t and 13.13 g/t

·    Samples were analysed to determine gold dissolution susceptibility through standard bottle roll cyanidation tests

·    Following a retention time of 48 hours, a maximum dissolution of over 90% was evidenced, with recovery rates of 90.53% and 92.93% for the respective samples

Following Echo's announcement on 1 July 2024 regarding its participation, through Boku, in gold and silver mining and the cleaning of known tailings deposits containing gold and silver in Peru, Boku has undertaken metallurgical tests of samples obtained from Tesoro. The samples were processed at the Minares South laboratories in Chala, Arequipa, southern Peru.

The preliminary results come from two composite samples taken from two main shafts corresponding to the "Bonanza" and "La Dorada" vein systems at a depth of approximately 10m. to determine the gold dissolution susceptibility through standard bottle roll cyanidation tests. The achieved results show that after a retention time of 48 hours, a maximum dissolution of over 90% was evidenced, with recovery rates of 90.53% (sample 000234) and 92.93% (sample 000240).

Tesoro is situated in the Nazca-Ocona gold corridor in the province of Caraveli, department of Arequipa, southern Peru.

Table 1: Summary of metallurgical results

Sample	Grade Au (g/t)	Dissolution Au (%)
		48 hours
000234	21.36	90.53
000240	13.13	92.93

Stephen Birrell, Chief Executive Officer of Echo, commented:

"These are excellent metallurgical results which confirm our understanding of the richness of the veins at Tesoro and keep us on track for production later this year."

Erick Pegot-Ogier, General Manager of Boku, added:

"We have initiated work in opening the mine shaft at Tesoro and decided to take fresh samples for analysis to confirm our understanding of the grade and expected recoveries during processing. The results confirmed our recovery rates to be above 90% and upheld all previous sampling that indicated gold grades from 8 g/t up to bonanza grades of 30 g/t. We are progressing to build our workforce in anticipation of deepening existing shafts and commencing mining operations."

For further information please contact:

Echo Stephen Birrell, Chief Executive Officer	Via Vigo Consulting [e-mail]
WH Ireland Limited (Nominated Adviser and Broker) James Joyce James Bavister Isaac Hooper	Tel: [phone]
Vigo Consulting (Investor Relations) Ben Simons Peter Jacob	Tel: [phone] [e-mail]

About Echo

Following the partial divestment of its assets in Argentina, Echo entered into a 50:50 joint venture in Peru in July 2024 with an experienced local partner for precious metals (gold/silver) mining and the cleaning of known tailings deposits containing Measured and Indicated resources of gold and silver. Through the JV, known as Boku Resources, Echo has secured an opportunity to scale operations in Peru producing gold and silver through primary mining and tailings cleaning, owning 50% of the production and resources. Initially, Boku intends to establish formalised artisanal and small mining operations on its 100% held Tesoro Gold concession, southern Peru, targeting early cash flow generation by Q4 2024 from an initial 147 oz/month of gold production (estimated) through an existing tolling plant.

Qualified Persons Statement

The scientific and technical information contained within this announcement has been reviewed and approved by Dr Alberto Rios Carranza, a geologist with over 27 years' experience, who holds a doctorate cum laude awarded by the Polytechnical University of Madrid, Spain and who has published or co-authored over 17 scientific papers on the mineralisation across Peru. Alberto is a member of the Geological Society of Peru, the Colombian Society of Geology and the Institute of Mining Engineers of Peru. He is a Qualified Person as defined by the AIM Guidance Note on Mining and Oil & Gas Companies dated June 2009.

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Glossary

Au	gold
bonanza zones	a rich body of ore or a rich part of a deposit
cyanidation	in this process sodium cyanide, in a dilute solution of ranging from 100 ppm to 500 ppm or 0.01% to 0.05% cyanide, is used to selectively dissolve gold from ore
dissolution	the process in which solids (like minerals) are disassociated and the ionic components are dispersed in a liquid (usually water).
g/t	grams per tonne
t	tonnes

 

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