ECR Minerals Plc: Further Positive Results from Channel Sampling at Itogon Gold Project, Philippines

ECR Minerals Plc: Further Positive Results from Channel Sampling at Itogon Gold Project, Philippines

ECR Minerals plc

ECR MINERALS plc

(“ECR Minerals”, “ECR” or the “Company”)

AIM: ECR
US OTC: MTGDY

FURTHER POSITIVE RESULTS FROM CHANNEL SAMPLING
AT ITOGON GOLD PROJECT, PHILIPPINES

LONDON: 17 JULY 2014 - ECR Minerals plc is pleased to announce further positive assay results from surface channel sampling at the Itogon epithermal gold project in the Philippines.

HIGHLIGHTS

* Assay results from second phase of surface channel sampling by ECR at the Itogon project include 16m averaging 2.28g/t gold (inc. 6m averaging 4.96 g/t) and 16m averaging 1.20 g/t gold

* Numerous channels demonstrate gold mineralisation at surface outside the zones tested by previous drilling; please see accompanying map

Stephen Clayson, Chief Executive Officer of ECR, commented:

“These channel sampling results include encouraging grades and widths, and demonstrate that mineralisation in the main prospect area at the Itogon project extends at surface outside the limits of both recent drilling by ECR and historical drilling.

The results from channels MP-13 and 14, MP-18 and 19, MP-20 and 21, MP-28 and MP-33 to 36, all of which are reported in Table 1 below, mean that the confirmed surface extent of the vein system in the main prospect area at Itogon is approximately 200m in width and 425m along strike. This represents a substantial exploration target, particularly given the positive drilling results announced by ECR on 29 May 2014 and the positive surface and underground channel sampling results announced on 19 May 2014.

Channel sampling and trenching is continuing, with a particular focus on confirming at surface the extension of mineralisation along strike to the SE. In addition, planning for the next phase of drilling continues, and details will be announced in due course.”

Table 1: Surface Channel Sampling, Itogon Gold Project, Philippines Channel Lengths and Average Grades
Outcrop ID		From m		To m		Length m		Average Grade g/t Au
MP-11		0		10.5		10.5		0.70
inc.		6		8		2		1.10
MP-12		0		2		2		0.28
MP-13		0		14		14		0.26
MP-14		0		10		10		0.29
MP-15		0		16		16		2.28
inc.		0		6		6		4.96
inc.		12		14		2		1.46
MP-16		0		16		16		0.55
inc.		12		14		2		2.25
MP-17		0		8		8		0.21
MP-18		0		8.5		8.5		0.52
MP-19		0		2		2		4.05
MP-20		0		2		2		0.70
MP-21		0		2		2		0.71
MP-22		0		10		10		0.44
MP-23		0		16		16		0.45
MP-24		0		14		14		0.38
MP-25		0		30		30		0.45
MP-26		0		2		2		1.49
MP-27		0		6		6		0.44
inc.		2		4		2		1.09
MP-28		0		4		4		0.33
MP-29		0		16		16		1.20
inc.		0		2		2		5.96
MP-30		0		4		4		0.71
MP-31		0		6		6		0.23
MP-32		0		10		10		0.11
MP-33		0		4		4		0.77
MP-34		0		4		4		0.37
MP-35		0		4		4		0.48
MP-36		0		4		4		2.64
inc.		0		2		2		4.76

A map relating to the channel sampling results disclosed in this news release may be viewed at: http://www.ecrminerals.com/images/stories/project/Itogon/Itogon-project-phase2-channel-sampling-results.jpg

Table 1 discloses the average Au grade for the length of each channel and any intervals within the channels where the average grade exceeds 1 g/t Au. Grades were calculated as weighted averages with no top or lower cut-off. All widths given in this news release are apparent widths.

Continued geological mapping highlighted altered, mineralised and/or intensely oxidised outcrops for sampling. All channels listed in Table 1 are located in the central to southern sections of the main prospect area at Itogon. A total of 111 samples were assayed, each representing a channel length of 2 or 2.5m, and representing a total channel length of 225m.

QA/QC

Sampling was carried out under geological supervision. A secure chain of custody was maintained in the transport and storage of all samples, which were shipped to and analysed by Intertek Testing Services Philippines, Inc. (“Intertek”), an internationally accredited independent analytical laboratory in Metro Manila. Upon arrival at Intertek samples were sorted, dried, crushed, split and pulverised. The method of analysis for gold was fire assay (50g charge) with AAS finish.

QA/QC measures including the use of blanks and standards were implemented by ECR and separately by Intertek in relation to the analysis of the samples. The assay data reported is considered acceptable in the context of these measures.

Assay values have been expressed in this news release as g/t Au but are received from Intertek expressed as ppm Au. For the purposes hereof ppm Au and g/t can be considered equivalent.

Review by Competent Person

The contents of this announcement have been reviewed by Andrew Tunningley MAusIMM (CP), a geologist with the consultancy Exploration Alliance, which has been engaged by ECR in connection with the Itogon project.

About the Itogon Project

Exploration by ECR to date, including reverse circulation (RC) drilling completed in April 2014, has determined that gold mineralisation in the main prospect area at the Itogon project is hosted by NNW trending, SW dipping to sub vertical epithermal veins, with a subordinate set of generally NE trending veins.

Channel sampling and drilling has confirmed mineralisation over a vertical extent of 250m, open along strike and down dip. ECR’s April 2014 drilling tested a strike length of 400m, and continuation of the strike approximately 200m SE is indicated by exposures observed along creeks and gullies. These exposures are the subject of detailed geological mapping, channel sampling and trenching with the objective of confirming this continuation.

The epithermal veins are composed of grey and white, saccharoidal and vuggy quartz with associated clay, calcite, pyrite, galena, sphalerite, chalcopyrite, and vein breccia, hosted by moderately to strongly oxidised and argillised medium-grained diorite. Individual veins rarely exceed 1m wide and tend to occur as approximately 0.2m wide, closely spaced, sheeted veins within the altered zones. Establishing the continuity of the vein zones between intercepts at surface, in underground workings and by drilling is an important objective of further exploration.

The highest gold grades are typically associated with multiple narrow, 1-2m wide occurrences of sheeted quartz veins and quartz vein breccia, with a mineralised selvedge grading approximately 0.30 g/t Au or higher associated with these structures.

ABOUT ECR

ECR is a mineral exploration and development company with, among other interests, the right to earn a 50% interest in the Itogon gold project in the Philippines. Itogon is an advanced exploration project located in a gold and copper mining district on the island of Luzon in the north of the Philippines.

ECR has a 100% interest in the Sierra de las Minas gold project in La Rioja Province, Argentina, the exploration strategy for which is to delineate multiple high grade, low tonnage deposits suitable for advancement to production on a relatively low capital, near term basis.

ECR holds a substantial minority stake in THEMAC Resources Group Ltd (TSX-V: MAC), which is focused on the development of the Copper Flat copper-molybdenum-gold-silver porphyry project in New Mexico, USA.

FOR FURTHER INFORMATION PLEASE CONTACT:

ECR Minerals plc		Tel: [phone]
Paul Johnson, Non-Executive Chairman
Stephen Clayson, Director & Chief Executive Officer
Email: [e-mail]
Website: www.ecrminerals.com
Daniel Stewart & Company plc		Tel: [phone]
David Hart/Harrison Clarke (Nominated Adviser)
Colin Rowbury (Broker)

FORWARD LOOKING STATEMENTS

This announcement may include forward looking statements. Such statements may be subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results or events to differ materially from current expectations. There can be no assurance that such statements will prove to be accurate and therefore actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward looking statements. Any forward looking statements contained herein speak only as of the date hereof (unless stated otherwise) and, except as may be required by applicable laws or regulations (including the AIM Rules for Companies), the Company disclaims any obligation to update or modify such forward looking statements as a result of new information, future events or for any other reason.

GLOSSARY

AAS:		atomic absorption spectroscopy
adit:		an opening driven horizontally into the side of a mountain or hill for providing access to a mineral deposit
alteration:		the chemical response of rocks to hydrothermal solutions causing mineralogical change
argillic alteration:		clay rich assemblages dominated by low temperature clays such as kaolinite, smectite, and interlayered illite-smectite; these are formed by low temperature (<230°C), acid to neutral, low salinity hydrothermal fluids
assay:		a test performed on a sample of ores or minerals to determine the amount of valuable metals contained
Au:		gold
breccia:		coarse (usually >2 mm) fragmental rock, consisting of generally angular clasts of one or more lithologies; a complexly veined rock can have a brecciated appearance (if veins are multi-generational and/or branching), but it is important to differentiate between the two; veins are generally linear or sinuous, whereas a breccia matrix is highly irregular
channel sampling:		a sample composed of pieces of rock that have been cut out of a small trench or channel
chlorite:		a group of platy, monoclinic, usually greenish minerals; associated with and resembling the micas; widely distributed as alteration products of ferromagnesian minerals
epidote:		a green monoclinic mineral
drussy:		pertaining to an insoluble residue or encrustation of quartz crystal
epithermal:		mineralisation produced by near surface hydrothermal fluids related to igneous activity; originally defined as having formed in the range 50-300°C
fault:		a break in the Earth’s crust caused by tectonic forces which have moved the rock on one side with respect to the other
footwall:		the rock on the underside of a vein or ore structure
g:		grams
galena:		a grey metallic mineral; has a perfect cubic cleavage; soft and very heavy; principal ore of lead
g/t:		grams per tonne
hanging wall:		the rock on the upper side of a vein or ore deposit
hematite:		a common iron mineral; occurs in rhombohedral crystals, in reniform masses or fibrous aggregate; deep red earthy forms; an alteration product in hydrothermal systems
illite:		a general name for a group of mica like clay minerals that are widely distributed in argillic altered rocks
kg:		kilogram
km:		kilometre
m:		metre
massive:		said of rocks of any origin that are more or less homogenous in texture or fabric; also said of a mineral deposit especially of sulphides, characterized by great concentration of ore in one place as opposed to a disseminated or vein type deposit
MDL:		method detection limit
outcrop:		an exposure of rock or mineral deposit that can be seen on surface, that is, not covered by soil or water
oxidation:		a chemical reaction caused by exposure to oxygen which results in a change in the chemical composition of a mineral
portal:		the entry to an underground or sub surface access such as an adit, decline or tunnel
ppm:		parts per million
propylitic alteration:		chlorite-epidote-calcite alteration assemblage
RL:		reduced level; calculated elevation in relation to a particular datum
t:		tonne
saccharoidal:		granular aggregates of equant crystals having the appearance of sugar in hand specimen
selvedge:		the area of the point of contact between a vein and the surrounding rock
silicification:		a hydrothermal alteration assemblage dominated by silica
smectite:		mineral commonly found in argillic altered rocks
sphalerite:		a yellow, brown, or black, isometric mineral with a perfect dodecahedral cleavage and a resinous to adamantine lustre; widely distributed ore of zinc; commonly associated with galena in epithermal veins
stringer:		a narrow vein or irregular filament of a mineral or minerals traversing a rock mass usually of limited strike and dip compared to a vein
vein:		material which was chemically deposited by fluids within a rock fracture; veins exhibit a range of textures and minerals, depending primarily on the temperature, depth, and composition of the fluid and host rock; may also contain a small amount (<10%) of entrained host rock and/or vein clasts
vein breccia:		rock consisting predominantly of vein fragments (<10% host rock clasts) in a chemically deposited matrix; clasts are generally sub angular, and supported in a matrix of generally similar vein minerals (such as quartz, chalcedony), which may be banded and enclose open cavities
vug:		open cavity within a rock, usually in a vein or breccia cement, which is lined by euhedral prismatic crystals that project into the cavity