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LONDON - ECR Minerals PLC (AIM:ECR) announced Friday that technical due diligence on its proposed acquisition of the Raglan Project in Queensland, Australia has yielded "very satisfactory" results, potentially moving the company closer to completing the A$1.1 million purchase.
The Raglan Project includes a granted mining lease covering approximately 300 acres and 2.9km of main creek systems, along with a 60-tonne per hour wash plant, gold room, water supply, camp, and mobile mining fleet.
During the site visit, which concluded this week, ECR’s Chief Geologist Adam Jones conducted test pits that yielded coarse, nuggety gold, with approximately three-quarters recovered as small nuggets up to 0.5 grams. The company noted that some gold particles were attached to quartz, potentially indicating a local source in the upper part of the lease area.
"Our assessment at Raglan confirmed that the project offers both nearer-term production potential as well as what may be an interesting exploration upside," said Jones in the press release.
ECR estimates the second-hand value of the included equipment alone may approach the A$1.1 million purchase price. The company projects operational costs at approximately A$3,000 per day, requiring production of only around 0.6 oz/day to cover overheads at current gold prices.
The Raglan Project is located approximately 40 minutes west of Gladstone, Queensland, and has historically produced gold, though mining has been largely small-scale with several untested areas remaining.
The acquisition remains subject to further due diligence and completion of a £0.65 million subscription announced on October 1 to fund the purchase price.
Following completion of the proposed acquisition, ECR plans to conduct follow-up test pits to refine grade distribution and begin planning an initial mining campaign aimed at generating near-term revenue.
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