ECR Minerals on the up after identification of 'significant' gold target

Mineral exploration and development company ECR Minerals saw its shares leap on Monday after it identified a "significant" gold target at the Blue Moon gold project in Victoria Region, Australia.

The gold grade identified near surface at the project was modest, but a statement from the company said its technical teams noticed considerable leaching of the veinlets containing gold in oxide zones near surface.

Craig Brown, chief executive of ECR Minerals, said: "I am delighted with the progress our technical team have made with the review of Blue Moon. It is evident that the Blue Moon target offers an opportunity to discover a significant gold deposit and that will be our prime objective in the forthcoming drill campaign."

Consequently, the AIM traded company will aim to commence deeper reverse circulation drilling in the coming months, subject to conclusion of land access agreements.

"Furthermore, the addition of two new targets at Red Moon and Yellow Moon is extremely exciting for the technical team and the Company. The multiple gold targets identified to date support the rationale of the company in securing the Bailieston licence with the overall objective being the discovery of a significant and economic gold deposit," said Brown.

ECR reported that the two new targets share similar geochemistry to that confirmed at Blue Moon, notably large areas of quartz float with anomalous arsenic of similar magnitude.

Shares of ECR Minerals were up 13.05% at 0.94p at 1627 BST.