ECR Minerals, the gold mining AIM minnow, attracted some attention after it announced "very high" grade assay results from rock chip sampling at its Sierra De Las Minas (SLM) gold project in Argentina.
The samples were obtained from an area straddling the boundary between the Corral 1 and Carmincita 9 tenements. Both tenements, along with the rest of the SLM project area, are 100% owned by the ECR's wholly owned Argentine subsidiary Ochre Mining SA.
The company said that in common with the rest of the project area, the Corral 1 and Carmincita 9 tenements are characterised by the presence of numerous outcropping, gold bearing auriferous quartz veins. ECR added that historical literature indicates the area sampled to have been a significant focus of past exploration by other companies, during which times it was known as the JV zone.
The activities of Ochre in the JV zone during January 2014 consisted of reconnaissance mapping and sampling, which will continue during February 2014. When Ochre's reconnaissance programme has been completed further work will be planned in detail, and may include more extensive surface sampling, trenching and drilling.
Stephen Clayson, Chief Executive of ECR, said the "exceptionally high grades" uncovered mean that ECR's 2014 exploration at SLM is off to a positive start. He added: "While conclusions as to the economic potential of the veins sampled cannot be drawn from these initial results, the results are certainly encouraging given our strategy for the SLM project as a whole; to identify high grade, low tonnage gold deposits potentially suitable for early development to production at low capital cost."
Further exploration of the Corral 1 and Carmincita 9 tenements and in particular the JV zone will be a priority over the coming months, said Clayson.
ECR has a 100% interest in the Sierra de las Minas gold project in Argentina's La Rioja Province. Its other interests include the right to earn a 50% interest in the Itogon gold-silver project in the Philippines.
ECR also holds a 15% stake in Toronto-listed THEMAC Resources Group, which is focused on the development of the Copper Flat copper-molybdenum-gold-silver porphyry project in New Mexico, USA.
In mid-afternoon trade ECR shares
were up 0.075p or 26% to 0.33p, giving it a market cap of £10.6m.