ECR Minerals (ECR ) has released the results of an internal site analysis of its 100% owned Raglan alluvial gold project in central Queensland.

The analysis sets out an initial Phase 1 mine plan focused on a clearly delineated section of the historic river system and illustrates the potential for attractive near-term economics while highlighting significant scope to expand mining activities in future phases.

The analysis highlights the potential for ECR to recover approximately 938 ounces of gold in Phase 1 over a multi-year period, which would have a gross in-situ value of approximately A$7 million at prevailing gold prices. 

The indicative revenue from Raglan due over the coming years represents a multiple of approximately seven times the acquisition price of the project, based solely on the initial Phase 1 mine plan.

What’s more, the Phase 1 analysis excludes side creeks, extensions, deeper gravels and optimisation opportunities, which represent potential upside for future mining phases.

The proposed mineable area defined at this stage comprises approximately 162,000 square metres. 

Assuming gold-bearing gravels extend to an average depth of 1.5 metres, the initial plan would cover approximately 243,000 bank cubic metres of material, which ECR would intend to mine and process over a multi-year period.

Over the coming weeks, ECR intends to dig and process a series of test pits at the northern end of the Raglan project area outside of the Phase 1 area. These test pits are expected to provide additional insight into gravel depth variability, grade distribution and potential extensions to the current mine plan, whilst generating cash flow.

"This work gives us a clear and compelling starting point for mining at the Raglan project,” said ECR's chairman, Nick Tulloch. 

“Using deliberately conservative assumptions and focusing only on the main historic river channel, the initial mining plan alone demonstrates the potential to deliver a strong multiple of our original acquisition cost in gold revenue over the coming years. What is particularly exciting is that this represents just the first phase. We have not factored in any contribution from side creeks, extensions along strike or deeper gravel horizons, all of which we intend to examine as operations progress. As we gain more operating data from site, we see a clear opportunity to refine and expand the mining plan over time, potentially extending the mine life and increasing overall returns. Against a historically strong gold price backdrop, and with plant, infrastructure and permitting already in place, we consider that the Raglan project provides ECR with an excellent foundation for near-term cash generation and a platform from which to build a larger, longer-term alluvial operation in Queensland."

 

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Worth noting that the work completed to date represents only the initial phase of mining planned at the Raglan project. The defined area has been selected to provide a conservative, clearly delineated starting point for operations. As mining progresses and operational data is gathered, ECR expects to refine and potentially expand the mining footprint over time, with the objective of extending mine life, increasing prospective annual gold output and enhancing overall returns.