ECR Minerals : Drilling Results

Craig Brown, Director & CEO

Email:

info@ecrminerals.com

Website: www.ecrminerals.com

• Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
• Aspects of the determination of mineralisation that are Material to the Public Report.
• In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

• All sampling and logging has been supervised and conducted by Dr Rodney Boucher of Linex Pty Ltd and by Linex staff at the Linex core processing facility or on site at the drill rig. Linex provided geological services to Mercator Gold Australia Pty Ltd, including the services of Dr Boucher.
• All material was collected in commercially available diamond core trays.
• Diamond core was cleaned and marked metre-by-metre.
• The geologist determines which parts of the drill hole were to be sampled using criteria such as presence of quartz and mineral occurrence. Sample intervals were based on lithology and veining but in general were 1m.
• The samples were cut with a core saw, with half collected for laboratory submission, and the remaining half transferred back to the core tray for storage.
• No intervals were less than 0.20m or greater than 1.5m.
• The diamond drill samples were submitted to Onsite Laboratory Services in Bendigo, Victoria. Sample preparation involved sample crush to 2mm, pulverise and then screen to 75mm and split off 50g for analysis.

• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

• All holes were drilled using a truck mounted Sandvik 710DE drill rig diamond coring from surface. Holes drilled were HQ.
• All holes were surveyed with a single shot camera, nominally every 30m where practicable.
• Core is orientated using regional axial planar cleavage. Due to the known strike of cleavage, bedding and vein measurements are taken relative to cleavage. Data were plotted on stereonets to confirm the orientation and where possible, beds were correlated between holes for further confirmation.

• Method of recording and assessing core and chip sample recoveries and results assessed.
• Measures taken to maximise sample recovery and ensure representative nature of the samples.
• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

• Core recoveries were measured by the geologist after each drill run, comparing length of core recovered versus drill depth. Core recovery was logged and recorded in the database.
• The driller was under instruction to monitor recovery and rectify core loss by adjusting drill rig operation.
• No strong relationship between core recovery and grade is evident.
• Drilling has occurred on day shift and night shift at various times during the programme.

• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.
• The total length and percentage of the relevant intersections logged.

• All core was geologically logged at 10 centimetre intervals to a standard that follows industry common practice and is suitable for future use in interpretation and resource estimation.
• Logging of samples included but was not limited to lithology, mineralogy, alteration, veining, weathering and structure.
• Drill core structural measurements were logged prior to cutting/sampling. Bedding, joint and fault orientations were measured relative to cleavage to provide orientations.
• All core was photographed wet and dry.

• If core, whether cut or sawn and whether quarter, half or all core taken.
• If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
• For all sample types, the nature, quality and appropriateness of the sample preparation technique.
• Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
• Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
• Whether sample sizes are appropriate to the grain size of the material being sampled.

• Half core was sampled using a core saw. The right half of the core (viewed down hole) was submitted for assay.
• Linex Pty Ltd core cutting and sampling procedures were followed to ensure sampling consistency.
• 1m of non-mineralised material from either side of significant mineralised zones was submitted with the samples to the laboratory as part of the quality control process.
• No second half sampling has been conducted.
• The sample sizes are considered to be appropriate for the type of mineralisation in this area.

• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
• For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
• Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

• The sample preparation and analytical procedures are considered appropriate for the style of mineralisation.
• Onsite Laboratory Services provided details of their routine quality controls.
• 10% of samples were duplicate assayed and 10% of assays were repeated for quality control and quality assurance testing.
• One standard sample was inserted per approximately 20 samples dispatched for assay.
• Laboratory standards and blanks were inserted for quality control and quality assurance testing.

• The verification of significant intersections by either independent or alternative company personnel.
• The use of twinned holes.
• Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
• Discuss any adjustment to assay data.

• All assay and drillhole data were imported and stored in a database.
• Significant intersections were verified by the logging geologist and Dr Boucher.
• No twinned holes have been drilled.
• Primary data for drill holes was compiled onto paper based logging templates and was then transferred into a database and validated by Linex Pty Ltd personnel. Back up digital copies of all paper log sheets were also kept.
• No adjustments have been made to any assay data contained in this report.

• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
• Specification of the grid system used.
• Quality and adequacy of topographic control.

• All drill hole location coordinates were measured using handheld GPS.
• Collar surveying was performed by Linex Pty Ltd personnel. This was considered appropriate for the stage of exploration.
• All drill holes were downhole surveyed. Down hole single shot surveys were conducted by the drilling contractor every 30m down hole and at end of hole where possible.
• Drilling orientation was established prior to collaring with clinometer and compass.
• The grid system used is GDA MGA 94 Z44.
• The RL was recorded for each drill hole from the GPS and verified using publicly available satellite and aerial imagery.

• Data spacing for reporting of Exploration Results.
• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.
• Whether sample compositing has been applied.

• The drill hole spacing at Bung Bong was 20 m along a single section
• The drill holes at Monte Christo were approximately 150 m apart on differing sections.
• Sample intervals were based on lithology but in general were 1m.

• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.
• If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

• A majority of diamond drill holes at Bung Bong were orientated at -80 degrees (or -70 degrees for ABB005) towards 060 degrees to 090 degrees.
• The holes drilled at Monte Christo were both orientated at -60 towards 260 degrees.
• All holes were designed with the aim to cross most veins and structures at a high angle.
• There is insufficient drilling data to determine if any bias can be detected in the data.

• The measures taken to ensure sample security.

• All core drilled has been processed and cut at the Linex core processing facility by Linex Pty Ltd personnel. Core is then dispatched by Linex Pty Ltd personnel.
• All sample reject is retained by Linex Pty Ltd.
• Sample number receipt information from the laboratory is cross- referenced and rationalised against sample number dispatch information.

• The results of any audits or reviews of sampling techniques and data.

• No processes or data used in developing the release of exploration results have been subject to audit or review by non-Linex Pty Ltd personnel or contractors so as to reduce timelines for reporting.

• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
• The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

• Bung Bong and Monte Christo are within the vicinity of Avoca, Victoria, and are 100% owned by Mercator Gold Australia Pty Ltd.
• Both prospects are located on EL5387.
• Exploration activities at Bung Bong were confined to an existing track on Crown Land, activities at Monte Christo were in open paddocks on private land.

• Acknowledgment and appraisal of exploration by other parties.

• Bung Bong and Monte Christo are both centres for historic mining.
• There has been no contemporary exploration at Bung Bong and Monte Christo.

• Deposit type, geological setting and style of mineralisation.

• The host rocks at Bung Bong and Monte Christo are deep marine sandstones and shales (turbidites). Gold is hosted by fault-related quartz and quartz spurs.
• Outcrop at Bung Bong reveals multiple faults associated with quartz veins. Drilling confirmed the observations.
• Bedding strikes north-south and dips to the west. Bedding is transected by a series of west-dipping faults.

• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:
  • easting and northing of the drill hole collar
  • elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar
  • dip and azimuth of the hole
  • down hole length and interception depth
  • hole length.
• If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

• No material drill hole information has been excluded.

Bung Bong drill holes

Monte Christo drill holes

• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.
• Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
• The assumptions used for any reporting of metal equivalent values should be clearly stated.

• Averages of results through each intersection have been reported.
• No cut-off grades have been applied.

• These relationships are particularly important in the reporting of Exploration Results.
• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
• If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').

• Mineralisation widths are based on down hole lengths.
• There is insufficient drilling data to determine continuity of mineralised domains.

• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

• Refer to figures previously released by ECR Minerals plc.

• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

• All gold values have been reported.

• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

• All relevant data is presented in the text, tables and diagrams.

• The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).
• Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

• Future drilling will be dependent on future company direction.