ECR Minerals (LON: ECR), the AIM-listed gold explorer, saw its shares surge after it said underground development at its Maddens gold project has struck a mineralised quartz vein with visible gold, with ore now stockpiled for processing.
The shares touched 22p in early trade, up as much as 18.9% from yesterday’s close of 18.5p, before settling to a gain of 10.11% at 20.37p by mid-afternoon on volume of more than 25.9 million shares, within the stock’s 52-week range of 17p to 44p.
In an RNS released before markets opened, ECR said underground development at Maddens, in which it holds a 50% interest, had intersected an additional gold-bearing vein distinct from the main Maddens Reef. Ore from the find is being stockpiled on the run-of-mine pad, the stockpile area for unprocessed ore awaiting the mill. The company also flagged progress on a Knelson gravity concentrator, equipment that separates gold particles from crushed ore using gravity, a LiDAR survey, and mobilisation of its Brothers alluvial project.
No assay grades or tonnages for the new vein have been disclosed, so the discovery is a physical development milestone rather than a quantified resource upgrade. Mike Parker, non-executive director of ECR Minerals, said underground development is generating ore for future processing, with preparations for the next phase of decline development, the downward tunnel used to reach the ore body, well advanced, and upgrades to the processing plant continuing.
Chairman Nick Tulloch said the update demonstrates the company’s commitment to making Maddens one of its highest strategic priorities following the Paleogold acquisition. Parker added that every metre of underground development moves the project closer to production and may also improve understanding of the wider Maddens geological model.
ECR’s priorities for the third quarter include starting decline development, installing the gravity concentrator, and processing the stockpiled ore, the steps that will determine whether the find becomes an economically significant discovery.