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Shares of ECR Minerals PLC (LON: ECR) are down 41% this year, driven by the drop in gold prices that has affected most gold mining and exploration companies this year.
Many did not expect a surge in the US dollar, which drove gold prices dollar as investors flocked to the world’s only reserve currency at the yellow metal’s expense.
A look at the miner’s fundamentals reveals that it is in a strong cash position after raising £2 million via a share placement last week, which raised its total cash position to over £5.8 million.
ECR Minerals is proceeding with drilling and exploration activities at its 100%-owned gold exploration projects in Victoria, Australia. The company uses its diamond drilling rig to drill within the H3 area of the Bailieston gold project in Victoria and has completed five drill holes.
The company has encountered visible gold deposits in one of the drill holes and expects to report initial assay results later this month. The miner has accelerated all its activities, which is good news for investors.
According to ECR Minerals CEO Craig Brown, the miner is well funded to advance its projects faster. The funds raised will allow it to “drive hard towards its twin targets of establishing a maiden JORC-compliant gold resource at the Bailieston project and completing further drilling at the Creswick project.”
From a technical standpoint, we could get a rally if the current support level holds over the next few days. However, a break below the 2.2p level would bring the next support level of1.6p into focus.
A strong rally in ECR Minerals shares price could be fueled by rising gold prices, given that falling gold prices fueled the current downtrend.
ECR Minerals share price.
ECR Minerals shares are down 41% this year. Can they reverse course and head higher?
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