ECR Minerals (LSE:ECR) has commenced its production plan at the fully permitted Raglan alluvial gold project in central Queensland, taking the company into initial gold production and the early stages of cash flow generation.
Operational and financial highlights
The site team has identified priority areas for trenching and is optimising mining and processing equipment, with particular focus on the 60 tonnes-per-hour wash plant. The company also plans to revisit previously mined areas at greater depth, aiming to replicate the strong 91.7% gold recovery rates achieved at the nearby Blue Mountain project. Members of the board are travelling to Queensland to oversee commissioning activities, assess early grade performance and hold discussions with a potential off-taker covering production from both Raglan and Blue Mountain.
Raglan benefits from existing, turnkey infrastructure and a low-capital development pathway, which management believes will allow operational synergies with Blue Mountain. Early cash flow from these projects is expected to help fund further work at the larger Lolworth gold-silver project and support ECR’s transition from a pure exploration business to an operating gold producer in Queensland and Victoria. The move comes against a backdrop of historically high gold and silver prices, which management sees as supportive of the strategy.
More about ECR Minerals
ECR Minerals plc is a gold exploration and development company with projects in Australia, operating through three wholly owned subsidiaries across Queensland and Victoria. Its portfolio includes the Bailieston, Creswick and Tambo gold projects in Victoria, alongside the Raglan and Blue Mountain alluvial gold operations and the large-scale Lolworth gold-silver exploration area in Queensland. Together, these assets position ECR as an emerging regional gold producer with ongoing exploration upside and significant accumulated tax losses in Australia.
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