Echo Resources Continues Encouraging Results Run From Orelia

THE DRILL SERGEANT: Echo Resources (ASX: EAR) reported, what it described as, “some of the most significant intersections to date,” to be received from exploration being undertaken at the company’s Yandal gold project in Western Australia.

Echo Resources said the results from the latest five reverse circulation (RC) drill holes (ORC007-11) to be completed within the Orelia gold deposit have demonstrated shallow high-grade gold mineralisation exists beneath the floor of the existing open pit.

Results include:

49 metres at 9.43 grams per tonne gold from 29m, including 1m at 60.45g/t gold;

45m at 4.01g/t gold from 52m, including 1m at 40.22g/t gold;

36m at 8.81g/t gold from 84m; and

18m at 6.04g/t gold from 98m.

Echo said the results suggest strong geological similarities to the nearby Lotus gold deposit located 700m to the north, which was historically mined to a depth of 500 vertical metre, producing 387,000 ounces from 2.2 million tonnes at 5.5g/t gold.

Echo compared this to the existing Orelia pit that extends to a depth of just 100 vertical metres with total historical production of 387,500 ounces from 7.1 million tonnes at 1.7g/t gold.

A cutback of the open pit was completed in 2012 in preparation for mining to approximately 200 metres vertical depth before mining ceased.

Echo indicated the latest drill results have increased its confidence that stacked high-grade mineralised lodes at Orelia are likely to occur to at least similar depths seen at Lotus and extend further along strike.

“These latest Orelia results are extremely encouraging as we are defining a large continuous high-grade mineralised zone that at this stage appears to have underground minable grades within an open pit mining environment,” Echo Resources CEO Simon Coxhell said in the company’s announcement to the Australian Securities Exchange.

“The intersections not only demonstrate that high-grade mineralisation exists just beneath the existing Orelia pit floor, but also increase our overall understanding and confidence in the Orelia gold system and potentially adding significant ounces at depth and along strike.”