Research Report: ECR Minerals: Unlocking value through production and exploration Q3 2025 LSE:ECR
A new chapter for ECR: From explorer to producer and antimony (which it is targeting at the Bailieston property) surging. Supported by the potential to unlock value from substantial accumulated tax losses and a steadfast commitment to cost discipline, ECR enters the second half of 2025 on a robust financial footing. Starting from a modest valuation, with key catalysts on the horizon, the company could see a significant re-rating if it successfully executes its strategic goals. In this report, we’ll look at ECR as a whole, the company’s projects, and what to look out for over the coming months… 1,755km2 of tenements across six projects in Queensland and Victoria ECR Minerals (LSE: ECR) is at a pivotal moment, poised to redefine its future with the Blue Mountain gold project in Queensland, Australia, where it is on the cusp of near-term gold production. The milestone positions the company to achieve its first-ever revenues. Bolstered by a fully funded program of work across a dynamic portfolio of additional exploration assets in two of Australia’s premier mining regions – Queensland and Victoria – ECR is advancing with unparalleled momentum. Under Chairman Nick Tulloch and Managing Director Mike Whitlow, who initiated a strategic overhaul in 2023, the company’s pathways to value creation have never been more diverse or promising. Yet at writing, ECR’s shares are trading at 0.2p, giving the business a capitalisation of under £5 million. That’s less than the potential value that could be unlocked at Blue Mountain alone. Based on initial modelling, the project could generate annualised revenues of A$5.6 million (c.£2.7 million). However, this figure could increase significantly through the application of today’s gold price along with further project optimisation and resource expansion. Moreover, ECR’s five, earlier-stage exploration projects also stand to add longer-term upside through future sales, partnerships, or joint ventures in the face of success on the ground. Especially with the price of both gold (ECR’s primary focus) 2
of around A$470,000 (c.£253,000). These projections assume a 0.6 gram per bank cubic metre (“BCM”) grade and a 25 tonnes per hour wash plant to provide prospective monthly output of more than 100 ounces of gold per month. Annualised, this equates to roughly A$5.6 million (c.£2.7 million), already covering a significant portion of ECR’s current market value. However, it’s important to note that these estimates were calculated by ECR Minerals in February 2025, using a gold price of US$2,790/oz. With gold now trading near US$3,300/oz and projections indicating the bull run may extend into 2026, there is potential for an immediate upward revision of these figures. Blue Mountain presents plenty of operational upside, too. ECR has completed modifications to its prototype plant, and is currently putting the final touches to a more efficient gold capture process designed to boost recovery rates. Meanwhile, a drilling and bulk sampling campaign is underway to define the depth of bedrock and assess the full extent of the alluvial system. The goal is to build confidence in the project’s longer-term commercial viability. Initial trenching has already returned gold grades well above historical averages; up to 1.55g per bank cubic metre (bcm) compared to the historical 0.6g/bcm estimate. Should this higher-grade material prove consistent over a larger area, it would improve the project economics further. When it comes to advancing Blue Mountain from here, ECR has stated it is willing to take the project into production itself. However, partnering remains an option should the right opportunity arise. Moving towards production at Blue Mountain At the heart of ECR’s strategy is the Blue Mountain project in Queensland. The property hosts a large near-surface alluvial gold system offering a realistic path to first cashflow in the short term, with production targeted for end-2025. Testing by Gekko Systems has shown the ore at Blue Mountain to be highly amenable to gravity processing, with recovery rates of up to 91.7% into 0.4% of the mass. If these results are repeatable across the project, ECR believes Blue Mountain will represent a commercial project suitable for an onsite production plant. Given the shallow mineralization at Blue Mountain, ECR anticipates low costs for establishing and operating a mining venture, with the potential for substantial profit margins. Based on early-stage modelling, Blue Mountain is expected to generate indicative monthly revenues 3
Trenching at ECR’s Blue Mountain project Example of recovered gold at ECR’s Blue Mountain project The process of securing a production permit for the project is ongoing. But whatever route ECR decides to take, the potential for substantial, low-cost gold production stands to strengthen its balance sheet. Generating revenues from Blue Mountain will increase the company’s ability to self-fund work to unlock further value across its wider exploration portfolio – a tick for any investor. 4
An exploration pipeline with scale and optionality Blue Mountain stands to establish ECR as a revenue-generating business in the near term. But it’s the company’s exploration portfolio that provides the potential for transformational upside over the longer-term. ECR holds multiple gold and antimony assets across Queensland and Victoria, with drill-ready targets and strong early results. In some cases, third-party interest is already emerging. Lolworth Spanning more than 900km² in Northern Queensland, Lolworth is ECR’s largest project by land area. It’s also perhaps the company’s most exciting exploration opportunity. Over the past two years, the company has carried out extensive fieldwork, stream sampling, trenching, and rock chipping. Results have consistently pointed to widespread gold mineralisation, with grades of up to 14.7g/t Au identified from sampling at surface across multiple gold-bearing quartz vein systems. In key prospects like Gorge Creek West and Uncle Terry, trenching has revealed broader zones of gold, including intercepts over 11g/t and 4g/t Au. Sampling from the Fat Hen Creek prospect returned up to 1,245ppm Au, or 1.2kg equivalent. Importantly, the mineralisation at Lolworth appears structurally similar to the well-known Charters Towers and Ravenswood gold districts nearby. Lolworth is showing promise for rare earths, too. Sampling has returned elevated niobium, tantalum, and neodymium grades from the Oak Creek area. This has already drawn the attention of the Geological Survey of Queensland, which has initiated a partnership with ECR, allowing the company to benefit from its technical expertise while reducing exploration costs. Now, ECR is ready to take exploration to the next phase. Once the latest round of work is completed at Blue Mountain, the company plans to move its rig onto Lolworth in July for a percussion drilling programme totalling at least 1,500m. The primary focus will be on verifying that nearsurface gold mineralization extends to greater depths, initially targeting 70 meters. If the results validate the surface mineralisation seen to date, ECR could be presented with new options to monetise Lolworth through partnerships, JVs, or even a strategic sale. Example of gold-bearing rock chip from ECR’s Lolworth project 5
Bailieston Located in the gold-rich Melbourne Zone of Victoria, Bailieston has recently emerged as a new source of potential value for ECR. This time, however, the focus is primarily antimony rather than gold. Following re-analysis of historical drill core in 2024, ECR identified a zone grading 32% antimony over 0.3m. Encouraged by this, it began a targeted field programme combining rock chip sampling, pXRF analysis, and follow-up diamond drilling. Though the recent drill campaign didn’t replicate the same high grades, all four holes successfully intercepted the same structural zone seen in the historic hole. This confirmed its continuity. And early analysis suggests the antimony mineralisation may be controlled by secondary structures not yet defined, providing guidance for future targeting. With antimony prices continuing to climb, driven by its use in solar and defence applications, any future discoveries at Bailieston could be highly valuable. ECR is now undertaking detailed geological analysis to refine its exploration model ahead of follow-up work. Drilling at ECR’s Bailieston project 6
Creswick and Tambo Both Creswick and Tambo sit in Victoria’s established gold belts, offering ECR exposure to known mineralised systems with past production. At Creswick, recent bulk sampling and drilling at the Kuboid Hill and Davey Road prospects returned strong grades, including a standout 41.03g/t Au over 1 metre. While exploration has paused in 2025 to prioritise other projects, ECR remains optimistic about the area’s potential. Encouragingly, the company has confirmed receipt of unsolicited interest in Creswick from a third party. Although these discussions have not yet advanced, the contact alone evidences the ongoing high level of interest in the region in which the project is based. ECR’s primary focus at Tambo, meanwhile is the Duke of Cornwall prospect. Historic miners produced high-grade gold here from a largely-unexplored mineralised system – the “Main Lode” – at surface. However, the feature remains unexplored at depth and along strike. Rock chip assays from direct outcrop and exposures around and within the old workings include gold values of up to 22.85g/t, 26.26g/t, and 52.g/t. ECR has since been investigating the potential for this high-grade gold to extend both along strike and at depth. Last year, the company completed a five-hole drill programme that confirmed gold mineralisation continues to at least 70m deep, with highlight intersections including: • DOCD002: 0.4m @ 8.51g/t Au • DOCD004: 0.15m @ 10.6g/t Au • DOCD005: 1m @ 0.72g/t Au These grades align with historical reports of highgrade gold at surface. So, ECR is now designing a follow-up drill programme to test deeper beneath these high-grade zone. Positive results will support ongoing efforts to secure a development partner for the project. Historic gold production around the Creswick project 7
Kondaparinga Finally, ECR has also applied for a 120km² licence at Kondaparinga in North Queensland’s Hodgkinson Goldfield – a region with strong historical production but limited modern exploration. Early government data shows anomalous gold values across the ground. And subject to final approvals, initial groundwork could begin later this year. On the ground at the Duke of Cornwall prospect at ECR’s Tambo project ECR’s exploration portfolio provides the potential for transformational upside over the longer-term. 8
A firm financial footing Alongside its operational progress, ECR has continued to strengthen financially over the past two years. As of endMarch, the company held £871,756 in cash, fully funding its immediate work programmes. This follows a £950,000 fundraise completed in November 2024. But it is also reflective of the cost discipline instilled by ECR’s current leadership team. Since taking over, chairman Nick Tulloch and managing director Mike Whitlow have implemented a more focused operating model. This has included reducing ECR’s reliance on consultants, selling non-core assets, and closing the London office to focus efforts on the field. Directors have also demonstrated personal commitment. A board salary sacrifice scheme has seen £383,000 in unpaid salary either waived or converted into equity (correct as of end-March 2025), aligning interests fully with shareholders. Perhaps ECR’s most important asset is the A$75 million in accumulated tax losses it holds through its subsidiary ECR Australia. These can be used by the company to offset future profits at Blue Mountain – potentially saving up to A$18.75 million in tax if fully applied. But they could also be sold to a third party. The losses have already attracted interest from external buyers. And while one deal fell through in early 2025, ECR remains open to the further interest it is continuing to receive from thirdparties. The company has restructured its corporate setup to allow for flexibility, enabling either an internal use of the losses or a clean sale if the right price is offered. Whatever happens, the tax losses give ECR another lever to reduce dilution and enhance value. 9
Together, the team has kept ECR tightly focused on value-driven exploration and cost discipline, positioning the company to benefit as much as possible from future progress. Meanwhile, ECR’s board and management team brings a well-balanced mix of commercial and technical experience to the table: Nick Tulloch CHAIRMAN Nick has over 20 years of capital markets experience and has led several companies through transformation and repositioning, including the listing of Zoetic International on the London Stock Exchange and the founding of Mendell Helium. Mike Whitlow MANAGING DIRECTOR Mike has a background in small-cap investment and project development, with direct experience assembling and financing resource ventures through his company Axies Ventures. Andrew Scott NON-EXECUTIVE DIRECTOR Andrew is a strategic communications expert with a background in investor relations and broadcasting, formerly of Sky, ITV, and Reuters. Adam Jones CHIEF GEOLOGIST Adam brings over a decade of Australian gold exploration experience, with specialist expertise in structural geology, drill planning, and 3D modelling. 10
3,500 3,000 2,500 2,000 1,500 1,000 USD/oz 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 year gold price chart Source: www.gold.co.uk Finally, a word on macro conditions. Timing is an important part of any investment story. And in ECR’s case, the market backdrop looks particularly favourable right now. Ongoing geopolitical instability is leading gold to trade near all-time highs, currently around US$3,300. With conflict in the Middle East continuing to escalate as global growth slows, investor appetite for gold remains strong. Analysts including Goldman Sachs now forecast that the precious metal could reach US$3,700/oz by the end of the year and even US$4,000/oz in mid-2026. Such elevated prices increase the potential margins at Blue Mountain, enhancing its economics and strategic value. They also raise the stakes for any new discoveries across ECR’s broader portfolio. This makes success at Lolworth or Bailieston more valuable to potential partners or acquirers. Antimony, meanwhile, has seen an even more dramatic rise. Prices have soared more than 400% between January 2024 and March 2025, fuelled by tight global supply and growing demand from solar, battery, and defence sectors. ECR’s work at Bailieston gives it exposure to this trend, and any further success there could attract external interest. Add to this a supportive funding position, significant tax assets, and multiple near-term news catalysts, and ECR’s value proposition becomes increasingly attractive. 11
On the cusp of a re-rate? With first gold production targeted at Blue Mountain, high-impact drilling about to begin at Lolworth, and an overlooked antimony asset in Bailieston… ECR Minerals is no longer just an early-stage explorer; it is a company with tangible revenue potential, exposure to high-value metals, and assets that are increasingly aligned with the current market cycle. Backed by prudent financial management and operating in two of the world’s safest mining jurisdictions, ECR is well positioned to deliver results in the second half of 2025. At a market capitalisation of just over £5 million, the rerating may already be overdue. 12
www.ecrminerals.com Author: Daniel Flynn Disclaimer: The author has been paid for the production of this piece by the company or companies mentioned above. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. When dealing in small cap companies you should if in doubt seek the advice of a regulated stock broker or financial advisor.
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