ECR Minerals is moving closer to production at its Blue Mountain gold project in Central Queensland, with an estimated revenue stream from the proposed operation of about $470,000 a month.

The current development proposal involves commissioning a large wash plant, either custom-built or purchased and modified for the project, with suitable suppliers identified.

A bulk testing campaign would aim to validate the company’s financial modelling before potentially moving to production, ECR said in an update this week.

‘The Blue Mountain gold project is estimated by ECR to have an indicative revenue potential of approximately $470,000 ($US295,000) monthly, based on a 0.6 g/BCM grade, a 25 tonnes per hour wash plant, and a gold price of $US2790 per ounce,’ it said.

‘This could potentially increase with dual wash plants and the current higher gold price.’

Related: Promising gold recovery rates from Blue Mountain ore

ECR purchased the tenement, about 35km south-east of Biloela and 95km south-west of Gladstone, from Bluekebble in 2023.

It includes the Denny Gully alluvial gold deposit, which is reported to contain up to and potentially over 100,000oz. 

As an alluvial system, ECR said Blue Mountain required lower capital expenditure to bring online compared to its other gold projects as the gold was at or near the surface.

A trenching and bulk concentrate sampling program was undertaken in mid-2024. The best sluice box concentrate results included 192.15g/t gold and 97.40g/t gold.

Further samples were submitted to the laboratory to undergo an enhanced gold recovery process to determine the potential commercial options for recovery.

Related: ECR Minerals reports latest results from Lolworth

Gekko Systems carried out single-stage gravity recoverable gold test work that demonstrated a recovery rate of 91.7 per cent gold into 0.40 per cent of the mass.

ECR said the work suggested Blue Mountain ore was suitable for gravity concentration using a batch centrifugal concentrator.

The current focus includes mapping out the optimal trenching location using drones or ground-penetrating radar, ensuring access to water via on-site creeks and implementing water recovery plans.

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