Paleogold, the current acquisition target of ECR Minerals (ECR ), has secured over 94% acceptances in regard to the deal, with acceptances from remaining shareholders expected shortly. 

As part of completion, ECR, via Paleogold, will exercise Paleogold's option to acquire 50% of Lucky Strike, the owner of the Maddens Flat group of mines.

And even as the transaction draws to a close, underground development is advancing at Maddens, with production targeted in the nearer term. 

Maddens Flat comprises six historical mining sites located within a 50 square kilometre exploration tenement in Northern Queensland. The Maddens project is being advanced by an experienced operating team inherited through the Paleogold acquisition. 

ECR has committed to spending A$1 million on the development of the Maddens underground mine. This capital is being used to extend the existing decline by approximately 120 metres to access the next level of the mine, including securing staff and equipment.

Based on historical production grades and technical assessments, the Board believes this next level has the potential to generate approximately 2,500 ounces of gold.

Following the completion of the Paleogold deal, ECR will have 10 projects in Australia, prominent among them Maddens Flat, Raglan, Blue Mountain, which are near-term producers, and Creswick, Lolworth, Bailieston and Tambo, which are exploration and development opportunities. 

At Raglan, trial pit mining and processing programmes have been successfully completed. This has provided initial production and has enabled optimisation of the wash plant and refinement of mining targets across the historic river channel.  

As is typical for alluvial operations, a reliable view of the recovered grades across the project will develop as sustained production progresses.

Raglan is expected to generate sufficient cashflow to support both corporate overheads and the development of Blue Mountain.

Elsewhere, at Salt Bush, and subject to the completion of the Paleogold deal, ECR will commit A$200,000 to advance the project towards production readiness. 

Salt Bush is a shallow open cut development opportunity which ECR believes has the potential to deliver over 10,000 ounces of gold from relatively near-surface mineralisation.

The project benefits from an estimated break-even at significantly below current gold prices.

Production is targeted for around mid-2027. ECR will hold a 20% interest in Salt Bush following completion.

"2026 has already started strongly for ECR, and we believe the remainder of the year will be even more exciting as the Completion of the Paleogold Transactions brings multiple projects closer to production,” said ECR’s chairman Nick Tulloch.

“With the addition of the Paleogold projects, we will have a substantial and diversified gold portfolio across Australia, combining nearer-term production opportunities with significant longer-term upside. Importantly, this is all taking place in a Tier-1 mining jurisdiction at a time of strong gold prices, which provides a highly supportive backdrop for our strategy. Our immediate focus is clear: advancing Maddens, Raglan and Blue Mountain. At Maddens, underground development is progressing well, with the potential to deliver meaningful production this year alongside near-mine exploration upside.  At Raglan, the team has used the Central Queensland wet season productively and we are transitioning into increased-scale mining following optimisation work. We look forward to providing updates on gold production from Raglan in due course. What is particularly exciting is the depth of our pipeline. Beyond our initial and nearer-term production projects, we have Salt Bush as a more medium-term production asset and a range of exploration projects which should continue to build value across the portfolio.”

 

View from Vox

 

A transformed ECR is now moving confidently through 2026 towards a sustained future as a meaningful producer of gold across several projects. Raglan will support the development of Blue Mountain, even as Maddens moves towards production, and Salt Bush follows on behind. It’s a fine time to be producing gold, as well as for exploring for it. We don’t yet know what ECR’s margins will be, but likely they will be good in the current price environment.