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Economist Shayne Heffernan said in a note to traders today that “ECR Minerals PLC (LON:ECR) is a Bargain”

THEMAC is the first major asset to take a look at here, ECR a 19% shareholding in THEMAC (22% fully diluted), I would value that investment currently at around $70m. If ECR can consolidate the assets in Asia, take over the ASX Silver business and put the Solar folly on hold it can be a big winner.

In Asia ECR have huge potential but need bring those assets together and operate them as one unit, with minimal investment management of these could be centralized locally and such a move would then allow access to the capital markets out here.

Lets take a look at the parts (best to worst) of ECR

In October 2010, Kevin Maloney Chairman, Founder and 68.5% shareholder of THEMAC Resouces (via Tulla), sold his listed mining services group The MAC Services Group in a $651 million deal, from which he took about $340 million off the table.

The MAC Services Group Mr Maloney built from the ground up, hunting out opportunities in low cost operations and renting them accommodation, Like many Aussie’s Kevin Maloney knows his way around a mine.

So with $340m in his pocket, where did Kevin Maloney head to, Monte Carlo, The Greek Islands, no he headed for the dusty plains of New Mexico looking for what he and I agree is the next big thing, Copper.

While journalists beat up the China hard landing story and Copper is trading very cheaply, many people have over looked the real copper news.

Africa, South America, Australia and Asia are closing the door on foreign ownership, introducing taxes and changing the future cost base of Copper. At the same time demand for Copper is rising beyond supply.

THEMAC Resources Group – (TSX-V: MAC)

THEMAC Resources Group Ltd has 100% ownership of the Copper Flat project, a former producing mine with major civil infrastructure still in place located 150 miles south of Albuquerque. Copper Flat is a copper-molybdenum-gold-silver porphyry deposit with a high grade breccia core.

In March 2011, THEMAC acquired ECR’s exclusive option over a 100% ownership interest in the Copper Flat project, giving ECR a 19% shareholding in THEMAC (22% fully diluted).

THEMAC has completed an NI43-101 compliant preliminary economic assessment (PEA) for the project, and a prefeasibility study is underway. Permitting for the return of the project to production has commenced.

THEMAC intends to return the Copper Flat mine to production, subject to successful negotiation of the necessary feasibility, financing and permitting stages.

Preliminary Economic Assessment (PEA) have given results with robust possibilities as delivered by SKR Consulting:

Mine life of 17 years.
Payback within two years from start of production.
Life-of-mine operating costs US$1.41/lb copper equivalent.
Average production of approx. 36 million lbs copper and 628,000 lbs molybdenum per annum over first 13 years of operations.
Average production of approx. 15 million lbs copper and 335,000 lbs molybdenum per annum over a further four years.
NPV (6%) US$144 million.
IRR (post-tax) 23%.
Initial capital US$179 million and sustaining capital of US$112 million over the life of the mine.
Mine closure costs of US$40 million.

ACS Asia, this facility is almost next door to my vacation home

Asia Pacific Focused Metal Products Business in the centre of the fastest growing market in the world.

ACS manufactures a complete range of electrical and mechanical support systems. All products are manufactured to NEMA International VE-1:2009, AS, BS, ASTM, NZS Standards and ISO 9001: 2008 Certified.

Electrical support systems range from very light for computer cables to large High Voltage current carrying power cables used on heavy industrial sites.
Mechanical support systems used in major industrial project sites to support pipes, bracketing on commercial buildings, facades and under floor computer systems etc.

Cable Trays

Light gauge perforated trays supporting light cables. Sizes range from 50 mm wide to 900 mm wide and 2.4-3.0m in length. Materials used are Hot dipped galvanized steel, Aluminium, Stainless steel, Epoxy painted steel or FRP fiberglass.

Cable Ducting

Light to heavy ducts that can carry multiple cables from Switch boards to source of requirement. Can be made with either quick fitting lids or screwed on lids. Sizes range from 50 x 50 mm to 900 x 900 mm in 2.4-3.0m lengths. Materials used are Hot dipped galvanized steel, Aluminium, Stainless steel, Epoxy painted steel or FRP fiberglass.

Cable Ladders or Racking

Ladders carry large cables with high power carrying capacity, used on all major industrial sites. Ladders come in various strengths depending on loading capacity and in either 3 or 6m lengths. Materials used are Hot dipped galvanized steel, Aluminium, Stainless Steel, Epoxy painted steel or FRP fiberglass.

Paniai Gold & West Wits Mining

Proposed Alluvial Gold Mining Operations and Exciting Regional Exploration Possibilities
in Papua Province, Indonesia

ECR holds 100 million shares in Paniai Gold Ltd, a private Australian company founded as a vehicle for the Derewo River gold project in Papua Province, Indonesia. ECR’s shareholding is equivalent to approximately 26% of Paniai’s issued share capital.

In July 2011, Paniai sold its interest in the Derewo River project to West Wits Mining Ltd (ASX: WWI) for a package of ordinary shares, performance shares and options. ECR holds approximately 11.1M West Wits ordinary shares following a distribution by Paniai, which retains solely the performance shares and options received from West Wits.

The Derewo River project consists of more than 128,000 hectares of mining and exploration tenements. The project was established as a joint venture between Paniai and a local party. Paniai’s 50% interest has been assumed by West Wits, which can increase its interest in exploration activities to 80%.

Large amounts of gold have been extracted at Derewo River in recent years by local miners using only primitive techniques. The objectives of the Derewo River project are to establish a more sophisticated alluvial gold mining operation and to explore a wider area for alluvial and hardrock deposits. Exploration targets include large scale alluvial gold, porphyry gold-copper and bonanza grade quartz sulphide gold veins.

Indonesia’s Papua Province is arguably one of the world’s most prospective areas for mineral exploration, and the Derewo River project is located approximately 100km from the Grasberg copper-gold mine operated by Freeport McMoRan Copper & Gold.

ECR holds a 70% economic interest in ACS Asia, an Asia Pacific focused metal products business with a modern manufacturing facility in Rayong, Thailand.

ACS Asia’s core product lines are electrical and mechanical support systems, for use with cables and pipes within major structures. Significant buyers of these products include the mining, infrastructure and general large commercial construction sectors.

Silver Swan Group Ltd is the worst of the Assets

ECR holds 4 million performance shares of Silver Swan Group Ltd. These convert to ordinary shares if Silver Swan identifies JORC Indicated Mineral Resources of 350,000oz gold equivalent or more on mineral tenements in Western Australia that were acquired from ECR in 2008.

Silver Swan has made a volcanogenic massive sulphide (VMS) type copper-zinc-gold-silver discovery, the Austin deposit, on former ECR tenements, and exploration is continuing.

Right now this company is poorly run.

Warm Springs Renewable Energy Corporation

Proposed Solar Power Development in New Mexico

Warm Springs Renewable Energy Corporation (WSREC), a subsidiary of ECR, evaluating an opportunity to develop a solar power plant in New Mexico, USA in conjunction with the proposed restart of the Copper Flat copper-molybdenum-gold-silver mine being developed by THEMAC Resources Group Ltd, in which ECR has a substantial interest.

This one should be scrapped completely.

ECR Minerals plc is a mineral development company with interests in Argentina, the USA, Indonesia, Thailand and Australia. Our projects and interests are concentrated primarily in gold and base metals.

ECR shares are listed on the Alternative Investment Market (AIM) of the London Stock Exchange with the symbol ECR and are also traded on PLUS Markets. ECR’s American Depositary Receipts (ADRs) are traded in the USA on an over the counter (OTC) basis with the symbol MTDGY.