ECR Minerals Regulatory News (ECR)

9 Aug 2007 12:03

Mercator Gold PLC09 August 2007 MERCATOR GOLD PLC ("Mercator Gold" or the "Company") LONDON, UK - 9 August 2007 - Mercator Gold PLC is pleased to announce thatmining and treatment of gold bearing ores has recommenced at its wholly ownedMeekatharra gold complex. Commissioning of the 1.25 million to 3 million tonne per annum Bluebird Millcommenced during the second week of July and is expected to be completed by theend of September 2007. Gold production should commence during the month of August 2007. In its first full year of operation, commencing 1 October 2007, the Companyexpects to produce 120,000 ounces of gold. Some minor delays have beenexperienced during the initial phase of commissioning as is normal during thecourse of bringing a mine of this scale back into production however theprogress to date has been relatively smooth. Cost pressures experienced globally and throughout the industry preclude theCompany from advising on likely costs of production until the end of thecommissioning phase. Initial production will come from the Surprise Open Pit which has an announcedreserve of: Surprise 827,000 tonnes @ 2.35g/t 63,000 ounces Production will follow from the Bluebird Pit where the announced reserve is: Bluebird 1,461,000 tonnes @ 2.53g/t 119,000 ounces Further production from Prohibition-Vivian-Consols (PVC) and other deposits willthen provide plant feed for the balance of the first four years of operations.The announced reserves at PVC are: Prohibition 1,372,000 tonnes @ 4.06g/t 179,000 ounces Vivian - Consols 233,000 tonnes @ 9.54g/t 71,000 ounces During the commissioning phase two geotechnical holes drilled from surface atSurprise returned the following intersections from below the current planned pitlevel. ---------- ----------- -------- --------- Hole Number From To Au Grade (metres) (metres) (gms/tonne) ---------- ----------- -------- --------- 07sud001 170 171 16.27 ---------- ----------- -------- ---------- 171 172 0.03 ---------- ----------- -------- ---------- 172 173 14.07 ---------- ----------- -------- ---------- 173 174 0.57 ---------- ----------- -------- ---------- 174 175 5.20 ---------- ----------- -------- ---------- 175 176 161.94 ---------- ----------- -------- ---------- 07sud002 175 176 33.93 ---------- ----------- -------- ---------- 176 177 0.35 ---------- ----------- -------- ---------- 177 178 0.96 ---------- ----------- -------- ---------- 178 179 8.71 ---------- ----------- -------- ---------- Note: Holes were drilled at 58 degrees. These results highlight the presence of very high grade, but nonethelessnuggety, gold at Surprise and add considerably to the Company's confidence inthe orebody. An extension of the Surprise Pit is under consideration. Managing Director, Patrick Harford said: "Our people in Meekatharra and Perthare very excited about the reopening of the Bluebird Mill and the commencementof mining operations at Surprise. The Company's whole team is focused on controlling costs and maximising recoveryso that we extract the maximum benefits for our shareholders from this goldenopportunity." Chief Operating Officer, Denis Geldard added: "We will have two open pits within1,000 meters of the run of mine stockpile, which will provide feedstock for thenext two years of operation, followed by extensive underground reserves whichare still being updated as design work proceeds. We have a state of artrefurbished processing plant and an experienced team of people in place which,together with a portfolio of brown fields' and green fields' explorationtargets, places Mercator Gold in a very commanding position going forward." Competent Persons Report - Consent for release The information in this report, which relates to the Surprise, Bluebird,Prohibition, and Vivian-Consols Ore Reserves, is based on information compiledby Alan Coles and Denis Geldard. Alan Coles and Denis Geldard are full time employees of Mercator Gold AustraliaPty Ltd and are Members of the Australasian Institute of Mining and Metallurgy. Alan Coles and Denis Geldard have sufficient experience which is relevant to thestyle of mineralisation and type of deposit under consideration and to theactivity which they are undertaking to qualify as Competent Persons as definedin the 2004 Edition of the "Australasian Code for Reporting of ExplorationResults, Mineral Resources and Ore Reserves". Alan Coles and Denis Geldard consent to the inclusion in the report of thematters based on this information in the form and context in which it appears. For further information please contact: Mercator Gold plcTerry Strapp, Chairman Tel: +61 (0) 412 228 422Patrick HarfordManaging Director Tel: +44 (0) 20 7929 1010Mobile: +44 (0) 7786 486 645Email: info@mercatorgold.comWebsite: www.mercatorgold.com Bankside Consultants Ltd Simon RothschildKeith IronsOliver WintersTel: +44 (0) 20 7367 8888 AIM: MCR This information is provided by RNS The company news service from the London Stock Exchange