ECR Minerals Regulatory News (ECR)

12 Aug 2005 11:24

Mercator Gold PLC12 August 2005 12th August 2005 On target to locate 2 million ounces of gold at Meekathara -Drilling results- ("Mercator" or "the company") LONDON - Mercator Gold plc (AIM: MCR/MCRW) as operator of the Annean JointVenture, with St Barbara Mines Limited (SBM) announces interim results from itsdrilling program near Meekatharra, Western Australia, including the Yalogindamine targets Bluebird, Surprise and Jess, the latest results being reportedhere. • Bluebird: The company has completed an exploration drill programme and results include 24m @ 4.1 g/t, 7m @ 5.5 g/t, 8m @ 4.8 g/t, 5m @ 5.7 g/t, 4.5m @ 4.0 g/t, 7m @ 2.7 g/t and 10m @ 2.3 g/t. Bluebird comprises two parallel lodes within subvertical shear zones, with proven mineralisation at depths 500m below surface. The company is demonstrating vertical continuity in mineralisation for the first time. • Surprise: At Surprise the company has completed its reverse circulation and diamond drilling programme with all assay data now received. Holes were drilled for the exploration purpose of extending the resource and for the purpose of verifying legacy data. New results include 4m @ 5.7 g/t, 7m @ 2.3 g/t, 4m @ 3.9 g/t and 4m @ 2.4 g/t. • Jess: At Jess between Great Northern Highway pit and Surprise the company is continuing its drilling programme. New results include 8m @ 4.0 g/t. The company remains on track to achieve its stated target of locating 2 millionounces of gold. Resource evaluations on Surprise and Bluebird are in progressand are expected to be an important first year contribution towards the target. Bluebird The company has completed a programme comprising 9 reverse circulation (RC), 9RC pre-collars with diamond core tails and 5 diamond core re-entry holes for atotal of 7184m at Bluebird. This report updates and adds to previously announcedresults. New significant intersects include hole 05BBRC011 with 25m @ 4.1 g/tfrom 96m (including 2m @ 13.3 g/t), hole 05BBRC004 with 10m @ 2.3 g/t from 171m,hole 05BBRC009 with 5m @ 5.7 g/t from 131m, hole 05BBRC010 with 3m @ 3.4 g/tfrom 92m, and re-entry hole RCB260 with 7m @ 5.5 g/t from 373m and 4.5m @ 4.0 g/t from 495m. Results, already announced, from Bluebird include hole 04BBRD002with 9m @ 4.8 g/t from 229m and re-entry hole RCB201 with 10m @ 7.7 g/t from166m. In addition to drilling at Bluebird, the company has completed a detailedgeological review of the existing data. This has included detailed mapping ofthe abandoned pit and detailed geology compiled on cross-sections for the firsttime. Results of this work show that there are at least four sub-parallel shearzones with anomalous gold. Two of these, the Western and Eastern Zones includehigh-grade gold intercepts, and merge into a broad but intermediate grade zonein the northern half of the pit. Gold within the shear zones is associated withquartz veins that are both zone parallel and in subhorizontal packages. Thesubhorizontal quartz-gold veins confirm the results of earlier data analysisusing SpaDiSTM technology showing high-grade shoots to be subhorizontal. Thegeological studies combined with new reliable down-hole surveys enable animproved view of the Bluebird gold deposit, precise location of the gold lodesand are the prelude to a resource evaluation to be conducted in August.Importantly, the company has now re-entered five previously abandoned drillholes and extended them to cross both the Eastern and Western Zones. The companyis now successfully predicting intersects to within a few metres, andmineralised zones are now being linked successfully between drill holesdemonstrating vertical continuity. Surprise The company has completed a drilling programme at Surprise comprising 25 RCholes, and 11 RC pre-collars with diamond core tails for a total of 5490m. Assayresults of the final six holes drilled at Surprise for the resource evaluationare now available. Hole 05SURC026 was drilled from south to north mostly in thehost porphyry with 7m @ 2.3 g/t from 129m and 4m @ 3.9 g/t from 138m downhole,in low-grade gold with a down-hole result of 171m @ 0.7 g/t. Other new resultsinclude hole 05SURC027 with 4m @ 5.7 g/t from 20m and 4m @ 2.4 g/t from 31m.This and other holes drilled and previously announced demonstrate a broad zoneof low grade mineralization around the high-grade high-nugget zones alreadyrecognized. Results, already announced, from within high-grade zones at Surpriseinclude holes 04SURD012 with 15m @ 45 g/t from 127m, 04SURC014 with 6m @ 36 g/tfrom 155m, 04SURD013 with 5m @ 6.3 g/t from 132m, 04SUDD010 with 2m @ 22.7 g/tfrom 73m, 05SURC002 with 8m @ 5.5 g/t from 132m, and 05SURC009 with 17m @ 2.7 g/t from 23m. Jess At Jess the company has drilled 17 RC holes for a total of 2365m. Locatedbetween the Surprise and Great Northern Highway abandoned pits and less than300m from the Bluebird mill, at Jess the company is continuing to intersectoxidised mineralisation at shallow depths. New results include hole 05JSRC017with 8m @ 4 g/t from 48m downhole. In a geometry unusual for Yaloginda, themineralised zone at Jess dips gently southeast, towards the high-grade lodes atGreat Northern Highway. The company will continue to explore for high-gradeshoots and determine the relationship of Jess to the Great Northern Highwaylodes. A diamond core hole is planned. Results, already announced, from Jessinclude hole 04JSRC010 with 4m @ 2.6 g/t from 81m, 3m @ 2 g/t from 99m, 8m @ 1.9g/t from 106m, 8m @ 1.2 g/t from 118m and 8m @ 1 g/t from 133m. New Zealand Following a data review and site visit the company has relinquished its Makaretupermit, geology and environmental considerations suggesting that it was unlikelyto contain mine-able ore in quantities sufficient to meet the companies targetsize. The company continues to explore the Lottin Point permit that isprospective for Eskay Creek type gold and base metal mineralisation. - Ends- For further information please contact: Mercator Gold plc Patrick Harford, Managing Director Tel: +44 (0) 7786 486645Terry Strapp, Chairman Tel : +61 (0) 8 9322 7422Michael de Villiers, Finance Director Tel: +44 (0) 2079291010 E:mail: info@mercatorgold.comwww.mercatorgold.com Beaumont Cornish Limited Roland Cornish Tel: +44 (0) 7628 3396 King & Shaxson Capital LtdNick Bealer Tel: +44 (0) 20 7553 8281 Parkgreen Communications Justine Howarth / Ana Ribeiro Tel: +44 (0) 20 7493 3713 Mercator operates a continuous disclosure policy with respect to explorationresults. Company news releases are based on technical information approved bythe Company's Exploration Director, Julian Vearncombe BSc (Hons), PhD, FGS,RPGeo, FAIG. Appendix Mercator Gold plc recent drilling resultsHole_ID From_m To_m Easting Northing RL Interval_m Au_g/t Comments 05BBRC003 75 78 641649 7044237 407 3.0 3.6 86 87 641654 7044235 399 1.0 2.905BBRC004 127 128 641615 7044185 364 1.0 1.5 134 136 641619 7044183 358 2.0 1.6 140 143 641623 7044182 353 3.0 2.0 171 181 641644 7044174 326 10.0 2.3 inc. 3m @ 4.2 g/t 206 207 641663 7044166 304 1.0 1.005BBRC005 106 109 641647 7044248 378 3.0 3.2 114 117 641651 7044247 372 3.0 1.6 119 121 641654 7044246 368 2.0 1.4 124 125 641656 7044246 364 1.0 1.3 128 134 641660 7044245 359 6.0 2.2 inc. 1m @ 3.5 g/t05BBRC007 203 204 641627 7044137 325 1.0 1.3 207 208 641630 7044136 323 1.0 1.5 215 218 641636 7044132 317 3.0 1.9 228 230 641644 7044126 310 2.0 1.205BBRC009 76 79 641533 7043883 368 3.0 1.5 81 82 641535 7043882 365 1.0 1.1 122 124 641554 7043871 330 2.0 3.2 131 136 641559 7043868 321 5.0 5.705BBRC010 53 55 641532 7043869 394 2.0 1.8 92 98 641558 7043858 364 6.0 2.205BBRC011 92 94 641516 7043876 344 2.0 1.7 96 120 641517 7043876 337 24.0 4.1 inc. 1m @ 6.5 g/t, 1m @ 11.8 g/t, 4m @ 4.6 g/t and 2m @ 13.3 g/t 121 122 641522 7043874 317 1.0 1.4 125 128 641523 7043873 312 3.0 1.5 130 133 641524 7043873 307 3.0 3.0 142 145 641527 7043872 295 3.0 3.505BBRC012 141 142 641533 7044137 341 1.0 2.4 284 285 641595 7044081 225 1.0 1.2 299 307 641603 7044074 210 8.0 4.8 inc. 1m @ 14 g/t and 1m @ 13 g/t 310 311 641606 7044071 204 1.0 4.2 321 328 641612 7044065 192 7.0 2.7 344 347 641621 7044057 175 3.0 2.405BBRC013 106 107 641570 7044031 318 1.0 1.2 131 135 641576 7044028 293 4.0 2.1 inc. 1m @ 3.5 g/t 139 141 641578 7044027 286 2.0 1.2 145 146 641579 7044027 281 1.0 1.6 152 154 641581 7044026 273 2.0 2.4 205 206 641595 7044018 223 1.0 1.3 212 213 641597 7044018 217 1.0 1.4 215 217 641598 7044018 213 2.0 1.2 223 224 641600 7044017 206 1.0 10.3 245 248 641607 7044015 184 3.0 2.6 287 288 641619 7044012 145 1.0 1.405BBRD006 275 280 641547 7043941 238 5.0 3.2 inc 2m @ 4.8 g/t 318 321 641570 7043926 205 3.0 2.1 324 327 641573 7043924 201 3.0 3.0 332 333 641576 7043921 195 1.0 2.505BBRD015 393 395 641658 7044157 109 2.0 1.1 402 403 641654 7044159 101 1.0 1.4 435 436 641638 7044165 73 1.0 2.2 440 441 641636 7044166 69 1.0 1.1 451 454 641630 7044168 59 3.0 1.5BBDRC30 405 408.21 641600 7043852 147 3.2 2.4 440 443 641577 7043860 121 3.0 3.5RCB260 369 371 641718 7043883 99 3.0 1.5 373 380 641718 7043883 92 7.0 5.5 inc. 5m @ 6.9 g/t 495 499.5 641718 7043883 -28 4.5 4.0 inc. 2m @ 7.5 g/t 527 528 641718 7043883 -59 1.0 1.5 SURPRISE05SURC026 4 6 642720 7045164 468 2.0 1.7 9 13 642720 7045167 463 4.0 1.3 14 19 642720 7045170 458 5.0 1.6 30 33 642721 7045176 445 3.0 1.9 38 40 642722 7045180 438 2.0 1.1 42 44 642722 7045182 434 2.0 1.3 64 66 642724 7045192 415 2.0 1.1 67 69 642724 7045193 412 2.0 1.2 79 80 642725 7045199 402 1.0 1.2 106 107 642729 7045212 379 1.0 2.1 129 136 642732 7045224 356 7.0 2.3 inc. 2m@3.3 g/t 138 142 642733 7045228 350 4.0 3.9 inc. 1m@13.1 g/t 146 147 642734 7045231 344 1.0 1.0 150 151 642735 7045233 341 1.0 2.5 159 160 642736 7045238 333 1.0 1.2 164 165 642737 7045240 329 1.0 1.505SURC027 20 24 642684 7045058 457 4.0 5.7 inc. 1m @ 14.0 g/t & 1m @ 6.6 g/t 26 28 642687 7045057 452 2.0 1.3 31 35 642690 7045056 447 4.0 2.4 44 45 642696 7045054 438 1.0 2.805SURC028 10 11 642698 7045073 467 1.0 1.505SURC029 21 25 642695 7045105 456 4.0 1.4 37 38 642702 7045102 444 1.0 2.6 52 53 642710 7045099 432 1.0 1.905SURD014 175.5 176.9 642689 7045124 308 1.4 2.4 178.9 179.9 642690 7045124 305 1.0 2.3 182.2 182.4 642691 7045124 302 0.2 1.205SURD018 124.2 125.8 642693 7045180 364 1.6 1.8 131.5 132.5 642697 7045179 359 1.0 1.8 133.5 134 642698 7045179 357 0.5 1.2 136 137 642699 7045178 355 1.0 1.8 139 140 642700 7045178 352 1.0 1.1 150 150.4 642706 7045176 343 0.4 2.0 157.4 160.4 642710 7045175 335 3.0 2.1 163.9 164.9 642713 7045174 331 1.0 1.4 180.9 183.8 642722 7045172 315 2.9 1.8JESS05JSRC015 48 49 642506 7044572 424 1 1.105JSRC016 87 91 642751 7044437 382 4 2.5 165 166 642751 7044437 305 1 1.205JSRC017 17 18 642486 7044517 454 1 1.1 48 56 642486 7044517 420 8 4.0 78 79 642486 7044517 393 1 1.25 103 104 642486 7044517 368 1 1.1 187 188 642724 7045171 311 1 1.5 Notes on above table The drill assay tables is in this press release are based on compositing triggervalue = 1.0 g/t Au, minimum composite length 0.2m, and maximum width of internalwaste 2m. Intersection coordinates represent the x-y-z centroid position of thecomposited drill-hole intersection. Easting refers to the Australian Map GridAMG'84 block 50 easting coordinate, and northing the AMG'84 block 50 northingcoordinate. Where there are no significant intersections in a hole the collarcoordinates are given.Assay method is Genalysis 50g fire assay (FA50/AAS). Thesurface RL at Yaloginda near Meekatharra is about 470m with modest variationswithin the area. NSI = no significant intersection. Notes to editors Mercator Gold plc ("AIM-MCR; MCRW"), which joined AIM on 8 October 2004, has ajoint venture agreement with St Barbara Mines Limited ("the Annean Joint Venture") to explore for economic gold resources in the Annean Joint Venture area in the Meekatharra region of Western Australia. Under the terms of the Annean Joint Venture, Mercator has the right to earn 70%interest in the Meekatharra properties by spending AUD$8 million (approx GBP3.1million) on exploration. Mercator recently announced that it has spent the firstAUD$1 million and has elected to proceed towards the first step of earning 45%with a minimum expenditure requirement of AUD$2 million before 3rd March 2006. SpaDiSTM is a software programme developed by Vearncombe & Associates Pty Ltdthat uses fractal technologies, including autocorrelation, to generatehigh-grade targets from historic exploration data. Mercator Gold has acontractual arrangement for the on-going use of SpaDiSTM. Mercator management has an exploration target of 2,000,000 ounces of goldcontained within four resources, each of at least 500,000 ounces within theAnnean Joint Venture area. The Company has reported initial high-grade drillingresults from the first two target areas, Bluebird and Surprise. Projects • Yaloginda - This line of workings has been the principal source ofproduction for St Barbara Mines. Its 15 km x 2 km area has yielded 18 depositsin a variety of styles of mineralization, but the open pits do not go below 70mdepth. Mercator will assess the geology, structure, alteration and gold distribution tosee if a super pit style of operation is realistic, and it will examinepotential for extensions of orebodies in depth. The target resource is >500,000oz. • Nannine - Oxide deposits were mined by St Barbara with recordsindicated that total gold production has exceeded 100,000 oz. Themineralization is hosted in basalt, iron formations and granite. Again, >500,000 oz deposits are being sought. • Kurara East - Gold mineralization is hosted in sulphidic quartz veins,mainly in altered granite, basalt and dolerite. A 3.5 km long zone of anomalousgold geochemistry has been identified at Bluebush and Mingah, with aircoredrilling returning some good intercepts. • Meekatharra North - Is part of a line of workings with an endowment(production + resources) of over 2.0 million ounces of gold. Mercator istargeting the under-explored northern extension of this alteration zone. This information is provided by RNS The company news service from the London Stock Exchange