ECR Minerals Regulatory News (ECR)

16 May 2006 07:00

Mercator Gold PLC16 May 2006 MERCATOR GOLD PLC ("Mercator Gold" or the "Company") Interim Report on Drilling at Bluebird and Confirmation of Drilling Results at Paddy's Flat • Promising initial results from the Bluebird programme are now available and include 8 m @ 11.1 g/t Au, 4 m @ 10.1 g/t Au, 17 m @ 3.1 g/t Au, and 10 m @ 3.0 g/t Au • Confirmation of the previously announced drilling results at Prohibition Zone, Paddy's Flat, including intersects 7m @ 6.5g/t, 69m @ 3.6g/t, 46m @ 1.9g/t and 28m @ 6.9 g/t all in hole 06PRRD001 representing a modest increase of the previously reported grade. Bluebird The resource at Bluebird is currently defined as 5,280,000 tonnes @ 1.9 g/t Aufor 326,000 ounces. The bulk of these ounces are contained within five highgrade domains, 1,698,000 tonnes @ 4.5 g/t Au for 244,000 ounces, surrounded by alower grade alteration halo. Additional structures being targeted include Edin Hope (to the south west ofBluebird), Polar Star (to the south east of Bluebird) and Bluebird North. Mercator Gold plc is pleased to announce that RC and diamond drilling has beenunderway since 23 February with the aim of increasing the Bluebird resource andthat the programme is on target to achieve its objective. First drillingreturns at Bluebird include the following highlights: • 1 m @ 15.7 g/t Au, 8 m @ 11.1 g/t Au, 5 m @ 1.6 g/t Au, 2 m @ 3.9 g/t Au, 4 m @ 2 g/t Au, 3 m @ 4.3 g/t Au, 4 m @ 10.1 g/t Au, 17 m @ 3.1 g/t Au, and 3 m @ 6.90 g/t Au on the Bluebird lodes. • 10 m @ 3 g/t Au from the only Bluebird North drill hole result, received thus far. • 0.6 m @ 21 g/t Au, and 4m @ 2 g/t Au on the Polar Star zone. • 7 m @ 1.6 g/t Au, 2 m @ 2.4 g/t Au, and 7 m @ 1.1 g/t Au on the Edin Hope zone. Of particular significance was the 8 m @ 11.1 g/t Au intersection. This holewas targeting mineralisation immediately north of the Bluebird pit, in the gapbetween the Bluebird and Bluebird North pit, and supports the extension of thehigh grade Bluebird domain north of the currently defined resource. Only one result has been received from the Bluebird North resource drilling,with RC drilling results still outstanding, and diamond drilling still inprogress. The Bluebird lodes have generally been the highest grade structures, withinclose proximity (1.5 kilometres) of the treatment plant. To take advantage ofthis strategic location, future mining is expected to be centred on the Bluebirddeposit. Sterilisation drilling over the mill, and office area, returned no significantresult, and indicate that mill, and powerhouse refurbishment can be carried out,as planned. A more detailed table of drilling results for Bluebird is available on theCompany's website. Paddy's Flat Prohibition Zone As announced on 20 April 2006, hole 06PRRD001 is collared in the haul road, 70metres below surface. The revised results show a modest increase in gradereflecting the use of the more reliable fire assay technique. In addition, theseresults are complete, whilst the earlier results had a small number ofun-reported intervals. In hole 06PRRD001 geologically defined intersects occur as listed below: From -> to metres Description Grade * thickness g.m/ Vertical Depth metres t 27 to 33 7m @ 6.54g/t 45.8 93 93 to 94 1m @ 2.1g/t 2.1 143 171 to 240 (1) 69m @ 3.58g/t 247.0 232 252 to 254 2m @ 2.41g/t 4.8 271 266 to 312 (2) 46m @ 1.96g/t 90.2 299 317 to 321 (3) 4m @ 4.25g/t 17.0 323 323 to 324 1m @ 1.16g/t 1.2 327 402 to 430 (4) 28m @ 6.96g/t 195.0 401 464 to 465 1m @ 1.07g/t 1.1 439 Notes on table The drill assay table in this press release is based on geological intervalsthat are illustrated in a diagram which will be available on the Company'swebsite. The "from -> to" value is the distance down the hole. Thevertical depth is the distance from surface at which the intersect is firstrecognised (note that the hole was drilled within the pit). The assay method forall samples is Genalysis 50g fire assay (FA50/AAS). Note (1) the interval 69m @3.58g/t includes 21m of internal dilution at an average grade of 0.54 g/t, (2)the interval 46m @ 1.96g/t includes 18m of internal dilution at an average gradeof 0.55 g/t, (3) the interval 4m @ 4.25g/t includes a high grade zone of 2m @7.48 g/t from 319m, and (4) the interval 28m @ 6.96g/t includes a high gradezone of 13m @ 10.26 g/t from 403m. Hole 06PRRD001 was drilled parallel to the host rock type but across at ahigh-angle to fault structures. The results confirm the Company's analysis basedon SpaDiS(TM) technology, that mineralisation shows significant down dipcontinuity, dipping east towards the Vivian Consols resource. This geologicalinterpretation contrasts with previous modeling of the Prohibition resource (2.3Mt @ 3.6 g/t for 270,000 ounces) that assumed narrow (mostly less than 10m wide)west dipping fault zones. The results presented here raise the possibility ofconsiderably more mineralisation available for potential mining withoutsignificant drops in grade. The Vivian Consols resource (0.9 Mt @ 7.4 g/t for230,000 ounces) is about 300m to the east with components dipping west towardsProhibition. The Company is in the final stages of designing a drill programmedue to commence in month's time. This programme of about 10,000m of RC and5,000m of diamond core drilling targets the expansion of the existingProhibition resource and will test the relationship of the Prohibition andVivian Consols mineralisation with a view to future mining economies.Specifically the drilling will: • test the along strike reproducibility of the above Prohibition result; • determine the width of the host ferruginous chert and mineralisation at depth; • provide detailed data on fault and host rock geology to enable the develop a three-dimensional model of mineralisation; • provide data for revised evaluations on the resources at Prohibition and Vivian Consols, and assess the depths to which these deposits may be mined in an enlarged open cut operation. The Managing Director, Mr Patrick Harford, said: "The Company is very pleasedwith the results received to date. The Bluebird drilling is on target toconfirm and upgrade the resource there, whilst the Prohibition Zone at Paddy'sFlat promises to be a much bigger mineralised system than previously thought.Significant drilling programmes at Surprise, Meekatharra North and Paddy's Flatare due to commence soon and work continues on target definition at a number ofother prospects." Consent for release Julian Vearncombe BSc (Hons), PhD, FGS, RPGeo, FAIG is a director of the Companyand consents to the inclusion of the information in the form and context inwhich it appears here. Julian Vearncombe is a Competent Person for the reportingof these results as defined by the JORC Code 2004 Edition. For further information please contact: Mercator Gold plcPatrick Harford Managing Director Tel: +44 (0) 20 7929 1010 Email: info@mercatorgold.comLink to website: www.mercatorgold.com Parkgreen CommunicationsJustine Howarth / Ana Ribeiro Tel: +44 (0) 20 7493 3713 Note to editors SpaDiS(TM) 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 SpaDiS(TM). This information is provided by RNS The company news service from the London Stock Exchange