ECR Minerals Regulatory News (ECR)

27 Oct 2006 15:30

Mercator Gold PLC27 October 2006 MERCATOR GOLD PLC ("Mercator Gold" or the "Company") London - Friday 27 October 2006 Drilling Confirms Tonnage and Grade Potential at Prohibition and Surprise HIGHLIGHTS • Resource drill-outs at Prohibition and Surprise return intersections thatinclude: Prohibition Surprise • 98m at 4.1 g/t • 25m at 8.5 g/t • 43m at 3.1 g/t • 7m at 11.2 g/t • 18m at 4.0 g/t • 10m at 6.0 g/t • 16m at 6.7 g/t • 8m at 6.6 g/t • Exploration drilling at Nannine returned 14m at 3.9 g/t. • Further encouraging results from Maid Marion, Whangamata and Globe West. Managing Director Mr Patrick Harford said: "The drilling results from Prohibition are very exciting. Drilling across thestructures is confirming width whilst drilling down the mineralised envelope isconfirming strong and consistent grades. The high grade zone at Surprise is nowwell identified. The resource assessment is now underway" Mercator Gold is successfully drilling five projects, two of which are detailedresource drill-outs, and three near-surface gold targets. The resourcedrill-outs are confirming excellent gold grades and intersections. Surprise The Company has completed the drilling programme of mostly reverse circulation(RC) at Surprise and has commissioned a resource evaluation. Drilling atSurprise aimed to define high-grade zones of the deposit and results confirmrecumbent zones of high-grade gold including one zone >80m in length at a depthabout 90m below surface. Mineralisation at Surprise comprises free gold with ahigh nugget effect and subsidiary pyrite. Significant drilling results (>1.0 g/tAu) received include but are not limited to: Hole ID Depth from Surface Internal Dilution Interval 06SURC006 87m 1m 11m at 2.8 g/t 06SURC007 117m 0 5m at 3.7 g/t 06SURC012 122m 4m 7m at 11.2 g/t 06SURC015 42m 4m 9m at 2.4 g/t 06SURC016 27m 6m 18mat 1.2 g/t 06SURC018 57m 8m 16m at 1.5 g/t 06SURC019 136m 3m 7m at 3.1 g/t 06SURC020 135m 0 1m at 98.6 g/t 06SURC021 37m 11m 18mat 1.2 g/t 06SURC022 39m 10m 19m at 1.2 g/t 06SURC023 34m 1m 5m at 6.0 g/t 06SURC025 154m 0 6m at 6.2 g/t 06SURC032 124m 0 8m at 5.5 g/t 06SURC039 88m 13m 25m at 8.5 g/t including 4m at 49.0 g/t 06SURC042 81m 5m 8m at 2.7 g/t 06SURC045 96m 0 1m at 22.9 g/t 06SURC046 80m 4m 10m at 6.0 g/t and 116m 5m 8m at 6.6 g/t PVC At Prohibition, Vivian and Consols (PVC), following earlier successfulexploration by Mercator Gold, the Company has commenced a diamond core (RD)drill-out at Prohibition and an economic assessment linking mine development ofProhibition with Vivian, Consols and the adjacent Mudlode, all within 500m ofeach other. At Prohibition 06PRRD019 was drilled from W to E across the goldmineralised faults, down the host rock type. The other holes listed here weredrilled from E to W across the E-dipping host rock, a ferruginous chert.Significant drill intersections (>1.0 g/t Au) received include but are notlimited to: Hole ID Depth from Surface Internal Dilution Interval 06PRRD002 268m 2m 5.5m at 4.2 g/t 290m 5m 10m at 2.0 g/t 06PRRD004A 264m 11m 43m at 3.1 g/t 06PRRD008 258m 3m 16m at 6.7 g/t including 7m at 13.5 g/t 06PRRD019 213m 38m 98m at 4.1 g/t including 15m at 4.8 g/t and 10m at 8.9 g/t and 5m at 21.5 g/t 06PRRD023 164m 11m 18m at 4 g/t Exploration for shallow mineralisation The Company has commenced a programme of exploration for shallow oxide and othernear-surface ores. The Company is currently reviewing near-surface potential atNannine and the oxide ore potential at Maid Marion, Whangamata (north ofBluebird), Surprise north of the open pit and Globe West (south of Prohibition). Nannine is one of four mining centres within the Company's tenement holding atMeekatharra. The Nannine mining centre has produced more than 200,000 ounces ofgold from surface alluvial, oxide open cut mines and lode underground mines.Exploration drilling has commenced at Nannine, with a programme of rotaryair-blast (RAB) drilling on widely spaced lines in the central zone between theCaledonian pit and Nannine shaft and the Aladdin pit. Whilst this area has beenthe subject of some attention in the past, the Company's review of datasuggested that most legacy drilling was less than 10m deep. The Nannine RABdrilling has identified two anomalous positions and these will be followed upwith infill lines of drilling. Significant drill intersections (>1.0 g/t Au)received include but are not limited to: Hole ID Depth from Surface Internal Dilution Interval 06NNRB026 38m 2m 14m at 3.9 g/t including 6m at 16.8 g/t 06NNRB058 44m 0 2m at 1.6 g/t 06NNRB084 27m 0 2m at 1.3 g/t 06NNRB085 43m 0 1m at 13.7g/t 06NNRB089 20m 0 2m at 1.2 g/t 06NNRB105 39m 0 2m at 1.5 g/t Maid Marion at Meekatharra North has been examined with a small RC programme.The drilling confirms a NNE-trending zone of deeply weathered mineralisation270m in length. Significant drill intersections (>1.0 g/t Au) received includebut are not limited to: Hole ID Depth from Surface Internal Dilution Interval 06MMRC004 64m 1m 5m at 2.4 g/t 06MMRC005 90m 7m 14m at 1.6 g/t 06MMRC010 171m 0 1m at 9.2 g/t 06MMRC025 96m 2m 6m at 2.0 g/t 06MMRC037 123m 0 3m at 1.8 g/t A preliminary RAB and aircore (AC) programme at Whangamata has identified aNNW-trending zone of quartz veining at shallow mineralisation. Thismineralisation will be further defined by AC drilling and if a coherent zone theCompany will then evaluate with RC drilling. Significant drill intersections (>1.0 g/t Au) received include but are not limited to: Hole ID Depth from Surface Internal Dilution Interval 06WHRB002 19m 6m 38m at 1.2 g/t 06WHRB007 36m 0 6m at 2.3 g/t 06WHRB008 60m 0 2m at 1.2 g/t 06WHRB028 71m 0 2m at 9.1 g/t 06WHAC040 45m 1m 4m at 2.1 g/t Compilation and details of results A detailed table of significant drilling results is available on the Company'swebsite. Also on the website are a Schematic Cross-Section and Schematic Long-Section ofProhibition. Consent for release Julian Vearncombe BSc (Hons), PhD, FGS, RPGeo, FAIG is a director of the Companyand consents to the inclusion of the exploration information in the form andcontext in which it appears here. Julian Vearncombe is a Competent Person forthe reporting of these results as defined by the JORC Code 2004 Edition. For further information please contact: Mercator Gold plcTerry Strapp, Chairman Tel: +61 (0) 8 9322 7422 Mob: +61 (0) 412 228 422Patrick Harford, Managing Director Tel: +44 (0) 20 7929 1010 Mob: +44 (0) 7786 486 645 Email: info@mercatorgold.comWebsite: www.mercatorgold.com Parkgreen CommunicationsJustine Howarth / Ana Ribeiro Tel: +44 (0) 20 7493 3713 This information is provided by RNS The company news service from the London Stock Exchange