ECR Minerals Regulatory News (ECR)

8 Aug 2006 13:25

Mercator Gold PLC08 August 2006 August 8 2006 MERCATOR GOLD PLC ("Mercator Gold" or the "Company") Report on Drilling at Surprise and Prohibition-Vivian-Consols (PVC) HIGHLIGHTS • Assay results from the Surprise drilling programme are now available and include: 5m @ 77.7 g/t 1m @ 358.9 g/t 7m @ 11.4 g/t 5m @ 14.0 g/t • At Prohibition results from two holes drilled down the host rock but across the faults controlling high-grade gold within geologically defined boundaries has intersections of: 100m @ 3.45 g/t including 38m @ 6.0 g/t 4m @ 7.9 g/t 7m @ 3.1 g/t 5m @ 4.9 g/t and 142m @ 2.27 g/t including 12m @ 5.7 g/t 8m @ 6.1 g/t 9m @ 3.3 g/t 11m @ 4.8 g/t 7m @ 4.2 g/t These results confirm extensive gold mineralisation down the dip of theferruginous chert and the potential for significant resource upgrades. • Other drilling at Prohibition and the adjacent Vivian, Consols and Mudlode include: 29m @ 4.0 g/t 26m @ 3.6 g/t 18m @ 4.0 g/t 10m @ 5.8 g/t 8m @ 3.5 g/t 8m @ 3.4 g/t 7m @ 6.7 g/t 6m @ 3.4 g/t 2m @ 44.4 g/t At Prohibition-Vivian-Consols (PVC) the results to date are sufficiently encouraging that the company is planning a resource drill-out. Mercator Gold plc (AIM:MCR) is pleased to announce additional results from RCand diamond core drilling at Surprise (1.5km from the Yaloginda gold processingfacility) and at PVC (17km from the gold processing facility). Surprise Significant drilling results (>1.0 g/t Au) received include but are not limitedto: • 5m @ 77.7 g/t from 139m • 1m @ 358.9 g/t from 114m and in the same hole 7 m @ 11.4 g/t from 120m and 7m @ 3.2 g/t from 142m • 5m @ 14.0 g/t from 183m • 5m @ 4.1 g/t from 173m • 4m @ 5.0 g/t from 112m At Surprise, on-going drilling is targeting an increase in the grade by defininghigh-grade zones for resource evaluation and development. Drill holes are aimedat demonstrating continuity and defining the limits of the high-grade zone just30 to 60m below the existing pit floor (80 to 110m from surface). On completionof the drill programme all results will be forwarded to an independentconsultancy for a revised resource evaluation. Prohibition-Vivian Consols (PVC) Prohibition, Vivian and Consols were separate underground and open cutoperations with past operators at Meekatharra. Mercator recognises these to bepart of a significant linked mineralised system. The Vivian lode is less than200m from Prohibition and some drill holes into the deeper parts of Prohibitionalso intersect the Vivian lode. In the southeast corner the so-called Mudlodeoccurs adjacent to the Consols open cut. Significant drill intersects (>1.0 g/tAu) received include but are not limited to: Prohibition lodes • 100m @ 3.45 g/t (including 4m @ 7.9 g/t from 118m, 38m @ 6.0 g/t from 164m, and 5m @ 4.9 g/t from 220m) • 142m @ 2.27 g/t (including 8m @ 6.12 g/t from 121m, 9m @ 3.38 g/t from 131m, 7m @ 4.20 g/t from 148m, 11m @ 4.82 g/t from 175m and 12m @ 5.72 g/t from 193m) • 8m @ 3.4 g/t from 364m • 6m @ 3.4 g/t from 352m Vivian and Consols lodes including Mudlode • 29m @ 4.0 g/t from 222m and in the same hole 18m @ 3.9 g/t from 253m and 7m @ 6.7 g/t from 273m (Mudlode) • 26m @ 3.6 g/t from 189m and in the same hole 8m @ 3.5 g/t from 178m (Mudlode) • 10m @ 5.8 g/t from 64m • 3m @ 6.4 g/t from 65m • 2m @ 44.4 g/t from 279m Readymix Lode • 2m @ 12.2 g/t from 145m Prohibition holes 06PRRD016 and 06PRRD017 including the results 100m @ 3.45 g/tand 142m @ 2.27 g/t were drilled from west to east, collared in the Prohibitionhaul road respectively 125m and 60m north of our previously announced hole06PRRD001 that included intersects 150m @ 2.44 g/t (including 69m @ 3.5 g/t and7m @ 6.5 g/t) and 28m @ 6.9 g/t. The holes 06PRRD016 and 06PRRD017 drilled thegold-hosting and fault-bounded ferruginous chert down-dip at a high-angle to thefaults that control the high-gold grades. These holes demonstrate extensive down-dip gold mineralisation in theferruginous chert and confirm the potential for significant upgrades in theresource currently 2.3 Mt @ 3.6 g/t. The other Prohibition holes were drilledfrom east to west crossing the ferruginous chert at a high-angle sub-parallel tothe gold controlling faults. At Vivian and Consols two intersects through the so-called Mudlode include 29m @4 g/t and 26m @ 3.6 g/t. These results support the previous drilling resultsfrom the previous owner that intersected 54m @ 4.2 g/t, 33m @ 5.7 g/t and 30m @3.4 g/t. The two diamond core drill holes were drilled in opposite directionsand demonstrate that this is a broad zone of mineralisation more than 20m inwidth. Intersects into the Vivians lode include two holes drilling towardsProhibition but passing through Vivians en route. These confirm existingknowledge about the narrow but high-grade Vivians lode, extend the knownmineralisation and its' resource of 0.9Mt @ 7.4 g/t. One drill hole intersected a possible southern extension of the Readymixmineralisation. At PVC the results to date are sufficiently encouraging that the company isplanning for a resource drill-out, expected to be conducted in the periodbetween September and December 2006. Bluebird The Bluebird resource evaluation conducted by independent consultants "CubeConsulting" has commenced. Compilation and details of results A detailed table of all significant drilling results at Prohibition and Surpriseis available on the Company's website www.mercatorgold.com. Managing Directors comments The Managing Director, Mr Patrick Harford, said: "We are certainly doing verywell at Prohibition-Vivian-Consols (PVC). We now have three holes that confirmsignificant down-dip continuity of mineralisation within the Prohibition hostrock. They also confirm a strike length of more than 150 metres. Drillingacross the Prohibition host rock also indicates significant thickness (> 35metres) and grade. Prohibition is open down-dip and along strike to the south. We are very pleased with progress to date and particularly with the fact thatthe Prohibition drilling is intersecting the nearby Vivian Consols' mineralisedzone. At Surprise we are hoping to improve the overall grade by targeting a coherenthigh-grade zone and our results there indicate that we are on track to do so." 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. (Australia) +61 (0) 8 9322 7422Patrick Harford, Managing Director Tel. (UK): +44 (0) 20 7929 1010 Tel. (Australia) +61 (0) 8 9316 9400 Email: info@mercatorgold.comLink to website: 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