ECR Minerals Regulatory News (ECR)

14 Oct 2005 09:44

Mercator Gold PLC14 October 2005 14th October 2005 -Drilling results and future targets- ("Mercator" or "the company") LONDON - Mercator Gold plc (AIM: MCR/MCRW) announces new drilling results andfurther planned drill programmes for the coming year. These results complementthe recently announced resource statement of 690,100 ounces at Meekatharra. Highlights - New Drilling Results: • At Great Northern Highway our drilling intersected high-grade mineralisation with the following results:o 2m @ 18.5 g/t,o 2m @ 13 g/to 4m @ 5.5 g/t, confirming this area as a high-grade exploration target. • The company has confirmed continuity of mineralisation from Bluebird to South Junction. Drill results include 2m @ 14 g/t, 3m @ 1.4 g/t and 2m @ 1.4 g/t, each confirming lode positions.• Regional exploration results includeo 5m @ 13 g/t and 1m @ 10 g/t at Hawk Hill,o 2m @ 6.7 g/t and 2m @ 5.8 g/t at Lukes Junction,o 2m @ 4.6 g/t at Stakewell. The Company's objectives are to achieve the following: • Add a further 500,000 to 1 million resource ounces to the existing inventory of 690,100 ounces during 2006.• Commence gold production at Meekatharra during 2007. Statement by the Managing Director - Patrick Harford: "The recent resourcedefinition at Bluebird is only part of a growing story. The continuity ofmineralisation through to South Junction is allowing us to connect up all thedots with the very real possibility of a big pit. I am very excited by the factthat three out of four drill holes at Great Northern Highway have intersectedhigh grade mineralisation in what we believe to be related positions and whichis in an area very close to Bluebird." Flagship Projects Identified Following a review of historic data and the company's drilling results; Mercatorhas determined three flagship projects for the coming year and a number of otherprojects on which it will continue exploration. The flagship projects are the "Bluebird Big Pit project", "GNH High-Grade project" and the "Meekatharra NorthOxide Ore project". Bluebird Big Pit project: the company recently announced 5.2 Mt @ 1.9 g/t for326,000 ounces gold, including 1.7 Mt @ 4.5 g/t for 214,000 ounces. Theseresources are within five lodes below and immediately adjacent to the Bluebirdpit. Drilling data from Bluebird North and South Junction Pits (250m south ofBluebird) show multiple parallel lodes not already included in the resource andsignificant exploration potential between each of the pits as well as theeastern and western pit walls. Exploration will focus on developing theseresources to be incorporated in an enlarged pit, encompassing Bluebird North,Bluebird and South Junction. Recent exploratory drilling at South Junctionincludes results of 2m @ 14 g/t, 3m @ 1.4 g/t and 2m @ 1.4 g/t, each confirminglode positions deduced from historic data and continuity in mineralisation.Bluebird is less than 1.5km trucking distance from the Bluebird mill. GNH High-Grade project: historically some of the highest gold grades have comefrom the Great Northern Highway pit. Data review and validation, SpaDiSTManalyses, geology mapping and reconnaissance drilling have been completed. Threeholes were drilled into widely separated targets testing down-plunge extensionsto mineralisation demonstrated in historic data. Results include 2m @ 18.5 g/tand 2m @ 13 g/t (referred to in the Annual Report), and new result 4m @ 5.5 g/t.These Great Northern Highway targets will be drilled in the coming months. Thefocus of exploration is on high-grade lode systems that may be mined undergroundwith access from within the open pit. GNH is less than 1.5 km trucking distanceto the Bluebird mill. Meekatharra North Oxide Ore project: the company has identified two zones ofgold mineralisation, Maid Marion and Nottingham. Results previously releasedinclude 15m @ 1.6 g/t, 6m @ 2.2 g/t, 9m @ 1.4 g/t and 2m @ 11g/t. Mineralisationis from surface in deeply weathered material and the company's drillingdemonstrates vertical and lateral continuity. Mineralisation at MeekatharraNorth is less than 30km trucking distance to the Bluebird mill. The company willcommence drilling to identify large open-pit resources with grades between 2g/tand 3 g/t. Additional resource drilling: In addition to the flagship projects, the companywill conduct additional resource drilling at Surprise. At Surprise the companyrecently completed a resource evaluation with 141,000 ounces. The company hasdrilled two holes with a best result of 2m @ 5.5 g/t from 198m down-hole and hasdefined the extent of mineralisation at Surprise. The company will upgrade theSurprise resource to indicated category, and at the same time better define thehigh-grade zones in preparation for a mining feasibility study. Regional exploration: throughout the tenement package the company will continueto identify targets that may yield resources in 2007. Hawk Hill lies immediatelysouth of both Meekatharra township and the abandoned Magazine pit. Recentdrilling has results of 5m @ 13 g/t and 1m @ 10 g/t. The best gold intersections(including 6m @ 11.7 g/t and 15m @ 1.6 g/t in historic data) are at relativelyshallow depths (