ECR Minerals Regulatory News (ECR)

20 Apr 2006 12:50

Mercator Gold PLC20 April 2006 For Immediate Release 20 April 2006 Mercator Gold plc ("Mercator Gold" or the "Company") Preliminary drilling results Mercator Gold is pleased to announce preliminary results from drilling atProhibition in the Paddy's Flat area at Meekatharra. Drill hole 06PRRD001 intersected 69 metres @ 3.41gm/ton from 233 metres, 46metres @ 1.77gm/ton from 300 metres, and 28 metres @ 6.57gm/ton from 401 metres. The hole was collared in the haul road, 70m below surface, at the open cut atProhibition. The hole was drilled parallel to the host rock type, a ferruginouschert but across at a high-angle to fault structures. The host ferruginous chertis 30 to 50m wide near the surface, with an average width of approximately 35m,and is offset by cross-faults. The hole was designed to test results from SpaDiS(TM) analysis that suggested that the gold showed far greater down-dipcontinuity than previously suggested: In hole 06PRRD001 significant geologically defined intersects occur as listedbelow: Interval from-to m Thickness and gold grade Depth from surface27 to 34 7m @ 6.54 g/t 94m171 to 240 69m @ 3.41 g/t 233m252 to 254 2m @ 2.14 g/t 271m266 to 312 46m @ 1.77 g/t 300m319 to 321 2m @ 7.13 g/t 326m402 to 430 28m @ 6.57 g/t 401m The Company emphasises that these results are preliminary. Assays from the drillcollar to downhole-depth 120m are by fire assay and below that aqua regiamethods. A more detailed release will be made shortly to confirm the assayresults and detail geological and economic significance. At this stage theresults expand the Prohibition mineralisation, currently a resource of 2.3Mt @3.6 g/t for 270,000 ounces. This result shows that mineralisation previouslymodelled in the resource as limited to narrow cross faults, mostly less than 10mwide, extend between faults down the host ferruginous chert inquartz-pyrite-arsenopyrite veins, confirming the SpaDiS(TM) analysis. The Managing Director, Mr Patrick Harford said: "A year ago our independentconsultant, Prof Rob Kerrich, suggested that we had the potential at Meekatharrato substantially upgrade resources between and particularly below known orebodies. This new drill result based on SpaDiS(TM) analysis opens a new chapterin the Company's development. Our goal of sustainable and profitable productionis within sight. The Prohibition ore body has the potential to both growsignificantly and to provide feed stock at a consistent +3gm/ton Au to ournearby mill at Yaloginda." This information is provided by RNS The company news service from the London Stock Exchange