ECR Minerals Regulatory News (ECR)

18 Sep 2006 12:50

Mercator Gold PLC18 September 2006 MERCATOR GOLD PLC ("Mercator Gold" or the "Company") Indicated and Inferred Gold Resources at Bluebird Increase to 546,000 ounces London 18 September 2006 - Mercator Gold PLC (AIM:MCR) is pleased to announce asignificant increase in gold resources at Bluebird. • Exploration drilling at Bluebird within the Yaloginda mine area hasestablished indicated and inferred gold resources of 10.1Mt @ 1.7g/t for 546,000ounces. • The Indicated Category has increased by 302,000 ounces from 2.0Mt @ 1.6g/t for 106,000 ounces to the new value of 7.9Mt @ 1.6g/t for 408,000 ounces. • The additional gold resources, calculated by Mercator Gold's independentresource consultants, lift the total indicated and inferred gold resources ofthe company to 42Mt @ 1.6g/t for 2,160,000 ounces. Bluebird Resource The Bluebird (including Bluebird North) deposit occurs as quartz-veins within ahigh-magnesium basalt host rock in a carbonate-altered shear zone. Mercatorcommissioned Cube Consulting Pty Ltd (Cube) to provide independent resourceevaluations for Bluebird. At Bluebird the mineralisation is steeply dippingwith plus 2g/t Au high-grade zones, with surrounding and proximal low-grademineralisation based on a 0.4g/t cut-off. The resource figures are summarised in the table below: Total Bluebird Global Resource all gold within +0.4g/t Au wireframe Category Tonnes Gold g/t Metal (oz) Indicated 7,939,000 1.6 408,000 Inferred 2,253,000 1.9 138,000 TOTAL 10,192,000 1.7 546,000 The global Indicated resource has increased by 302,000 ounces from last year'sMercator announcement of 2.0Mt @ 1.6g/t for 106,000 ounces. These revised resources lift the Company's holding to over 2 million ounces,comprising Indicated Category 26.2Mt @ 1.7g/t for 1,401,000 ounces and InferredCategory 15.8Mt @ 1.5g/t for 759,000 ounces. The Company's combined Indicatedand Inferred Resources are 42Mt @ 1.6g/t for 2,160,000 ounces. Evaluation and feasibility Mercator Gold is currently involved in detailed studies to determine the optimalmining parameters and economics for the Bluebird, Surprise and Paddy's Flatresources. These include studies on the metallurgical recovery, mining methodsand scheduling of multiple sources of ore. Generally, the Company is assessingthe potential for open cut mining above the 300 mRL (about 170m from surface)and underground mining potential on the deeper higher grade material from allits projects. The Company has commissioned a resource evaluation for Surprisewhich is expected in October, and exploration drilling at the PVC project atPaddy's Flat continues. Details of successful drilling at Surprise and PVC weregiven in the last technical press release issued on 8 August 2006. Managing Director, Patrick Harford, said: "Bluebird and Surprise are important components in the development of ourstrategy of sustainable profitability. We look forward to the completion of ourstudies there and the integration of these resources into our overall productionscheduling." 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. The independent evaluation was completed by Cube Consulting Pty Ltd under thesupervision of Patrick (Rick) Adams BSc, MAusIMM, MAIG, a director of Cube andMark Zammit BSc(Hons), GradDipBus, MAusIMM, a principal consultant geologist forCube. Rick Adams and Mark Zammit both have sufficient experience that isrelevant to the style of mineralisation and type of deposit under considerationand to the activity that is undertaken to qualify as the Competent Person asdefined in the JORC Code 2004 Edition. The revised resource statement for the Company and full details of the resourceestimates have been posted on the Company's website at www.mercatorgold.com For further information please contact: Mercator Gold plc Patrick Harford, Managing Director Tel: +44 (0) 20 7929 1010 Email: info@mercatorgold.com Link to website: www.mercatorgold.com Parkgreen Communications Justine Howarth / Ana Ribeiro Tel: +44 (0) 20 7493 3713 This information is provided by RNS The company news service from the London Stock Exchange