ECR is a mineral exploration and development company, incorporated in the UK.

ECR’s wholly owned Australian subsidiary Mercator Gold Australia (MGA) has agreed to acquire 100% ownership of the Avoca and Bailieston gold projects in Victoria, Australia. Mercator Gold Australia is estimated to have tax losses of approximately AUD 66M as at 30 June 2015, which may be available, subject to certain conditions (as described in ECR’s announcement dated 4 December 2014), to reduce MGA’s future taxable profits.

ECR has the right to earn a 50% interest in the Danglay epithermal gold project in the Philippines. Danglay is an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines. An NI43-101 technical report was completed in respect of the Danglay project in December 2015, and is available for download from ECR’s website.

ECR’s wholly owned subsidiary Ochre Mining has a 100% interest in the SLM gold project in La Rioja Province, Argentina. Exploration at SLM has focused on identifying small tonnage mesothermal gold deposits which may be suitable for relatively near term production.

 

ECR shares are listed on the AIM market of the London Stock Exchange with the symbol ECR.

MERCATOR GOLD plc
(“Mercator Gold”, “Mercator” or “the Company”)

AIM: MCR

US OTC: MTGDY

 

LONDON: 20 APRIL 2006 - Mercator Gold is pleased to announce preliminary results from drilling at Prohibition in the Paddy’s Flat area at Meekatharra.

Drill hole 06PRRD001 intersected 69 metres @ 3.41gm/ton from 233 metres, 46 metres @ 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 at Prohibition. The hole was drilled parallel to the host rock type, a ferruginous chert but across at a high-angle to fault structures. The host ferruginous chert is 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™ analysis that suggested that the gold showed far greater down-dip continuity than previously suggested:

Interval from-to m

Thickness and gold grade

Depth from surface

27 to 34

7m @ 6.54 g/t

94m

171 to 240

69m @ 3.41 g/t

233m

252 to 254

2m @ 2.14 g/t

271m

266 to 312

46m @ 1.77 g/t

300m

319 to 321

2m @ 7.13 g/t

326m

402 to 430

28m @ 6.57 g/t

401m

 

The Company emphasises that these results are preliminary. Assays from the drill collar to downhole-depth 120m are by fire assay and below that aqua regia methods. A more detailed release will be made shortly to confirm the assay results and detail geological and economic significance. At this stage the results expand the Prohibition mineralisation, currently a resource of 2.3Mt @ 3.6 g/t for 270,000 ounces. This result shows that mineralisation previously modelled in the resource as limited to narrow cross faults, mostly less than 10m wide, extend between faults down the host ferruginous chert in quartz-pyrite-arsenopyrite veins, confirming the SpaDiS™ analysis.

The Managing Director, Mr Patrick Harford said: “A year ago our independent consultant, Prof Rob Kerrich, suggested that we had the potential at Meekatharra to substantially upgrade resources between and particularly below known ore bodies. This new drill result based on SpaDiS™ analysis opens a new chapter in the Company’s development. Our goal of sustainable and profitable production is within sight. The Prohibition ore body has the potential to both grow significantly and to provide feed stock at a consistent +3gm/ton Au to our nearby mill at Yaloginda.”

 

For further information please contact:

Mercator Gold plc    
Patrick Harford, Managing Director Tel: +44 (0) 20 7929 1010
Email:This email address is being protected from spambots. You need JavaScript enabled to view it.    
   
   
   
Cenkos Securities Ltd.    
Joe Nally Tel: +44 (0) 20 7397 8900

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