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: 16 MAY 2006

  • Promising initial results from the Bluebird programme are now available and include 8 m @ 11.1 g/t Au, 4 m @ 10.1 g/t Au, 17 m @ 3.1 g/t Au, and 10 m @ 3.0 g/t Au
  • Confirmation of the previously announced drilling results at Prohibition Zone, Paddy’s Flat, including intersects 7m @ 6.5g/t, 69m @ 3.6g/t, 46m @ 1.9g/t and 28m @ 6.9 g/t all in hole 06PRRD001 representing a modest increase of the previously reported grade.

 

Bluebird

The resource at Bluebird is currently defined as 5,280,000 tonnes @ 1.9 g/t Au for 326,000 ounces. The bulk of these ounces are contained within five high grade domains, 1,698,000 tonnes @ 4.5 g/t Au for 244,000 ounces, surrounded by a lower grade alteration halo.

Additional structures being targeted include Edin Hope (to the south west of Bluebird), Polar Star (to the south east of Bluebird) and Bluebird North.

Mercator Gold plc is pleased to announce that RC and diamond drilling has been underway since 23 February with the aim of increasing the Bluebird resource and that the programme is on target to achieve its objective. First drilling returns at Bluebird include the following highlights:

  • 1 m @ 15.7 g/t Au, 8 m @ 11.1 g/t Au, 5 m @ 1.6 g/t Au, 2 m @ 3.9 g/t Au, 4 m @ 2 g/t Au, 3 m @ 4.3 g/t Au, 4 m @ 10.1 g/t Au, 17 m @ 3.1 g/t Au, and 3 m @ 6.90 g/t Au on the Bluebird lodes.
  • 10 m @ 3 g/t Au from the only Bluebird North drill hole result, received thus far.
  • 0.6 m @ 21 g/t Au, and 4m @ 2 g/t Au on the Polar Star zone.
  • 7 m @ 1.6 g/t Au, 2 m @ 2.4 g/t Au, and 7 m @ 1.1 g/t Au on the Edin Hope zone.

 

Of particular significance was the 8 m @ 11.1 g/t Au intersection. This hole was targeting mineralisation immediately north of the Bluebird pit, in the gap between the Bluebird and Bluebird North pit, and supports the extension of the high grade Bluebird domain north of the currently defined resource.

Only one result has been received from the Bluebird North resource drilling, with RC drilling results still outstanding, and diamond drilling still in progress.

The Bluebird lodes have generally been the highest grade structures, within close proximity (~1.5 kilometres) of the treatment plant. To take advantage of this strategic location, future mining is expected to be centred on the Bluebird deposit.

Sterilisation drilling over the mill, and office area, returned no significant result, and indicate that mill, and powerhouse refurbishment can be carried out, as planned.

A more detailed table of drilling results for Bluebird is available on the Company’s website.

 

Paddy’s Flat Prohibition Zone

As announced on 20 April 2006, hole 06PRRD001 is collared in the haul road, 70 metres below surface. The revised results show a modest increase in grade reflecting the use of the more reliable fire assay technique. In addition, these results are complete, whilst the earlier results had a small number of un-reported intervals.

In hole 06PRRD001 geologically defined intersects occur as listed below:

From →to metres

Description

Grade * thickness g.m/t

Vertical Depth metres

27 to 33

7m @ 6.54g/t

45.8

93

93 to 94

1m @ 2.1g/t

2.1

143

171 to 240 (1)

69m @ 3.58g/t

247.0

232

252 to 254

2m @ 2.41g/t

4.8

271

266 to 312 (2)

46m @ 1.96g/t

90.2

299

317 to 321 (3)

4m @ 4.25g/t

17.0

323

323 to 324

1m @ 1.16g/t

1.2

327

402 to 430 (4)

28m @ 6.96g/t

195.0

401

464 to 465

1m @ 1.07g/t

1.1

439

Notes on table The drill assay table in this press release is based on geological intervals that are illustrated in a diagram which will be available on the Company’s website. The “from→ to” value is the distance down the hole. The vertical depth is the distance from surface at which the intersect is first recognised (note that the hole was drilled within the pit). The assay method for all samples is Genalysis 50g fire assay (FA50/AAS). Note (1) the interval 69m @ 3.58g/t includes 21m of internal dilution at an average grade of 0.54 g/t, (2) the interval 46m @ 1.96g/t includes 18m of internal dilution at an average grade of 0.55 g/t, (3) the interval 4m @ 4.25g/t includes a high grade zone of 2m @ 7.48 g/t from 319m, and (4) the interval 28m @ 6.96g/t includes a high grade zone of 13m @ 10.26 g/t from 403m.

 

Hole 06PRRD001 was drilled parallel to the host rock type but across at a high-angle to fault structures. The results confirm the Company’s analysis based on SpaDiS™ technology, that mineralisation shows significant down dip continuity, dipping east towards the Vivian Consols resource. This geological interpretation contrasts with previous modeling of the Prohibition resource (2.3 Mt @ 3.6 g/t for 270,000 ounces) that assumed narrow (mostly less than 10m wide) west dipping fault zones. The results presented here raise the possibility of considerably more mineralisation available for potential mining without significant drops in grade. The Vivian Consols resource (0.9 Mt @ 7.4 g/t for 230,000 ounces) is about 300m to the east with components dipping west towards Prohibition. The Company is in the final stages of designing a drill programme due to commence in month’s time. This programme of about 10,000m of RC and 5,000m of diamond core drilling targets the expansion of the existing Prohibition resource and will test the relationship of the Prohibition and Vivian Consols mineralisation with a view to future mining economies. Specifically the drilling will:

  • test the along strike reproducibility of the above Prohibition result;
  • determine the width of the host ferruginous chert and mineralisation at depth;
  • provide detailed data on fault and host rock geology to enable the develop a three-dimensional model of mineralisation;
  • provide data for revised evaluations on the resources at Prohibition and Vivian Consols, and assess the depths to which these deposits may be mined in an enlarged open cut operation.

 

The Managing Director, Mr Patrick Harford, said: “The Company is very pleased with the results received to date. The Bluebird drilling is on target to confirm and upgrade the resource there, whilst the Prohibition Zone at Paddy’s Flat promises to be a much bigger mineralised system than previously thought. Significant drilling programmes at Surprise, Meekatharra North and Paddy’s Flat are due to commence soon and work continues on target definition at a number of other prospects.”

Consent for release

Julian Vearncombe BSc (Hons), PhD, FGS, RPGeo, FAIG is a director of the Company and consents to the inclusion of the information in the form and context in which it appears here. Julian Vearncombe is a Competent Person for the reporting of these results as defined by the JORC Code 2004 Edition.

 

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.    
   
   
   
Parkgreen Communications    
Justine Howarth / Ana Ribeiro Tel: +44 (0) 20 7493 3713

Click Here for the full text PDF version of this Press Release