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: 8 AUGUST 2006

HIGHLIGHTS

    • Assay results from the Surprise drilling programme are now available and include:
      5m @ 77.7 g/t
      1m @ 358.9 g/t
      7m @ 11.4 g/t
      5m @ 14.0 g/t

    • At Prohibition results from two holes drilled down the host rock but across the faults controlling high-grade gold within geologically defined boundaries has intersections of:
      100m @ 3.45 g/t
      including 38m @ 6.0 g/t
      4m @ 7.9 g/t
      7m @ 3.1 g/t
      5m @ 4.9 g/t

      and

      142m @ 2.27 g/t
      including 12m @ 5.7 g/t
      8m @ 6.1 g/t
      9m @ 3.3 g/t
      11m @ 4.8 g/t
      7m @ 4.2 g/t

      These results confirm extensive gold mineralisation down the dip of the ferruginous chert and the potential for significant resource upgrades.

    • Other drilling at Prohibition and the adjacent Vivian, Consols and Mudlode include:
      29m @ 4.0 g/t
      26m @ 3.6 g/t
      18m @ 4.0 g/t
      10m @ 5.8 g/t
      8m @ 3.5 g/t
      8m @ 3.4 g/t
      7m @ 6.7 g/t
      6m @ 3.4 g/t
      2m @ 44.4 g/t

      At Prohibition-Vivian-Consols (PVC) the results to date are sufficiently encouraging that the company is planning a resource drill-out.

Mercator Gold plc (AIM:MCR) is pleased to announce additional results from RC and diamond core drilling at Surprise (1.5km from the Yaloginda gold processing facility) and at PVC (17km from the gold processing facility).

Surprise

Significant drilling results (>1.0 g/t Au) received include but are not limited to:

  • 5m @ 77.7 g/t from 139m
  • 1m @ 358.9 g/t from 114m and in the same hole 7 m @ 11.4 g/t from 120m and 7m @ 3.2 g/t from 142m
  • 5m @ 14.0 g/t from 183m
  • 5m @ 4.1 g/t from 173m
  • 4m @ 5.0 g/t from 112m

At Surprise, on-going drilling is targeting an increase in the grade by defining high-grade zones for resource evaluation and development. Drill holes are aimed at demonstrating continuity and defining the limits of the high-grade zone just 30 to 60m below the existing pit floor (80 to 110m from surface). On completion of the drill programme all results will be forwarded to an independent consultancy for a revised resource evaluation.

 

Prohibition-Vivian Consols (PVC)

Prohibition, Vivian and Consols were separate underground and open cut operations with past operators at Meekatharra. Mercator recognises these to be part of a significant linked mineralised system. The Vivian lode is less than 200m from Prohibition and some drill holes into the deeper parts of Prohibition also intersect the Vivian lode. In the southeast corner the so-called Mudlode occurs adjacent to the Consols open cut. Significant drill intersects (>1.0 g/t Au) received include but are not limited to:

 

Prohibition lodes

  • 100m @ 3.45 g/t (including 4m @ 7.9 g/t from 118m, 38m @ 6.0 g/t from 164m, and 5m @ 4.9 g/t from 220m)
  • 142m @ 2.27 g/t (including 8m @ 6.12 g/t from 121m, 9m @ 3.38 g/t from 131m, 7m @ 4.20 g/t from 148m, 11m @ 4.82 g/t from 175m and 12m @ 5.72 g/t from 193m)
  • 8m @ 3.4 g/t from 364m
  • 6m @ 3.4 g/t from 352m

 

Vivian and Consols lodes including Mudlode

  • 29m @ 4.0 g/t from 222m and in the same hole 18m @ 3.9 g/t from 253m and 7m @ 6.7 g/t from 273m (Mudlode)
  • 26m @ 3.6 g/t from 189m and in the same hole 8m @ 3.5 g/t from 178m (Mudlode)
  • 10m @ 5.8 g/t from 64m
  • 3m @ 6.4 g/t from 65m
  • 2m @ 44.4 g/t from 279m

 

Readymix Lode

  • 2m @ 12.2 g/t from 145m

 

Prohibition holes 06PRRD016 and 06PRRD017 including the results 100m @ 3.45 g/t and 142m @ 2.27 g/t were drilled from west to east, collared in the Prohibition haul road respectively ~125m and ~60m north of our previously announced hole 06PRRD001 that included intersects 150m @ 2.44 g/t (including 69m @ 3.5 g/t and 7m @ 6.5 g/t) and 28m @ 6.9 g/t. The holes 06PRRD016 and 06PRRD017 drilled the gold-hosting and fault-bounded ferruginous chert down-dip at a high-angle to the faults that control the high-gold grades.

These holes demonstrate extensive down-dip gold mineralisation in the ferruginous chert and confirm the potential for significant upgrades in the resource currently 2.3 Mt @ 3.6 g/t. The other Prohibition holes were drilled from east to west crossing the ferruginous chert at a highangle sub-parallel to the gold controlling faults.

At Vivian and Consols two intersects through the so-called Mudlode include 29m @ 4 g/t and 26m @ 3.6 g/t. These results support the previous drilling results from the previous owner that intersected 54m @ 4.2 g/t, 33m @ 5.7 g/t and 30m @ 3.4 g/t. The two diamond core drill holes were drilled in opposite directions and demonstrate that this is a broad zone of mineralisation more than 20m in width. Intersects into the Vivians lode include two holes drilling towards Prohibition but passing through Vivians en route. These confirm existing knowledge about the narrow but high-grade Vivians lode, extend the known mineralisation and its’ resource of 0.9Mt @ 7.4 g/t.

One drill hole intersected a possible southern extension of the Readymix mineralisation.

At PVC the results to date are sufficiently encouraging that the company is planning for a resource drill-out, expected to be conducted in the period between September and December 2006.

 

Bluebird

The Bluebird resource evaluation conducted by independent consultants “Cube Consulting” has commenced.

 

Compilation and details of results

A detailed table of all significant drilling results at Prohibition and Surprise is available on the Company’s website.

 

Managing Directors comments

The Managing Director, Mr Patrick Harford, said: “We are certainly doing very well at Prohibition-Vivian-Consols (PVC). We now have three holes that confirm significant down-dip continuity of mineralisation within the Prohibition host rock. They also confirm a strike length of more than 150 metres. Drilling across the Prohibition host rock also indicates significant thickness (> 35 metres) and grade. Prohibition is open down-dip and along strike to the south.

We are very pleased with progress to date and particularly with the fact that the Prohibition drilling is intersecting the nearby Vivian Consols’ mineralised zone.

At Surprise we are hoping to improve the overall grade by targeting a coherent high-grade zone and our results there indicate that we are on track to do so.”

 

Consent for release

Julian Vearncombe BSc (Hons), PhD, FGS, RPGeo, FAIG is a director of the Company and consents to the inclusion of the exploration 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