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: 18 SEPTEMBER 2006 - Mercator Gold PLC (AIM:MCR) is pleased to announce a significant increase in gold resources at Bluebird.

HIGHLIGHTS

  • Exploration drilling at Bluebird within the Yaloginda mine area has established indicated and inferred gold resources of 10.1Mt @ 1.7g/t for 546,000 ounces.
  • 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 independent resource consultants, lift the total indicated and inferred gold resources of the company to 42Mt @ 1.6g/t for 2,160,000 ounces.

 

Bluebird Resource

The Bluebird (including Bluebird North) deposit occurs as quartz-veins within a highmagnesium basalt host rock in a carbonate-altered shear zone. Mercator commissioned Cube Consulting Pty Ltd (Cube) to provide independent resource evaluations for Bluebird. At Bluebird the mineralisation is steeply dipping with plus 2g/t Au high-grade zones, with surrounding and proximal low-grade mineralisation 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’s Mercator 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 Inferred Category 15.8Mt @ 1.5g/t for 759,000 ounces. The Company’s combined Indicated and 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 optimal mining parameters and economics for the Bluebird, Surprise and Paddy’s Flat resources. These include studies on the metallurgical recovery, mining methods and scheduling of multiple sources of ore. Generally, the Company is assessing the potential for open cut mining above the 300 mRL (about 170m from surface) and underground mining potential on the deeper higher grade material from all its projects. The Company has commissioned a resource evaluation for Surprise which is expected in October, and exploration drilling at the PVC project at Paddy’s Flat continues. Details of successful drilling at Surprise and PVC were given 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 our strategy of sustainable profitability. We look forward to the completion of our studies there and the integration of these resources into our overall production scheduling.”

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.

The independent evaluation was completed by Cube Consulting Pty Ltd under the supervision of Patrick (Rick) Adams BSc, MAusIMM, MAIG, a director of Cube and Mark Zammit BSc(Hons), GradDipBus, MAusIMM, a principal consultant geologist for Cube. Rick Adams and Mark Zammit both have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that is undertaken to qualify as the Competent Person as defined in 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

 

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