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 APRIL 2007

HIGHLIGHTS

  • The Company is pleased to announce interim updated resource statements for various projects at Meekatharra. The Company’s total resource now stands at 2,323,900oz and is set to increase further on the completion of resource estimates for the Mudlode and Fatts projects.
  • The indicated resources of the Company now stand at 1,600,700oz. This includes a significant resource of 2.5 million tonnes @ 4g/t for 320,000oz at Prohibition and 405,000 tonnes at 9.3 g/t at Vivian-Consols for 120,000oz. These resources which are in close proximity are the subject of mining studies and the Company expects to announce reserves for the Prohibition-Vivian-Consols project in the near future.

 

Managing Director, Patrick Harford, said: “The Company has added substantially both in quantity and above all in quality to its resource inventory over the last year. With mining studies at Prohibition and Vivian-Consols nearing completion we are very excited about moving rapidly to sustainable and profitable production.”

 

RESOURCES

Mercator Gold is undertaking resource evaluations and mining optimisations for several of its projects at Meekatharra. These projects include:

  • Prohibition
  • Vivian-Consols
  • Bluebird
  • Maid Marion
  • Ingliston

The results of the above are announced here. For each resource the Company has placed an accompanying document on its web page to support the information summarised here.

At Prohibition the resource at 2.0 g/t cut off is 2.5 million tonnes @ 4.0 g/t in the Indicated Category and 160,000 tonnes @ 3.9 g/t in the Inferred Category for a total of 341,000 ounces of gold.

Vivian-Consols, as reported here, represents a subset of the Company’s purchased resource that has been re-examined; this resource now comprises 405,600 tonnes @ 9.2 g/t in the Indicated Category and 276,000 tonnes @ 7.4 g/t in the Inferred Category for a total of 186,000 ounces. The other resources that make up Vivian-Consols, namely Mudlode and Fatts, are currently being drilled and re-evaluated with a new resource statement expected shortly.

Prohibition and Vivian-Consols are within 300 metres of each other. Mining scenarios for Prohibition and Vivian-Consols (PVC) are currently under consideration. The results of mining and scheduling studies are anticipated in the next two months.

At Bluebird the Company has re-evaluated the existing resource. The re-evaluation was conducted because of the Company’s concerns with the correspondence of the resource model with the drilling assay data. The revised resource is 5.45 million tonnes @ 2.0 g/t in the Indicated Category and 1.6 million tonnes @ 2.6 g/t in the Inferred Category for a total of 488,000 ounces. The remnant resource at Bluebird South is 2.7 million tonnes @ 1.3 g/t for 119,000 ounces in all Categories. The changes make the deposit more economic; current desk-top studies near completion and the possibility of trial mining or additional close-spaced drilling is being assessed.

At Maid Marion the resource is 706,000 tonnes @ 1.3 g/t in the Indicated Category and 174,000 tonnes @ 1.2 g/t in the Inferred Category giving a total of 37,000 ounces. The Company is currently evaluating mining options at Maid Marion. The Maid Marion resource is open to the north and south, and at depth. Exploration drill programmes are being designed aimed at the identification of immediate extensions to this resource and a possible repetition to the west.

The Ingliston resource is 1.3 million tonnes @ 1.1 g/t in the Indicated Category and 100,000 tonnes @ 1.1 g/t in the Inferred Category for a total of 49,000 ounces.

Mercator Resource inventory

Since the annual report for the year ended 30 June 2006, Mercator Gold has upgraded resources converting Inferred Category resources to Indicated Category. The resource evaluations take the Company closer to mining with advanced mine optimisation and scheduling studies at Prohibition, Vivian-Consols, Maid Marion and Bluebird. These are expected to add to the Company’s Probable Reserves.

Since admission to AIM in October 2004, Mercator Gold has identified and announced gold resources at Meekatharra of more than 800,000 ounces. These are in addition to the resources that it purchased from St Barbara Limited in January 2006.

The resource inventory of the Company is summarised in the table below:

 

Indicated

   

Inferred

   

Total

   
 

Tonnes

Grade

Ounces

Tonnes

Grade

Ounces

Tonnes

Grade

Ounces

Yaloginda

                 

Bluebird

5,450,000

2.0

351,000

1,660,000

2.6

137,000

7,110,000

2.1

488,000

Bluebird South

1,433,000

1.1

52,000

1,346,000

1.6

67,500

2,779,000

1.3

119,500

Surprise*

3,603,000

0.9

109,000

1,303,000

0.6

25,000

4,906,000

0.9

134,000

Sub Total

10,486,000

1.5

512,000

4,309,000

1.7

229,500

14,795,000

1.6

741,500

                   

Paddy’s Flat

                 

Prohibition

2,510,000

4.0

320,000

160,000

3.9

21,000

2,670,000

4.0

341,000

Vivian-Consols

405,600

9.3

120,800

276,100

7.4

65,700

681,700

8.5

186,400

Mickey Doolan

12,375,000

1.0

396,000

7,119,000

0.9

213,000

19,494,000

1.0

609,000

Ingliston

1,329,000

1.1

45,500

100,000

1.1

3,500

1,429,000

1.1

49,000

Golden Bar

379,000

1.4

17,000

50,000

1.1

2,000

429,000

1.4

19,000

Maid Marion

706,000

1.3

30,400

174,000

1.2

6,600

880,000

1.3

37,000

Sub Total

17,704,600

1.6

929,700

7,879,100

1.2

311,800

25,583,700

1.5

1,241,400

                   

Reedy

                 

South Emu

618,000

3.4

68,000

100,000

3.0

10,000

718,000

3.4

78,000

Rand

891,000

1.9

55,000

1,458,000

2.7

125,000

2,349,000

2.4

180,000

Jack Ryan

534,000

2.1

36,000

846,000

1.7

47,000

1,380,000

1.9

83,000

Sub Total

2,043,000

2.4

159,000

2,404,000

2.4

182,000

4,447,000

2.4

341,000

                   

TOTAL

30,233,600

1.6

1,600,700

14,592,100

1.5

723,300

44,825,700

1.6

2,323,900

Grade is in g/t. Ounces are Troy ounces. Small numeric differences may occur due to number rounding.

* The Surprise resource is inclusive of the Company’s Probable Reserves at Surprise of 992,000 tonnes @ 2.36 g/t for 75,000 ounces. This represents a conversion of resource ounces to reserves of 68%.

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.    
   
   
   
Bankside Consultants Ltd Tel: +44 (0) 20 7367 8888
Simon Rothschild    
Keith Irons    
Oliver Winters    

 

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