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: 2 MAY 2008

  • Gold produced 10,852 ounces, up 37.5% on previous quarter.
  • Revenue A$9,506,858, up 48% on previous quarter.
  • Average gold price realised A$975 (approximately US$888) per ounce.
  • Higher grade material from Surprise pit now being processed.
  • Pre-stripping of Bluebird pit and de-watering of Consols pit underway.

Mercator Gold plc, the growing gold producer with operations in the historic Meekatharra Goldfield in Western Australia, is pleased to provide an update on its activities during the quarter ended 31 March 2008.

 

Production

The Company produced 10,852 ounces during the last quarter, an increase of 37.5% on the previous quarter’s gold production which was 7,889 ounces. This figure includes metal in circuit that had been produced but was not sold in the quarter. Gold sold was 9,746 ounces, up 39% on the previous quarter.

Revenue for the quarter was A$9,506,858 (approximately US$8,656,748), reflecting an average price realised of A$975 (approximately US$888) per ounce, up 48% from previous quarter.

A total of 315,619 tonnes of ore was processed, with a better than expected recovery rate of 95% gold recovered versus a target of 93%. The average head grade processed was 1.11g/t, 5% above the target of 1.06g/t.

 

Development

The pre-strip of the Bluebird pit commenced in March. This will allow Bluebird to supply some initial feed to the processing plant during the second quarter.

De-watering of the Consols pit also commenced in March, in preparation for the construction of the proposed Prohibition-Vivian-Consols (PVC) decline.

The Company is in the process of finalising the Project Management Plan (PMP) for the decline at PVC, which is planned to facilitate underground mining and exploration during 2009. Once the PMP is finalised, it will be submitted for approval to the relevant authorities.

Patrick Harford, Managing Director of Mercator Gold plc, comments:

“Gold production from the Surprise pit is increasing in line with expectations as higher grade material is mined from the pit’s deeper levels.

Costs of production during the first quarter were within the targeted range and the Company made good progress with regard to its development activities.”

 

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.    
   
   
   
Ocean Equities Ltd Tel: +44 (0) 20 7786 4370
Will Slack    
Guy Wilkes  
   
   
   
Bankside Consultants Ltd Tel: +44 (0) 20 7367 8888
Simon Rothschild    
Keith Irons    
Oliver Winters    

 

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