Mercator Gold plc is pleased to draw attention to the announcement made today by Silver Swan Group Limited (ASX: SWN) (“Silver Swan”) regarding the results of drilling at Silver Swan’s Austin copper-zinc-gold-silver deposit in Western Australia. Austin is a volcanogenic massive sulphide (VMS) deposit located within the package of exploration tenements sold to Silver Swan by Mercator in 2008.
- High grade copper and zinc mineralisation in hole 10ATD001:
58m at 2% Cu from 148m including: 5m at 10% Cu 2m at 17% Cu 38m at 14% Zn from 105m including: 2m at 46% Zn 6m at 33% Zn 2m at 25% Zn 2m at 24% Zn 24m at 5% Zn from 427m including: 3m at 10% Zn 3m at 8% Zn 2m at 7% Zn
- High grade gold and silver mineralisation in hole 10ATD001
58m at 8.6g/t Ag and 0.4g/t Au from 148m including:
5m at 36g/t Ag and 2g/t Au
2m at 62g/t Ag and 3g/t Au
- High grade copper and zinc mineralisation in hole ATD002:
10m at 11% Zn from 296m including:
4m at 22%, 2m at 30% Zn
2m at 3% Cu, 11g/t Ag, 0.6g/t Au
2m at 1.25% Cu, 6g/t Ag, 0.4g/t Au
- Zinc mineralisation intersected at 450m depth; 150m below current JORC resource
Mercator holds four million performance shares in Silver Swan, which convert to ordinary shares subject to certain conditions, the most significant of which is the identification by Silver Swan of a minimum 350,000oz gold equivalent in the JORC Indicated Mineral Resource category (or higher) on the tenements sold to it by Mercator.
On 6 April 2010 Silver Swan announced the completion of a maiden JORC resource statement for the Austin deposit. A total gold equivalent figure of 134,805oz was calculated by Mercator based on metal prices at that date.
Silver Swan’s full 21 June 2010 announcement can be viewed here.
The closing price of Silver Swan ordinary shares on the ASX today was A$0.40 per share.
Patrick Harford, Managing Director of Mercator Gold plc, comments:
“These are highly encouraging drilling results which provide more evidence of the outstanding potential of the Austin deposit.
Zinc mineralisation has been intersected at 450m, below the level of the current JORC resource, and Silver Swan has stated that future drilling will seek to identify further mineralisation at depth.
Silver Swan has noted its cash position at A$8 million, putting it in a strong position to fund continued exploration.”
Mercator is a diversified mineral development company dedicated to creating value for its shareholders through a process of finding value, adding value and realising value. Mercator has an experienced management team with expertise in the structuring and execution of value accretive transactions.
For further information please contact:
|Mercator Gold plc|
|Michael Silver, Chairman||Tel:||+44 (0) 20 7929 1010|
|Patrick Harford, Managing Director||+1 646 239 9087|
|Daniel Stewart & Company plc|
|Oliver Rigby||Tel:||+44 (0) 20 7776 6550|
|Old Park Lane Capital plc|
|Forbes Cutler||Tel:||+44 (0) 20 7518 2603|
|Director of Corporate Broking|
|Bankside Consultants Ltd||Tel:||+44 (0) 20 7367 8888|
|Barry Kaplan Associates|
|Larry Kaplan||Tel:||+1 732 747 0702|
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