Silver Swan Update

Mercator Gold plc is pleased to draw attention to the announcement made by Silver Swan Group Limited (ASX: SWN) (“Silver Swan”) on 6 April 2010 regarding the completion of a maiden resource statement for Silver Swan’s Austin copper-zinc-gold-silver discovery in Western Australia. The Austin discovery is a volcanogenic massive sulphide (VMS) deposit located within the package of exploration tenements sold to Silver Swan by Mercator in 2008.

Mercator holds 4 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 350,000 oz gold equivalent in the JORC Indicated Mineral Resource category (or higher) on the tenements sold to it by Mercator.

 

Austin Discovery – Maiden Resource Statement

Category Tonnes Cu (%) Zn (%) Au (g/t) Ag (g/t)
Measured 463,428 1.22 1.41 0.30 4.38
Indicated 703,286 0.97 1.47 0.22 3.28
Inferred 317,708 0.85 1.17 0.18 2.74
Measured & Indicated 1,166,714 1.07 1.45 0.25 3.72
Total Resources 1,484,421 1.02 1.39 0.24 3.51

 

Gold Equivalent (oz) for Measured & Indicated Mineral Resource Categories

Cu: 87,442oz Zn: 35,772oz Ag: 2,213

Total gold equivalent: 134,805oz

(Based on copper at US$7,950/t, zinc at US$2,400/t, gold at US$1,135/oz, silver at US$18/oz)

 

Silver Swan’s full announcement can be viewed at:

http://www.silverswangroup.com.au/pdf/Announcements/2010/APR10/100406-Austin_Maiden_Resource_Statement.pdf

 

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

“Silver Swan’s maiden resource statement for the Austin discovery is a major step towards the 4 million Silver Swan performance shares held by Mercator being converted to freely tradeable ordinary shares.

We are pleased to note that Silver Swan remains well funded, having raised in excess of A$17 million in equity financing to date, and we look forward to the results of further exploration at the Austin discovery and at Silver Swan’s other areas of focus.”

 

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
Email:This email address is being protected from spambots. You need JavaScript enabled to view it.
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
Simon Rothschild
Oliver Winters
Barry Kaplan Associates
Larry Kaplan Tel: +1 732 747 0702

 

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