Silver Swan Resumes Drilling at Austin Prospect

Mercator Gold plc is pleased to draw attention to the announcement made today by Silver Swan Group Limited (ASX: SWN) (“Silver Swan”) regarding the resumption of drilling at Silver Swan’s Austin prospect in Western Australia. Austin is a volcanogenic massive sulphide (VMS) copper-zinc-silver-gold deposit located within the package of exploration tenements sold to Silver Swan by Mercator in 2008.

Highlights:

  • Diamond drilling to extend Cu-Zn-Ag-Au mineralisation from ~300m to 600m
  • Established area of mineralisation open at depths significantly below current JORC resource
  • Resumption of drilling follows completion of down-hole EM (electromagnetic) survey
  • All EM conductors drilled to date have revealed copper mineralisation - current drilling program to test deep copper sulphide zones

 

Silver Swan’s full 28 July 2010 announcement can be viewed at:
http://www.asx.com.au/asxpdf/20100728/pdf/31rk336f25ylrp.pdf

The closing price of Silver Swan ordinary shares on the ASX today was A$0.42 per share.

Mercator holds four million performance shares in Silver Swan, which convert to ordinary shares subject to certain conditions. The most significant condition 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.

On 21 June 2010 Silver Swan announced results from previous diamond drilling at Austin, including intersections of:

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

 

About Mercator

Mercator is a diversified mineral and renewable energy development company 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
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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