Initial Drilling Results

MERCATOR GOLD plc
(“Mercator Gold”, “Mercator” or “the Company”)

AIM: MCR

US OTC: MTGDY

 

LONDON: 9 DECEMBER 2004 - Mercator Gold plc (AIM: MCR) as operator of the Annean Joint Venture announces that initial drilling has intersected high-grade gold mineralisation at Bluebird, one of three resource-extension targets being drilled in the Yaloginda region near Meekatharra, Western Australia.

HIGHLIGHTS

  • Hole 04BBRCDD002 drilled from the surface adjacent to the Bluebird open pit intersected 9m @ 4.85 g/t Au from 287m down-hole and re-entry and extension of Hole RCB201 intersected 10m @ 7.74g/t Au from 322m down-hole;
  • The results demonstrate high-grade gold mineralisation to 200m below the base of the Bluebird open pit, which is within 500m of the St Barbara Mines (SBM) mill.
  • The drilling validates and starts to in-fill more than 130 diamond and reverse circulation drill holes by previous operators at Bluebird the data from which have been compiled by Mercator as part of its SpaDiSTM analysis of the project area. These holes returned numerous high-grade intercepts, including 10m @ 10.62g/t Au, 6m @ 15.61g/t Au, 12m @ 8.63g/t Au, 6m @ 18.22g/t Au, 5m @ 15.63g/t Au, 21m @ 4.08g/t Au, 1m @ 78g/t Au, and 10m @ 9.09 g/t.

 

Bluebird Drilling

Bluebird is the first of three resource-extension targets in the Yaloginda area, immediately south of Meekatharra, Western Australia, to be drilled by Mercator. The Company considers that each has the potential to contain in excess of 500,000 ounces of high-grade gold. The targets are located along strike and below zones where more than 1,000,000 ounces of gold were mined previously from surface oxide deposits.

The Bluebird mineralisation is located approximately 500m west of the St Barbara Mines mill, which at full capacity can process in excess of 1,500,000 tonnes of ore per annum.

Bluebird was selected by Mercator as an early target for steep east dipping high-grade ore shoots following a detailed SpaDiSTM analysis of the project area. Mercator has drilled three new holes into large gaps in the known mineralisation envelope and re-entered two earlier holes that Mercator’s analysis suggested had stopped short of the ore zones.

 

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For further information please contact:

Mercator Gold plc    
Patrick Harford, Managing Director Tel: +44 (0) 20 7929 1010
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Beaumont Cornish Limited    
Roland Cornish Tel: + 44 (0) 20 7628 3396
     
     
     
Phillip Securities UK Limited    
Nick Bealer Tel: +44 (0) 20 7553 8281
     
     
     
Parkgreen Communications    
Justine Howarth / Ana Ribeiro Tel: +44 (0) 20 7493 3713