Preliminary drilling results

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

AIM: MCR

US OTC: MTGDY

 

LONDON: 20 APRIL 2006 - Mercator Gold is pleased to announce preliminary results from drilling at Prohibition in the Paddy’s Flat area at Meekatharra.

Drill hole 06PRRD001 intersected 69 metres @ 3.41gm/ton from 233 metres, 46 metres @ 1.77gm/ton from 300 metres, and 28 metres @ 6.57gm/ton from 401 metres.

The hole was collared in the haul road, 70m below surface, at the open cut at Prohibition. The hole was drilled parallel to the host rock type, a ferruginous chert but across at a high-angle to fault structures. The host ferruginous chert is 30 to 50m wide near the surface, with an average width of approximately 35m, and is offset by cross-faults. The hole was designed to test results from SpaDiS™ analysis that suggested that the gold showed far greater down-dip continuity than previously suggested:

Interval from-to m

Thickness and gold grade

Depth from surface

27 to 34

7m @ 6.54 g/t

94m

171 to 240

69m @ 3.41 g/t

233m

252 to 254

2m @ 2.14 g/t

271m

266 to 312

46m @ 1.77 g/t

300m

319 to 321

2m @ 7.13 g/t

326m

402 to 430

28m @ 6.57 g/t

401m

 

The Company emphasises that these results are preliminary. Assays from the drill collar to downhole-depth 120m are by fire assay and below that aqua regia methods. A more detailed release will be made shortly to confirm the assay results and detail geological and economic significance. At this stage the results expand the Prohibition mineralisation, currently a resource of 2.3Mt @ 3.6 g/t for 270,000 ounces. This result shows that mineralisation previously modelled in the resource as limited to narrow cross faults, mostly less than 10m wide, extend between faults down the host ferruginous chert in quartz-pyrite-arsenopyrite veins, confirming the SpaDiS™ analysis.

The Managing Director, Mr Patrick Harford said: “A year ago our independent consultant, Prof Rob Kerrich, suggested that we had the potential at Meekatharra to substantially upgrade resources between and particularly below known ore bodies. This new drill result based on SpaDiS™ analysis opens a new chapter in the Company’s development. Our goal of sustainable and profitable production is within sight. The Prohibition ore body has the potential to both grow significantly and to provide feed stock at a consistent +3gm/ton Au to our nearby mill at Yaloginda.”

 

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.    
   
   
   
Cenkos Securities Ltd.    
Joe Nally Tel: +44 (0) 20 7397 8900

Click Here for the full text PDF version of this Press Release