Drilling Report

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

AIM: MCR

US OTC: MTGDY

 

LONDON: 27 OCTOBER 2006

HIGHLIGHTS

  • Resource drill-outs at Prohibition and Surprise return intersections that include:
    Prohibition
    • 98m at 4.1 g/t
    • 43m at 3.1 g/t
    • 18m at 4.0 g/t
    • 16m at 6.7 g/t

     

    Surprise
    • 25m at 8.5 g/t
    • 7m at 11.2 g/t
    • 10m at 6.0 g/t
    • 8m at 6.6 g/t
  • Exploration drilling at Nannine returned 14m at 3.9 g/t.
  • Further encouraging results from Maid Marion, Whangamata and Globe West.

 

Managing Director Mr Patrick Harford said:

“The drilling results from Prohibition are very exciting. Drilling across the structures is confirming width whilst drilling down the mineralised envelope is confirming strong and consistent grades. The high grade zone at Surprise is now well identified. The resource assessment is now underway”

Mercator Gold is successfully drilling five projects, two of which are detailed resource drill-outs, and three near-surface gold targets. The resource drill-outs are confirming excellent gold grades and intersections.

 

Surprise

The Company has completed the drilling programme of mostly reverse circulation (RC) at Surprise and has commissioned a resource evaluation. Drilling at Surprise aimed to define high-grade zones of the deposit and results confirm recumbent zones of high-grade gold including one zone >80m in length at a depth about 90m below surface. Mineralisation at Surprise comprises free gold with a high nugget effect and subsidiary pyrite. Significant drilling results (>1.0 g/t Au) received include but are not limited to:

Hole ID

Depth from Surface

Internal Dilution

Interval

06SURC006

87m

1m

11m at 2.8 g/t

06SURC007

117m

0

5m at 3.7 g/t

06SURC012

122m

4m

7m at 11.2 g/t

06SURC015

42m

4m

9m at 2.4 g/t

06SURC016

27m

6m

18mat 1.2 g/t

06SURC018

57m

8m

16m at 1.5 g/t

06SURC019

136m

3m

7m at 3.1 g/t

06SURC020

135m

0

1m at 98.6 g/t

06SURC021

37m

11m

18mat 1.2 g/t

06SURC022

39m

10m

19m at 1.2 g/t

06SURC023

34m

1m

5m at 6.0 g/t

06SURC025

154m

0

6m at 6.2 g/t

06SURC032

124m

0

8m at 5.5 g/t

06SURC039

88m

13m

25m at 8.5 g/t

including 4m at 49.0 g/t

06SURC042

81m

5m

8m at 2.7 g/t

06SURC045

96m

0

1m at 22.9 g/t

06SURC046

80m

4m

10m at 6.0 g/t

and

 

116m

5m

8m at 6.6 g/t

 

PVC

At Prohibition, Vivian and Consols (PVC), following earlier successful exploration by Mercator Gold, the Company has commenced a diamond core (RD) drill-out at Prohibition and an economic assessment linking mine development of Prohibition with Vivian, Consols and the adjacent Mudlode, all within 500m of each other. At Prohibition 06PRRD019 was drilled from W to E across the gold mineralised faults, down the host rock type. The other holes listed here were drilled from E to W across the E-dipping host rock, a ferruginous chert. Significant drill intersections (>1.0 g/t Au) received include but are not limited to:

Hole ID

Depth from Surface

Internal Dilution

Interval

06PRRD002

268m

2m

5.5m at 4.2 g/t

 

290m

5m

10m at 2.0 g/t

06PRRD004A

264m

11m

43m at 3.1 g/t

06PRRD008

258m

3m

16m at 6.7 g/t

including 7m at 13.5 g/t

06PRRD019

213m

38m

98m at 4.1 g/t

including 15m at 4.8 g/t and

10m at 8.9 g/t and

5m at 21.5 g/t

06PRRD023

164m

11m

18m at 4 g/t

 

Exploration for shallow mineralisation

The Company has commenced a programme of exploration for shallow oxide and other near-surface ores. The Company is currently reviewing near-surface potential at Nannine and the oxide ore potential at Maid Marion, Whangamata (north of Bluebird), Surprise north of the open pit and Globe West (south of Prohibition).

Nannine is one of four mining centres within the Company’s tenement holding at Meekatharra. The Nannine mining centre has produced more than 200,000 ounces of gold from surface alluvial, oxide open cut mines and lode underground mines. Exploration drilling has commenced at Nannine, with a programme of rotary air-blast (RAB) drilling on widely spaced lines in the central zone between the Caledonian pit and Nannine shaft and the Aladdin pit. Whilst this area has been the subject of some attention in the past, the Company’s review of data suggested that most legacy drilling was less than 10m deep. The Nannine RAB drilling has identified two anomalous positions and these will be followed up with infill lines of drilling. Significant drill intersections (>1.0 g/t Au) received include but are not limited to:

Hole ID

Depth from Surface

Internal Dilution

Interval

06NNRB026

38m

2m

14m at 3.9 g/t

including 6m at 16.8 g/t

06NNRB058

44m

0

2m at 1.6 g/t

06NNRB084

27m

0

2m at 1.3 g/t

06NNRB085

43m

0

1m at 13.7g/t

06NNRB089

20m

0

2m at 1.2 g/t

06NNRB105

39m

0

2m at 1.5 g/t

 

Maid Marion at Meekatharra North has been examined with a small RC programme. The drilling confirms a NNE-trending zone of deeply weathered mineralisation 270m in length. Significant drill intersections (>1.0 g/t Au) received include but are not limited to:

Hole ID

Depth from urface

Internal Dilution

Interval

06MMRC004

64m

1m

5m at 2.4 g/t

06MMRC005

90m

7m

14m at 1.6 g/t

06MMRC010

171m

0

1m at 9.2 g/t

06MMRC025

96m

2m

6m at 2.0 g/t

06MMRC037

123m

0

3m at 1.8 g/t

 

A preliminary RAB and aircore (AC) programme at Whangamata has identified a NNW-trending zone of quartz veining at shallow mineralisation. This mineralisation will be further defined by AC drilling and if a coherent zone the Company will then evaluate with RC drilling. Significant drill intersections (>1.0 g/t Au) received include but are not limited to:

Hole ID

Depth from Surface

Internal Dilution

Interval

06WHRB002

19m

6m

38m at 1.2 g/t

06WHRB007

36m

0

6m at 2.3 g/t

06WHRB008

60m

0

2m at 1.2 g/t

06WHRB028

71m

0

2m at 9.1 g/t

06WHAC040

45m

1m

4m at 2.1 g/t

 

Compilation and details of results

A detailed table of significant drilling results is available on the Company’s website.

 

Consent for release

Julian Vearncombe BSc (Hons), PhD, FGS, RPGeo, FAIG is a director of the Company and consents to the inclusion of the exploration information in the form and context in which it appears here. Julian Vearncombe is a Competent Person for the reporting of these results as defined by the JORC Code 2004 Edition.

 

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.    
   
   
   
Parkgreen Communications    
Justine Howarth / Ana Ribeiro Tel: +44 (0) 20 7493 3713

 

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