MERCATOR GOLD plc
(“Mercator Gold”, “Mercator” or “the Company”)
US OTC: MTGDY
LONDON: 22 JUNE 2005 - Mercator Gold plc (AIM: MCR) as operator of the Annean Joint Venture with St Barbara Mines Limited (SBM) announces interim results from its drilling programme near Meekatharra, Western Australia, including the Surprise target at Yaloginda.
Surprise, Surprise Extended and Jess
At the previously-mined Surprise open pit and Surprise Extended area south of the pit, the Company has completed its reverse circulation and diamond drilling programme over a strike length of 700 metres. Thirty one holes totalling 4721 metres were drilled for the dual purpose of extending the known mineralisation and of verifying historical data.
While many assays are pending, results to date demonstrate a 700 metre strike length of mineralised porphyry for Surprise and Surprise Extended to a depth of up to 170 metres, and show high-grade gold continuing to be intersected, with an individual result of 8m @ 11.8 g/t Au including 0.4m @ 224 g/t Au in drill hole 05SURD019.
The porphyry is up to 40m in width and remains open at depth. Most of the porphyry is mineralised to varying levels, with higher gold grades coincident with flat quartz veins with pyrite. Assay results of moderate grades include 8m @ 5.5 g/t Au (including 4m @ 10.5 g/t Au) in drill hole 05SURC002. Other intersections include 8m @ 1.2 g/t Au in drill hole 05SURC010, 7m @ 1.7 g/t Au in drill hole 05SURC012, 9m @1.6 g/t Au, 9m @1.8 g/t Au and 5m @ 2.6 g/t Au in drill hole 05SURC021. Further assay results from Surprise are pending.
Drilling of an apparent en échelon zone of mineralisation at Jess immediately southwest of Surprise Extended has intersected further near-surface low-grade mineralisation, dipping gently southeast. Intersections include 6m @ 2.6 g/t Au in drillhole 05JSRC004 and 14m @ 1.6g/t Au in drillhole 05JSRC008. Further assay results from Jess are pending.
The Company is now assessing the potential for a single open pit resource stretching from Surprise to Jess, being over a kilometre in length, in excess of 200 metres in depth and up to 40 metres in width. [Drill results are detailed in Table 1.] Verification drill results are detailed in Table 1 and the results compared critically in Table 2.
The Company has commissioned Cube Consulting to provide independent resource assessments for Surprise and Surprise Extended and for Bluebird and expect delivery of these assessments in August 2005 and September 2005 respectively.
The Western Australia Department of Industry and Resources has granted the Company an exploration licence E51/1043 over 104.4 sq km of the Abbotts greenstone belt in an area known as Chunderloo. The licence will form part of the Annean Joint Venture area. The Abbotts belt is a typical greenstone belt with rock types and structure prospective for gold. The belt is mostly regolith-covered accounting for the historic production of just over 4000 ounces of gold, mostly from tenement M512/390 held by the Company and north of the newly granted tenement. The Company is commencing a data acquisition programme and target prioritisation prior to drilling at Chunderloo.
At Mingah, in the Kurara East tenement group, two reverse circulation drill holes to depths of 158m and 192m tested the shallow level gold anomalies recorded in previous RAB / air-core drilling. No significant intersections were recorded. Rock types intersected were unaltered to weakly-altered granite. No further drilling is planned at Mingah, and future work in the Kurara East area will focus on the greenstone belt rocks.
Initial drilling of the Tuckanarra project area returned no significant results and these tenements will be returned to St Barbara Mines Limited at their request/as per the Joint Venture agreement.
For further information please contact:
|Mercator Gold plc|
|Patrick Harford, Managing Director||Tel:||+44 (0) 20 7929 1010|
|Beaumont Cornish Limited|
|Roland Cornish||Tel:||+ 44 (0) 20 7628 3396|
|Justine Howarth / Ana Ribeiro||Tel:||+44 (0) 20 7493 3713|
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