MERCATOR GOLD plc
(“Mercator Gold”, “Mercator” or “the Company”)
US OTC: MTGDY
LONDON: 12 AUGUST 2005 - Mercator Gold plc (AIM: MCR/MCRW) as operator of the Annean Joint Venture, with St Barbara Mines Limited (SBM) announces interim results from its drilling program near Meekatharra, Western Australia, including the Yaloginda mine targets Bluebird, Surprise and Jess, the latest results being reported here.
- Bluebird: The company has completed an exploration drill programme and results include 24m @ 4.1 g/t, 7m @ 5.5 g/t, 8m @ 4.8 g/t, 5m @ 5.7 g/t, 4.5m @ 4.0 g/t, 7m @ 2.7 g/t and 10m @ 2.3 g/t. Bluebird comprises two parallel lodes within subvertical shear zones, with proven mineralisation at depths 500m below surface. The company is demonstrating vertical continuity in mineralisation for the first time.
- Surprise: At Surprise the company has completed its reverse circulation and diamond drilling programme with all assay data now received. Holes were drilled for the exploration purpose of extending the resource and for the purpose of verifying legacy data. New results include 4m @ 5.7 g/t, 7m @ 2.3 g/t, 4m @ 3.9 g/t and 4m @ 2.4 g/t.
- Jess: At Jess between Great Northern Highway pit and Surprise the company is continuing its drilling programme. New results include 8m @ 4.0 g/t.
The company remains on track to achieve its stated target of locating 2 million ounces of gold. Resource evaluations on Surprise and Bluebird are in progress and are expected to be an important first year contribution towards the target.
The company has completed a programme comprising 9 reverse circulation (RC), 9 RC pre-collars with diamond core tails and 5 diamond core re-entry holes for a total of 7184m at Bluebird. This report updates and adds to previously announced results. New significant intersects include hole 05BBRC011 with 25m @ 4.1 g/t from 96m (including 2m @ 13.3 g/t), hole 05BBRC004 with 10m @ 2.3 g/t from 171m, hole 05BBRC009 with 5m @ 5.7 g/t from 131m, hole 05BBRC010 with 3m @ 3.4 g/t from 92m, and re-entry hole RCB260 with 7m @ 5.5 g/t from 373m and 4.5m @ 4.0 g/t from 495m. Results, already announced, from Bluebird include hole 04BBRD002 with 9m @ 4.8 g/t from 229m and re-entry hole RCB201 with 10m @ 7.7 g/t from 166m.
In addition to drilling at Bluebird, the company has completed a detailed geological review of the existing data. This has included detailed mapping of the abandoned pit and detailed geology compiled on cross-sections for the first time. Results of this work show that there are at least four sub-parallel shear zones with anomalous gold. Two of these, the Western and Eastern Zones include high-grade gold intercepts, and merge into a broad but intermediate grade zone in the northern half of the pit. Gold within the shear zones is associated with quartz veins that are both zone parallel and in subhorizontal packages. The subhorizontal quartz-gold veins confirm the results of earlier data analysis using SpaDiS™ technology showing high-grade shoots to be subhorizontal. The geological studies combined with new reliable down-hole surveys enable an improved view of the Bluebird gold deposit, precise location of the gold lodes and are the prelude to a resource evaluation to be conducted in August. Importantly, the company has now re-entered five previously abandoned drill holes and extended them to cross both the Eastern and Western Zones. The company is now successfully predicting intersects to within a few metres, and mineralised zones are now being linked successfully between drill holes demonstrating vertical continuity.
The company has completed a drilling programme at Surprise comprising 25 RC holes, and 11 RC pre-collars with diamond core tails for a total of 5490m. Assay results of the final six holes drilled at Surprise for the resource evaluation are now available. Hole 05SURC026 was drilled from south to north mostly in the host porphyry with 7m @ 2.3 g/t from 129m and 4m @ 3.9 g/t from 138m downhole, in low-grade gold with a down-hole result of 171m @ 0.7 g/t. Other new results include hole 05SURC027 with 4m @ 5.7 g/t from 20m and 4m @ 2.4 g/t from 31m. This and other holes drilled and previously announced demonstrate a broad zone of low grade mineralization around the high-grade high-nugget zones already recognized. Results, already announced, from within highgrade zones at Surprise include holes 04SURD012 with 15m @ 45 g/t from 127m, 04SURC014 with 6m @ 36 g/t from 155m, 04SURD013 with 5m @ 6.3 g/t from 132m, 04SUDD010 with 2m @ 22.7 g/t from 73m, 05SURC002 with 8m @ 5.5 g/t from 132m, and 05SURC009 with 17m @ 2.7 g/t from 23m.
At Jess the company has drilled 17 RC holes for a total of 2365m. Located between the Surprise and Great Northern Highway abandoned pits and less than 300m from the Bluebird mill, at Jess the company is continuing to intersect oxidised mineralisation at shallow depths. New results include hole 05JSRC017 with 8m @ 4 g/t from 48m downhole. In a geometry unusual for Yaloginda, the mineralised zone at Jess dips gently southeast, towards the high-grade lodes at Great Northern Highway. The company will continue to explore for high-grade shoots and determine the relationship of Jess to the Great Northern Highway lodes. A diamond core hole is planned. Results, already announced, from Jess include hole 04JSRC010 with 4m @ 2.6 g/t from 81m, 3m @ 2 g/t from 99m, 8m @ 1.9 g/t from 106m, 8m @ 1.2 g/t from 118m and 8m @ 1 g/t from 133m.
Following a data review and site visit the company has relinquished its Makaretu permit, geology and environmental considerations suggesting that it was unlikely to contain mine-able ore in quantities sufficient to meet the companies target size. The company continues to explore the Lottin Point permit that is prospective for Eskay Creek type gold and base metal mineralisation.
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|
|King & Shaxson Capital Ltd|
|Nick Bealer||Tel:||+44 (0) 20 7553 8281|
|Justine Howarth / Ana Ribeiro||Tel:||+44 (0) 20 7493 3713|
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