MERCATOR GOLD plc
(“Mercator Gold”, “Mercator” or “the Company”)
US OTC: MTGDY
LONDON: 9 MAY 2005 - Mercator Gold plc, (AIM:MCR) as operator of the Annean Joint Venture, with St Barbara Mines Ltd (SBM) announces the commencement of a large drilling programme at its gold exploration projects near Meekatharra, Western Australia.
The programme will focus on resource extension drilling at the Yaloginda mine tenements, including Bluebird, Jess and Surprise, and exploration drilling at Tuckanarra and Meekatharra North.
- Drilling has commenced on a 20,000 metre programme involving both diamond and reverse circulation rigs;
- SpaDiS™ analysis of results from the 2004 programme has highlighted high grade zones for further exploration drilling at both Surprise and Bluebird;
- High-grade intercepts at Bluebird and Surprise previously excluded from resource calculations have been verified, and as a result the Company has commissioned its first preliminary resource estimates at both Bluebird and Surprise;
- Further drilling at Tuckanarra and Maid Marion (Meekatharra North) will target significant gold anomalies.
Yaloginda Mine Tenements
The Company will focus its drilling activity on its Yaloginda mine, proving up additional gold resources beneath and adjacent to the Bluebird and Surprise abandoned pits, as well as drill testing the Jess target and commence drilling at Great Northern Highway and South Junction. These drill targets are within 4km of the Bluebird mill and gold processing facility of joint venture partner St Barbara Mines Ltd. In addition to RC drilling, diamond core drilling will commence in the first week of May.
At Surprise the Company will drill new targets at depth and along strike to identify additional highgrade ore shoots to expand the size of the Surprise system. The Surprise targets are based on the results of ongoing SpaDiS™ analyses that show high-grade zones in structures oblique to the strike trend of the host porphyry, controlled by packages of flat quartz veins within a 45° south plunging envelope.
Mercator will conduct preliminary resource assessments on mineralisation at Yaloginda. Data validation at Bluebird is complete and some twinned confirmation drill holes will be required at Bluebird to verify legacy RC drilling. The Company is scheduling initial confirmation drilling for midMay and early-June, synchronous with drilling deep targets beneath the known mineralisation at Bluebird. The deep Bluebird targets arise from ongoing SpaDiS™ analyses that for the first time recognise distinct and repeated flat high-grade ore shoots within the steep easterly plunging ore envelope.
Tuckanarra and Meekatharra North
In April, the Company commenced a three-hole RC drilling programme at Tuckanarra to test geophysical anomalies in the search for high-grade gold-bearing pyrrhotite ores. Three-dimensional pole-dipole surveys conducted by the Company in October 2004 revealed distinct chargeable but resistive anomalies indicative of sulphide presence.
On completion of the Tuckanarra programme Mercator will drill two RC holes at Mingah. Mingah, on the Kurara East tenement group on the south side of the Norie Pluton, is a broad zone of anomalous gold located by air-core drilling but not further examined. The holes are targeting depth in the range 150 to 200m designed to go through the overlying clays of Lake Annean in to the bedrock to determine the geology and mineralisation potential.
At Meekatharra North, the Company drilled 93 air-core holes as a regional targeting tool in 2004. Thirteen holes returned gold grades over 0.5 g/t. One diamond core hole drilled at Maid Marion confirmed continuity of mineralisation at depth from previous RC drilling with six significant intercepts in banded iron formation and mafic schist (announced previously). This hole also intersected gold-related semi-massive sulphide mineralisation identified from three-dimensional pole-dipole survey carried out in October 2004. The Company will continue its exploration at Meekatharra North with a programme of RC drilling expected for June or July.
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|
|Phillip Securities UK Limited|
|Nick Bealer||Tel:||+44 (0) 20 7553 8281|
|Ocean Equities Ltd|
|Will Slack||Tel:||+ 44 (0) 20 7786 4375|
|Justine Howarth / Ana Ribeiro||Tel:||+44 (0) 20 7493 3713|
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