Mercator Gold plc is pleased to draw attention to the announcement made today by Silver Swan Group Limited (ASX: SWN) (“Silver Swan”) regarding the resumption of drilling at Silver Swan’s Austin prospect in Western Australia. Austin is a volcanogenic massive sulphide (VMS) copper-zinc-silver-gold deposit located within the package of exploration tenements sold to Silver Swan by Mercator in 2008.
- Diamond drilling to extend Cu-Zn-Ag-Au mineralisation from ~300m to 600m
- Established area of mineralisation open at depths significantly below current JORC resource
- Resumption of drilling follows completion of down-hole EM (electromagnetic) survey
- All EM conductors drilled to date have revealed copper mineralisation - current drilling program to test deep copper sulphide zones
Silver Swan’s full 28 July 2010 announcement can be viewed at:
The closing price of Silver Swan ordinary shares on the ASX today was A$0.42 per share.
Mercator holds four million performance shares in Silver Swan, which convert to ordinary shares subject to certain conditions. The most significant condition is the identification by Silver Swan of a minimum 350,000oz gold equivalent in the JORC Indicated Mineral Resource category (or higher) on the tenements sold to it by Mercator.
On 6 April 2010 Silver Swan announced the completion of a maiden JORC resource statement for the Austin deposit. A total gold equivalent figure of 134,805oz was calculated by Mercator based on metal prices at that date.
On 21 June 2010 Silver Swan announced results from previous diamond drilling at Austin, including intersections of:
|58m at 2% Cu from 148m including:||5m at 10% Cu|
|2m at 17% Cu|
|38m at 14% Zn from 105m including:||2m at 46% Zn|
|6m at 33% Zn|
|2m at 25% Zn|
|2m at 24% Zn|
|24m at 5% Zn from 427m including:||3m at 10% Zn|
|3m at 8% Zn|
|2m at 7% Zn|
Mercator is a diversified mineral and renewable energy development company creating value for its shareholders through a process of finding value, adding value and realising value. Mercator has an experienced management team with expertise in the structuring and execution of value accretive transactions.
For further information please contact:
|Mercator Gold plc|
|Michael Silver, Chairman||Tel:||+44 (0) 20 7929 1010|
|Patrick Harford, Managing Director||+1 646 239 9087|
|Daniel Stewart & Company plc|
|Oliver Rigby||Tel:||+44 (0) 20 7776 6550|
|Old Park Lane Capital plc|
|Forbes Cutler||Tel:||+44 (0) 20 7518 2603|
|Director of Corporate Broking|
|Bankside Consultants Ltd||Tel:||+44 (0) 20 7367 8888|
|Barry Kaplan Associates|
|Larry Kaplan||Tel:||+1 732 747 0702|
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