1st Oct 2007 08:45
Mercator Gold PLC01 October 2007 MERCATOR GOLD PLC ("Mercator Gold" or the "Company") FIRST GOLD PRODUCTION AT MEEKATHARRA RAB, DIAMOND AND RC DRILLING PROGRAMMES TO COMMENCE AT THE PROMISING NEW EURO PROJECT HIGHLIGHTS • First gold poured at Meekatharra Gold Operations • RAB drilling to commence next week on additional newly defined gravity and high definition air magnetic survey targets at the Euro Project • Diamond Drill secured to confirm the strike and dip of the gold-bearing lodes at the Euro Project LONDON: 1 October 2007 - Mercator Gold plc (AIM: MCR) is pleased to announcethat first commercial gold production has commenced at Meekatharra. Over 300ounces (10kg) has been poured and production is on-going: more gold is expectedto be poured shortly to finalise September production with the Company poised toincrease production in October. The Company also advises that a Rotary Air Blast (RAB) drilling program isscheduled to commence at the beginning of October at the newly defined EuroProject location, to further test newly defined targets defined from recentgeological field work, coupled with High Definition Magnetic and Gravitysurveys. At a time when exploration drill rigs are extremely difficult to secureas a result of the booming conditions within Australia, Mercator Gold AustraliaPty Ltd has also secured a diamond drill rig to confirm the geologicalinterpretation of Euro's east-west structures and the associated strike and dipof the gold-bearing lodes. The rig is due to commence drilling in the last weekof October following the completion of the RAB program. The Company has had further success in locating a reverse circulation (RC) drillrig to follow on from the diamond drilling program at Euro, with this rigscheduled to commence drilling in early November as the Company aims toestablish an initial JORC compliant resource for the project. The forthcomingdrilling programs will build on the excellent results reported from the EuroProject on 19 September, which included 1m @ 94.3 g/t from 79m, 3m @ 23.8 g/tfrom 102m and 10m @ 5.0 g/t from 116m. Mercator's Managing Director, Mr Patrick Harford, said: "After several years rebuilding the asset base at Meekatharra, Mercator is readyto put the district 'back to work'. We wish to thank our shareholders for theirsupport and assure them that we will do our best to ensure that Mercator'soperations form a profitable and sustainable base on which the Company cancontinue to grow. Our exploration potential is high both at the new greenfieldsEuro Project and in all directions around the Prohibition-Vivian-Consols orebodies at Paddy's Flat and we look to the future with confidence and excitement." Competent Persons Report - Consent for release The information in this report is based on information compiled by Alan Colesand Denis Geldard. Alan Coles and Denis Geldard are full time employees of Mercator Gold AustraliaPty Ltd and are Members of the Australasian Institute of Mining and Metallurgy. Alan Coles and Denis Geldard have sufficient experience which is relevant to thestyle of mineralisation and type of deposit under consideration and to theactivity which they are undertaking to qualify as Competent Persons as definedin the 2004 Edition of the "Australasian Code for Reporting of ExplorationResults, Mineral Resources and Ore Reserves". Alan Coles and Denis Geldard consent to the inclusion in the report of thematters based on this information in the form and context in which it appears. For further information please contact: Mercator Gold plc Terry Strapp, Chairman Tel: +61 (0) 412 228 422Patrick Harford, Managing Director Tel: +44 (0) 20 7929 1010 Email: [email protected] Website: www.mercatorgold.com Released by: Bankside Consultants Ltd Tel: +44 (0) 20 7367 8888Simon RothschildKeith IronsOliver Winters Public Relations in Australia: Read CorporateNicholas Read /Jason Cunningham Tel: +61 (0)8 9388 1474 AIM: MCR This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
ECR Minerals