2nd May 2008 08:49
Mercator Gold PLC02 May 2008 Mercator Gold plc ("Mercator Gold", "Mercator" or "the Company") (AIM: MCR) London: 2 May 2008 Quarterly Update to 31 March 2008 • Gold produced 10,852 ounces, up 37.5% on previous quarter. • Revenue A$9,506,858, up 48% on previous quarter. • Average gold price realised A$975 (approximately US$888) per ounce. • Higher grade material from Surprise pit now being processed. • Pre-stripping of Bluebird pit and de-watering of Consols pit underway. Mercator Gold plc, the growing gold producer with operations in the historicMeekatharra Goldfield in Western Australia, is pleased to provide an update onits activities during the quarter ended 31 March 2008. Production The Company produced 10,852 ounces during the last quarter, an increase of 37.5%on the previous quarter's gold production which was 7,889 ounces. This figureincludes metal in circuit that had been produced but was not sold in thequarter. Gold sold was 9,746 ounces, up 39% on the previous quarter. Revenue for the quarter was A$9,506,858 (approximately US$8,656,748), reflectingan average price realised of A$975 (approximately US$888) per ounce, up 48% fromprevious quarter. A total of 315,619 tonnes of ore was processed, with a better than expectedrecovery rate of 95% gold recovered versus a target of 93%. The average headgrade processed was 1.11g/t, 5% above the target of 1.06g/t. Development The pre-strip of the Bluebird pit commenced in March. This will allow Bluebirdto supply some initial feed to the processing plant during the second quarter. De-watering of the Consols pit also commenced in March, in preparation for theconstruction of the proposed Prohibition-Vivian-Consols (PVC) decline. The Company is in the process of finalising the Project Management Plan (PMP)for the decline at PVC, which is planned to facilitate underground mining andexploration during 2009. Once the PMP is finalised, it will be submitted forapproval to the relevant authorities. Patrick Harford, Managing Director of Mercator Gold plc, comments: "Gold production from the Surprise pit is increasing in line with expectationsas higher grade material is mined from the pit's deeper levels. Costs of production during the first quarter were within the targeted range andthe Company made good progress with regard to its development activities." 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 Ocean Equities Ltd Tel: +44 (0) 20 7786 4370 Will SlackGuy Wilkes Bankside Consultants Limited Tel: +44 (0) 20 7367 8888 Simon RothschildOliver Winters This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
ECR Minerals