9th Apr 2010 11:32
MERCATOR GOLD plc ("Mercator Gold", "Mercator" or "the Company")
AIM: MCR US OTC: MTGDY
Silver Swan Update
London 9 April 2010
Mercator Gold plc is pleased to draw attention to the announcement made by Silver Swan Group Limited (ASX: SWN) ("Silver Swan") on 6 April 2010 regarding the completion of a maiden resource statement for Silver Swan's Austin copper-zinc-gold-silver discovery in Western Australia. The Austin discovery is a volcanogenic massive sulphide (VMS) deposit located within the package of exploration tenements sold to Silver Swan by Mercator in 2008.
Mercator holds 4 million performance shares in Silver Swan, which convert to ordinary shares subject to certain conditions, the most significant of which is the identification by Silver Swan of a minimum 350,000 oz gold equivalent in the JORC Indicated Mineral Resource category (or higher) on the tenements sold to it by Mercator.
Austin Discovery - Maiden Resource Statement
| Category | Tonnes | Cu (%) | Zn (%) | Au (g/t) | Ag (g/t) | ||||||
| Measured | 463,428 | 1.22 | 1.41 | 0.30 | 4.38 | ||||||
| Indicated | 703,286 | 0.97 | 1.47 | 0.22 | 3.28 | ||||||
| Inferred | 317,708 | 0.85 | 1.17 | 0.18 | 2.74 | ||||||
| Measured & Indicated | 1,166,714 | 1.07 | 1.45 | 0.25 | 3.72 | ||||||
| Total Resources | 1,484,421 | 1.02 | 1.39 | 0.24 | 3.51 | ||||||
Total gold equivalent: 134,805oz
(Based on copper at US$7,950/t, zinc at US$2,400/t, gold at US$1,135/oz, silver at US$18/oz)
The resource statement was prepared in accordance with the JORC Code by Golder Associates and includes allowances for mining loss and dilution. The bulk of the resource is deemed to be potentially suitable for open pit development. The resource was calculated using a cut-off grade of 0.4% copper and is based on data from 28 diamond drill holes and 6 reverse circulation drill holes.
Silver Swan's full announcement can be viewed at:
http://www.silverswangroup.com.au/pdf/Announcements/2010/APR10/100406-Austin_Maiden_Resource_Statement.pdf
Patrick Harford, Managing Director of Mercator Gold plc, comments:
"Silver Swan's maiden resource statement for the Austin discovery is a major step towards the 4 million Silver Swan performance shares held by Mercator being converted to freely tradeable ordinary shares.
We are pleased to note that Silver Swan remains well funded, having raised in excess of A$17 million in equity financing to date, and we look forward to the results of further exploration at the Austin discovery and at Silver Swan's other areas of focus."
For further information please contact:
| Mercator Gold plc | ||
| Michael Silver, Chairman | Tel: +44 (0) 20 7929 1010 | |
| Patrick Harford, Managing Director | Tel: +1 646 239 9087 | |
| Email: [email protected] | ||
| Website: www.mercatorgold.com | ||
| 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 | |
| Bankside Consultants Ltd | ||
| Simon Rothschild/Oliver Winters | Tel: +44 (0) 20 7367 8888 | |
| Barry Kaplan Associates | ||
| Larry Kaplan | Tel: +1 732 747 0702 | |
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