Drilling Report
Mercator Gold PLC
02 March 2005
Georgian House, 63 Coleman Street, London, EC2R 5BB
Tel +44-7786 486645 Fax +44-20-76380756
ANNEAN JOINT VENTURE
DRILLING RESULTS SURPRISE, JESS AND MAID MARION
LONDON - 2 March 2005 - Mercator Gold plc (AIM: MCR, MCRW) as operator of the
Annean Joint Venture announces that on-going drilling continues to intersect
significant high-grade gold mineralisation within broad zones of anomalous gold
at resource-extension targets in the Yaloginda region near Meekatharra, Western
Australia.
Highlights
• Hole 04SUDD010 drilled from within the existing Surprise open pit
intersected 2m @ 22.7 g/t Au from 73m down-hole, about 80m below surface.
Hole 04SUDD010 and hole 05SUDD016, both drilled from the same collar
position but in different directions within the Surprise pit, returned 141m
@ 0.84 g/t Au and 177m @ 0.66 g/t Au, respectively.
• Initial drilling at Jess, the third of three resource-extension
targets being drilled in the Yaloginda region, has provided initial
encouragement, demonstrating zones of anomalous gold, including 8m @ 1.9 g/t
Au from 106m downhole, 8m @ 1.2 g/t Au from 118m and 8m @ 0.9 g/t from 133m.
Drilling is continuing to test potential for high-grade shoots.
• At Maid Marion, a brownfields exploration target 15km north of
Meekatharra, the Company has drilled 93 air-core regional targeting holes,
of which 13 holes returned gold grades over 0.5 g/t. These results, when
combined with drilling data by previous operators, demonstrate a major
corridor of gold mineralisation stretching for more than 8km between Maid
Marion and Five Mile Well. One diamond core hole drilled to test the
continuity of mineralisation, to test an IP anomaly and to obtain
structural geology data, returned six significant intersections including 2m
@ 15 g/t Au from 93m downhole.
• The Company has completed a £1.25 million share placement to
institutional clients of Ocean Equities Ltd and Phillip Securities (UK) Ltd,
which boosts treasury and allows the Company to maintain an aggressive
drilling programme at Bluebird, Surprise, Jess and Maid Marion within the
Annean Joint Venture Area.
Surprise drilling
Surprise is the second of three resource-extension targets in the Yaloginda
mine area, immediately south of Meekatharra, Western Australia, to be drilled
by Mercator. The Company considers that each target has the potential to
contain in excess of 500,000 ounces of high-grade gold. The targets are located
within 4km of the St Barbara Mines Limited's Bluebird mill that is currently on
care and maintenance.
- 2 -
Complete drill results for Holes 04SURCDD010, 04SURCDD13 and 05SURCDD016 are
presented in Table 1 below. (These results include the completion of Hole
04SURCDD13 that stopped at Christmas, with progress results announced in a
January press release.)
Holes 04SURCDD010 and 05SURCDD016 were collared on the haul road within the
existing small Surprise open cut and were drilled towards 247 degrees and 222
degrees respectively at -60 degrees oriented to go down at least 100m of host
porphyry before passing out into country high-Mg basalt on the west side of the
porphyry. Whilst drilled partly within the host rock, these holes are drilled
across the gold-bearing sub-horizontal quartz veins.
Hole 04SURCDD013 includes 6m @ 2.38 g/t Au, hole 04SUDD010 2m @ 22.73 g/t Au,
and hole 05SUDD016 8m @ 2.7 g/t Au. The average grade of the complete Hole
04SUDD010 is 141m @ 0.84 g/t Au and for 05SUDD016 177m @ 0.66 g/t Au. These
results demonstrate that Surprise has widespread anomalous gold, and within the
anomalous zones are substantial high-grade sections, such as those intersected
in 04SURCDD012 with 15m @ 45.1 g/t Au from 127m down-hole (announced January).
The Company is currently involved in a comprehensive analysis of the Surprise
drill results in the context of past drilling. Future drilling will target
repetitions of the two high-grade zones already recognised, and the depth
extensions of the porphyry plunging 45 degrees to south.
Jess drilling
Jess is the third of the Company's resource targets in the Yaloginda mine area.
Four reverse circulation holes of a ten hole programme have been completed.
Holes 04JSRC002 and 04JSRC010 intersected mineralisation as indicated in the
Table 2 below. Hole 04JSRC010 did not reach target depth as the rig suffered a
mechanical problem, but returned several notable intersections, including 8m @
1.94 g/t Au, and substantial widths of low grade mineralisation.
The Jess results provide initial encouragement, demonstrating wide zones of
anomalous gold. The company intends to complete its planned programme to test
potential for high-grade shoots.
Maid Marion drilling
At Maid Marion, the Company drilled 93 air-core holes as a regional targeting
tool, with 13 holes returning gold grades over 0.5 g/t. These results, when
combined with drilling data by previous operators, demonstrate a major corridor
of gold mineralisation stretching for 8km between Maid Marion and Five Mile
Well.
One diamond core hole has been drilled at Maid Marion to test the continuity of
mineralisation, test an IP anomaly and to obtain structural geology data. Hole
05MMDD001 had six significant intercepts including 2m @ 15 g/t Au from 93m down
the -60 degrees angled hole. This and other intersections in the hole are in
banded iron formation and mafic schist.
The Maid Marion results, detailed in Table 3 below, provide significant
encouragement, demonstrating substantial anomalous gold and the potential for
high-grade shoots.
- 3 -
Future Exploration
Mercator has entered a contract with Mt Magnet Drilling Pty Limited for them to
supply not less than 12,000 metres of reverse circulation and diamond core
drilling during 2005. The next programme of drilling is scheduled to commence
in April, and will include:
•Drilling for deep resource extensions at Bluebird;
•On-going exploration of and deep target testing at Surprise;
•Detailed exploration at Jess;
•Systematic RC and air-core drilling of anomalies at Maid Marion, and deep
drilling beneath known mineralization;
•Testing of regional exploration targets including Cassia and Tuckanarra.
Institutional Share Placement
The Company recently completed a £1.25 million share placement to institutional
clients of Ocean Equities Ltd and Phillip Securities (UK) Ltd, which boosts
treasury and allows the Company to maintain an aggressive drilling programme
under the Annean Joint Venture Area.
Ocean Equities Ltd has been appointed joint broker to the Company and has
introduced a number of new institutional shareholders to the Company, including
Artemis Investment Management Limited, which last week notified the Company of
an interest in 3,750,000 Ordinary Shares, representing 5.24 per cent of the
Company's issued Ordinary Share capital.
Corporate Developments
Dr Susan Vearncombe has been appointed as an executive director of Mercator
Gold plc.
- ends -
Tables referred to above follow.
_________________________________________________
Information releases
Mercator operates a continuous disclosure policy with respect to exploration
results. Company news releases are based on technical information approved by
the Company's Exploration Director, Julian Vearncombe BSc (Hons), PhD, FGS,
RPGeo, FAIG.
Note to editors
Under the terms of the Annean Joint Venture, Mercator has the right to earn 70%
interest in the Meekatharra properties from St Barbara Mines Ltd by spending a
total of AUD$8 million (approx GBP3.1 million) on exploration. Mercator has
spent the first AUD$1 million and has elected to proceed towards the first step
of earning 45% with a minimum expenditure requirement of AUD$2 million before
3rd March 2006.
- 4 -
Table 1: Surprise results
Surprise Intercepts
Hole_ID From_m To_m Interval_m Au_g/t Au_g*m/t Easting Northing RL
04SUDD010 27 29 2 4.59 9.18 642789 7045349 414
04SUDD010 37 41 4 0.84 3.36 642784 7045346 404
04SUDD010 54 55 1 0.71 0.71 642777 7045343 391
04SUDD010 64 66 2 6.57 13.14 642772 7045341 382
04SUDD010 73 75 2 22.73 45.46 642768 7045339 374
04SUDD010 85 86 1 2.6 2.6 642763 7045336 364
04SUDD010 89 94 5 1.17 5.85 642760 7045335 359
04SUDD010 98 100 2 3.94 7.88 642756 7045333 352
04SUDD010 120 124 4 0.91 3.64 642746 7045328 332
04SURCDD013 121 127 6 1.61 9.66 642724 7045277 380
04SURCDD013 132 137 5 12.11 60.55 771278 8454329 447
04SURCDD013 143 149 6 2.38 14.28 642740 7045272 365
04SURCDD013 157 163 6 0.86 5.16 642749 7045269 356
05SUDD016 10 15 5 1.95 9.75 642797 7045350 427
05SUDD016 30 32 2 1.42 2.84 642791 7045342 411
05SUDD016 37 38 1 7.31 7.31 642788 7045340 406
05SUDD016 49 50 1 1.28 1.28 642784 7045335 396
05SUDD016 56 57 1 0.5 0.5 642782 7045332 390
05SUDD016 61 62 1 0.63 0.63 642780 7045331 386
05SUDD016 66 67 1 0.54 0.54 642778 7045329 381
05SUDD016 70 75 5 1.69 8.45 642776 7045326 376
05SUDD016 79 85 6 1.78 10.68 642772 7045323 368
05SUDD016 88 89 1 3.04 3.04 642770 7045320 363
05SUDD016 92 99 7 1.02 7.14 642767 7045317 357
05SUDD016 100 104 4 1.04 4.16 642765 7045315 351
05SUDD016 106 107 1 0.58 0.58 642763 7045313 347
05SUDD016 113 114 1 2.72 2.72 642761 7045310 342
05SUDD016 119 120 1 0.53 0.53 642758 7045308 336
05SUDD016 123 124 1 1.55 1.55 642757 7045307 333
05SUDD016 133 138 5 1.09 5.45 642752 7045302 323
05SUDD016 147 149 2 1.86 3.72 642748 7045297 312
05SUDD016 155 156 1 0.65 0.65 642745 7045294 306
05SUDD016 164 172 8 2.7 21.6 642740 7045289 296
Note: for hole 04SURCDD013 results to depth 137 metres were announced in January
in an earlier press release.
Table 2: Jess results
Jess Intercepts
Hole_ID From To (m) Interval Au_g/t Au_g*m/t Easting Northing RL
(m) (m)
04JSRC002 22 24 2 1.31 2.62 642486 7044607 453
04JSRC010 81 85 4 2.6 10.4 642505 7044478 404
04JSRC010 99 102 3 2.01 6.03 642500 7044487 390
04JSRC010 106 114 8 1.94 15.52 642498 7044492 383
04JSRC010 118 126 8 1.23 9.84 642494 7044499 373
04JSRC010 133 141 8 0.96 7.68 642490 7044508 362
- 5 -
Table 3: Maid Marion results
Maid Marion Intercepts
Hole_ID From_m To_m Interval_m Au_g/t Au_g*m/t Easting Northing RL
04MMAC016 34 35 1 1.01 1.01 657097 7070595 470
04MMAC018 19 20 1 0.97 0.97 657200 7070545 483
04MMAC019 35 36 1 8.3 8.3 657233 7070523 469
04MMAC021 32 33 1 0.66 0.66 657311 7070478 472
04MMAC046 60 64 4 0.9 3.6 657780 7071131 446
04MMAC060 11 15 4 1.98 7.92 657963 7071714 489
04MMAC060 17 18 1 1.25 1.25 657961 7071715 485
04MMAC061 57 58 1 0.6 0.6 658286 7071637 450
04MMAC061 67 68 1 5.73 5.73 658282 7071640 442
04MMAC064 41 43 2 0.75 1.5 658424 7071562 464
04MMAC072 20 22 2 0.78 1.56 656790 7070289 482
04MMAC075 77 79 2 0.54 1.08 656903 7070253 432
04MMAC077 23 27 4 0.5 2 657002 7070196 478
04MMAC084 49 51 2 3.56 7.12 658482 7071812 457
04MMAC091 44 45 1 6.41 6.41 656754 7069875 461
05MMDD001 86 90 4 1.04 4.16 658681 7071774 424
05MMDD001 93 95 2 15.00 30.00 658679 7071776 419
05MMDD001 103 104 1 4.63 4.63 658675 7071778 410
05MMDD001 139 142 3 3.62 10.86 658659 7071788 379
05MMDD001 142 143 1 3.08 3.08 658658 7071788 377
05MMDD001 148 149 1 1.49 1.49 658655 7071790 372
Notes on tables
The drill assay tables is in this press release are based on compositing trigger
value = 0.5 g/t Au, minimum composite length 0.2m, and maximum width of internal
waste 2m. Intercept coordinates represent the x-y-z centroid position of the
composited drill-hole intercept. Easting refers to the Australian Map Grid
AMG'84 block 50 easting coordinate, and northing the AMG'84 block 50 northing
coordinate. Assay method is Genalysis 50g fire assay (FA50/AAS). The surface RL
at Yaloginda near Meekatharra is about 470m with modest variations within the
area.
For more information
Mercator Gold plc www.mercatorgold.com
Patrick Harford, Managing Director Tel: +44 (0) 7786 486645
Terry Strapp, Chairman Tel : +61 (0) 8 9322 7422
Beaumont Cornish Limited
Rod Venables / Roland Cornish Tel: +44 (0) 20 7628 3396
Ocean Equities Ltd
Guy Wilkes / Will Slack Tel: + 44 (0) 20 7786 4370
Phillip Securities UK Limited
Nick Bealer Tel: +44 (0) 20 7553 8281
Parkgreen Communications
Justine Howarth / Ana Ribeiro Tel: +44 (0) 20 7493 3713
This information is provided by RNS
The company news service from the London Stock Exchange