Mercator Gold plc
Mercator Gold PLC is a dynamic UK gold mining company, listed on the AIM market of the London Stock Exchange (MCR.L), which has revived a large former gold producing area at Meekatharra, Western Australia, and brought it back to production.
Following an aggressive exploration programme and a major upgrade of existing mine infrastructure Mercator produced its first gold in October 2007 and expects to produce approximately 120,000 ounces of gold in the first 12 months of operations from a combined ore reserve of about 196,000 ounces at two open pits. At its underground mines at Meekatharra Mercator has a further probable ore reserve of 308,000 ounces.
Mercator Gold – Euro, Batavia & Convertible
Mercator Gold (AIM: MCR) a growing gold producer that operates in the historic Meekatharra Goldfield in Western Australia, announced maiden resources for its Euro and Batavia projects.
At the Euro project, which lies about seven kilometres south of Mercator's processing plant, a maiden resource of 2.038 million tonnes of ore at 1.3 grams of gold per tonne (for 83,600 ounces of gold) has been estimated. Further work at Euro will higher grade material, which lies at a deeper level. A structure, identified by gravity survey, immediately south of Euro is being investigated.
At the Batavia project, which lies about six kilometres north of Mercator's processing plant, a resource of 318,000 tonnes at a grade of 2.4 g/t (for 24,200 ounces of gold) has been estimated. Shallow underground workings here, in the early 1900s, produced 180 ounces of gold from 276 tonnes of ore. Batavia has the potential to provide additional feed for the processing plant in the near term. Conversion of the Prospecting Lease to a Mining Lease is well advanced.
The Company also announced the placing of convertible loan notes to raise £200,000, the notes pay 8.5% per annum, and are redeemable at par by 15 July 2011 or can be converted into ordinary shares at 50p each after the first anniversary of the loan.
Patrick Harford, MD of Mercator Gold, commented:
“The maiden resources at Euro and Batavia represent continuing efforts by Mercator to expand its inventory of resources and reserves. They also support the Company's exploration strategy, which we expect will continue to bear fruit. Batavia is expected to contribute to production in the near term, and we maintain high hopes for the future of Euro.”
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Other Mercator Gold plc news
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13/10/08 Mercator Gold enters administration while it seeks refinancing
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11/03/08 Majedie ups interest in Mercator Gold
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26/02/08 Mercator Gold releases gold production guidance
