Friday, 27th October 2006 (2511 views)

Mercator Gold, whose principal interest is gold exploration within Australia, has confirmed that the results it has gained from the Prohibition and Surprise sites are better than expected.

Drilling has fulfilled both tonnage and grade potential with analysis described as "very exciting" by the company.

Production will begin in 2007 according to the company, who would like to see a rate close to 150,000 to 175,000 of ounces of gold per annum.

The firm has explained that the process of drilling across managed to confirm the width of the resource, while drilling down the envelope validated strong grading of the metal.

Mercator focuses on the Meekathara greenstone belt which is in the Muchison province of western Australia. It hosts several historically significant gold deposits including the Reedy mines and the Gibralter mine which have both already been extensively exploited.

The company has also said that it has finalised the programme of mostly reverse circulation at its Surprise mine and drilling had again confirmed zones of high-grade gold.

 

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