Mercator Gold rapidly progressing Copper Flat project, drilling complete and encouraging initial assays returned

Mercator Gold’s (AIM: MCR, PINK:MTGDY) evaluation of the Copper Flat Project in New Mexico continues apace, with the company reporting drill results today and confirming that SRK consulting is completing a 43-101 compliant Preliminary Economic Assessment.

Mercator Gold has been aggressively exploring the property and confirming historical data before it makes a decision on whether to exercise its option over the project for $1 million.

Over 5,000ft of drilling commenced on the 4th January, and has subsequently been completed in little over a month. The Initial assay results include an intersection of 429ft at an average grade of 0.73% copper; the remaining assays are expected by 26th February 2010. “We are highly encouraged by the initial results of our drilling at Copper Flat”, Mercator Gold MD Patrick Harford commented. “we look forward to the balance of the results, and the updated Canadian NI43-101- compliant Preliminary Economic Assessment report being produced by SRK Consulting, with considerable excitement”.

The samples are being analysed for copper, gold, silver, and molybdenum, furthermore 50 samples have been sent for detailed bulk density analysis by Skyline Assayers & Laboratories in Tucson.

The programme was designed to update the historical Copper Flat resource to an NI43-101 compliant Measured and Indicated resource. Additionally the drilling provides geotechnical and geochemical information, as required for the planning and permitting of future operations.

The programme was also intended to enlighten Mercator in terms of the possible extension of known resources/reserves below and adjacent to the historic planned open pit. The majority of the Copper Flat’s historic resource was hosted by an extensive breccia pipe and surrounding host rock of porphyritic quartz monzonite. The programme has successfully confirmed extensions to the breccia pipe and mineralisation adjacent to and below the historic planned pit.

So far, Mercator has received the results from three of the six drill holes, with the copper, silver and molybdenum assays returned. Holes CF09-01 and CF09-02 were designed to penetrate the lower grade quartz monzonite and to provide geotechnical and environmental data. The results from hole CF09-01 returned total intervals of 847ft at an average grade of 0.25% copper, 0.006% molybdenum and 2.34gpt silver. The CF09-02 exploration hole contained 126ft at an average grade of 0.33% copper, 0.003% molybdenum and 3.44gpt silver.

Hole CF10-03 was designed to penetrate the higher grade breccia core of the deposit. After drilling to 1,041ft, CF10-03 returned a high grade interval of429ft at an average grade of 0.73% copper, 0.023% molybdenum and 6.02gpt silver. Moreover, the entire drill hole averaged a grade of 0.44% copper.  http://www.proactiveinvestors.co.uk/companies/news/13502/mercator-gold-rapidly-progressing-copper-flat-project-drilling-complete-and-encouraging-initial-assays-returned-13502.html