Business
Mining & Financing Update
Mining & Financing Update.
About this update from Ecr Minerals Plc
[{"type":"text","content":"\n RNS Number : 2885E Mercator Gold PLC 25 September 2008 \n \n\n\n\n\nMERCATOR GOLD PLC('Mercator Gold', 'Mercator' or the 'Company')\n\n\nMINING & FINANCING UPDATE\n\n\nLONDON: 25 September 2008 - Mercator Gold plc announces that following a review of the mining operations within the Surprise Pit the Company has decided to suspend temporarily all mining while a section of the Great Northern Highway (the main traffic artery to the North & East of the state) is realigned. \n\nAs was reported in the Quarterly Update, published on 7 August, the proximity of the highway to the eastern end of the Pit was a concern to the Directors and they decided to fund a diversion of the road to mitigate the mining risk. Production from the Pit was also reduced and other remedial actions were taken to stabilise the eastern wall. Since then further close monitoring of the variation in the ongoing rate of movement (relaxation) in the eastern pit wall, its proximity to the Highway and implications for disruptions to road traffic have resulted in the decision by the Directors to temporarily suspend mining within the pit. Mining at the Surprise pit will recommence following completion of the road diversion works, which commenced on 15 September 2008. The road works are expected to take about twelve weeks at a cost of approximately A$2.5 million. \nMining is continuing, albeit at a significantly lower ore production rate on available ore blocks in the Bluebird Pit. Stockpiled lower grade ore, and the ore currently being mined from the Bluebird Pit, are sufficient to support milling operations through to approximately 10 October 2008. At this point the Company will suspend milling operations and use the opportunity presented to:\n \na) Replenish its ore stocks and build a substantial buffer in its mill broken ore supplies to ensure more continuous mill feed in the event of any future mining disruptions. The Company is aiming t...