Business
Quarterly Update
Quarterly Update.
About this update from Ecr Minerals Plc
[{"type":"text","content":"\n Mercator Gold PLC\n02 May 2008\n\n\n\n Mercator Gold plc\n\n ('Mercator Gold', 'Mercator' or 'the Company')\n\n (AIM: MCR)\n\nLondon: 2 May 2008\n\n Quarterly Update to 31 March 2008\n\n\n • Gold produced 10,852 ounces, up 37.5% on previous quarter.\n\n • Revenue A$9,506,858, up 48% on previous quarter.\n\n • Average gold price realised A$975 (approximately US$888) per ounce.\n\n • Higher grade material from Surprise pit now being processed.\n\n • Pre-stripping of Bluebird pit and de-watering of Consols pit underway.\n\n\nMercator Gold plc, the growing gold producer with operations in the historic\nMeekatharra Goldfield in Western Australia, is pleased to provide an update on\nits activities during the quarter ended 31 March 2008.\n\n\nProduction\n\nThe Company produced 10,852 ounces during the last quarter, an increase of 37.5%\non the previous quarter's gold production which was 7,889 ounces. This figure\nincludes metal in circuit that had been produced but was not sold in the\nquarter. Gold sold was 9,746 ounces, up 39% on the previous quarter.\n\nRevenue for the quarter was A$9,506,858 (approximately US$8,656,748), reflecting\nan average price realised of A$975 (approximately US$888) per ounce, up 48% from\nprevious quarter.\n\nA total of 315,619 tonnes of ore was processed, with a better than expected\nrecovery rate of 95% gold recovered versus a target of 93%. The average head\ngrade processed was 1.11g/t, 5% above the target of 1.06g/t.\n\n\nDevelopment\n\nThe pre-strip of the Bluebird pit commenced in March. This will allow Bluebird\nto supply some initial feed to the processing plant during the second quarter.\n\nDe-watering of the Consols pit also commenced in March, in preparation for the\nconstruction of the proposed Prohibition-Vivian-Consols (PVC) decline.\n\nThe Company is in the process of finalising the Project Management Plan (PMP)\nfor the decline at PVC, which is planned to facilitate underground mining and\nexploration during 2009. Once the PMP is finalised, it will be submitted for\napproval to the relevant authorities.\n\n\nPatrick Harford, Managing Director of Mercator Gold plc, comments:\n\n'Gold production from the Surprise pit is increasing in line with expectations\nas higher grade material is mined from the pit's deeper levels.\n\nCosts of production during the first quarter were within ...