Mercator Gold rose 7% to 80 pence today on the back of a positive update on operations at the company's flagship Meekatharra Gold Mine in Australia.
Mercator said the newly commissioned plant was processing 150 tonnes per hour and that first gold pour would occur in the next 10 days.
Mercator re-iterated its target of 120,000 ounces of gold production in the first 12 months from three pits. Mercator also upgraded its probable ore reserves by 17% to 504,000 ounces, primarily from the conversion of indicated resources in the Fatts and Mudlode ore bodies which are part of the underground deposits that will be mined.
On the exploration front, Mercator completed four diamond drill holes into an area east of the current known mineralisation, named Euro. Results included 1 metre @ 93.4 grams per tonne, 3 metres @ 23.8 grams per tonne and 10 metres @ 5 grams per tonne.
"We have recently completed the commissioning of the plant and, with the commencement of commercial gold production only days away, Mercator is set to join the ranks of international gold producers at an exciting time for the gold sector" added Managing Director, Patrick Harford "In addition to our move into commercial production, the increase in probable reserves announced today and the promising new gold discoveries at the nearby Euro project highlight the potential for the Company to build on its strong production base and significantly expand its gold operations and reserve position."