Wirrate – EL007296

PROPOSED EXPLORATION PROGRAM

Mercator Gold have multiple ELs/ELAs and have been actively exploring the Bailieston area, especially since new directors focussed attention to this project in recent years.  Since this time, three drilling programs have been completed in addition to field mapping, soil and rock chip geochemistry and 3D modelling.  This work has resulted in a new discovery at the Blue Moon prospect.

The recent reduction in EL5433 resulted in the loss of graticules critical to Mercator’s exploration program and the company wishes to re-acquire these areas as part of their exploration strategy.  As such, the company is capable of commencing advanced exploration rather than spending the first year conducting “literature research” or “reconnaissance mapping”.  Mercator Gold have established a good working relationship with many of the landowners in the district and have an operational base/core shed at Wirrate and have employed several local residents to assist with exploration programmes when running.

The application area is underlain by Palaeozoic turbidite sediments that host a large number of medium to small auriferous quartz vein deposits.  Most of the gold deposits are associated with the Bailieston Anticline, a large scale regional anticlinal structure.  This structure links the Bailieston goldfield to the Mitchellstown goldfield and the entire anticline and adjacent folds are prospective for further mineralisation, especially the structures that run under cover.  The reduced graticules from EL5433 are mostly those with cover which entails better soil, and tends to be cleared and private farmland.  The primary exploration strategy will be to gain access to private land for exploration suitable for exploration through cover, such as deep-penetrating geochemistry (DPG) or geophysics, prior to drilling.  Geophysics may include methods to by identify palaeohighs representing zones of silicification such as ground penetrating radar.  For more direct detection, electrical/electromagnetic methods will be considered.

The new discovery of Blue Moon demonstrates the potential for undiscovered resources in the district and Mercator Gold’s expertise to locate them.

The principal exploration target is gold.  The proposed exploration program is as follows:

Year Description of Activity
Year 1 Landowner access agreements, deep-penetrating soil geochemical sampling, geophysics, field mapping if warranted
Year 2 Infill soil geochemistry, initial RC/diamond drilling as warranted
Year 3 Follow-up RC/diamond drilling as warranted
Year 4 Resource RC/diamond drilling as warranted
Year 5 Resource RC/diamond drilling as warranted