Proactive investors

Copper Flat Project, New Mexico

Mercator holds an exclusive option over the Copper Flat project, a porphyry copper-molybdenum-gold-silver deposit in the Las Animas mining district of New Mexico, United States and a former producing mine.

It is believed that the Copper Flat project, which has significant infrastructure in place, could be brought back into production within a relatively short timeframe for a relatively low capital outlay.

Mercator has completed a verification of the historic reserves of the Copper Flat deposit and an evaluation of the economics of the project on the basis of current industry costs. Requirements to secure all permits for a return of the project to production are being assessed.

Re-analysis of a statistically significant selection of pulps from historic drill holes completed at Copper Flat is currently underway, and Mercator has commenced a new six-hole programme of confirmatory drilling that will also provide geotechnical data for a planned open pit.

Ongoing work at Copper Flat is oriented around the completion by SRK Consulting of a preliminary economic assessment of the return of the Copper Flat project to production.

Copper Flat has historical reserves of 50.21 million short tons at an average grade of 0.45% Copper, 0.1244 g/t Gold, 2.053 g/t Silver and 0.015% Molybdenum, assuming a cutoff grade of 0.23% Copper.  The total contained metal is approximately 200,000 tons or 447.872 million pounds Copper, 223,900 ounces Gold, 3.2995 million ounces Silver and 6,600 tons or 14.762 million pounds of Molybdenum, which equates to in excess of US$1.5 billion in value at current prices.

A full pre-strip of the ore body has been completed, which along with the infrastructure in place, represents a significant portion of the capital investment that would be required if the project were to be brought into production from scratch.

Some 181 reverse circulation and core drill holes, approximately 39,000 meters, have been completed along with approximately 300 meters of underground drifting. [READ MORE]

ACS Asia

ACS Asia, located in Thailand, is a well established and profitable Thai metal products company engaged in the manufacture and marketing of the well known Unistrut® brand of metal construction products.  MERCATOR GOLD acquired a 70% economic interest in ACS Asia from US conglomerate Tyco International in October 2008.  These products are primarily cable support systems that are utilized in major facilities around the world.
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Over the six months from October 1, 2008 to March 31, 2009, ACS Asia made an operating profit of approximately US$400,000 on total sales of approximately US$2.7 million, with a gross margin of US$1.3 million.  Revenue for the year commencing October 1, 2008 and ending September 30, 2009 is projected to be in the range of US$7-8 million with EBIT equal to 10% of sales.

As MERCATOR GOLD’s core business is to remain in the mining sector, the Company intends, at an appropriate time, to sell its interest of ACS Asia for a profit or to list it on the Stock Exchange of Thailand. [READ MORE]

Other Assets

Paniai Gold
Mercator holds 50 million shares in Paniai Gold Limited, which has successfully raised pre-IPO financing and which now plans to list on the National Stock Exchange (NSX) of Australia. Paniai Gold is focused on the Area 81 project, a highly promising gold mining and exploration joint venture in Papua Province, Indonesia.

Silver Swan Group
Mercator holds 1 million shares and 4 million performance shares, which will convert into ordinary shares subject to certain conditions, in Silver Swan Group Limited, an Australian Securities Exchange (ASX) listed exploration company that has made a significant base metal discovery of the volcanogenic massive sulphide (VMS) type in Western Australia.

Meekatharra Gold Project
Mercator is to hold a significant interest in Meekatharra Gold Corporation, which is in the process of acquiring the Meekatharra gold project in Western Australia.

It is anticipated that Meekatharra Gold Corporation will seek a stock market listing in Toronto.

For more information on these assets please CLICK HERE