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Mercer Gold Corporation MRGP



GREY:MRGP - Post by User

Post by Goldbullpowon Oct 15, 2010 12:33am
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Post# 17567707

Business News Americas

Business News Americas

Mercer Gold to start drilling at Guayabales project in the coming days - Colombia

Published: Tuesday, October 12, 2010 15:30 (GMT -0400)More news from Colombia

By Harvey Beltrán / Business News Americas

US-based Mercer Gold (OTC.BB: MRGP) will begin a 5,000m drilling campaign in the next few days at its Guayabales gold project in Colombia's Caldas department, the company's manager of local operations, James Stonehouse, told BNamericas.

"All of the materials are ready and the people are hired; we're just waiting on a permit from the local government that we expect to be issued any day now. Once it's signed, we will begin works," Stonehouse said.

The plan is to drill 3,500m by year-end, then take a break and resume activity in January to finish by February 2011, he said.

"We're already negotiating a contract for another 15,000m in 2011," Stonehouse said.

The company acquired the project in April and has invested slightly more than US$1mn to date. The plan is to invest US$6mn in exploration during 2011.

OTHER OPPORTUNITIES

Mercer is simultaneously looking for other concessions in different parts of the country and is reviewing and analyzing any opportunities that come its way.

"We are negotiating other opportunities and we have had meetings with several concession owners and representatives of other companies," Stonehouse said.

In September, Mercer received results from a rock chip sampling program at Guayabales. A total of 133 samples, each 2m in length, were taken. The highest sample value for gold in the program was 4.89ppm, and additional results included 0.84ppm and 0.62ppm.

US-based Mercer Gold (OTC.BB: MRGP) will begin a 5,000m drilling campaign in the next few days at its Guayabales gold project in Colombia's Caldas department, the company's manager of local operations, James Stonehouse, told BNamericas.

"All of the materials are ready and the people are hired; we're just waiting on a permit from the local government that we expect to be issued any day now. Once it's signed, we will begin works," Stonehouse said.

The plan is to drill 3,500m by year-end, then take a break and resume activity in January to finish by February 2011, he said.

"We're already negotiating a contract for another 15,000m in 2011," Stonehouse said.

The company acquired the project in April and has invested slightly more than US$1mn to date. The plan is to invest US$6mn in exploration during 2011.

OTHER OPPORTUNITIES

Mercer is simultaneously looking for other concessions in different parts of the country and is reviewing and analyzing any opportunities that come its way.

"We are negotiating other opportunities and we have had meetings with several concession owners and representatives of other companies," Stonehouse said.

In September, Mercer received results from a rock chip sampling program at Guayabales. A total of 133 samples, each 2m in length, were taken. The highest sample value for gold in the program was 4.89ppm, and additional results included 0.84ppm and 0.62ppm.


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