Bonanza-Grade Silver Assays Reported at Solaga.DENVER -- Mercantile Gold Company (Pink Sheets: MGCP See MGCP/MEGACO. MGCP - Media Gateway Control Protocol ) is pleased to announce assays from initial reconnaissance sampling of the Company's 100%-owned Solaga silver project, located in the Villa Alta mining district of Mexico. Assay results (reported in ounces of gold and silver contained per short ton (2,000 lbs) of rock : oz/ST) and sample descriptions were as follows:
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Sample Gold Silver
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Z-1 0.135 oz/ST 258.01 oz/ST
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Z-2 0.035 oz/ST 488.73 oz/ST
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Z-3 --- 2.51 oz/ST
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Z-4 --- 1.38 oz/ST
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Fire assays were performed by Consejo de Recursos Minerales in Oaxaca, Mexico. A re-assay of sample Z-2 returned 488.67 oz Ag/ST and 0.039 oz Au/ST. The typical underground silver mine extracts ore with an average grade of 15 to 25 ounces per ton; mines with grades in excess of one hundred ounces per ton are considered "bonanza-grade" operations. A recently completed internal survey of operating silver mines in Mexico found that an ore grade Ore grade is a measure that describes the concentration of a valuable natural material (such as metals or minerals) in its surrounding ore. Ore grade is used to assess the economic feasibility of a mining operation: the cost of extracting a natural material from its ore is directly of at least ten ounces of silver per ton of ore mined is necessary to cover capital and operating costs operating costs npl → gastos mpl operacionales . Sample Z-1 represents a composite of concentrates recovered from the old flotation plant. The assay suggests that the mill head grades may have been in the range of 20 to 25 ounces of silver per ton. Samples Z-3 and Z-4 were taken from the wall rocks adjacent to the main Solaga vein. Sample Z-3 consisted of strongly fractured, strongly sericitized, slightly silicified si·lic·i·fy v. si·lic·i·fied, si·lic·i·fy·ing, si·lic·i·fies v.tr. To convert into or impregnate with silica. v.intr. To become converted into or impregnated with silica. dark slate with what appears to be grey to black Ag-sulfides in matrix and on fracture faces. Sample Z-4 was a grey and white quartz breccia breccia: see conglomerate. breccia Coarse sedimentary rock consisting of angular or nearly angular fragments larger than 0.08 in. (2 mm). Breccia commonly results from processes such as landslides or geologic faulting, in which rocks are fractured. with low total sulfides, with only about 10% meta-sedimentary fragments within the breccia matrix. Z-2, the high-grade sample from the Solaga vein, is described as a quartz breccia with a matrix of 60% milky white quartz with 6% sulfides by volume of ruby silver (Min.) red silver. See under Red. See also: Ruby and minor pyrite pyrite (pī`rīt) or iron pyrites (pīrī`tēz, pə–, pī`rīts), pale brass-yellow mineral, the bisulfide of iron, FeS2. . Pyrite was an early mineral in vein formation, and is typically surrounded by crystals of ruby silver. Breccia fragments consist of grey sandstone or shale, minor fragments of aphanitic aph·a·nite n. A dense, homogeneous rock with constituents so fine that they cannot be seen by the naked eye. [From Greek aphan dacite da·cite n. A light gray volcanic rock containing a mixture of plagioclase and other crystalline minerals in glassy silica, similar in appearance to rhyolite. [After Dacia. with minor pyrite, and veinlets of quartz. Additional information concerning the Solaga project can be found at the Company's website: www.MercantileGold.com Exploration Work Underway At Solaga Mercantile Gold has begun exploration work that will evaluate the potential for both a high-grade underground deposit as well as a disseminated, bulk tonnage silver deposit at its 100%-owned Solaga project. Current plans call for mapping and sampling the existing adit, followed by surface pitting, trenching and sampling in areas of mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. and alteration. The entire property will also be mapped at scale of 1:4,000. The objective of the current work program will be to define targets to be drilled during the first quarter of 2005. The Company believes that there is a strong probability of delineating an economic silver deposit at Solaga. About The Company Mercantile Gold is a mineral exploration and development company whose objective is to acquire, discover and develop world-class (multi-million ounce) gold and silver deposits, and, at the appropriate stage of project development, enter into agreements to sell or joint venture these deposits to major international mining companies. MGCP was formed in 2004 by a core group of senior technical and financial professionals who have more than one hundred years of international experience in the areas of precious and base metals exploration, project evaluations, finance and acquisitions. As part of its strategy to identify high quality projects that have the potential to meet the Company's objectives, Mercantile Gold conducts an active and ongoing generative gen·er·a·tive adj. 1. Having the ability to originate, produce, or procreate. 2. Of or relating to the production of offspring. generative pertaining to reproduction. program. The Company is continually seeking undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. projects in the Americas, emphasizing bulk-tonnage, higher-grade opportunities with the potential to host multi-million ounce deposits, and projects where it can obtain an exclusive or high-majority interest. This press release contains statements, which may constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results. |
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