Mercator doubles oxide copper reserves

Vancouver — Updated oxide copper reserves at Mercator Minerals‘ (ML-V) wholly-owned Mineral Park mine, near Kingman, Arizona, has seen an almost 100% increase.

Proven and probable reserves now stand at 84.6 million tonnes grading 0.24% copper. Almost 181,000 tonnes (about 400 million lbs.) of copper have now been outlined using a strip ratio of 0.44-to-1 along with a 0.12% copper cutoff grade and US$1.00 per lb. metal price. Over 90% of reserves are in the proven category.

Late-2004 drill results were not incorporated into the new reserve calculation, nor was deeper copper and molybdenum sulphide mineralization at the Mineral Park deposit. Recent in-fill and definition drilling in the Turquoise Mountain area of the property intersected multiple, significant copper intercepts. Hole 1073 cut 113 metres (from surface) grading 0.35% copper, including 46 metres of 0.76%.

The company is evaluating increased production levels from its oxide reserves, beyond existing output. Mineral Park produced over 1,600 tonnes (3.6 million lbs.) of cathode copper in 2004 using solvent extraction-electrowinning.

The open pit Mineral Park mine has produced copper since the mid-1960s under a number of operators. Mineralization is typical copper-molybdenum porphyry, with quartz-monzonite stock intruding a schist and granitic basement complex.

Mercator purchased the producing Mineral Park copper mine from Aussie-listed Equatorial Mining in mid-2003 for 4.6 million shares plus 5% of net operating proceeds capped at US$2.72 million.

Mercator, with 22.6 million shares outstanding, posts a $19-million market capitalization at its recent trading level of 85 per share.