Nothing quite like having a Gold Miner or two as defensive plays in your portfolio when Inflation starts to rear its ugly head in the Macro Economies of the World.

If your a Gold Bull and I have been for a few years now you probably believe POG is about to hit new highs and break out. Sometime later this year I feel we will really see it take off and Im hoping to position myself for that and also consolidation within the industry with the large Miners buying up the small producing developers like Mercator which trades on the Aim market.

Interesting to read the chaimans recent report on the developments going on in the company...

INTERIM REPORT FOR THE SIX MONTHS TO 31 DECEMBER 2006
CHAIRMAN'S REPORT

I am pleased to present your Company's Interim Report for the six months to 31
December 2006. Mercator continues to advance towards its target of producing
gold bymid-2007 and having at least four years of mineable reserves in place.
The Companyhas already defined a mining reserve of 75,000 ounces of gold at
Surprise and anindicated resource of 380,000 ounces of gold at
Prohibition-Vivian-Consols. Furtherdrilling is being conducted at Prohibition to
extend the existing resources andstudies are currently underway to defining a
probable reserve to allow for a decisionwith regard to the second stage
production planned for early 2008. The recentfund-raising of 4.49 million
provides the capital required to achieve the aboveobjectives.

Refurbishment of the Yaloginda Plant is nearing completion with re-commissioning
expected to commence during May. All of the plant components starting with the
crushing circuit, milling circuit, leaching and finishing with the gold elution
circuit will have been fully tested before full scale production is achieved.
Lowgrade ore from existing stockpiles and from the pre strip material for the
Surpriseopen pit will provide the initial re-commissioning ore source. Full
scale productionwould follow the build up of gold inventory in the Carbon in
Leach circuit.Updated Resource estimates for Prohibition-Vivian-Consols are
under review togetherwith various mining scenarios that will lead to Probable
Reserve announcements in thecoming weeks.

Plans are being developed to optimise the use of Mercator's extensive tenement
holdings at Meekatharra, which presently cover 1,932km2 with contained gold
resourcesof 2,160,000 ounces. The Board believes there is considerable potential
to utilisethese ground holdings in the current positive gold-mining environment.
The Board ispresently considering a number of alternatives in this regard.
Your Company's professional team continues to deliver positive results on all
frontsand I am confident they will continue to deliver at similarly high
standards in thefuture.

To compliment the existing team, three new production orientated appointments
havebeen made: a highly skilled and experienced Mining Engineer to the position
ofOperations Manager, the appointment of an equally experienced Metallurgist as
ProcessManager, and appointment of a Mine Planning engineer. At a time when
skilledprofessionals are highly sought after in Western Australia, Mercator has
been mostfortunate to attract the calibre of these professionals who are also
locating to siterather than electing a fly in fly out roster.

I look forward to reporting to you on your company's progress on a regular basis
throughout this exciting phase in our development.

Terrence Strapp
CHAIRMAN

AND to complement this we had a RNS report out earlier today re to new contract....

MERCATOR GOLD PLC
('Mercator Gold' or the 'Company')

MINING CONTRACT AWARDED


Mercator Gold Australia Pty Ltd is pleased to announce a 'Heads of Agreement'
has been reached with Mining & Civil Australia Pty Ltd ('MACA') to carry out the
initial Open Pit mining of the Surprise ore reserve.

The contractor will commence mobilisation of plant and equipment on 24 April
2007.

MACA is an emerging Western Australia owned and operated company which has
quickly established an excellent reputation in the Mining Contracting industry.

MACA currently employs approximately 230 people and has completed projects for
Lion Ore, Harmony Gold and Croesus Mining. Its current projects include Fortnum
(Gleneagle), Jack Hills (Murchison Metals), Wiluna (Agincourt Resources),
Kirkalocka (Equigold) and North Dordie (Mincor Resources).

Managing Director, Patrick Harford, commented:

'The appointment of Mining & Civil as earth moving contractor at Meekatharra
brings us an important step closer to production. We move now from the planning
stage to the implementation of our strategy for profitable and sustainable
production.'


Mercator Gold plc.

WEB SITE...

www.mercatorgold.com

TA....



MARKET CAP....

46 million

DYOR.

Goldfinger,

Thanks for this thread - I bought in this morning.

Steve

Welcome aboard Steve looks like you brought us good luck.

Climbing nicely.

Been a good week for this one.

More to come, a lot more.

Yes. Me to . Bought in late 70's while witnessing it fly on minimal volume with a fair ratio of buyers and sellers .Luckily - Considering fridays 5% rise.. lt seems very resilient to downturns in the commodoties market. The manipulation of gold by bullion banks and lnstitutions cannot surely last what with a soaring mining sector, a distressed dollar and other negative geopolitical factors ,, l believe left to market forces gold should be $2700 p/to .Furthermore after talking to some most serious " goldheads " they believe that the USA's reserves are grossly exxagerated ......Trading patterns over the past few days illustate MMs are mooching for stock ..Candlesticks in 3 white soldiers is as bullish as one is likely to see; yet the extended gap between the latter two suggests MCR could be a tad overbought . BUT following such a massive decline it meets the criteria of having been oversold in the past. And is in search of new support levels ...lncidentally G/F based on your research what value do you deem as fair ? .lndeed takeover looks very possible .....Have a peek at AXM now they are not sitting on a spike Vlad would have been proud off,,,,,,,,,,,,,,,,,,,, B/ chance ....a'bientot ..@+

G/F et al Have u seen Putins mining minister recent remarks reg POG and a number of other miners operating in Russia. . Methinks Putin certainly wants to re-nationalise the oil sector ; but also has a keen eye on commodoties like gold for when Russia, who like both China and lndia , has massive dollar holdings , decides to SELL ! a'bientot ,,,Faires attention ,,,,,,,,,,,@+ J

I have read a few pieces of news on this and keeping a watchfull eye out TFC.

Price fallen back a little although at first glances looks like more buys than sells.

Good to se it back in the blue.

Hi GF

Must be because I bought a few this am. LOL

(Also went back into MMG and CSB today and started CCT)

Cheers, Madison

Hi, Maders,

yep weve had a good day here.

Plenty more to come mind.

Im adding.

Opening at 79.// Their existed quite substantial selling pressure at the 81.5 /82 p . Yet MCR rode it and once over it posively took off.....lts been at this level before on a lot of froth ,,,,,but this time they have the goodies ...l believe ill get these at the 80p level as profits are crystalized ,,,,But after that theres a lot of blue sky ....@+ J..............No-one who is sane is "shorting",opening an option calling this down and likewise in futures mkt....niceeeee .....a'bientot ..

Yes TFC going very well again today.

Bears thus far carrying the day on a ratio of 15#1 yet price is up .......someone is collecting out there //// Both an offensive and defensive stock ,,and everything to play for ... added @ few more -10,000 ,,,Very niceeeeeee @+ J.......Only variable that bothers me is geopolitical ,,,Actual company looks as good as lve seen in mining sector for ages ,,,

Same here but I also like the one you mentioned the other day sereba or something like that.

Cheap extraction costs.

Got a little more to ask the management before I take the plunge there.

GF, do you mean "Serabi"? Don't know anything about the stock, but it exists! EPIC: SRB.

EDIT: SRB seems to be making the right noises. Will discuss later in the week if anyone's interested.

A few more now waking up to just how undervalued this one is.

Momentum continues.

And again.

Going on a positive run.

Good defensive stock in unsure markets.