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.

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.

GF,

Absolutely, first gold pour and resource update are both due soon.

Cracking update, must lead to broker upgrades....

Mercator Gold PLC
20 June 2007





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


MINING RESOURCE TO RESERVE STATEMENT


Mercator Gold Plc has finalised mining and metallurgical studies on its
previously reported resources of Bluebird, Surprise, Prohibition and Vivian -
Consols, all located in the Meekatharra region of Western Australia.

The Company is pleased to announce:

Probable reserves of 432,000 ounces of gold;
First production from the Surprise Open Pit scheduled late June 2007;
Yaloginda processing plant on track to treat initial ore 1 July 2007;
All key personnel to manage the Meekatharra Gold Operations have been
sourced;
Mining contract awarded to Mining and Civil Australia.




Managing Director, Patrick Harford, commented:

'The Reserve base underpins our decision to recommence production at Meekatharra
with 432,000oz of Reserves. In addition, the ongoing Resources to Reserve work
currently being undertaken at a number of locations will further strengthen the
company's growth platform. We look forward to a truly profitable and sustainable
future.'

Table 1

OPEN PIT PROBABLE RESERVES TONNES GRADE OUNCES
Bluebird 1,461,000 2.53g/t 119,000
Surprise 827,000 2.35g/t 63,000
Subtotal 2,288,000 2.46g/t 182,000
UNDERGROUND PROBABLE RESERVES
Prohibition 1,372,000 4.06g/t 179,000
Vivian - Consols 233,000 9.54g/t 71,000
Subtotal 1,605,000 4.85g/t 250,000
TOTAL 432,000

Grade is grammes per tonne. Ounces are Troy ounces. Small numeric differences
may occur due to number rounding. This applies throughout this release.



Table 2
---------------- ---------- --------- --------
CURRENT RESOURCE TONNES GRADE OUNCES
INDICATED & INFERRED
--------------- ---------- --------- ---------
Mudlode 446,000 5.46g/t 78,000
(3.0 g/t cut-off)
--------------- ---------- --------- ---------
Fatts 180,000 3.65g/t 21,000
(3.0 g/t cut-off)
--------------- ---------- --------- ---------
TOTALS 626,000 99,000
--------------- ---------- --------- ---------

Note: Mudlode and Fatts remain in the Resource category pending further access
and stope design.

MINING OPEN PIT

Surprise

The Surprise open pit lies within 800 metres of the Yaloginda Carbon in Leach
(CIL) processing plant. Pit Optimisations were conducted on the resource models
resulting in the pit being deepened from 55 metres to 120 metres.

Geomechanical studies were conducted by Coffey Mining to determine wall slope
designs. As this open pit lies in close proximity to a major arterial highway,
statutory requirements necessary to ensure wall stability integrity is
maintained have resulted in a reduction of ounces mined from previously reported
reserves.

A mining contract has been awarded to Mining and Civil Australia, which has
mobilised a fleet of equipment ready to commence mining within the next few
weeks subject to DOCEP (Department of Consumer and Employment Protection)
approvals.

A grade control program has been completed for the first 30 metres and has
returned positive variance to the reserve model.

Bluebird

The Bluebird open pit has been optimised to a total depth of 180 metres, which
extends the existing pit 100 metres below floor. The proximity of Bluebird to
the Yaloginda processing plant (less than 1,000 metres) and the proximity to
ideal waste dump locations have had positive impacts on mining costs. Detailed
geomechanical studies have been completed by Coffey Mining to determine wall
slope design parameters, which become more critical with the open pit being
extended a further 100 metres in depth.

Mining costs have been received from Mining and Civil Australia utilising
larger, higher capacity earthmoving equipment for this larger open pit. The
larger equipment reduces the unit mining costs, whilst ensuring the productivity
rates required to meet the overall schedule.

Table 3

OPEN PIT PROBABLE RESERVES TONNES GRADE OUNCES
Bluebird 1,461,000 2.53g/t 119,000
Surprise 827,000 2.35g/t 63,000
TOTAL 182,000


Mining Schedule

Open pit mining commences with Surprise. Low grade ore will be used first to
build up gold inventory over the initial three-month period, followed by higher
grade ore over the ensuing six months. Pre-stripping of the Bluebird open pit
will commence once final approvals have been received from the statutory
authorities (expected timing of three to four months). Bluebird ore would then
be blended with Surprise to smooth monthly gold outputs.

Subject to the scheduling of the open pits, ore production from Bluebird and
Surprise over an 18 month period will rise to an annualised gold output of
120,000ozs at an expected process rate of 1,250,000 tonnes per annum.

Mining Underground

The Prohibition orebody will be accessed and serviced by a 5.0m x 5.5m decline.
The mining methods will be predominantly large mechanised sub level open stopes.
Geomechanical studies of the rock types, conducted by Peter O'Brien and
Associates have confirmed the methods proposed and identified the support
mechanisms for decline and stope development.

Red Rock Engineering, a specialist underground mining consultant has provided
all decline access and stope design, inclusive of schedules, operating and
capital costs.

Prohibition lies within 250 metres of the Eastern line of lodes known as
Vivian-Consols and Mudlode. These lodes were historically mined as narrow vein
high grade orebodies. Access and services to these lodes will be shared with
Prohibition.

Ventilation and second egress will be provided from an existing
three-compartment shaft that lies within 400 metres of the Decline Portal.

Initial access will target Prohibition to 300 metres below surface and
Vivian-Consols to 250 metres below surface.

Reserve development from the identified resources at Mudlode and Fatts will be
notified following the completion of the detailed stope design presently being
undertaken.

The Prohibition, Vivian - Consols and Mudlode orebodies remain open along strike
and at depth. The Company believes that considerable Resources and thereafter
Reserves remain to be delineated once access to drilling locations has been
established.

The table below outlines the stoping profiles expected over the initial
development phases before additional underground drilling programs are
undertaken.

Table 4

STOPING LOM OUNCES
Prohibition tonnes 1,372,000 tonnes @ 4.06g/t 179,000
Vivian-Consols tonnes 233,000 tonnes @ 9.54g/t 71,000

TOTAL 250,000

Metallurgy

A number of metallurgical studies have been conducted on the projects specified
above by highly regarded metallurgical consultants AMMTEC, Bateman Minerals and
Metals and Orway Mineral Consultants. Since the Yaloginda CIL plant previously
treated some of the ore types represented above and was designed to treat
variable ore types no new circuits are required in the initial production phases
other than the addition of a gravity circuit.

The following table highlights the respective ore characteristics identified
from metallurgical test work.


Table 5
------------ ---------- --------- ----------- ---------
PROJECT NAME BOND MILL GRAVITY GOLD CIL GOLD LEACH
Work Index kwhrs/t % rec % rec hours
------------ ---------- --------- ----------- ---------
Surprise 12 to 15 14.5 to 34 93.5 12 to 24
------------ ---------- --------- ----------- ---------
Bluebird 12 to 15.3 14 to 40 93.5 to 98 12 to 48
------------ ---------- --------- ----------- ---------
Vivian 15 to 18 19.7 97.9 24
------------ ---------- --------- ----------- ---------
Consols 15 to 18 53 93.6 24
------------ ---------- --------- ----------- ---------
Prohibition 18 to 23 25 83.5* 24
------------ ---------- --------- ----------- ---------

*Prohibition ore requires additional flotation and ultra-fine grinding to
liberate gold. Recoveries of 90 to 95% are then achievable. Testwork was
undertaken by Bateman Minerals and Metals.



Competent Persons Report - Consent for release

The information in this report, which relates to the Surprise, Bluebird,
Prohibition, and Vivian - Consols Ore Reserves, is based on information compiled
by Alan Coles and Denis Geldard.

Alan Coles and Denis Geldard are full time employees of Mercator Gold Australia
Pty Ltd and are Members of the Australasian Institute of Mining and Metallurgy.

Alan Coles and Denis Geldard have sufficient experience which is relevant to the
style of mineralisation and type of deposit under consideration and to the
activity which they are undertaking to qualify as Competent Persons as defined
in the 2004 Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves'.

Alan Coles and Denis Geldard consent to the inclusion in the report of the
matters based on this information in the form and context in which it appears.



For further information please contact:

Mercator Gold plc
Terry Strapp, Chairman Tel: +61 (0) 412 228 422
Patrick Harford, Managing Director Tel: +44 (0) 20 7929 1010

Email:
info@mercatorgold.com
Website:
www.mercatorgold.com

GF,

Yes a decent update there, and they have around three years production as resources now.

Broker upgrades should arrive in due course, probably around the time first gold pour has occurred IMO.

Spot on ST.

Dope today goldfinger any view why this maybe ....cynic do you have this one on your list ........;-o