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.

Lovely move up recently due in part to the credit crunch.

Certainly one to be on.

Mercator are presenting in London on Demeber 10th, at 18:00.

Attendance is free.

FOR FURTHER INFORMATION AND REGISTRATION DETAILS, please click HERE

Mercator Gold and Gold Oil (GOO) are presenting in London this coming Monday evening!
It should be a terrific pair of presentations, and if that isn't enough, the free wine and canapes may tempt you!

Hope to see some of you there!

------------


Monday 10th December 2007

Gold Oil and Mercator Gold will present for 30 minutes with 10 minutes Q&A to follow. After the presentations are complete the directors will be available to take questions during a free canapand wine reception which will be open until 8pm

5:45pm for a prompt 6:00pm start at the Chesterfield Mayfair Hotel 35 Charles Street, Mayfair, W1J 5EB Click here for a map of the venue

Canap and wine reception to follow
We look forward to your attendance.

http://www.proactiveinvestors.co.uk/eventregistration.php

NEW ARTICLE, CLICK HERE

Hammered today suspending work at the mine.

It is a crap share

Down again today, and you wonder where any buying support will come from?

Quite appalling, another AIM disaster, i wonder how many more there will be?

It has suspended work for a few weeks and dropped 50% Imho this has been oversold

Just heard its suspended..

mitzy,

This article will update you, click HERE

Great article by Proactiveinvestors!

Click HERE

Enjoy!

http://www.investegate.co.uk/Article.aspx?id=20091231070000Z9105
cyril

New article, click HERE