Gold exploration company Mercer Gold Corp. today issued an update on its Guayabales Gold Project in the Department of Caldas in Columbia, reporting significant drill progress near the town of Marmato. In addition, the company said surveying is underway to prepare for both magnetic and I.P. surveying.

“We’ve made tremendous progress in exploration since we began in April 2010, while the price of gold has reached all time highs. Our basic exploration has produced results – we’ve identified three, never before known zones of interest and have verified this with independent review,” president and CEO Rahim Jivraj stated in the press release. “The recently announced drill hole MGDH-05 results appear very encouraging and potentially connect us to the neighboring Marmato discovery. We are currently conducting additional exploration activities to give us more insight into the potential of the targets and I look forward to continued results.”

The company said that nearly 10 million ounces of gold were discovered at Marmato Mountain, directly adjacent to Mercer Gold’s exploration target. Mercer Gold will continue to drill at the Guayabales Gold Project headed by James M. Stonehouse, the company’s vice president of exploration.

“We are quite encouraged that we are finding parallel mineralized structures, which we had predicted coming out of the Marmato district,” states Stonehouse. “In the Encanto Zone, we continue to hit consistent mineralization which, at today’s prices, may represent a viable target in its own right. We’re still in early stages, but we hope to find mineralization in numerous parallel veins here similar to Marmato.”

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