Damoti Lake Gold Project

Damoti location map in Northwestern Territories

Goal: Outline 6 to 10 million tonnes grading 9 to 15 g/t gold along strike, in parallel structures and at depth, and advance the Damoti Lake Gold Project towards a 3 million ounce gold resource, making it comparable to other northern Canadian iron formation hosted gold mines/deposits.

200 km north of Yellowknife, NT. Over 4,391 hectares of land in 6 mining leases and 5 mining claims. Merc holds a 100% interest in the lease that hosts the deposit, and an 80% interest in the remainder; all leases are subject to a 2% NSR royalty.
September 2008 - 100% acquired interest from Anaconda Mining Inc. for $250,000 and 1,250,000 Merc common shares.
High-grade, near surface, deposit. Excellent potential for resource expansion at depth and along strike.
Gold mineralization hosted in folded iron-formation associated with fold related fracturing & hydrothermal alteration.
Previous work focused on Horseshoe Zone – historic high grade gold resource that Merc aims to expand and upgrade to a NI 43-101 compliant resource in 2010.
Ramp decline driven in 1996. Approximately 430 metres of development completed. Bulk sample extracted and stockpiled on surface (3,820 tonnes averaging 15.43 grams/tonne).
Summer 2009 Drill Program - 27 drill holes (5,600 m) – 96% of holes intersected gold mineralization.
Winter 2010 Drill Program - Commenced late March 2010 - 10,000 - 12,000 metres.
Fortune Minerals relocating Golden Giant Mine gold mill from Hemlo, Ontario to Fortune Minerals Nico gold deposit located within 100 km of Merc’s Damoti Lake Gold Project.