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9/12/10

Right to reply on Mercer Gold (MRGP.ob)

I like it when people connected with companies I'm negative on have the wherewithall to push back, mail in and tell me I'm wrong, the main reason being that it separates the guys who believe they've been hard done by from others that have nothing by way of defence. Here follows a mail received yesterday morning from Keith Laskowski, member of management at Mercer Gold (MRGP.ob) regarding this post on Friday. Permission was received to publish his words and we're more than pleased to give Keith right to reply. Kind reader, please read on:

Hi Otto: 
I read your comments about Mercer Gold.  Generally I enjoy your direct approach, however in this instance I have to disagree with several issues you have raised.  I think you have jumped to conclusions about the geology and mineralization, without evaluating the data, perhaps.  I offer the following, with the interest of providing you with the accurate technical information. 
Your comments about Mr. Stonehouse do not recognize that Mr. Stonehouse joined the project in Ecuador, long after the problems had been created.  Your colorful description of that project is reasonably accurate, however it is unfair assign the responsibility of that project’s failures to Mr. Stonehouse. 
As for the project at Guayabales, your comments are inaccurate.
Guayabales is a well known mineralized area, most recently held by Colombia Mines Corporation, prior to Mercer Gold.
Mercer’s Guyabales property is not several kilometers away from Medoro’s Marmato Project.  Guayabales abuts Marmato along trend to the northeast  from their high grade producing veins.  These same veins occur within Medoro’s +9 million ounce gold resource. The Guayabales property is roughly twice the size of Marmato with same age intrusive hosts, similar style veins and stockworks.  It is not Marmoto, but the geology is very similar, and a continuation.
There are 16 underground mines, in various forms of operation, on the Guayabales property, with no significant cultural, or environmental issues on the property.  Anyone familiar with Marmato, and Guayabales, and many of the other exciting projects in Colombia ( ie. La Colossa) understands that these gold systems are primarily porphyry gold systems, which contain high grade veins, hosted within a larger area of lower grade mineralization (as described by Richard Sillitoe).  Taken together these constitute bulk mineable gold  targets.  Your comments about high grade narrow veins are taken out of context.   
There are a very clear geological and structural relationship between these two project areas, which are carefully described in the publicly available NI-43101 report on Guayabales.  I have attached this report for your reference.   
Mercer is a US listed company, however because some of the management are from British Colombia, all reports, and documents are filed both in the US, and on SEDAR, for Canadian issuers.  The company will likely move to the TSX in the coming months.  The NI-43101 report is available both on the SEDAR website, under Mercer Gold Cporporation, and on the Company’s website (www.mercergoldcorp.com).  In my opinion, this is one of the best NI 43-101 technical reports I have seen, and I suggest you have a look if you are interested in a fair evaluation.  I have tried to attract good people to this project, but these inaccurate comments are not fair to the parties involved. 
Guayabales is apparently a well kept secret and this is likely because the marketing has not utilized enough technical input.    
While I do not oppose your opinions about the market values of any company, and I am in agreement about the undesirable characteristics often associated with the Bulletin Board listings; however I must provide you with my professional opinion about the geology, which forms the foundation of this company.   In my opinion, this property is one of the best properties in Colombia, and it has substantial potential to host a significant gold resource.  This is purely my opinion, and is not compliant with NI-43101 disclosure regulations.  Read the NI-43101 on Guayabales.  This is a forward looking statement, but it is also the current focus of the work at Guayabales.
Sincerely; 
 
Keith A. Laskowski  MSc. QP
Chief Geologist & Director