Merrex Provides Corporate Update
HALIFAX, NOVA SCOTIA -- (Marketwire) -- 06/18/12 -- Gregory Isenor, P.Geo., President and CEO of Merrex Gold Inc. ("Merrex") (TSX VENTURE: MXI) is pleased to provide the following corporate update.
Siribaya Gold Project
The Siribaya Gold Project is a joint Merrex-IAMGOLD (50/50) exploration project comprised of a huge contiguous land package (approximately 850 square kilometres of gold-prolific exploration permits and permits applications pending) where exploration expenditures to date exceed $28 million.
Although drilling remains suspended at Siribaya, the project is still advancing and a total of 44,302 samples have been sent for assay with results for 36,860 assays pending. The assay lab experienced significant delays in processing the samples prior to the cessation of drilling and we expect the back-log to be cleared in the upcoming months. Results will be released as they are received, compiled and interpreted. Merrex also has an updated NI43-101 Resource Estimate in progress and this report will be released when completed by the independent consultants.
The land package hosts numerous other structures outside of the current area of drilling which have the same geological signature as the Siribaya Trend. The soil geochem and geophysics performed on these structures are currently being analyzed and interpreted by exploration personnel and this will assist in the identification of future drill targets.
The Siribaya Gold Project remains the focus for Merrex and exploration to date suggests that the Siribaya Trend has the potential to host a major gold deposit.
Exploration of the Siribaya Gold Project is conducted under a joint management committee. A total of 75,000 metres of drilling (Reverse Circulation, Diamond and Auger) was planned for 2012 at an estimated cost of $12 million; however, given the present drilling suspension it is anticipated that the planned program metreage may not be reached during calendar year 2012.
The political situation in Bamako remains stable and Merrex and project operator IAMGOLD continue to monitor the situation closely.
Jubilee Zinc Project
Merrex holds zinc/lead permits in both Nova Scotia and Ireland (5 permits for a total of 31 square kilometres in Nova Scotia and 30 permits for a total of 1,043 square kilometres in Ireland). This large land package is highly prospective for zinc/lead and management is currently reviewing the possibility of putting these assets out into a separate vehicle.
General
Merrex is fully funded and has taken steps to reduce costs and conserve cash during this period of market down turn and drilling cessation. We have sufficient cash on hand to meet all administrative and planned exploration obligations.
For further details about the Siribaya Gold Project visit Merrex's website at www.merrexgold.com.
Gregory P. Isenor, P. Geo., is the Qualified Person as defined under NI 43-101 who has reviewed and is responsible for the technical information presented in this news release.
Merrex is a Mali focused gold exploration company with experienced management, a solid exploration team, a prominent gold-producer as a partner and an expanding gold resource...a winning combination offering investors an extraordinary opportunity.
Please visit our website at www.merrexgold.com for the most recent corporate presentation.
On Behalf of the Board
Gregory Isenor, P.Geo., President & CEO
This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Merrex Gold Inc.
Gregory Isenor, P.Geo.
President & CEO
(902) 832-5555
(902) 832-2223 (FAX)
info@merrexgold.com
www.merrexgold.com
