Merrex Drilling Resumes at Siribaya Gold Project
HALIFAX, NOVA SCOTIA -- (Marketwire) -- 07/03/12 -- Gregory Isenor, P.Geo., President and CEO of Merrex Gold Inc. ("Merrex") (TSX VENTURE: MXI) is pleased to provide the following corporate update.
Highlights
-- Diamond Drilling on the Siribaya Trend has resumed
-- Diamond Drilling and RC assay results continue to be received
-- NI 43-101 resource estimate update in progress
Commentary
"I am very pleased to report that crews are on-site and diamond drilling operations resumed on June 25, 2012 at the Siribaya Gold Project" said Merrex President & CEO Greg Isenor. "Although the wet season is fast approaching, we remain hopeful that we will still be able to complete 10,000 metres of diamond drilling which is one component of a total 75,000 metre drill program planned for 2012. We also continue to receive diamond drilling and RC assay results from previously completed holes which will be released once they have been compiled and interpreted. Although there still remains a considerable backlog of assay results, we anticipate this backlog will be reduced substantially in the coming weeks."
Diamond Drilling Update
3,701 metres (17 holes) of the planned 2012 10,000 metre drilling program have been completed to date on the Eastern Trend of Siribaya in the area north of the Zone 1A resource area. The diamond drill is operating to the south of the Zone 1A resource to test the area where recent RC drilling returned significant intervals of high-grade gold including 8 metres of 19.09 g/t and 12 metres of 3.99 g/t (See news releases dated November 10, 2011 and March 1, 2012).
In addition, several selected drill holes are planned to target potential "east-west" cross-structures interpreted in the Siribaya trend. These drill holes will be oriented in a generally north-south orientation rather than the east-west direction previously drilled.
RC Drilling Update
18,946 metres (157 holes) of the planned 56,000 metre drilling program have been completed to date. RC drilling has focused on the Bambadinka Trend with heel-to-toe drill fences to follow up on the positive auger drill results and identify future diamond drill targets. It is expected that this drill program will recommence as conditions allow after the end of the approaching wet season.
Updated NI43-101 Resource Estimate
Work on a NI 43-101 compliant resource estimate continues. Results from diamond drilling and RC holes drilled on the Siribaya Trend during both the 2011 and 2012 programs have all been incorporated into the NI 43-101 resource estimate which will be released when available.
Financial Advisor
National Bank Financial Inc. has been retained as a financial advisor with a broad mandate to advise the company on financing alternatives and strategies to increase shareholder value. National Bank Financial Inc.'s mandate is not in response to any approaches made to the Company.
About the Siribaya Gold Project
The Siribaya Gold Project is a joint (50/50) Merrex-IAMGOLD exploration project comprised of a large contiguous land package (approximately 848 square kilometres of gold-prolific exploration permits and permits applications pending) where exploration expenditures to date exceed $28 million. IAMGOLD has advised that the required $10.5 million of exploration expenditures under the terms of the Earn In Option Agreement has been completed and that subject to a final accounting review which is presently underway, IAMGOLD will vest with a 50% interest in the total Siribaya land package. 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 drilling suspension it is anticipated that the planned program metreage may not be reached during calendar year 2012.
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
