1996-1997 | Emerging Africa Gold (EAG), through Russian contractor GeoConsult, conducted extensive prospecting, mapping, and geochemistry in the area covered by MXI's permits. This work identifies several large gold anomalous zones. |
2005 | Merrex enters into a strategic partnership with Touba Mining SARL (Touba), and Malian company, to acquire and explore favorable mineral permits in the West Mali Gold Belt |
2005-2008 | Merrex has completed airborne geophysics, data compilation, sub-regional and targeted prospecting, mapping, soil geochemical surveys, trenching, and pitting. Based on this work, an aggressive 622 (~31,000m) RAB drilling programme was conducted, and followed up by 86 diamond drill holes. |
2007-2008 | Diamond drilling of priority targets on the Siribaya structure intersects significant intervals at ore grades, particularly at Zone 1B |
2008 | In 2008 an independent NI 43-101 resource estimate was completed for Zone 1B, which confirmed an indicated resource of 123,000 contained ounces Au and an additional inferred resource of 319,000 contained ounces Au |
2008 | Option agreement signed in December 2008 with IAMGOLD Corp. IMG may earn a 50% interest in Siribaya by spending $10,500,000 on exploration within three years. IMG also invested $1.5M in cash with MXI |
DESCRIPTION & LOCATION
Back to Top The Siribaya Project consists of 6 contiguous exploration permits in southwestern Mali. The project is located 50km south of the town of Kenieba, in the administrative region of Kayes, Mali.
West Africa has in recent years been the world’s fastest growing area for discovery, development, and production of gold, with Mali at the forefront.
Merrex has established a permanent, well-equipped exploration camp adjacent to the town of Berekegni, roughly 50km south of the town of Kenieba. During the dry season, the Berekegni camp is accessed via dirt road from Kenieba, where a government owned airstrip is serviced by regular flights from Bamako, as well as being available for chartered aircraft. Kenieba is also linked to Bamako by rail.
The properties are traversed by the Faleme River, which provides ample water for exploration activities and would be sufficient to support mining activities should the project advance to the exploitation phase.
In 2008 Merrex commissioned ACA Howe International Ltd. to produce an independent 43-101 compliant resource estimate. This estimate outlined an indicated resource of 2.1 million tonnes grading 1.81 g/t Gold (123,000 contained ounces) and an inferred resource of 5.7 million tonnes grading 1.74 g/t Gold (319,000 contained ounces), using a cut-off grade of 0.5 g/t Gold. These numbers are solely based on data gathered to date along 350m of strike length at Zone 1B and serve to highlight the potential for a very significant gold resource at Siribaya.
MERREX / IAMGOLD OPTION AGREEMENT
Back to Top In December 2008, Merrex finalized an option agreement with IAMGOLD Corporation, under which IAMGOLD may earn up to a 50% interest in the Siribaya Gold Project by providing $10.5 million in exploration funding over 4 years, in addition to an initial investment of $1.5 million cash. The alliance between IAMGOLD and Merrex will allow the partners to significantly advance the project without the necessity of Merrex going to the markets to obtain additional funding.
GEOLOGY
Back to Top Geological outline of mineralized horizons at Zone 1B
The West Mali Gold Belt, a part of the Birimian Greenstone Belt, is a prolific gold producing region, with current annual production of more than 1.5 million ounces gold per year.
Rock in the tropics generally weathers in place and the permit area is no exception. The deposit is generally overlain by laterite and hardpan, with up to 50m of saprolite, grading to hard rock below. There is evidence that grades increase with depth, roughly doubling below 100m depth.
Merrex has identified a major gold bearing shear zone, termed the Siribaya Mega-Structure, which has been the primary focus for exploration work on the project to date. Gold mineralization associated with the Siribaya structure is present in tectonic and hydrothermal breccias, and in stockwork quartz vein systems associated with felsic dykes. Trenching, pitting, RAB & diamond drilling have identified structurally controlled anomalous and ore-grade gold mineralization over a strike length in the order of 10km.
Based on positive results from initial soil sampling, pitting, and trenching, Merrex initiated an aggressive rotary air blast (RAB) drilling programme (722 holes, ~31,000m), which confirmed the continuity of gold mineralization throughout the interpreted structures on the Siribaya permit.
To date, Merrex has focused its efforts on a 10km zone of gold anomalies, which have been correlated with a regional magnetic anomaly in the northern portion of the license block, dubbed the Siribaya Mega-Structure. Drilling performed to date on the Siribaya Structure has yielded ore-grade intercepts along the entire length. Since 2005 Merrex has invested over $8,000,000 in exploration at Siribaya.
After completing a compilation of both historic and recent geochemical data, Merrex has identified 4 priority targets with significant gold bearing mineralization coincident with the Siribaya Structure; Zones 1A, 1B, Timeta, and Bambadika.
The majority of recent work has been concentrated on Zone 1B. On the basis of this work, Merrex has produced a geological model and outlined a mineralized zone roughly 350m long, 7-12m average true widths, at least 270m deep, with grades ranging from 2-5 g/t gold. Additionally, a NI 43-101 compliant resource estimate has been generated for Zone 1B. This zone remains open along strike and at depth.
Zone 1A is interpreted to contain mineralized stockwork veins and stringers similar to what has been defined at Zone 1B. In late 2007, drilling at Zone 1A was put on hold when significant gold assays were received from Zone 1B. Merrex will return to this area during the 2009 season, to further define the mineralization at this anomaly.
Zone Timeta occupies the southern portion of the Siribaya Mega-Structure. Timeta includes the site of historic artisanal gold workings (long inactive) some 30m deep, 100m long and up to 20m wide. The workings exploited an easterly striking quartz vein roughly 1.0-1.5 meters wide. Additional drilling is planned for this zone, in consideration of its position on the Siribaya Structure, as well as the size of the artisanal workings.
Zone Bambadika lies to the West of the main Siribaya Structure, and is a priority for the 2009 exploration programme. The zone is roughly 5km long by 2km wide. Numerous gold-in-soil anomalies have been identified within this zone. Pitting and trenching suggests that the gold is confined to the surface laterite cover, which could indicate a significant and easily worked near-surface deposit.
In addition to the anomalous target areas directly corresponding to the Siribaya Mega-Structure, the overall Siribaya Project area (comprising six contiguous permits) covers several other areas of interest. In particular, the Babara permit covers an extensive zone of gold-in-soil anomalies, of larger extent that those encountered over the Siribaya Structure, have been identified in the historic data. The extensive anomalous zones coincide with distinct linear corridors observed in aeromagnetic data. Merrex carried out surface geochemical sampling over this area during the 2006-2007 seasons. Pending interpretation of these results, Merrex plans to conduct pitting, trenching, and if warranted, RAB drilling in order to identify and delineate gold mineralization in this zone.
To date Merrex has completed a total of 86 diamond drill holes, several of which were terminated in mineralized rock.
In late 2007 diamond drilling was focused on Zone 1B where significant mineralized intersections were encountered. Two styles of mineralization (breccia and felsic dyke), apparently controlled by a north-northeast trending faulting, have been recognized in this zone.
The most significant Breccia type mineralization drilled to date have been in Area 55 of Zone 1B: SR-DD-08-56 with 5.07 g/t gold over 25m, SR-DD-08-55 with 3.89 g/t gold over 25m, SR-DD-08-62 with 5.92 g/t gold over 5.92 g/t gold over 13.5 m, SR-DD-08-68 with 5.54 g/t gold over 20m, and SR-DD-08-73 with 3.05 g/t gold over 21m (all widths are true width). In area 53 of Zone 1B, hole SR-DD-08-53 returned 4.65 g/t gold over 14m true width.
Felsic dyke mineralization in Area 55 is also significant, and includes SR-DD-08-69 with 4.02 g/t gold over 20m and SR-DD-08-05 with 2.25 g/t gold over 14m (true widths).
NI 43-101 Resource Estimate, Siribaya Zone 1B, Area 55
In 2008 Merrex commissioned an independent 43-101 compliant resource estimate. This estimate outlined an indicated resource of 2.1 million tonnes grading 1.81 g/t gold (123,000 contained ounces) and an inferred resource of 5.7 million tonnes grading 1.74 g/t gold (319,000 contained ounces), using a cut-off grade of 0.5 g/t gold. These numbers are solely based on data gathered to date along 350m of strike length at Zone 1B, and serve to highlight the potential for a very significant gold resource at Siribaya.
CURRENT ACTIVITY
Back to Top The 2009 exploration programme at Siribaya is currently underway. Expenditures are scheduled at $3 million (minimum), and are fully funded by strategic partner IAMGOLD Corporation. The objectives for 2009 are to expand known gold resources at Siribaya as quickly and cost effectively as possible, as well as to identify and delineate additional gold resources within the total project area.