Feb 03, 2010
Merrex 2010 Resource Increases Grade and Establishes Indicated Resource at Siribaya
HALIFAX, NOVA SCOTIA -- (Marketwire -- February 3, 2010) - Gregory Isenor, P.Geo., President and CEO of Merrex Gold Inc. ("Merrex")(TSX Venture: MXI) is pleased to release the second resource estimate for Merrex's Siribaya Gold Project in West Mali. This estimate, completed by ACA Howe International Limited, resulted in a marked increase in the average grade and established an Indicated resource continuous over 800 metres, open to the north, south and at depth.
** The cut-off grade of 0.5 g/t was used in the January 2009 resource estimate.
From Merrex Gold President Greg Isenor
"Pursuant to NI 43-101, Merrex is pleased to disclose the updated January 2010 mineral resource estimate (see Table 1) for its Siribaya Gold Project" said Merrex President Gregory Isenor. "The objectives of the 2009 drilling program at Zone 1B were to increase the grade, elevate the resource classification, extend and confirm the continuity of Zone 1B and to refine the geological model.... and we were successful on all counts. Future exploration at Siribaya can now be based upon this refined geological model.
Of particular significance to investors are, firstly, the dramatic increase in grade, especially so when applying a 1.5 g/t cut-off (see Table 2 below) and, secondly, the elevation of most of the resource from the 'Inferred' into the 'Indicated' resource classification. I want to emphasize the importance of establishing that the Siribaya Deposit gold grades are comparable to the producing mines in the west Mali gold belt. Equally important, proving that grade to be continuous over 800 metres strike in the Indicated resource classification increases our confidence that after the full extent of our deposits within the 1A and 1B substructures have been drilled, future infill drilling will elevate Inferred and Indicated resources into the Measured classification and, given favourable economics, into Mineral Reserves. Merrex now looks forward to the 2010 exploration program for further indications of just how large this deposit might become."
About the Siribaya Resource Estimate
The 2009 exploration program met its exploration objectives. The application of a more robust/constrained wireframe geological model to the resource at Siribaya Zone 1B established the continuity of the resource in the Indicated resource classification at a grade comparable to the other producing mines in the region.
Readers will note that the map (attached) shows the location of the resource within the sub-structure and illustrates the relatively small size of the resource areas (Zone 1B 100 metre wide x 800 metre and Zone 1A a mere 50 metre x 50 metre) compared to the overall open strike potential of the mineralized areas adjacent to the two substructures.
The estimate of 308,200 ounces of gold Indicated and an additional 69,500 ounces of gold Inferred applying a 0.5 g/t Au cut-off, includes resources from both the 1B substructure and the parallel 1A substructure. Both Zones 1A and 1B are open at depth and along strike to both the north and south within the 12 kilometre Siribaya mega-structure.
Table 2 illustrates the sensitivity of the average grade to the block cut-off grade. Applying the higher cut-off of 1.5 g/t Au results in a substantial increase in the average resource grade without a significant reduction in the contained gold, indicative of the well defined nature of the Siribaya Deposit.
About the Siribaya Gold Project
Merrex controls 100% of the Siribaya Gold Project which comprises over 800 square kilometres of exploration permits in West Mali including the Siribaya mega-structure. Within the Siribaya mega-structure, Zone 1B, the primary subject of the current resource estimate is a 100 metre wide by 800 metre mineralized zone within the 500 metre wide by 10.5 kilometre long 1B substructure, and Zone 1A is part of the twin 500 metre wide x 9.5 kilometre long 1A sub-structure. The Siribaya mega-structure has yielded ore-grade drill intercepts in a number of selected targets along its entire length. Since 2005 Merrex and IAMGOLD have invested over $11,000,000 in exploration at Siribaya.
In December, 2008 Merrex closed an Option Agreement with IAMGOLD pursuant to which IAMGOLD may incur up to CDN$10.5 million in exploration expenditures over 4 years, to earn a 50% interest in the Siribaya Gold Project, of which $3.0 million has been spent to date. Merrex will be the Project Operator for two years or until exploration expenditures of $5.5 million after which IAMGOLD can elect to be the Operator. IAMGOLD has committed to a $2,500,000 exploration program for 2010. Planning of this program is well advanced.
Resource Estimate and Methodology
The resource estimate, prepared by independent consultants ACA Howe International Limited, is effective February 3, 2010.
The gold deposit has been interpreted as sub vertical fracture controlled mineralisation, with north-south trending en-echelon shear zones stepping to the northeast on east-northeast trending complementary shears. Mineralisation associated with these structures includes lenses developed in brecciated felsic volcanic rock and interbedded sediments and higher grade hydrothermal breccia-style mineralisation with a polymetallic assemblage. Other styles of mineralisation include stockworks, veins and disseminated sulphides hosted by quartz feldspar porphyry and felsic dykes. The resource estimate was completed for the saprolite, saprock and fresh rock mineralisation. Analysis of the sample statistics indicates that there is no evidence of near-surface supergene gold enrichment.
Micromine (Version 11.0.3) resource evaluation software was used. Mineralised domains were interpreted by applying a 0.25 g/t grade envelope to drill hole intervals in cross-section. The cross section interpretations were then wireframed to create 46 3-D domains. A wireframe restricted block model was constructed with a cell size of 5m3 within these polygons for the purpose of grade estimation.
Raw assay values were composited to 1m intervals for use in an inverse distance weighted (IDW3) block model interpolation. The search radii and ellipsoid orientations were determined for each domain by drill hole spacing and the plane of mineralisation orientation for each domain
Resource classification parameters were chosen based on a combination of the range of the search ellipse results and the author's judgement. Resources were reported, as required by NI 43 101, according to the CIM Standards on Minerals Resources and Reserves.
The Mineral Resource estimate is based on diamond drilling through to August 2009, which was generally limited to 250 metres vertical depth. Diamond drill samples were typically one metre in length. Currently, average rock density values for the saprolite zone, saprock zone and for hard rock are taken as 1.82, 2.32 and 2.82, respectively. Additional rock density samples are being collected to better represent the weathered saprock zone. All samples were assayed by 50 gram fire assay at the ALS Assay Laboratory in Bamako, Mali.
The Resource Estimate (Table 1) uses a block cut-off grade of 0.5 g/t Au. For comparison purposes, a 1.5 g/t Au cut-off is applied in Table 2.
No resources in the Measured category or Mineral Reserves have been outlined. Mineral resources are not Mineral Reserves, though all categories of resources are considered likely to be mineable in the future according to CIM definition. Reserve status and category will be determined following technical and economic studies.
Andrew Phillips, M.Sc., CEng, PrSciNat, a Qualified Person under National Instrument 43-101 and an Associate Senior Geologist with ACA Howe International Limited, oversaw the estimation of the property's resources, co-authored the resource section of the report and has reviewed related technical information presented in this news release and elsewhere. This report will be filed on Sedar within 45 days of this news release. Mr. Phillips is independent of Merrex applying all of the tests in Section 1.4 of NI 43-101.
Merrex is a Mali focused gold exploration company with experienced management, a solid exploration team, a prominent gold-producing partner and an expanding Indicated gold resource ... a winning combination offering investors an extraordinary opportunity.
Please visit our website at www.merrexgold.com for the most recent presentation.
On Behalf of the Board
Gregory Isenor, P.Geo.
President & CEO
Merrex Gold Inc.
1550 Bedford Highway
Suite 802, Sun Tower
Bedford, NS B4A 1E6
Tel.: (902) 832-5555
Fax: (902) 832-2223
Renmark Financial Communications Inc.
Jason Roy: [email protected]
Barbara Komorowski: [email protected]
Tel.: (514) 939-3989 or (416) 644-2020
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.
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