Jul 02, 2014
Game-changing New Gold Discovery at Siribaya's Diakha including assays of 34 m of 3.22g/t and 16 m of 2.06 g/t Au in hole 445
HALIFAX, NOVA SCOTIA -- (July 2, 2014) - Greg Isenor, President and CEO of Merrex Gold Inc. ("Merrex") (TSX Venture: MXI) announces that reverse Circulation ("RC") drilling at the Siribaya gold project's Diakha anomaly in West Mali confirms a significant new gold discovery with multiple zones of gold mineralization.
• 41 of 52 completed holes had significant gold mineralization
• Multiple zones of gold mineralization over a wide area
• Numerous significant assays including: RC hole 445-34 m of 3.22 g/t gold and 16 m of 2.06 g/t gold; RC hole 429-30 m of 2.58 g/t gold; RC hole 421-26 m of 3.03 g/t gold; RC hole 441-10 m of 3.88 g/t gold
• Success contingent expanded Phase II follow-up RC & DD program is already approved
"These exceptional drill results from the ongoing drilling at the Siribaya gold project in West Mali are indicative of an impressive new gold discovery. The Diakha anomaly is now the Diakha discovery, and this new discovery zone is the game-changer that we have been seeking" said Merrex President Greg Isenor. "Eighty percent of the drill holes completed at Diakha returned significant gold assays. There are long mineralized intervals with very good gold grades throughout the drilled area and the mineralized discovery zones are open in all directions and at depth. Most holes were only drilled to 100 metres depth and four holes ended still in mineralization. I am extremely encouraged by the near-term potential of the Diakha discovery zone to build shareholder value and the joint venture drill program has already been expanded to follow-up on these impressive results. I want to commend the new exploration team assembled by project operator IAMGOLD Corporation. They designed and implemented a highly professional, cost effective exploration program for Diakha and the results are outstanding."
Diakha Exploration Program Phase I
The 2014 Phase I 2014 Reverse Circulation (RC) drill program on the Diakha gold anomaly at the Siribaya project was comprised of 54 drill holes totaling 5,211 metres. This area, which is located in the western-most of the 910 km2 Siribaya exploration concessions, occurs several kilometres south along strike of IAMGOLD's Boto gold discoveries in Senegal and B2Gold/Papillon's Fekola deposit in Mali. See Map 1 with additional disclosures.
The Diakha area was highlighted for exploration by the presence of a strong gold geochemical anomaly delineated from a regional termite mound sampling survey and coincident with significant artisanal (orpailleur) mining activity.
Initial assay results (reported April 30, 2014) from the first eight RC drill holes returned encouraging results confirming the presence of gold mineralization. The assay results from the remaining 44 holes (two holes were abandoned) have now been received, validated and compiled and are reported herein. See Table of Significant Assays below.
A drill hole plan map with summary assay results from the Phase I drilling is provided in the Diakha Drill Hole Plan Map..
These assay results, as reported below, confirm the presence of multiple zones of gold mineralization over a wide area associated with altered (albite-hematite-chlorite) sandstone lithologies carrying trace to 2% disseminated pyrite + chalcopyrite-arsenopyrite, occasionally with visible gold. The mineralization and associated mineralization bears similarities to the Boto gold deposit mentioned above.
Table of Significant Assays for RC Drill Program Diakha Anomaly
Note 1: Composite intersections at or above 2m length and/or at or above 2g/t are in bold.
Note 2: All samples sent to the laboratory are two meter composite samples
Note 3: QA/QC and additional technical information are described below
Note 4: Drill hole intercepts are calculated using a minimum down-hole length of 2 meters, a cut-off grade
of 0.5 g/t gold, a global assay cap of 25 g/t gold and may include up to 5 metres of internal dilution
Note 5: The widths of intersections are downhole lengths; true widths are unknown at this time
Note 6: All holes were drilled azimuth 115 and dipping -60o
Note 7: "EOH" means 'end of hole'
Note 8: Holes 432, 442, 443, 453, 454, 456, 457, 458, 461, 462, 464 showed no significant assay values
Note 9: Holes 412-719 were released on April 30, 2014
About the Expanded 2014 Exploration Program
The expanded Phase I and Phase II 2014 exploration plan includes 32,750 metres of RC and Air Core drilling and 1,250 metres of diamond drilling budgeted at US$2,127,000, and is designed to test priority targets identified by geochemical termite sampling. Greater emphasis is being placed on targets occurring within the western permits (Kambaya and Siribaya West), while those located further east are being further refined and prioritized (Kofia to Diarindi). Lastly, up to 12,500 metres of mechanized auger drilling is planned for targets in the eastern portion of the project area.
IAMGOLD is funding the expanded US$2.127 million 2014 program and has agreed to extend the payment deadline for all joint venture exploration contributions to December 31, 2014.
Technical Information and Quality Control Notes
The Siribaya Gold drilling results contained in this news release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects. The sampling of, and assay data from, rock chips is monitored through the implementation of a quality assurance - quality control program by IAMGOLD designed to follow industry best practice.
Rock chips from the Reverse Circulation drilling are collected at the rig site, at one metre intervals, under the direct supervision of IAMGOLD geologists. Samples are riffle split to obtain two 3 kg samples. One sample is retained for reference purposes and the other is used to prepare 2-meters composite samples for assay. The 2 meter composite samples are prepared at the project site, by trained technicians supervised by IAMGOLD geologists. Samples are analyzed at the ALS Chemex Analytical Laboratory in Bamako, Mali, using a standard fire assay with a 50 gram charge and an Atomic Absorption finish.
About Merrex's Siribaya Gold Project
The Siribaya Gold Project is a 50/50 joint Merrex-IAMGOLD advanced-stage gold exploration project in West Mali comprised of approximately 910 square kilometres of gold-prolific exploration permits and permit applications pending. Exploration of the Siribaya Gold Project is conducted under a joint management committee with IAMGOLD as the project operator. Expenditures to date on the Siribaya Project total approximately $40 million.
The Siribaya Gold Project presently hosts a gold resource estimated at 303,900 ounces grading 2.34 g/t Indicated, and 301,400 ounces grading 2.17 g/t Inferred. The gold resource estimate was prepared in accordance with CIM definitions as required by NI 43-101 and is at July 31, 2012 by ACA Howe International Limited. The deposit areas are open to the north, south and at depth. Numerous other gold-anomalous target areas have been identified by geochemistry and require drilling.
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 primarily a West African focused gold exploration company with experienced management, a solid exploration team, a prominent gold-producer as a partner and an expanding gold resource.
For further details about the Company's exploration activities or to view the most recent corporate presentation visit Merrex's website at www.merrexgold.com.
To be added to Merrex's email contact list please email your request to [email protected].
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
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 news release.
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