Mar 07, 2016
Merrex Gold - RC Drilling Results for Siribaya's Zone 1B and Taya Ko Deposits
HALIFAX, NOVA SCOTIA -- (March 7, 2016) - Greg Isenor, President and CEO of Merrex Gold Inc., ("Merrex" or the "Company") (TSX Venture: MXI) is pleased to announce the assay results from 31 reverse circulation ("RC") drill holes within the Siribaya Structure located on the Siribaya Joint Venture Gold Project in West Mali. The Siribaya Gold project is owned jointly by Merrex (50%) and IAMGOLD Corporation (50%) ("IAMGOLD").
Highlights from 31 Holes Reporting
Hole SRC15-615: From 30 to 102 metres - 72 m @ 1.61 g/t including 8 m @ 6.38 g/t
Hole SRC15-610: From 22 to 74 metres - 52 m @ 1.4 g/t
Hole SRC15-616: From 20 to 62 metres - 42m @ 1.62 g/t including 6m @ 6.26 g/t;
and from 84 to 112 metres - 28 m @ 1.1 g/t
22 of 31 holes returned significant mineralization
Drilling on the Siribaya Structure
Prior to the end of the 2015 drilling season the Merrex-IAMGOLD joint venture completed a 31 hole (3,474 metres) drill program on the Siribaya main structure. (news release December 29, 2015)
The objective of the drilling program was to evaluate for additional shallow oxide mineralization at the Zone 1B deposit area (20 holes totalling 2231 metres) and the adjacent Zone Taya-Ko deposit area (11 holes totalling 1243 metres) within areas that were sparsely drilled in 2005-2015 campaigns. The drill plans for the two zones were based on a review and reinterpretation of the geologic model of the deposit areas completed by IAMGOLD earlier in the year.
The drill program was successful with 22 of 31 drill holes returning significant mineralization (see tables of assays below) including Hole 615 which returned 72 metres @ 1.61 g/t, and validating the reinterpretation of the geologic model. Additional drilling within Zone 1B, Taya Ko and other selected zones within the Siribaya Structure is warranted and will be considered in future programs although for 2016 continued drilling at Diakha will be the exploration priority.
Zone 1B and Taya Ko were included in the December 31, 2015 NI 43-101 resource estimate (see resource estimate table below) (see also news release February 9, 2016 for additional details of the resource estimate including Qualified Person disclosures). The holes released today were not included in that estimate but will be in future estimates as warranted.
The summary resource estimate table will be found HERE.
The tables of significant assays for Zone 1B and Tayo Ko will be found HERE. Readers are encouraged to review both pages of the tables of significant assays for results from the new drill holes in each of Zone 1B and Taya Ko.
The drill plan map for Zone 1B will be found HERE.
The drill plan map for Taya Ko will be found HERE.
About the Diakha Deposit
The Diakha deposit area is located in the western-most portion of the 760 km2 Siribaya exploration concessions approximately 10 kilometres south along strike of IAMGOLD's Boto gold deposit (evaluation studies in progress) and approximately 20 kilometres south along strike from B2Gold's (formerly Papillon's) Fekola deposit (permitted for production).
The 2014 drill program of over 9,000 metres RC and over 2,000 metres DD confirmed the presence of multiple zones of gold mineralization over a wide area at significant widths and grades, in association with disseminated sulphide and albite-hematite-chlorite alteration in sandstone host rocks with little quartz veining. There is mineralization at both the SE & NW strike extensions. The mineralization and associated mineralization bears similarities to the Boto gold deposit mentioned above.
The 2015 infill drill program of over 11,000 metres RC and over 3,000 metres DD was designed to enable delivery of a maiden resource estimate prepared in accordance with NI43-101 which was completed and release February 9, 2016.
Technical Information and Quality Control Notes
The Siribaya Gold drilling results referenced in this news release were prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects. The sampling of, and assay data from, rock chips and drill core 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 SGS-Minerals located 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 760 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 exceed $45 million.
The Siribaya Gold Project presently hosts a gold resource estimated at 129,000 ounces grading 1.90 g/t Indicated, and 1,092,000 ounces grading 1.71 g/t Inferred. The gold resource estimate was prepared in accordance with CIM definitions as required by NI 43-101 and is at December 31, 2015 by RPA Inc. (news release February 9, 2016) The Siribaya and Diakha 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 JV 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
Forward Looking Statement
This news release contains forward-looking statements. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding expected, estimated or planned gold and niobium production, cash costs, margin expansion, capital expenditures and exploration expenditures and statements regarding the estimation of mineral resources, exploration results, potential mineralization, potential mineral resources and mineral reserves) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words "may", "will", "should", "continue", "expect", "anticipate", "outlook", "guidance", "estimate", "believe", "intend", "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation: changes in the global prices for gold, niobium, copper, silver or certain other commodities (such as diesel, aluminum and electricity); changes in U.S. dollar and other currency exchange rates, interest rates or gold lease rates; risks arising from holding derivative instruments; the level of liquidity and capital resources; access to capital markets, financing and interest rates; mining tax regimes; ability to successfully integrate acquired assets; legislative, political or economic developments in the jurisdictions in which the Company carries on business; operating or technical difficulties in connection with mining or development activities; laws and regulations governing the protection of the environment; employee relations; availability and increasing costs associated with mining inputs and labour; the speculative nature of exploration and development; contests over title to properties, particularly title to undeveloped properties; and the risks involved in the exploration, development and mining business. Risks and unknowns inherent in all projects include the inaccuracy of estimated reserves and resources, metallurgical recoveries, capital and operating costs of such projects, and the future prices for the relevant minerals. Development projects have no operating history upon which to base estimates of future cash flows. The capital expenditures and time required to develop new mines or other projects are considerable, and changes in costs or construction schedules can affect project economics. Actual costs and economic returns may differ materially from estimates and the Company could fail to obtain the governmental approvals necessary for the operation of a project; in either case, the project may not proceed, either on its original timing or at all.
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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