May 18, 2010
Merrex Gold - Drilling Hits Zone 1B Northern Extension and New Gold Zone at Siribaya Gold Project
HALIFAX, NOVA SCOTIA -- (Marketwire -- May 18, 2010) - Gregory Isenor, P.Geo., President and CEO of Merrex Gold Inc. ("Merrex")(TSX Venture: MXI) announces that the fence of RC drill holes north of 1B at the Siribaya Gold Project in West Mali has successfully intersected the extension of Zone 1B and hit a new gold zone.
"Our reconnaissance RC drill program is well underway and we are pleased to announce that our first drill fence located approximately 250 metres from the northern limit of the Zone 1B Indicated Resource area has hit the northern extension of Zone 1B and, in addition, hit an entirely new gold zone," said Gregory Isenor, President and CEO of Merrex Gold. "Hole 10-008, which is on strike geologically and consistent with the IP chargeability contact of Zone 1B, intersected 2.01 g/t Au over 5 metres with mineralization characteristic of Zone 1B and is interpreted as being the extension of Zone 1B. Hole 10-005 to the west of Hole 10-008 assayed 0.7 g/t Au over 39 metres and is interpreted as being an entirely new zone not previously encountered in Zone 1B drilling. Drilling is now underway south of Zone 1B."
Note: All intersections are drill intersection lengths, not true widths.
Fence #1 North (43+80N) 500 metres north of Zone 1B
The first east-west drill fence of the 2010 RC drill program was located approximately 250 metres north of the Zone 1B Indicated Resource area. The 14 drill holes were oriented at 270° with a plunge of -50° west and were drilled to approximately 100 metres target depth at 50 metre spacing and are interpreted as intersecting the extension of Zone 1B and a new gold zone.
Zone 1B Extension
Two holes, 10-007 and 10-008, are interpreted as having intersected the extension of Zone 1B.
Hole 10-007 intersected 2.01 g/t Au over 1 metre in laterite between 5 and 6 metres depth. Hole 10-008, located east of and undercutting Hole C10-007, intersected 2.09 g/t Au over 5 metres (including 7.07 g/t Au over 1 metre) from 61 to 66 metres depth. These two holes are on strike geologically with Zone 1B and the IP chargeability is consistent with that of Zone 1B. In addition, the mineralization of Hole 10-008 is identical to the mineralization of Zone 1B with good quantities of pyrite with magnetite in similar saprolitic rock. Importantly, the interpreted gold zone shows an increase in both width and grade at depth.
Interpreted New Gold Zone
Hole 10-005 located west of Hole 10-008 assayed 0.7 g/t Au over 39 metres between 11 and 50 metres depth and based on location and IP data is interpreted as being potentially an entirely new gold zone not previously encountered in Zone 1B drilling. Follow-up diamond drilling will be required to confirm the geometry and the size of this interpreted new zone.
The 2010 RC Drill Program
Working in concert with IAMGOLD Corporation ("IAMGOLD"), Merrex has initiated a 14,500 metres RC reconnaissance drill program. This program was not designed to expand the NI43-10 resource estimate; rather it is designed to explore new areas of the Siribaya Mega-structure and begin defining the potential magnitude of the mineralised areas within the Siribaya Mega-structure.
Six drill fences, 500 metres apart, consisting of drill holes oriented at 270° with a plunge of -50° west to approximately 100 metres target depth at 50 metre spacing, will be placed east-west across the entire width of the 1A and 1B substructures. The first drill fence (43+80N) is approximately 250 metres north of Zone 1B; the remaining five drill fences will be to the south of Zone 1B at approximately 500 metre step-outs. The southern-most drill fence will reach the old Berekegni artisanal underground workings on the 1B substructure and the major RAB anomaly at Zone 1A.
Drilling has moved south of Zone 1B. Fence #1 South (33+80N) totalling 27 drill holes is complete and assays are pending. The strategy is to drill on lower lying areas prior to the rainy season moving the drill to the higher laterite plateau as the rains increase. Drilling is currently underway on Fence #5 South (18+80N) with six drill holes completed and on Fence #6 South (13+80N) with three drill holes completed.
RC drilling is by BLY Mali SA, the Malian division of Boart Longyear Canada of North Bay, Ontario.
Auger drilling designed to test gold anomalies outside of the Siribaya Mega-structure at Zone Bambadinka and on the Babara and Kofia Permits area will commence at a later date and shareholders will be advised.
Table of Assays
About the Siribaya Gold Project
Merrex controls 100% of the Siribaya Gold Project comprising over 840 square kilometres of contiguous exploration permits in West Mali including the Siribaya mega-structure. The Siribaya mega-structure has a CIM compliant NI43-101 resource estimate of 4,015,000 tonnes grading 2.39 g/t Indicated (308,200 oz Au) and 946,000 tonnes grading 2.29 g/t Inferred (69,500 oz Au). The NI43-101 resource is open to the north, south and at depth.
Within the Siribaya Mega-structure are two distinct substructures; the 500 metre wide by 10.5 kilometre long 1B substructure and 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.
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 is currently the Project Operator; IAMGOLD will become Project Operator at the conclusion of the 2010 exploration program estimated for sometime during the summer months. The operator transition planning is in process.
Since 2005 Merrex and IAMGOLD have invested over CDN$11,000,000 in exploration at Siribaya. The current exploration program will satisfy IAMGOLD's next CDN$2,500,000 exploration obligation.
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
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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