Jan 11, 2011
Merrex - IAMGOLD to proceed with minimum US$3,000,000 2011 exploration program at Siribaya
HALIFAX, NOVA SCOTIA - Gregory Isenor, P.Geo., President and CEO of Merrex Gold Inc. ("Merrex") (TSX VENTURE:MXI) is pleased to announce the details of the 2011 exploration program for the Siribaya Gold Project, Mali.
2011 Siribaya Exploration Program
The 50/50 Merrex-IAMGOLD Corporation ("IAMGOLD") joint project management committee has approved a minimum US$3,000,000 exploration program for the 2011 field season at the Siribaya Gold Project.
The exploration objectives of the 2011 program aim at (1) developing the mineral potential of the Siribaya permits and (2) confirming the potential for a 2 to 4 million ounce deposit along the strike extent of the Siribaya trend.
More specifically, the 2011 program includes:
About the Siribaya Gold Project
The Siribaya Gold Project in West Mali is Merrex's flagship property. Beginning in 2005 when most gold explorers were focusing further north, Merrex assembled an 848 km2 land package, the largest contiguous group of gold exploration permits in Mali. The Siribaya Gold Project is in the same gold-prolific sequence of Birimian-age greenstones shared by Randgold's Loulo mine, Anglogold Ashanti/IAMGOLD's Sadiola and Yatela mines and others in Western Mali.
Between 2006 and 2008 Merrex spent over C$8,000,000 in direct exploration and advanced the property from a grassroots exploration project to an initial NI 43-101 compliant Inferred resource estimate.
At the end of 2008 IAMGOLD joined forces with Merrex to explore Siribaya by optioning a 50% interest in return for incurring C$10,500,000 of exploration expenditures over a four year period. Since joining forces with Merrex, IAMGOLD has spent approximately C$6,000,000 on direct exploration both within the Siribaya mega-structure and across major portions of the total land package including diamond and RC drilling, a high resolution airborne survey, soil and termite mound geochemical sampling and ground IP. The 2009 diamond drill program in the Zone 1B area concluded with an updated NI 43-101 compliant resource estimate of 378,000 oz gold (4,015,000 tonnes grading 2.39 g/t Indicated plus 946,000 tonnes grading 2.29 g/t Inferred (including a small contribution to the resource from Zone 1A). Mineralization at Zones 1B and 1A remained open to the north, south and at depth, and except for the small contribution to the resource from Zone 1A, the current resource estimate covers only a small fraction of the 1B substructure, just one of two major substructures within the 10.5 km long NE-SW strike length of the Siribaya mega-structure.
The current NI 43-101 resource estimate includes drill holes over less than one kilometre of strike length. Subsequent drilling of 500 metre spaced step-out drill fences has demonstrated continuity of mineralization over a three kilometre strike length along the Siribaya trends. Interpretations based on all available exploration data indicate that the 10.5 kilometre long Siribaya mega-structure contains two distinct substructures: the 10.5 km long 1B substructure (over ten times as long as the strike of the Zone 1B NI 43-101 compliant resource area) and the 9.5 km long 1A substructure to the east of the 1B substructure. The substructures are interpreted to contain multiple smaller parallel gold-mineralized structures.
IAMGOLD, which assumed operatorship of the project in September 2010, recently accelerated its rate of exploration expenditure and IAMGOLD is ahead of schedule to earn its 50% interest. In 2010 a total of 16,142 m of RC drilling was carried out along the Siribaya trend and concurrently the geochemical trend at Bambadinka was pursued with 4,823 m of mechanical auger drilling. An additional 17,000 metres of RC drilling is planned for 2011. This drilling will further extend the explored strike length of the Siribaya trends from three to six kilometres.
Outside of the Siribaya mega-structure new mineralized trends have been discovered; Siribaya West which lies to the west of the Bambadinka trend and the Babara trends which lie to the east of Siribaya on the Babara and Kofia permits. These trends will be further tested during the 2011 field season.
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
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.
For more information, please contact
Merrex Gold Inc.
1550 Bedford Highway, Suite 802, Sun Tower
Bedford, NS B4A 1E6
(902) 832-2223 (FAX)
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