Jan 20, 2010
Merrex - Drilling Commences at Jubilee
HALIFAX, NOVA SCOTIA -- (Marketwire -- January 20, 2010) - Gregory Isenor, P.Geo., President and CEO of Merrex Gold Inc. ("Merrex")(TSX Venture: MXI) announces:
Drilling Underway at Jubilee Zinc Project
Diamond drilling is underway at Merrex's 50% owned Jubilee Zinc Project in Nova Scotia. The $413,600.00 Phase 1 drill program (approximately 1,700 metres) will focus on the Jubilee Main Zone and will include testing of the mineralized vertical fault zone. The program is wholly funded and operated by Chrysos Capital Corporation ("Chrysos") after which Chrysos will operate the project under a 50/50 Joint Venture Agreement with Merrex. Jubilee has a CIM Standards and NI 43-101 compliant resource estimate of 3.1 million tonnes grading 4.71% Zinc equivalent, including 2.1 million tonnes grading 5.6 % Zinc equivalent and 1.9 million tonnes grading 5.79% Zinc equivalent (November 5, 2007 Mercator Geological Services Limited).
In addition to a direct 50% interest in Jubilee, Merrex owns a 39% equity interest in Chrysos.
Siribaya Gold Project
Merrex's principal project is its 100% interest (subject to retained government and vendor royalties) in the 800 square kilometre Siribaya Gold Project in west Mali. Siribaya is a joint exploration project funded by IAMGOLD Corporation, managed by a combined IAMGOLD-Merrex management team and operated by Merrex. IAMGOLD may earn up to 50% interest in Siribaya by expending Can$10.5 Million over four years. Siribaya has a CIM Standards and NI 43-101 compliant initial resource estimate of 2,210,000 tonnes grading 1.81 g/tonne (123,000 ounces Au) Indicated plus 5,700,000 tonnes grading 1.74 (319,000 ounces Au) Inferred (ACA Howe International Limited January 31, 2009). Subsequently over $3,000,000 was spent during the 2009 exploration season on diamond drilling, soil and termite mound geochemical sampling and an airborne magnetometer and spectrometer survey. (For detailed exploration results see news releases of June 24, Sept 3, Nov 19, Nov24 and Nov 27 or visit www.merrexgold.com) An updated resource estimate is underway. IAMGOLD has committed to and planning is underway for the 2010 exploration program estimated at $2,500,000.
Merrex has agreed to a finder's fee of $5,000 and 150,000 shares with Jamie McNeil of Halifax Nova Scotia for his assistance with the Chrysos transaction. The share issuance is subject to TSX approval.
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 presentation.
ON BEHALF OF THE BOARD
President and Chief Executive Officer
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.
You can view the Next News Releases item: Wed Feb 3, 2010, Merrex 2010 Resource Increases Grade and Establishes Indicated Resource at Siribaya
You can view the Previous News Releases item: Thu Jan 14, 2010, Merrex - Chrysos Capital Commences Trading
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