Apr 27, 2010
Merrex Siribaya Operatorship Transition
HALIFAX, NOVA SCOTIA -- (Marketwire -- April 27, 2010) - Gregory Isenor, P.Geo., President and CEO of Merrex Gold Inc. ("Merrex")(TSX Venture: MXI) announces that IAMGOLD has advised Merrex of its intention to assume the operatorship of the Siribaya Gold Project at the end of the current exploration program and that planning for the transition is underway.
The Merrex-IAMGOLD earn-in option agreement provides that after C$5,500,000 of exploration expenditures IAMGOLD may elect to become the Siribaya Gold Project operator and IAMGOLD has advised that it intends to do so. IAMGOLD is also considering building a bridge across the Faleme River enabling year-round road access for personnel, supplies and equipment. IAMGOLD has established an office in Bamako for the company's exploration activities in Mali and hired John Learn, P. Geo., as Country Manager for Mali. Mr. Learn is familiarizing himself with the Siribaya Gold Project and will oversee all exploration programs at Siribaya once the transition is complete. The formal change of operatorship will occur sometime during the summer months; the exact date to be determined. However, a change in operatorship with on-going exploration programs is less an 'event' and more a 'process' and the project Management Committee is actively planning that process to insure a seamless transition.
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). Within the Siribaya mega-structure, Zone 1B, the primary subject of the resource estimate is a 100 metre wide by 800 metre mineralized zone within the 500 metre wide by 10.5 kilometre long 1B substructure, and Zone 1A is part of the twin 500 metre wide x 9.5 kilometre long 1A sub-structure. The NI43-101 resource is open to the north, south and at depth. 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 C$10.5 million in exploration expenditures over 4 years, to earn a 50% interest in the Siribaya Gold Project, of which $3.0 million was spent during 2009 with a further C2.5 million exploration program currently underway. Since 2005 Merrex and IAMGOLD have invested over C$11,000,000 in exploration at Siribaya.
The C$2,500,000 2010 exploration program includes 14,500 metres of RC drilling within the Siribaya mega-structure, up to 6,000 metres of auger drilling at Babara and Bambadinka, geophysics at Siribaya, and additional soil and termite mound geochemistry at Babara.
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
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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