Oct 07, 2010
IAMGOLD Accelerates 2010 Exploration Expenditures at Siribaya
HALIFAX, NOVA SCOTIA - Gregory Isenor, P.Geo., President and CEO of Merrex Gold Inc. ("Merrex") (TSX Venture: MXI) announces that IAMGOLD Corporation ("IAMGOLD") is accelerating exploration expenditures through to December 31, 2010 at Merrex's West Mali Siribaya Gold Project.
IAMGOLD, operator of the Siribaya Gold Project, has advised Merrex of its plan to accelerate exploration expenditures at Siribaya by approximately CDN$750 000 through to December 31, 2010.
Commencing once the seasonal rains subside, 4,000 metres of RC drilling along the Siribaya mega-structure will complete the planned 2010 drill program of 14,500 metres. The RC drill, vehicles and sufficient fuel supplies are on the project side of the Faleme River, and drilling could start by the end of October.
An additional 4,000 metres of RC drilling will follow-up on excellent intersections encountered earlier this year. If a second drill is obtained then this drilling will start once access across the Faleme River becomes possible for heavy equipment, likely by the beginning of December. Otherwise this drilling will begin after the first 4,000 metres is completed.
To further evaluate the Bambadinka trend, the ground geophysical survey (gradient array IP) will be extended to cover the remainder of the trend and the mechanized auger program will be extended by 3,200 metres.
In addition, a portable XRF (x-ray fluorescence) analyzer will be purchased to analyse all dry pulp samples (including diamond drill, reverse circulation, rotary air blast and auger) and termite mound samples to identify pathfinder elements that could assist in drill targeting. A warehouse has been rented in Bamako to begin preparation of the pulps for multi-element analysis.
Lastly, IAMGOLD continues to evaluate the cost effectiveness of constructing a bridge across the Faleme River which, if economically justifiable, would vastly improve access to the Siribaya project area and extend the field season.
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 there are at least 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. Recent RC drilling has confirmed extension of the Zone 1B mineralization to an interpreted continuity of over 3 kilometres and the extension of the Zone 1A mineralization to an interpreted continuity of over 2 kilometres with additional mineralized zones discovered also with an interpreted continuity of over 2 kilometres.
The 2010 exploration program also confirmed significant new gold trends at Babara, Bambadinka and West Siribaya.
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 approximately CDN$5.5 million has been spent to October 1, 2010.
Since 2005 the combined exploration expenditures of Merrex and IAMGOLD total over CDN$13,500,000 at Siribaya.
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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