Jul 30, 2012
Merrex Releases Updated Resource Estimate for Siribaya Gold Project
HALIFAX, NOVA SCOTIA -- (Marketwire -- July 30, 2012) - Gregory Isenor, P.Geo., President and CEO of Merrex Gold Inc. ("Merrex")(TSX Venture: MXI) releases an updated resource estimate for Merrex's Siribaya Gold Project in West Mali.
1. The Resource Estimate is compliant with the Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Reserves (CIM Standards) and with disclosure requirements of National Instrument 43-101 (NI 43-101).
2. A block cut-off grade of 0.5 g/t is used. The same block cut-off was used in the February 2010 resource estimate. No distinction is made between underground or open pit potential to a depth of 350m below surface.
3. Tonnes and ounces have been rounded to four significant figures to reflect the relative accuracy of the mineral resource estimate. This may result in summation errors in tabulated totals.
4. Gold ounces have been calculated using 31.1034g per troy ounce.
5. Mineral resource tonnes quoted are not diluted.
"Pursuant to NI43-101 Merrex is pleased to release its updated July 2012 mineral resource estimate for its Siribaya Gold Project incorporating all drilling up to April 2012" said Merrex President Gregory Isenor. "The resources now include approximately 1 kilometre along strike within the 1B structure and intermittently over approximately 4 kilometres of strike length within the 1A structure. Each of the 1A and 1B structures is mineralized over approximately 10.5 kilometres of strike length. Significantly, while increasing our resource we have also maintained average grades of greater than 2 g/t. In all regions the resources remain open at depth and along strike. We are confident that continued drilling within the Siribaya structures will lead to an increased gold resource."
Please see map accompanying this release.
Diamond drilling has halted for the seasonal rains. Drilling will resume as soon as ground conditions are suitable.
About the Siribaya Resource Estimate
The resource estimate prepared by the independent consulting firm ACA Howe International Limited under the supervision of David Patrick, PhD, FIMMM, FAusIMM, together with Jean-Marc Gagnon, Ing., MBA, and Gilles Laverdiere, P. Geo. is effective July 30, 2012.
The reported Siribaya resource model incorporates a revised geological interpretation. The 1B structure gold deposit comprises a mineralised zone proximal to a contact between carbonated and overlying greywacke sediments that host a shallower discontinuous hanging wall mineralised zone. Mineralisation is hosted in structurally controlled veins and brecciated altered sediments with stockwork lenses and disseminated sulphides. Comparable settings are present within the 1A structure. Deposits are intersected by fault offsets that cut across and normal to the shear zone. Analysis of sample statistics indicates that there is no evidence of near-surface supergene gold enrichment.
Mineralised domains were interpreted in Micromine resource evaluation software by applying a 0.5 g/t grade envelope to drill hole intervals in cross-section. The cross section interpretations were then wireframed to create 100 3-D envelopes within 3 geostatistical domains. A wireframe restricted block model was constructed within these polygons for the purpose of grade estimation.
Raw assay values were composited to 1m intervals for use in an inverse distance weighted (IDW3) block model interpolation. The search radii and ellipsoid orientations were determined for each domain after considering drill hole spacing, geology and undertaking directional variography in the plane of mineralisation orientation.
Resource classification parameters were chosen based on a combination of the range of the search ellipse results and the author's judgement. Resources were reported, as required by NI43-101, according to the CIM Standards on Minerals Resources and Reserves.
The Mineral Resource estimate incorporates 165 diamond drill holes and 483 reverse circulation drill holes completed prior to June 2012. Drilling was generally limited to 250 metres vertical depth and totalled approximately 86,000 metres. Drill samples were typically collected over one metre intervals. Average rock density values for the saprolite zone, saprock zone and for hard rock are taken as 1.8, 2.3 and 2.8, respectively. All samples were assayed by 50 gram fire assay at the ALS Assay Laboratory in Bamako, Mali.
The Resource Estimate (Tables 1 and 2) uses a block cut-off grade of 0.5 g/t Au. No resources in the Measured category or Mineral Reserves have been outlined. Mineral resources are not Mineral Reserves, though all categories of resources are considered likely to be mineable in the future according to CIM definitions. Reserve status and category will be determined following technical and economic studies.
About the Siribaya Gold Project
The Siribaya Gold Project is a Merrex-IAMGOLD joint (50/50) exploration project comprised of a large (approximately 848 square kilometres) contiguous land package of gold-prolific exploration permits and permits applications pending) where exploration expenditures to date exceed $28 million. IAMGOLD has advised that the required $10.5 million of exploration expenditures under the terms of the Earn In Option Agreement has been completed and that subject to a final accounting review which is presently underway, IAMGOLD will vest with a 50% interest in the total Siribaya land package. Exploration of the Siribaya Gold Project is conducted under a joint management committee. A total of 75,000 metres of drilling (Reverse Circulation, Diamond and Auger) was planned for 2012 at an estimated cost of $12 million; however, given the drilling suspension it is anticipated that the planned program metreage may not be reached during calendar year 2012.
Technical information related to the Siribaya Gold Project mineral resource estimate contained in this press release has been reviewed and approved by Jean-Marc Gagnon, Ing., MBA, and Gilles Laverdiere, P. Geo., both Qualified Persons as defined by NI 43-101, and by David Patrick, PhD, FIMMM, FAusIMM, principal geologist with ACA Howe International Limited, an independent Qualified Person as defined by NI 43-101, all with the ability and authority to verify the authenticity and validity of this data.
The NI 43-101 Technical Report on the Mineral Resource Estimate for the Deposit will be filed on SEDAR within 45 days of this press release.
For further details about the Siribaya Gold Project visit Merrex's website at www.merrexgold.com.
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
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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