Jul 11, 2014
Shareholder Update on Diakha Geological Context
HALIFAX, NOVA SCOTIA -- (July 11, 2014) - Greg Isenor, President and CEO of Merrex Gold Inc., ("Merrex" or the "Company") (TSX Venture: MXI) is pleased to provide additional details regarding the geological context of the new Diakha gold discovery at Siribaya, West Mali.
Merrex's new Diakha discovery zone is within the western-most permit area of its 910 km2 Siribaya land package. Diakha is at the southern end of the Fekola-Boto-Diakha trend in alignment with major gold deposits at Malikoundi and Boto 6 (1.2 million ounces Au, owned by IAMGOLD) and Fekola (5.15 million ounces Au, owned by B2Gold/Papillon). See map (figure 1) below. Diakha was identified in 2012 by a substantial geochemical anomaly delineated from a regional termite mound sampling survey and coincident with significant artisanal (orpailleur) mining activity. See photos (figure 2) below.
Phase I RC Drill Program and Geology of Diakha
The Phase I Reverse Circulation ("RC") drill program was the first drilling ever done at Diakha. At the conclusion of the 5,200 metres Phase I program the 2014 exploration budget was immediately increased because of the exceptional assay results. Results from the first 52 completed holes confirmed the presence of multiple zones of gold mineralization over a wide area. These results were reported April 3 and July 2, 2014 and included highlights of 34 metres of 3.22 g/t gold and 16 metres of 2.06 g/t gold in hole 445; 30 metres of 2.60 g/t gold in hole 429; 26 metres of 3.03 g/t gold in hole 421; and 10 metres of 3.88 g/t gold in hole 441. (See news release July 2, 2014 for complete assay details.)
The assay results confirmed the presence of multiple zones of gold mineralization associated with altered (albite-hematite-chlorite) sandstone lithology carrying trace to 2% disseminated pyrite and chalcopyrite-arsenopyrite, occasionally with visible gold. The host rock, mineralization and associated mineralization bears similarities to the Boto gold deposit mentioned above. Preliminary observations from the RC rock chips and surface mapping show that the dominant lithology within the drilled area is sandstone (i.e. arenite and greywacke).
The Phase I RC drilling was relatively shallow with most holes only to 100 metres drill-hole depth or approximately 85 metres vertical depth. By comparison B2Gold/Papillon's 5,150,000 ounce deposit at Fekola has been drilled to a maximum vertical depth of 480 metres. Diakha is open in all directions and at depth, and there is potential to expand the mineralized zone by both additional drilling over a broader area and by drilling deeper holes.
Figure 1 Western Permit Area of Siribaya Gold Project
Figure 2 Artisinal/orpailleur Mining Activity at Daikha
The Expanded 2014 Exploration Program
The expanded 2014 exploration plan includes 32,750 metres of RC and Air Core drilling and 1,250 metres of diamond drilling budgeted at US$2,127,000, and is designed to test priority targets identified by geochemical termite sampling. Greater emphasis is being placed on targets occurring within the western permits (Kambaya and Siribaya West), while targets located in the east (Kofia to Diarindi) are being further refined and prioritized. Lastly, up to 12,500 metres of mechanized auger drilling is planned for targets in the eastern portion of the project area.
IAMGOLD is funding the expanded US$2.127 million 2014 program. The due date for payment for all joint venture exploration contributions is December 31, 2014.
About Merrex's Siribaya Gold Project
The Siribaya Gold Project is a 50/50 joint Merrex-IAMGOLD advanced-stage gold exploration project in West Mali comprised of approximately 910 square kilometres of gold-prolific exploration permits and permit applications pending. Exploration of the Siribaya Gold Project is conducted under a joint management committee with IAMGOLD as the project operator. Expenditures to date on the Siribaya Project total approximately $40 million.
The Siribaya Gold Project presently hosts a gold resource estimated at 303,900 ounces grading 2.34 g/t Indicated, and 301,400 ounces grading 2.17 g/t Inferred. The gold resource estimate was prepared in accordance with CIM definitions as required by NI 43-101 and is at July 31, 2012 by ACA Howe International Limited. The deposit areas are open to the north, south and at depth. Numerous other gold-anomalous target areas have been identified by geochemistry and require drilling.
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 primarily a West African focused gold exploration company with experienced management, a solid exploration team, a prominent gold-producer as a partner and an expanding gold resource.
For further details about the Company's exploration activities or to view the most recent corporate presentation visit Merrex's website at www.merrexgold.com.
To be added to Merrex's email contact list please email your request to [email protected].
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 news release.
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