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Jubilee Zinc Project

Overview

Merrex's Jubilee Property consists of 189 contiguous claims in the Little Narrows area of Cape Breton Island, in Nova Scotia, Canada. The claim group covers the Jubilee Zinc/Lead deposit, as well as multiple untested structures. All properties comprising the Jubilee project are owned 100% by Merrex; subject to a 2% NSR in favour of Teck Cominco (1% may be purchased by Merrex for $1 million). (click here for map)

RESOURCE ESTIMATE

An independent 43-101 compliant resource estimate was completed in November 2007. The estimate outlines a modeled inferred resource 3.1 MT grading 4.71% Zinc Equivalent, including 2.1 million tonnes grading 5.6%, and 1.9 million tonnes grading 5.79%). This inferred resource estimate is based primarily on the currently drilled extent of the Jubilee Main Zone, with minor contributions from the adjacent Road Zone and Northeast Zone. (to view complete report click here)

Resource Category	Equivalent Zn% Threshold	Tonnes	Tonnes (Rounded)	Lead %	Zinc %	Zinc Equivalent %
Inferred	2.00	3,464,892	3,460,000	0.86	3.62	4.48
Inferred	2.50	3,140,877	3,140,000	0.89	3.81	4.71
Inferred	3.00	2,668,343	2,670,000	0.95	4.10	5.05
Inferred	3.25	2,306,066	2,310,000	0.99	4.37	5.36
Inferred	3.50	2,058,322	2,060,000	1.02	4.58	5.60
Inferred	3.75	1,878,871	1,880,000	1.04	4.75	5.79

The main mineralized trend reflected in this estimate remains open to the northwest, along strike of the Jubilee Fault. Extension of the structure to the northwest was confirmed by previous operators by means of seismic reflection in St Patrick's Channel. Also included are two parallel zones identified in recent drilling by Merrex.

High-grade mineralization was first discovered in an outcrop at Jubilee in 1927. Early work consisted of trenching and two short adits; samples recovered from one of the adits are reported to have assayed as high as 33% Zinc and 12% lead over 1.6 meters. More than 200 diamond drill holes were completed in the intervening years by several operators, yielding grades of up to 24% Zinc and Lead over 4.8 meters.

Since acquiring the Jubilee properties in 2005, Merrex has drilled a total of 72 holes, which has extended the Jubilee Main Zone to more than 2.1 km strike length, which remains open to the northwest.

Drilling carried out by Merrex in 2007 identified two new mineralized zones parallel to the Jubilee Main Zone. Further drilling on these targets in 2008 demonstrated the significant potential for these parallel mineralized structures, with values of up to 11.29% Zinc/Lead over 11.65 meters.

2010 diamond drill program yielded intersections of 4.8% Zn/Pb over 10.6 metres, 2.4% Zn/Pb over 16 metres and 2.2% Zn/Pb over 22.2 metres.

Geology & Exploration

Merrex's Jubilee deposit consists of zinc-lead mineralization hosted by carbonate breccia zones with parallel fault structures. Click here to view Jubilee Geology Map

The Jubilee Properties occur within the Carboniferous-aged sedimentary rocks of the Maritimes Basin of eastern Canada. These sediments consist of clastic sediments of the Horton Group and marine sediments of the Windsor Group. The basal carbonate units of the Windsor Group host most of the significant zinc, lead and barite deposits defined to date in the region; the most prominent with respect to past development and mining are the Gays River zinc lead deposit and the Walton barite, lead, zinc, silver deposit, located in central Nova Scotia. In addition, several other base metal occurrences are hosted in this environment.

The Jubilee Deposit is a carbonate-hosted, stratabound zinc, lead, barite deposit that has similarities to both the "Irish Style" base metal deposits and also the broad Mississippi Valley Type (MVT) deposit class. Mineralization at Jubilee is hosted by carbonate rocks of the Early Carboniferous Windsor Group, with the principal base metal sulfides being sphalerite and galena. This mineralization occurs as replacements of host rock and as breccia matrix phases, locally accompanied by barite. Click here to view cross section.

Mineralization similar to that of the deposit area occurs in drill holes elsewhere on the Jubilee property and these represent targets for further investigation leading to drill testing. Additionally, numerous un-drilled structural targets, considered by the Corporation to be similar to the Jubilee deposit trend, have been identified on the Jubilee properties. These also require further investigation leading to drill testing.

The 2010 diamond drill program was completed in February 2010. Six holes, totaling 1,371 metres were completed with drill intersections including Zn/Pb of 4.8% over 10.6 metres, 2.4% over 16 metres and 2.2% over 22.2 metres. Click here to view map with results

Technical Documents

2009 - February 12: Technical Report on Valuation of Jubilee Zinc-Lead Deposit

2009 - February 9: Technical Report on the Jubilee Zinc-Lead Deposit

2007 - November 12: NI43-101 Resource Estimate

Results

Diamond Drilling Results to Date

Maps

Jubilee Geology

Jubilee Claims

Schematic Cross Section

2010 Drill Results

Jubilee Drill Results

Jubilee Historical Drill Plan and Results

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This page was created on Thu Aug 4, 2016 at 7:55:39 AM Pacific Time.