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Overview

Located in southwestern Mali, West Africa, the Siribaya Project consists of contiguous exploration permits covering 760 square kilometers. Merrex is the largest contiguous permit holder in Mali. The property has over 100 kilometres of gold anomalous structural lineaments, many which have not yet been explored. The project is located 50 kilometres south of the town of Kenieba, in the administrative region of Kayes, Mali. (click here for map of permit area)

West Africa has in recent years been the world's fastest growing area for discovery, development, and production of gold, with Mali at the forefront.

Merrex has established a permanent, well equipped exploration camp adjacent to the town of Berekegni, roughly 50 kilometres south of the town of Kenieba. During the dry season, the Berekegni camp is accessed via dirt road from Kenieba, where a government owned airstrip is serviced by regular flights from Bamako, as well as being available for chartered aircraft. Kenieba is also linked to Bamako by rail.

The properties are traversed by the Falémé River, which provides ample water for exploration activities and would be sufficient to support mining activities should the project advance to the exploitation phase.

The Siribaya Mega-structure has a NI43-101 indicated resource estimate of 4,055,000 tonnes grading 2.34 g/t Au (303,900 oz Au) and inferred resource of 4,316,000 tonnes grading 2.17 g/t Au (301,400 oz Au). The NI43-101 resource is open to the north, south and at depth. (click here for map of resource area)

NI43-101 Resource Estimate
Block Cut-off: 0.5 g/t
2012 SIRIBAYA deposit- total resource estimate figures*
  Material Zone Specific Gravity Tonnes (block cut-off 0.5 g/t)** Au (g/t) Gold Grams Gold Total Oz
INDICATED Zone IB 2.05 4,045,000 2.34 9,452,660 303,900
Total   4,045,000 2.34 9,452,660 303,900
INFERRED Zone IB 2.02 1,128,000 2.03 2,291,462 73,700
Zone IA 2.10 3,189,000 2.221 7,082,006 227,700
Total   4,316,000 2.17 9,373,468 301,400

Over $37 million has been spent in exploration at Siribaya since 2005. Additionally, previous operators spent more than $1 million in the project area during the mid 1990s.

MERREX / IAMGOLD OPTION AGREEMENT

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. At the end of 2011, IAMGOLD has satisfied its expenditure commitments and a 50-50 joint-venture was formed. IAMGOLD is the Project Operator. (click here for January 2012 News Release)

OWNERSHIP

The joint-venture controls 100% of the Siribaya Project. The government of Mali will have an automatic free carried interest of 10% as well as the option to gain a 10% participating interest should the project advance to the exploitation phase.

WORK COMPLETED ON THE SIRIBAYA GOLD PROJECT

Geochemistry

A comprehensive termite mounds sampling program was undertaken on all the mining permits comprising the Siribaya project. All the permits are now surveyed on a 400 x 100 m grid. A score of gold anomalies have been identified on the project and many of them show features similar to the Siribaya Mega-structure. (click here for map)

Geophysics

In 2009, an airborne magnetic and radiometric survey covered the entire project. The survey revealed the presence of at least 5 structures similar to the Siribaya mega-structures.

WORK COMPLETED ON THE SIRIBAYA STRUCTURE

Geophysics

An IP survey was conducted over the Siribaya mega-structure. A series of linear chargeability and resistivity zones parallel to geological strike were interpreted and the Siribaya 1B gold deposit is associated with one of them. Several other conductors remain to be investigated.


Drilling

Since 2006, in excess of 150,000 m of exploration and definition drilling were drilled on the property. The Siribaya 1B gold deposit was identified and the 5 km long 1A gold structure is currently being investigated.