HALIFAX, NOVA SCOTIA, Nov. 10, 2009 (Marketwire) -- Gregory Isenor, P. Geo., President and CEO of Merrex Gold Inc. ("Merrex")(TSX VENTURE:MXI) announces a significant expansion of the land package of the Siribaya Gold Project.
Diarindi Exploration Permit
The Department of Mines, Mali has completed the final step and issued to Merrex the exploration permission (the "Arrete") for the Diarindi Permit. The Diarindi Permit, located southeast of the Babara Permit (map attached), grants Merrex exclusive rights to exploration for 'Group Two' minerals including gold and uranium. The 105 square kilometres Diarindi Permit increases Merrex's 100% owned Siribaya land package to over 800 square kilometres making Merrex the largest non-producer exploration permit holder in west Mali.
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Siribaya Gold Project
Located in west Mali, Africa, the Siribaya Gold Project, which now includes the Diarindi Permit, is a joint venture exploration project funded by IAMGOLD Corporation, managed by a joint IAMGOLD-Merrex management team and operated by Merrex. IAMGOLD may earn up to 50% interest in the Siribaya Gold Project by expending $10.5 Million over four years. The $3,000,000 2009 exploration program was comprised of diamond drilling, soil and termite mound geochemical sampling and an airborne magnetometer and spectrometer survey.
The termite mound geochemical survey identified new gold-anomalous zones that were not evident from prior surveying or drilling including two strong north-south trending parallel gold-mineralized structures hosting the previously identified Zones 1A and 1B. Of particular note, the Zone 1A anomaly is much more strongly identified by the termite sampling than it was by prior conventional soil sampling, and is notably stronger than Zone 1B which already has an initial resource estimate.
The 2009 diamond drilling program almost tripled the strike length of the continuously mineralized Zone 1B from 300 metres to 900 metres. Prior to this extension, Zone 1B, which is only one of multiple targets on the Siribaya mega-structure, already had an initial indicated resource(i) of 2.1 million tonnes grading 1.81 g/t Au (123,000 contained ounces) and inferred resources of 5.7 million tonnes grading 1.74 g/t Au (319,000 contained ounces) at cut-offs of 0.5 g/t Au and the mineralization is still open to the north, south and at depth. An updated resource estimate including the 2009 drill results is underway and a significant increase in the estimated resource is expected.
(i) The initial resource estimate was prepared in February 2009 by ACA Howe International Limited and is compliant with the disclosure requirements of NI 43-101.
A detailed airborne geophysical survey over the full concession area, including Diarindi, was also completed and data analysis and integration with geology, drilling results and geochemistry is underway.
The Siribaya Gold Project is managed jointly by a Merrex and IAMGOLD Corporation technical committee. Merrex is the program Operator. IAMGOLD may assume operatorship after exploration expenditures of $5,000,000. Jean-Marc Gagnon, P. Eng., Project Manager at Siribaya, is the Qualified Person as per NI 43-101 and is responsible for the information in this news release.
The Future - Looking Forward ....
Merrex is in the process of vending certain of its non-core assets, including 50% of the Jubilee Zinc Project, all exploration permits in Turkey and all mineral claims in the Red Lake/Birch Lake area of Ontario, to Chrysos Capital Corporation for 18,675,000 shares of Chrysos. Merrex also intends divesting all other non-core exploration assets and focusing solely and exclusively on advancing the Siribaya Gold Project.
"Based on the exploration results to date, I foresee the Siribaya Gold Project expanding and becoming another of Mali's great success stories" commented Merrex President, Gregory Isenor. "Working closely with our partner IAMGOLD we will continue expanding Zone 1B along the Siribaya mega-structure and aggressively exploring the numerous satellite targets within our massive land package."
Merrex is a Mali focussed gold exploration company with experienced management, a solid exploration team, a prominent gold-producer as a partner and an expanding gold resource, a combination which offers investors an extraordinary opportunity.
Please visit our website at www.merrexgold.com for the most recent presentation.
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.