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ALIFAX, NOVA SCOTIA–(Marketwire – June 19, 2012) –Gregory Isenor, P.Geo., President and CEO of Merrex Gold Inc. (“Merrex”) (TSX VENTURE:MXI) is pleased to provide the following exploration update on the Siribaya Gold Project.
Highlights
Exploration Update
Drilling remains temporarily suspended at the Siribaya Gold Project in West Mali (see news releases April 3, 2012 and May 30, 2012). The Siribaya camp remains open and staffed with crews continuing termite mound sampling and compilation of the Siribaya and Taya-Malea XRF (x-ray fluorescence) database. Relogging of Zone 1B and Zone 1A core has been completed and preparation of sections is underway.
Commentary
The political situation in Bamako remains stable and Merrex and project operator IAMGOLD continue to monitor the situation closely.
IAMGOLD advises as of April 30, 2012 the following work has been completed at the Siribaya Gold Project:
The 2012 Diamond drilling program is following-up on encouraging results obtained from the 2011 RC drilling program with the potential of increasing the current NI 43-101 resource estimate. 3,701.5 metres (17 holes) of the 10,000 metre drilling program have been completed on the Eastern Trend of Siribaya in the area north of Zone 1A. 4,144 samples have been sent for assay and results will be released from time-to-time as assays are received, compiled and interpreted.
The 56,000 metre 2012 RC drilling program was operating on the Bambadinka Trend with heel-to-toe drill fences to follow up on positive auger drill results and identify future diamond drill targets. 18,946 metres (157 holes) have been completed with 21,285 samples sent for assay. Results will be released from time-to-time as assays are received, compiled and interpreted.
The auger drill was operating on the southern portion of the Bambadinka Trend and 416 metres (41 holes) of a planned 9,000 metres have been completed. 273 samples have been sent for assay and results will be released from time-to-time as assays are received, compiled and interpreted.
Termite mound sampling on the Babara permit has been completed with 5,960 samples collected. Sampling on the Kofia permit has been completed with 6,761 samples collected. A total of 16,776 termite mound samples have been collected in 2012 with 14,000 samples sent for assay. Results will be released from time-to-time as assays are received, compiled and interpreted.
About the Siribaya Gold Project
The Siribaya Gold Project is a joint Merrex-IAMGOLD exploration project in West Mali comprised of approximately 848 square kilometres of gold-prolific exploration permits and permits applications pending where exploration expenditures to date exceed $23 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 land package. Exploration of the Siribaya Gold Project is ongoing under a joint management committee. A total of 75,000 metres of drilling (Reverse Circulation, Diamond and Auger) is planned for 2012 at a budgeted expenditure of $11.86 million before contractual overhead fees. However, given the present drilling suspension it is anticipated that the planned program metreage will not be reached during calendar year 2012.
For further details about the Siribaya Gold Project visit Merrex’s website at www.merrexgold.com.
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 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
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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