Merc International Minerals Inc.

Merc International Minerals Inc.

November 12, 2009 08:45 ET

Merc Discovers New Gold Zone Within the Red Mountain Syncline and Expands Mineralization at Damoti Lake Gold Project, NWT

TORONTO, ONTARIO--(Marketwire - Nov. 12, 2009) - Merc International Minerals Inc. ("Merc") (TSX VENTURE:MRK) today released encouraging results for the remaining nine drillholes from its phase one drill program at the Damoti Lake Gold Project. Drilling targeted the Red Mountain Syncline (located 150 metres west of the Horseshoe Syncline where Merc had previously reported high-grade drill results) and discovered a new gold zone within the lower west limb and keel of the Red Mountain Syncline. Hole D09-390B returned 7.86 grams gold per tonne (gpt) over 2.65 metres (m), including 12.20 gpt over 0.60 m. Hole D09-392C intersected the same zone 90 m north and returned 5.19 gpt over 4.80 m, including 18.65 gpt over 0.80 m, and 7.39 gpt over 3.60 m, including 9.35 gpt over 1.60 m.

Other drill highlights include: 7.67 gpt over 2.0 m, including 18.80 gpt over 0.50 m; 8.69 gpt over 2.35 m, including 16.90 gpt over 1.05 m; 8.07 gpt over 2.65 m, including 22.55 gpt over 0.65 m; 7.16 gpt over 3.0 m, including 15.95 gpt over 0.80 m.

President and CEO Dr. Michael Byron commented, "We are extremely pleased with the success we have achieved from our first drill program at Red Mountain. The number of multiple high-grade gold intersections, the discovery of a new zone at depth, and the continuity of mineralized zones, point to the untapped potential of this underexplored fold. We now consider similar mineralized folds elsewhere on the property, such as the Runway, Lard, and BIF Island Synclines as having even greater potential for hosting new discoveries and ultimately adding resource ounces."

Eight of nine holes intersected gold mineralization and seven returned multiple gold zone intersections, significantly expanding the continuity of shallow mineralization up to 160 m along strike to a maximum dip length of 40 m, while remaining open both at depth and along strike.

Dr. Byron added: "Of the 27 exploration holes drilled in our initial campaign, 26 intersected gold values greater than 1.5 gpt, for a 96% hit rate. Of the 26 holes, 20 holes, or 77%, intersected multiple mineralized zones. These impressive hit rates are indicative of the pervasive style of gold mineralization hosted within the Damoti iron formation, and confirm this property's exciting potential. We anxiously await our upcoming winter drill program as we intend to aggressively pursue the exceptional and underexplored gold opportunities present."

Results from the 9 drill holes include the following:

Drill HoleFrom (m)To (m)Core Length* (m)Au (gpt)
D09-3904.00 6.00 2.00 7.67 
 including5.00 5.50 0.50 18.80 
 34.20 36.70 2.50 2.23 
 90.00 91.00 1.00 8.67 
 including90.00 90.50 0.50 15.25 
 117.65 120.00 2.35 8.69 
 including117.65 118.70 1.05 16.90 
 141.10 142.0 0.90 5.49 
 143.40 146.50 3.10 4.64 
 202.70 203.70 1.00 3.39 
D09-390B105.95 108.60 2.65 8.07 
 including107.25 107.90 0.65 22.55 
 144.40 146.00 1.60 5.40 
 including144.40 145.20 0.80 8.87 
 221.00 223.65 2.65 7.86 
 including221.00 221.60 0.60 12.20 
 including222.60 223.65 1.05 8.56 
D09-390C8.00 9.00 1.00 4.54 
 26.20 28.70 2.50 4.20 
 124.20 125.00 0.80 5.79 
D09-39115.70 20.50 4.80 3.60 
 including18.00 18.75 0.75 9.69 
 68.60 70.60 2.00 5.01 
D09-391B20.00 21.50 1.50 4.22 
 77.00 81.00 4.00 2.36 
 including79.30 80.00 0.70 6.22 
 93.65 96.20 2.55 1.76 
D09-39263.00 64.30 1.30 5.82 
 70.00 71.00 1.00 3.43 
 96.80 99.80 3.00 7.16 
 including97.50 98.30 0.80 15.95 
 including99.00 99.80 0.80 7.26 
 160.00 165.00 5.00 3.16 
 including161.50 162.00 0.50 11.65 
 178.50 179.20 0.70 4.61 
D09-392C74.30 76.00 1.70 5.45 
 167.25 169.50 2.25 2.66 
 180.50 185.30 4.80 5.19 
 including181.00 181.80 0.80 18.65 
 194.00 198.35 4.35 6.36 
 including194.00 195.00 1.00 7.48 
 including196.00 197.60 1.60 9.35 
D09-393197.00 197.80 0.80 4.27 

*Lengths are reported as core lengths. True widths are not known at this time.

Note: D09-392B reported no significant results as it failed to intersect iron formation.

The Company's first drill program at Damoti was completed in late September of 2009. A total of 27 holes were drilled (5,670 m) with the goal of infilling the resource within the Horseshoe Zone, validating historical drill results, exploring the Horseshoe Syncline along strike and depth, and testing mineralized fold structures west of the Horseshoe Syncline (in particular, the Red Mountain Syncline). Results have shown excellent grade, widths, and continuity of gold mineralization within the Horseshoe and Red Mountain Synclines. Areas of high-grade mineralization are developed within the top and basal portions of the iron formation and as discrete mineralized zones that crosscut the main unit. These zones are believed to be related to fractures/shears where gold occurs in association with the sulphides. New gold zones have now been discovered within the lower west limb and keel areas of the Horseshoe and Red Mountain Synclines and remain open in all dimensions.

In late 2009, Merc will carry out detailed ground magnetic and electromagnetic surveys designed to identify new drill targets throughout the 14 kilometres of iron formation within the Damoti property. The winter drill program, planned for early 2010, will follow up on results from the summer program and be broadened to confirm and increase the high-grade gold BIF Island Zone located 4 kilometres northeast of the Horseshoe Zone, to expand the overall resource, and to test targets generated by the geophysics surveys.

In a recent news release (November 4, 2009) it was reported that Merc had completed a non-brokered private placement offering of 7,288,648 flow-through shares at $0.43 per flow-through share for gross proceeds of $3.1 million. Funds will be used on the upcoming geophysics and winter drill campaign.

Quality Control

Merc International Minerals, Inc. has implemented a quality-control program to ensure best practice in the sampling and analysis of the drill core. NQ-size drill core is saw cut and half the drill core is sampled in standard intervals not exceeding 1.5 metres in length while core from the main mineralized horizons or core displaying visible gold or significant sulfides are sampled in greater detail generally not exceeding 1 metre in length. The remaining half core is stored in a secure location.

Core samples are transported in security-sealed bags for analyses at ALS Chemex Assay Laboratory in Vancouver, BC. ALS Chemex is an ISO 9001:2000 certified laboratory. Gold assaying is done by a fire assay - atomic absorption spectrometry method on a 30-gram charge of a 1000 gram pulp. Samples returning values exceeding 3 gpt Au are re-checked by fire assay with a gravimetric finish. Pulp and metallics assaying for gold is conducted on the entire pulverized sample for all samples within the main mineralized horizons and those samples with visible gold or significant sulfides.

As part of its QA/QC program, Merc International Minerals inserts external gold standards (low to high grade) and blanks every 20 samples. This is in addition to the standards, blanks and pulp duplicates inserted by ALS Chemex. In addition, samples of pulps have been collected from ten percent of all samples analyzed and will be submitted to a second independent laboratory for comparison purposes.

The Damoti Lake Gold Project is being supervised by William Waychison, M.Sc.A.,P.Geo, the Qualified Person (QP) for this project.

This news release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results. Such statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements. The Company disclaims any intention or obligation to revise or update such statements.

Neither 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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