Merc International Minerals Inc.

Merc International Minerals Inc.

December 19, 2008 10:18 ET

Merc Announces Start of Work on Damoti Lake Gold Project

TORONTO, ONTARIO--(Marketwire - Dec. 19, 2008) - Merc International Minerals Inc. ("Merc") (TSX VENTURE:MRK) is pleased to announce the initiation of exploration work on its Damoti Lake Gold Project, located 200 km north of Yellowknife, Northwest Territories. Initial activities consist of a detailed compilation of all previous work including several historic diamond drill programs, and the re-modeling of all the geological data with a goal of increasing the overall resource in and around the Horseshoe zone, the main portion of the currently defined resource. This work will form the basis for a drill program planned for early summer 2009. Merc plans to mobilize supplies into the Damoti site in March 2009 utilizing a winter road. Several other drill ready targets have also been identified on the property including the Lard, Red Mountain, North Horseshoe zones as well as the Granite showing.

Merc is pleased to announce that Carlos Yrigoyen has re-joined Merc's Board of Directors to fill the vacancy created by the resignation of A. Murray Sinclair. Mr. Sinclair resigned from Merc's Board of Directors for personal reasons.

Merc also announces that it has granted to Dr. Byron, Merc's CEO, 400,000 options to purchase Merc's common shares at a price of $0.50 on or before December 15, 2011.

As described in a press release dated September 17, 2008 Merc acquired 100% of Anaconda Mining Inc.'s interest in the Damoti Lake Gold Project, a contiguous land package that extends over 2,849 hectares in six mining leases. Merc acquired its interest in the project by paying Anaconda ("ANX") CDN$250,000 and issuing 1,250,000 common shares of Merc. The agreement is subject to an existing 2% net smelter royalty.

A National Instrument 43-101 compliant resource estimate was completed in September 2005 for ANX. Using a cut-off grade of 8 grams gold per tonne, the measured and indicated mineral resource estimate for the Horseshoe deposit totaled 40,600 tonnes grading 26.17 grams of gold per tonne, with a further inferred mineral resource estimate of 17,800 tonnes grading 16.38 grams of gold per tonne.

The Damoti Lake Gold Project was also the subject of a 1996 underground exploration program, as well as a historical, 1997 non National Instrument 43-101 compliant resource estimate and a historical, 1997 non National Instrument 43-101 compliant preliminary economic analysis by Sierra Mining & Engineering of Reno, Nevada. Additional information with respect to the Damoti Lake Gold Project, including the results from the historical exploration programs and studies, are contained in a technical report dated December 15, 2005, filed on SEDAR by ANX and entitled "Technical Report and Resource Estimate on the Damoti Lake Property, Northwest Territories, Canada". This report was prepared by Mr. Eugene Puritch, P.Eng., of P&E Mining Consultants Inc. Mr. Puritch and P&E Mining Consultants Inc. are both independent of both ANX and Merc.

The results from the last two drill programs completed in 2004-2005 on the Damoti property were summarized in the August 5, 2008 press release.

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.

Contact Information

  • Merc International Minerals Inc.
    Dr. Michael Byron
    (705) 560-2382
    (705) 560-0765 (FAX)