Merc International Minerals Inc.

Merc International Minerals Inc.

April 02, 2009 14:46 ET

Merc Mobilizes Drill to Damoti Lake Gold Project

TORONTO, ONTARIO--(Marketwire - April 2, 2009) - Merc International Minerals Inc. ("Merc") (TSX VENTURE:MRK) is pleased to announce the mobilization of drilling equipment to its Damoti Lake Gold Project, located 200 km north of Yellowknife, Northwest Territories.

Between March 22 and March 25, 2009, Merc mobilized drilling and related equipment into the Damoti site utilizing a winter road. At the same time, additional claims were staked contiguous to the original Damoti claims along strike to the north of the known resource area and to the west along the volcanic rock/sedimentary rock contact, an area of known historic gold surface showings. Drilling activities in and around the Horseshoe deposit (the main portion of the currently defined resource) are expected to start in June 2009. Several other drill ready targets have also been identified on the property including the Lard, Red Mountain, North Horseshoe, Pink Antler, L.A. North, Lookout, Knob Hill, and Runway zones and the Granite showing.

In the past two quarters activities have consisted of: (a) a detailed compilation and quality control analysis of all previous work including several historic diamond drill programs; and (b) the re-modeling of all the geological data with the goal of increasing the overall resource in and around the Horseshoe deposit. This work has formed the basis for the 2009 drill program.

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 Mining Inc. $250,000 and issuing Anaconda Mining Inc. 1,250,000 Merc common shares. The agreement is subject to an existing 2% net smelter royalty.

In other news Merc filed its second quarter financial statements for fiscal 2009 on April 1, 2009. These results included a write off of the deferred exploration costs on the Borthwick Lake Project in the amount of $343,478. In December 2008, Merc and the optionor of the Borthwick Lake Project, acknowledging that there has been an event of force majeure related to a local First Nation community restricting access to the Borthwick Lake Project, agreed that Merc's obligations under the Borthwick Lake Project option agreement be in held in abeyance until the event of force majeure is resolved. As well, subsequent to the end of the second quarter, one significant claim was re-staked by another party. As a result of these two events, management determined it is unlikely that Merc will proceed with exploration activities on the property and the costs associated with the Borthwick Lake Project were written off.

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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