Merrex Gold Inc.
TSX VENTURE : MXI

Merrex Gold Inc.

December 06, 2006 11:21 ET

Merrex Exploration Update

HALIFAX, NOVA SCOTIA--(CCNMatthews - Dec. 6, 2006) - Gregory Isenor, President & CEO of Merrex Gold Inc. (TSX VENTURE:MXI)("Merrex") is pleased to provide the following update on exploration activities.

West Voisey's Bay Nickel Project

Due to weather constraints drilling has concluded for the 2006 field season. The operator has decided to leave the diamond drill and camp facilities on standby and resume drilling as soon as practical in 2007.

Merrex's West Voisey's Bay Nickel Project, Labrador consists of a 50% ownership interest in 451 mineral claims (112.75 sq km) explored under a joint venture agreement with Celtic Minerals Ltd ("WVB JV") which owns the other 50%. Merrex and Celtic also hold an option to jointly earn a 100% interest in the adjacent 60 claim (15 sq km) VB-2 property

Previous exploration identified four geophysical target areas within the West Voisey's Bay property: Makhavinekh Lake (Mak Lake), West Makhavinekh Lake, Red Dog Fault and Konrad Brook. The 2006 drill program emphasised the Mak Lake target area which contains several distinct geophysical drill targets within a 4.0 by 1.5 km east-west aligned corridor. The prospectivity of this area is enhanced by its proximity to Nickel, Copper, Cobalt mineralized troctolite at Inco's Ashley prospect and at the Luk gossan, located four kilometres and 2.5 km due north, respectively.

On the West Voisey's Bay property Celtic, as the operator, completed four diamond drill holes for a cumulative total of 2897.28 meters. The approach was to systematically drill test geophysical targets beginning in the Mak Lake area, several of which remain to be tested, including UTEM conductors, gravity anomalies and MT anomalies. Additional drilling, which would have included one hole in the West Mak Lake area and a second hole in the Konrad Brook area, was postponed due to the onset of winter. These two boreholes will be drilled as part of the 2007 program when drill testing will be expanded geographically to include targets on the West Mak Lake grid and Konrad grid.

Drilling has helped explain the prominent gravity and Magnetotelluric (MT) anomalies in the Mak Lake area as gabbroic to noritic intrusions with a resisitivity contrast between the overlying Makhavinekh Lake granite and the underlying mafic intrusions. The mafic intrusions host minor amounts of pyrrhotite-chalcopyrite sulphide along with disseminated magnetite. Two boreholes, WVB-06-02 and WVB-06-03, ended while still in the mafic intrusions which have an undetermined depth. Borehole WVB-06-01 ended in a zone of structural weakness prior to reaching the target MT anomaly. Subsequent wedging of that hole also saw drilling end in the zone of structural weakness prior to reaching the target. Borehole WVB-06-04, which was collared in the Tasiuyak paragneiss, was testing a combined UTEM and MT anomaly. The hole encountered weakly graphitic paragneiss which explains the conductors.

In addition to diamond drilling, a variety of geophysical surveys were completed in 2006 including 25.50 line km of ground gravity, 34.2 line km of MT, 54.75 line km of ground magnetics, 84 line km's of UTEM and 675 line km's of Full Tensor airborne gravity gradiometry (FTG).

The FTG survey was a collaborative survey operated by INCO under which the JV partners paid their share of the survey costs, and also received a strip of INCO data in a data sharing arrangement. Data from the FTG survey was only received by Celtic late in the fall of 2006 and covers the entirety of the JV partnership landholdings in the West Voisey's Bay area.

West Mali Gold Project

A 40,000 Metre RAB drilling program is underway to drill test the ten kilometer long gold anomalous Siribaya Structure located in the prolific West Mali gold producing area of the West Africa Gold Belt. The Siribaya structure contains several strong gold geochemical anomalies including the Zone 1A anomaly. This anomaly is the initial target of the RAB drilling program. (see press release: November 23, 2006). Merrex currently controls five mineral permits covering over 750 square kilometers in West Mali. Drilling updates and analytical results will be released as received by Merrex.

Jubilee Zinc Project

Diamond drilling has been in progress since September on the Merrex Jubilee Zinc property, located in Cape Breton, Nova Scotia. The program will consist of 10 - 15 holes totalling approximately 4000 - 5000 meters and is designed to detail and expand the Jubilee Zinc Deposit (see press release: September 27, 2006). A zone of high grade zinc mineralization both adjacent to and within the Jubilee Fault will be tested for its strike extension to the northwest. To date eleven holes have been completed and assays will be forthcoming. The Jubilee property covers the Jubilee zinc deposit and totals 228 claims of which 205 are 100% Merrex owned and 23 optioned from AUR Resources (see press release: September 19, 2006).

The technical information in this news release on the Voisey's Bay Joint Venture has been provided to Merrex by the Voisey's Bay Joint Venture operator Celtic Minerals Ltd. Gregory Isenor, P.Geo., President & CEO of Merrex is the named Qualified Person and has reviewed this news release.

Merrex Gold is a mineral resource exploration company focused on exploration for gold in West Mali, Africa, zinc in Cape Breton, Nova Scotia, nickel in West Voisey's Bay, Labrador, and gold in Red Lake, Ontario, with a solid organization of people and projects to enable continued aggressive exploration, discovery, and growth.

Merrex Gold Inc. invites the public to visit its website at www.merrexgold.com or to email us at info@merrexgold.com to be added to the Company's email list for press releases and updates.

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.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OF THIS RELEASE.

Contact Information

  • Merrex Gold Inc.
    Greg Isenor
    President & CEO
    (902) 832-5555
    (905) 832-2223 (FAX)
    or
    Merrex Gold Inc.
    Diane Webber
    Senior Geologist/Investor Relations
    (902) 832-5555
    (905) 832-2223 (FAX)
    Email: info@merrexgold.com
    Website: www.merrexgold.com