Merrex Gold Inc.
TSX VENTURE : MXI

Merrex Gold Inc.

July 15, 2010 10:28 ET

Merrex Gold: Siribaya-Drilling Hits Zone 1B Two Kilometres South

HALIFAX, NOVA SCOTIA--(Marketwire - July 15, 2010) - Gregory Isenor, P.Geo., President and CEO of Merrex Gold Inc. ("Merrex") (TSX VENTURE:MXI) announces that the southern-most drill fence in the proposed 2010 drill program, Fence #5 South (13+80 N), located 2,040 metres immediately south of the Zone 1B NI 43-101 Resource at the Siribaya Gold Project in West Mali has intersected the southern extension of Zone 1B and a second zone of mineralization west of the Zone 1A NI 43-101 Resource.

Highlights
  • Fence #5 South approximately 2,040 metres from the southern limit of Zone 1B completed, assays received and interpreted
  • Zone 1B southern extension interpreted by Fence #5 South intersections
  • East end of Fence #5 South terminates at Zone 1A NI 43-101 Resource
  • Potential new additional zone intersected by Fence #5 South west of Zone 1A NI 43-101 Resource
 
Assay Highlights
 
Table of Assays Highlights Fence #5 South (33+80N)
Hole   Depth (in metres)   Assay
SRC10 – 051   15.0-17.0   2.89 gr/t Au over 2.0 m
SRC10 – 052   57.0-60.0   0.67 gr/t Au over 3.0 m
    63.0-72.0   0.80 g /t Au over 9.0 m
    74.0-83.0   0.71 g /t Au over 9.0 m
SRC10-53   5.0-6.0   3.79 g/t Au over 1.0 m
Note: Assay table intersections are drill intersection lengths, not true widths.

Commentary

"The southern-most drill fence of our 2010 reconnaissance Reverse Circulation (RC) drill program has again delivered positive results," said Gregory Isenor, President and CEO of Merrex Gold. "Fence #5 South, an east-west drill fence located approximately 2,040 metres south of the southern limit of the Zone 1B NI 43-101 Resource area and due east of the Zone 1A NI 43-101 Resource area, has intersected the interpreted extension of Zone 1B NI 43-101 Resource area and also identified a new zone approximately 150 metres west of the Zone 1A NI 43-101 Resource area.

At the western end of the drill fence near the old Berekigny artisanal workings, holes SRC10- 51, 52 and 53 encountered what is interpreted as the southern extension of Zone 1B NI 43-101 Resource, a conclusion supported by soil and termite mound geochemistry, magnetic structures and IP chargeability, and previous RAB drilling.

Additionally holes TYC10-12 and 13 hit a potential new zone of mineralization."

Fence #5 South (13+80N) 2,040 metres south of Zone 1B

The second east-west drill fence of the 2010 RC drill program was located approximately 2,040 metres south of the Zone 1B NI 43-101 Resource area. The 20 drill holes were oriented at 270° with a dip of -50° west and were drilled to approximately 100 metres target depth at 50 metre spacing and are interpreted as intersecting the southern extension of Zone 1B, and an additional new gold zone approximately 150 metres west of the Zone 1A resource area. Follow-up diamond drilling will be required.

The eastern end of Fence #5 South terminated at the Zone 1A resource area. The Zone 1A resource area was not re-drilled.

Please view the attached map outlining the mineralized areas.

http://media3.marketwire.com/docs/mexmap715.pdf

The 2010 RC Drill Program

Working in concert with IAMGOLD Corporation ("IAMGOLD"), Merrex has initiated a 14,500 metres RC reconnaissance drill program. Although some of the RC drilling results could be used in a future resource estimate, this program was not intended to expand the NI 43-10 resource estimate; rather it was designed to explore new areas of the Siribaya mega-structure and begin defining the potential magnitude of the mineralised areas within the Siribaya mega-structure. The RC results will also aid identification of future diamond drill target areas.

Six drill fences, 500 metres apart, consisting of drill holes oriented at 270° with a dip of -50° west to approximately 100 metres target depth at 50 metre spacing, will be placed east-west across the entire width of the 1A and 1B substructures. The first drill fence (43+80N) is approximately 250 metres north of Zone 1B; the remaining five drill fences will be to the south of Zone 1B at approximately 500 metres step-outs. The southern-most drill fence will reach the old Berekegni artisanal underground gold workings on the 1B substructure and the major RAB anomaly at Zone 1A.

RC drilling is by BLY Mali SA, the Malian division of Boart Longyear Canada of North Bay, Ontario.
 
Table of Assays Fence #5 South (13+80N)
Hole   Depth (in metres)   Assay
SRC10 – 051   15.0-17.0   2.89 gr/t Au over 2.0 m
    110.0-111.0   0.82 gr/t Au over 1.0 m
    119.0-120.0   3.02 gr/t Au over 1.0 m
SRC10 – 052   57.0-60.0   0.67 gr/t Au over 3.0 m
    63.0-72.0   0.80 g /t Au over 9.0 m
    74.0-83.0   0.71 g /t Au over 9.0 m
SRC10-53   5.0-6.0   3.79 g/t Au over 1.0 m
TYC10 – 12   59.0-60.0   2.24 gr/t Au over 1.0 m
    67.0-68.0   0.51 gr/t Au over 1.0 m
TYC10 – 13   44.0-47.0   1.50 gr/t Au over 3.0 m

About the Siribaya Gold Project

Merrex controls 100% of the Siribaya Gold Project comprising over 840 square kilometres of contiguous exploration permits in West Mali including the Siribaya mega-structure. The Siribaya mega-structure has a CIM compliant NI43-101 resource estimate of 4,015,000 tonnes grading 2.39 g/t Indicated (308,200 oz Au) and 946,000 tonnes grading 2.29 g/t Inferred (69,500 oz Au). The NI43-101 resource is open to the north, south and at depth.

Within the Siribaya mega-structure there appears to be at least two distinct substructures; the 500 metre wide by 10.5 kilometre long 1B substructure and the twin 500 metre wide x 9.5 kilometre long 1A sub-structure. The Siribaya mega-structure has yielded ore-grade drill intercepts in a number of selected targets along its entire length.

In December 2008, Merrex closed an Option Agreement with IAMGOLD pursuant to which IAMGOLD may incur up to CDN$10.5 million in exploration expenditures over 4 years, to earn a 50% interest in the Siribaya Gold Project, of which over $5.0 million has been spent to date. Merrex is currently the Project Operator; IAMGOLD will become Project Operator at the conclusion of the 2010 exploration program estimated for late summer 2010. The operator transition is in process.

Since 2005 Merrex and IAMGOLD have invested over CDN $13,000,000 in exploration at Siribaya. The current exploration program will satisfy IAMGOLD's second year, exploration earn-in obligation under the Option Agreement.

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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