Merrex Gold Inc.
TSX VENTURE : MXI

Merrex Gold Inc.

February 24, 2009 08:30 ET

Merrex Launches 2009 Siribaya Exploration Program

HALIFAX, NOVA SCOTIA--(Marketwire - Feb. 24, 2009) - Gregory Isenor, P.Geo., President and CEO of Merrex Gold Inc. ("Merrex")(TSX VENTURE:MXI) announces that a $3,000,000 exploration program on its Siribaya Gold Project is underway.

Program Highlights

- 5,000 metres of diamond drilling to increase the gold resource at Siribaya

- High-resolution Aero Mag survey over 700 sq. km. land package

- Geochem surveys on new target areas

Commentary

"An extensive 2009 exploration program is underway at our Siribaya Gold Project in West Mali. The camp and necessary road rehabilitation have been completed and experienced exploration crews are moving to the camp" said Merrex President Gregory Isenor. "The budgeted program is $3,000,000 and will include approximately 5,000 metres of diamond drilling to increase the gold resource at Siribaya, a high resolution airborne magnetometer survey over the entire land package to identify controlling structures, and geochemical surveys on other areas of special interest not previously tested within our 700 square kilometre land package. At Siribaya, a 300 metre strike length at Area 55 of Zone 1B already has an initial resource estimate of 123,000 ounces Au Indicated plus 319,000 ounces Au Inferred (table below). Area 55 has been drilled to a depth of 250 metres and is open along strike to the north and south and also at depth. Management believes that with the aggressive drill program and the benefit of the Magnetic survey defining the structural controls, the 2009 drill program will quickly add significantly to the initial resource estimate."



Initial Resource Estimate - ACA Howe (January 31, 2009)

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Resource Block Cut-off Tonnes Above Average Grade Ounces
Category Grade (g/tonne) Cut-off (g/tonne) of Gold
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Indicated 0.50 2,120,000 1.81 123,000
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Inferred 0.50 5,700,000 1.74 319,000
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The 2009 Exploration Program

The primary objectives of the 2009 program are to increase, as quickly and cost effectively as possible, the known gold resource at Siribaya and to continue the search for other gold resources within the total permit area. The 2009 program was planned in conjunction with earn-in partner IAMGOLD Corporation ("IAMGOLD") and approved by the joint Merrex/IAMGOLD management committee. Merrex is the 2009 program operator. Periodic updates will be released as the program progresses.

The 2009 program will include approximately 5,000 metres of diamond drilling, a high resolution airborne magnetometer spectrometer ("Mag") survey and geochemical surveys of other gold anomalous areas within the total permit area.

The Airborne Mag Survey

The Mag survey will cover Merrex's entire land package, an area of approximately 700 square kilometres.

At Siribaya, and in particular at Area 55 of Zone 1B, the Mag survey will identify the geological structures controlling the gold mineralization and assist in locating extensions of the known gold mineralized structures. Using the Mag survey data to establish the degree of continuity and orientation of the gold mineralized structures will permit a more rapid and cost effective increase in the known gold resource.

West of Siribaya at Zone Bambadinka where geochemical surveying has identified a five square kilometre gold anomalous zone, the Mag survey will assist with identification of the geological structures and selection of drill targets.

In addition to the above, and within Merrex's total land package of approximately 700 square kilometres, there are areas with known geochemical anomalies. Data interpretation suggests in excess of 100 kilometres of gold anomalous structural lineaments and large areas remain unexplored. The Mag survey will identify the geological structures for future exploration which will include follow up ground geochemical surveys this year.

The Drilling Program

The drill program of approximately 5,000 metres will focus primarily on the Siribaya Structure. Initial drilling on immediately available targets will test the down dip and strike extensions identified by prior drilling at Area 55 of Zone 1B. Upon completion of the Mag survey, additional drill targets will be selected based upon the structural continuity outlined by the airborne geophysics. Again, the primary purpose of the drill program is to expand and define the known gold resource at Siribaya and to do so as quickly and cost effectively as possible.

Geochemistry

The 2009 program also includes extensive ground geochemical surveys, trenching and pitting on areas of interest throughout permit area including termite mound sampling and deeper trenching and pitting in areas of surface geochemistry identified in prior programs. Once the Mag survey has been completed, the areas for ground geochemistry will be prioritized and surveys commenced. The termite geochemistry aims at identifying geochem anomalies below transported overburden. The Merrex land package is highly prospective with many known gold-anomalous structures and the objective is to advance the search for other gold resources within the land package.

Management

The 2009 exploration program is managed jointly by a Merrex and IAMGOLD technical management committee with Merrex as the operator. Project director is Jean-Marc Gagnon P.Eng., MBA, and chief geologist Christian Plouffe, M.Sc., has worked on many exploration projects in West Africa, is. Both Mr. Gagnon and Mr. Plouffe have extensive experience and exploration successes in West Africa.

About the Siribaya Gold Project

Merrex controls 100% of the Siribaya Gold Project which comprises over 700 square kilometres of exploration permits in West Mali, with additional permits pending. A gold deposit with an initial resource estimate of 123,000 ounces Au Indicated and a further 319,000 ounces Au Inferred has been established. This initial estimate is based upon only 300 metres of strike length which is still open along strike and at depth. The Siribaya Structure, which is approximately 10 kilometres long, has yielded ore-grade drill intercepts along the entire length. Since 2005 Merrex has invested over $8,000,000 in exploration at Siribaya.

IAMGOLD Option

On December 19, 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 $3.0 million must be incurred during 2009. Merrex will be the Project Operator for two years or until exploration expenditures of $5.5 million after which IAMGOLD can elect to be the Operator.

CFO Appointment

John Cumming has been appointed interim Chief Financial Officer replacing Gary MacKenzie. Mr. Cumming is currently Executive Vice-president and General Counsel to Merrex.

Jean-Marc Gagnon, P. Eng., MBA, is the qualified person, as defined under National Instrument 43-101, responsible for the technical information presented in this news release.

Merrex's principal projects are its Siribaya Gold Project in Mali (West Africa), an advanced exploration project with an initial NI 43-101 resource estimate and the Jubilee Zinc Deposit in Cape Breton, Nova Scotia, also with a NI 43-101 resource estimate.

Merrex Gold is a mineral resource exploration company focusing on gold exploration in West Mali, Turkey and in the Red Lake area of Ontario and zinc exploration in Cape Breton, Nova Scotia. Merrex has a solid organization of people and projects enabling aggressive exploration, discovery and growth.

Please visit our website at www.merrexgold.com for the most recent presentation.

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 of the adequacy or accuracy of this release.

Contact Information

  • Merrex Gold Inc.
    Greg Isenor
    President & CEO
    (902) 832-5555
    (902) 832-2223 (FAX)
    Website: www.merrexgold.com