Merrex Gold Inc.
TSX VENTURE : MXI

Merrex Gold Inc.

April 16, 2012 08:55 ET

Merrex Provides Siribaya Gold Project Exploration Update

HALIFAX, NOVA SCOTIA--(Marketwire - April 16, 2012) - Gregory Isenor, P.Geo., President and CEO of Merrex Gold Inc. ("Merrex") (TSX VENTURE:MXI) is pleased to provide the following exploration update on the Siribaya Gold Project.

Highlights

  • 69,000 Metres of Diamond, RC and Auger drilling planned for 2012
  • 11,384 metres of Diamond, RC and Auger drilling completed
  • Termite mound sampling on Babara permit completed

Exploration Update

Drilling remains temporarily suspended at the Siribaya Gold Project in West Mali (see news release April 3, 2012). The Siribaya camp remains open with crews continuing geochemical sampling and processing RC samples.

Commentary

"The political situation in Mali appears to be stabilizing" said Merrex President and CEO Greg Isenor. "The sanctions imposed by the ECOWAS nations have been lifted, a pathway for the handover of power from the military to a civilian administration has been agreed and an interim president has been sworn in. These encouraging events are indicators of a willingness to have the country return to democratic rule. Merrex and project operator IAMGOLD continue to monitor this process on a daily basis with a view to determining when operations at Siribaya may be resumed. While we are not able to predict a definite time line for the resumption of exploration drilling activities, we are hopeful that increasing political and economic stability in the coming weeks will be such that a meaningful plan for the resumption of work can be set."

To date 1,959 metres (10 holes) of the 10,000 metre 2012 diamond drilling program have been completed on the Eastern Trend of Siribaya in the area just north of Zone 1A. The 2012 program has been designed to increase the present NI43-101 resource estimate. 1,592 samples have been sent for assay and results will be released from time-to-time as assays are received, compiled and interpreted.

The 50,000 metre 2012 RC drilling program was operating on the Bambadinka Trend with heel-to-toe drill fences to follow up on positive auger drill results as well as to identify future diamond drill targets. To date 9,459 metres (75 holes) have been completed with 9,060 samples sent for assay. Results will be released from time-to-time as assays are received, compiled and interpreted.

The auger drill was operating on the southern portion of the Bambadinka Trend and 416 metres (41 holes) of a planned 9,000 metres have been completed. 273 samples have been sent for assay and results will be released from time-to-time as assays are received, compiled and interpreted.

Termite mound sampling on the Babara permit has been completed with 5,942 samples collected. 4,800 samples have been sent for assay. Results will be released from time-to-time as assays are received, compiled and interpreted. Sampling was underway on the Kofia permit and will resume upon commencement of operations.

In addition to the drilling and termite mound sampling, compilation of the Siribaya XRF database is in progress.

About the Siribaya Gold Project

The Siribaya Gold Project is a joint Merrex-IAMGOLD exploration project in West Mali comprised of approximately 848 square kilometres of gold-prolific exploration permits and permits applications pending where exploration expenditures to date exceed $23 million. IAMGOLD has advised that the required $10.5 million of exploration expenditures under the terms of the Earn In Option Agreement has been completed and that subject to a final accounting review which is presently underway IAMGOLD will vest with a 50% interest in the land package. Exploration of the Siribaya Gold Project is ongoing under a joint management committee. A total of 60,000 metres of drilling (Reverse Circulation, Diamond and Auger) is planned for 2012 at a budgeted expenditure of $11.86 million before contractual overhead fees.

For further details about the Siribaya Gold Project visit Merrex's website at www.merrexgold.com.

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.

Contact Information