Merrex Gold Inc.
TSX VENTURE : MXI

Merrex Gold Inc.

October 16, 2006 16:17 ET

Merrex Signs 40,000 Meter RAB Drilling Contract for Siribaya Gold Project in West Mali

HALIFAX, NOVA SCOTIA--(CCNMatthews - Oct. 16, 2006) - Gregory Isenor, P. Geo., President and CEO of Merrex Gold Inc. ("Merrex")(TSX VENTURE:MXI) is pleased to announce the signing of a 40,000 meter Rotary Air Blast (RAB) drilling contract with West African Drilling Services (WADS) of Bamako, Mali. The drilling program is designed to test the Merrex gold discovery in the Siribaya structure with initial drilling on the Zone 1A anomaly. A substantial cash advance was made concurrently with contract execution to secure the rig and drilling dates. The drilling is scheduled to commence in early November and continue into 2007. Drilling updates and analytical results will be released as received by Merrex.

Drilling

RAB drilling is a cost-effective method of sampling bedrock. A rotary bit will be used to drill through the lateritic cap and saprolitic rocks above the bedrock hosting gold mineralization as confirmed by Merrex during the extensive 2006 geochemical program (See news release: July 13, 2006).

Siribaya Structure / Zone 1A

The RAB program will test the ten kilometer long Siribaya structure initially with 19 lines of RAB drill holes, spaced 10 to 30 meters apart, and drilled at -50 degrees to a planned depth of 55 - 70 meters (To view Map 1 click here: http://www.ccnmatthews.com/docs/merr1016.pdf). The lines of RAB drilling are positioned to target the significant geochemical anomalies, previously defined by the Merrex soil sampling programs and confirmed by trenching and pitting. These anomalies are associated with mapped structures and quartz tourmaline, the presence of tourmaline indicating strong hydrothermal activity. Tourmaline is a significant gold indicator mineral often associated with producing gold mines such as Randgold's Loulo mine, located approximately 100 kilometers to the north of Siribaya. A Merrex internal report prepared by Mr. Mamadou Keita, Eng. M.Sc., a geologist associated with the initial discovery of the Loulo deposit states that the trench geology at Zone 1A has similarities with the Loulo deposit.

The first lines of the RAB drilling program will test a highly prospective geochemical anomaly in Zone 1A, where Merrex completed 370 meters of trenching and nine pits. This significant Zone 1A anomaly measures approximately 400 by 700 meters. Assay results from this area reported by Merrex include 35m of 3.1 g/t Au including 17m of 5 g/t Au (Trench: TY-T-06-2) and 7.16 g/t Au over 5 meters (Pit: TY-P-06-13). The trenching and pitting results confirmed a major gold occurrence in saprolitic rocks associated with a wide lineament outlined by an airborne magnetic survey while mapping of the trench walls indicated that the gold mineralization is related to a strong hydrothermal system represented by stockwork zones associated with felsic dykes and tourmaline.

The West Mali Property

Merrex owns a large land position in the prolific West Mali Birimian gold producing area in Africa. Together with strategic partner Touba Mining, Merrex has acquired five mineral permits representing a significant contiguous land position covering over 750 square kilometers. These permits are located in the southern part of the West Mali Gold Belt which currently produces in excess of 1.5 million ounces of gold per year from such large gold deposits as the Sadiola, Loulo and Tabakoto mines.

These permits cover highly prospective land with significant geological structures, associated anomalous gold zones, extensive orpailleur alluvial gold workings and artisinal underground workings. Merrex is in various stages of negotiations to acquire additional mineral permits which, if successful, would result in a contiguous land position of approximately 1,000 square kilometers in the southern portion of the West Mali Gold Belt.

Gregory Isenor, P.Geo, President and CEO of Merrex stated that he is extremely encouraged that Merrex has identified a significant gold discovery at Siribaya, and with aggressive exploration programs during the past year Merrex has pointed out the potential of the Siribaya Project. Mr. Isenor is pleased with Merrex's expeditious advancement of the project and the launching of the 2006-2007 RAB drilling program. In addition, the comments by Mr. Keita are extremely positive for the project.

Gregory Isenor, P. Geo., President and CEO of Merrex Gold Inc., is the named Qualified Person as per NL 43-101 and has reviewed this news release.

The following map (attached) and the information contained therein is incorporated into this news release by reference:

Map 1: RAB Drilling and Geochemistry - Siribaya Project

Merrex is a mineral resource exploration company focused on exploration for gold in Mali, West Africa where recent trenching results point to a new gold discovery, for nickel in Voisey's Bay, Newfoundland where drilling is in progress testing deep geophysical targets with similarities to Inco's deposit and for zinc at Jubilee in Nova Scotia.

For further information interested parties are encouraged to contact either Greg Isenor, President & CEO, at 902.832.5555 or Diane Webber, Senior Geologist/Investor Relations at 902.832.5555. 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
    or
    Merrex Gold Inc.
    Diane Webber
    Senior Geologist/Investor Relations
    (902) 832-5555
    (902) 832-2223 (FAX)
    Email: info@merrexgold.com
    Website: www.merrexgold.com