HALIFAX, NOVA SCOTIA--(Marketwire - Dec. 30, 2008) - Gregory Isenor, P.Geo., President and CEO of Merrex Gold Inc. ("Merrex") (TSX VENTURE:MXI) announces that Merrex has acquired a 50% interest in the Crackingstone River uranium property and sold 25% of its West Voisey's Bay Joint Venture.
Crackingstone River Option
Merrex has agreed to option from International Montoro Resources Inc. ("Montoro") and Belmont Resources Inc. ("Belmont") a 50% interest in their jointly owned Crackingstone River uranium property. Pursuant to the terms of the option agreement Merrex will issue to Montoro and Belmont 1,200,000 common shares and will incur $1,200,000 of exploration expenditures in the first year and may incur a further $2,400,000 of exploration expenditures in the second year to earn up to a 50% interest in the Crackingstone River uranium property. Merrex will be the Operator during the expenditure period. The shares are subject to a four month investment hold period.
The Crackingstone River uranium property is a 750 hectare claim block located on the north shore of Lake Athabasca and 8 kilometres southwest of Uranium City, Saskatchewan. During 2008 Montoro and Belmont conducted a Phase I drill program of 20 holes which tested and confirmed the presence of uranium mineralization for a strike distance of 1800 meters along the Boom Lake Fault and intersected an east-west structure (the North Crackingstone Fault). Hole C-14-08 returned the highest assay results from the 20-hole drill program of 2.087% U3O8 (41.74 lbs./ton) over 0.3 metre which was included in a 3.0m intersection assaying 0.36% U3O8 (7.19 lbs./ton), and a 1.7 metre intersection assaying 0.633% U3O8 (12.66 lbs./ton). The same hole also intersected a 0.5m intersection assaying 0.873% U3O8 (17.46 lbs./ton and, a further 6.8 meter intersection with assays from 0.003% to 0.09% (1.80 lbs./ton).
The option agreement is subject to regulatory approval.
West Voisey's Bay Joint Venture Sale
Merrex has agreed to sell one-half of its 50% interest (net 25%) interest in the West Voisey's Bay Joint Venture to Montoro and Belmont for $1,200,000. Merrex will retain a net 25% participating interest in the West Voisey's Bay Joint Venture.
The sale of the West Voisey's Bay Joint Venture is an Exempt Disposition as defined in the Listings Policies of the TSX Venture Exchange.
A finder's fee of 25,000 shares will be paid in respect of these transactions.
Merrex's principal projects are its Siribaya Gold Project, an advanced exploration project in Mali (West Africa), and its Jubilee Zinc Deposit in Cape Breton, Nova Scotia.
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.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Merrex Gold Inc.
President & CEO
(902) 832-2223 (FAX)