HALIFAX, NOVA SCOTIA--(Marketwire - July 30, 2009) - Gregory Isenor, P.Geo., President and CEO of Merrex Gold Inc. ("Merrex")(TSX VENTURE:MXI) announces:
SALE OF JUBILEE ZINC AND OTHER NON-CORE ASSETS
Merrex has entered into a Letter of Intent with TSX capital pool corporation Chrysos Capital Corporation ("Chrysos") to sell the Jubilee Zinc Project and other non-core exploration assets for 37,350,000 shares of Chrysos.
"Consistent with Merrex's publicly stated goal of positioning Merrex as a dedicated or 'pure play' Mali gold company, we are proceeding with the disposition of our Jubilee Zinc Project and other non-core assets." said Gregory Isenor, President and CEO of Merrex Gold. "We are confident that following the acquisition of these assets Chrysos will have assembled a strong management team and have sufficient financial capability to advance these projects to their next level."
The Merrex assets to be sold to Chrysos include: a) its Jubilee Zinc Project and related Nova Scotia Region Zinc properties, b) its Turkey gold properties including its 90% interest in Merrex Turkey, its strategic association with AgeanGold and the Roscan-Turkey Option and Joint Venture, and c) all its properties in the Red Lake/Birch Lake region.
The Letter of Intent is subject to numerous conditions on behalf of both parties including completion of a definitive agreement, regulatory and shareholder approvals and completion of adequate financing.
SIRIBAYA GOLD PROJECT - EXPLORATION UPDATE
Merrex's core project is its 100% owned, 700 square kilometres Siribaya Gold Project in Mali, West Africa. In December 2008 Merrex entered into an agreement with IAMGOLD Corporation granting IAMGOLD the right to earn up to 50% interest in Siribaya for $10.5 million of exploration expenditures over four years. The 2009 exploration program of $3 million is underway and includes an airborne survey, termite hill sampling and diamond drilling.
A 5,000 metre diamond drilling program commenced in late May. Drilling is focused on the region south of Area 55 in Zone 1B where Merrex Gold has identified an initial NI-43-101 compliant indicated resource of 2.1 million tonnes grading 1.81 g/t Au (123,000 contained ounces) and inferred resources of 5.7 million tonnes grading 1.74 g/t Au (319,000 contained ounces) at cut-offs of 0.5 g/t Au. The purpose of the 2009 drill program is to expand and further define this initial gold resource and, although assays are still pending, initial drill results have provided additional confidence in the continuity of mineralization at Zone 1B over a strike length of approximately 900 metres. To date 17 holes totalling 4,706 metres have been drilled.
A close-spaced termite mound soil geochemical survey to augment the drill targeting has been completed over the ten kilometre strike length of the Siribaya mega-structure. Returned geochemical results enable a much better definition of the gold mineralization, identified new gold-anomalous zones that were not evident from prior surface sampling and confirmed both previous surface geochemical survey results and prior RAB drilling results. The interpretation of the termite mound survey delineates two strong north-south trending parallel gold-mineralized structures hosting the previously identified Zones 1A and 1B (see attached map) with the Zone 1A anomaly much more clearly and strongly identified then it was by prior conventional soil sampling, and stronger than Zone 1B where Merrex is presently drilling. Additionally, there are significant yet untested anomalies west of the Zone 1A suggesting that the mineralized area may be much larger than previously thought. The termite mound sampling was extended to cover the Tabakoto and Bambadinka areas adjacent to the Siribaya trend and over the Babara concession to the east. Assays from these surveys are pending.
To view the map, please visit the following link: http://media3.marketwire.com/docs/mxi730a.pdf
A detailed airborne geophysical survey (approximately 22,785 line-kilometres with 50 metre flight line spacing) over the full 700 square kilometres concession area started in early June. When completed, the airborne data will be used to reinterpret the structural architecture of the Siribaya trend.
The 2009 exploration program for the Siribaya Gold Project is managed jointly by a Merrex and IAMGOLD Corporation technical committee. Merrex is the program Operator. Jean-Marc Gagnon, P. Eng., Project Manager at Siribaya, is the Qualified Person as per NI 43-101 responsible for the information in this news release.
Merrex Gold is a mineral resource exploration company focusing on gold exploration in West Mali. 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Merrex Gold Inc.
President & CEO