Gregory Isenor, P.Geo., President and CEO of Merrex Gold Inc. ("Merrex") announces Siribaya Gold Project
Merrex management is pleased to announce that discussions with project operator IAMGOLD Corporation ("IAMGOLD") have confirmed that exploration will continue at Siribaya during 2013. The extent to which IAMGOLD's recently announced cost savings including exploration cutbacks might have impacted future exploration progress on the Siribaya Project has been a concern to the Merrex shareholders. We are pleased to report that exploration on the Siribaya Project will continue notwithstanding IAMGOLD's overall exploration cutbacks.
Joint Venture Agreement Executed
Consistent with IAMGOLD's continuing commitment to the Siribaya Gold Project, the formal Joint Venture Operating Agreement has been executed.
2013 Exploration Program
The proposed 2013 exploration program is anticipated to be in the range of $4,000,000 rather than $6,900,000 as previously announced. While details of the modified program are still being considered, it is anticipated that the 2013 program will still include the same basic elements: a) diamond drilling in the Siribaya Structure, b) air core drilling over seven significant new gold anomalies identified by termite mound geochemistry, c) an airborne VTEM survey over the Siribaya mega-structure, and d) additional termite mound geochemical sampling to tighten up certain grid areas to 100m x 100m. The primary impact of the budget reduction will be in reduced drilling meterage overall. Further details of the proposed program will be announced as they are finalized. Please see attached map: http://media3.marketwire.com/docs/mxi325map.pdf.
IAMGOLD has advised that it is ready to resume exploration in Mali as soon as budget and program details are finalized and crews and rigs can be mobilized.
"I am pleased that notwithstanding its exploration budget reductions IAMGOLD remains committed to continuing exploration at Siribaya during 2013," said Merrex President and CEO Gregory Isenor. "The amended program will advance the project materially by testing the significant new gold termite mound geochem target areas. Drill rigs are being sought now and, subject to rig and crew availability and final budget and program approvals, we would anticipate that exploration could begin as early as April."
About the Siribaya Gold Project
The Siribaya Gold Project is a 50/50 joint Merrex-IAMGOLD advanced-stage gold exploration project in West Mali comprised of approximately 910 square kilometres of gold-prolific exploration permits and permits applications pending. Exploration of the Siribaya Gold Project is conducted under a joint management committee. Expenditures to date on the Siribaya Project total approximately $35 million.
The Siribaya Gold Project presently hosts a NI 43-101 compliant gold resource estimated at 303,900 ounces grading 2.34 g/t Indicated, and 301,400 ounces grading 2.17 g/t Inferred (July 31, 2012 ACA Howe International Limited); the deposit areas are open to the north, south and at depth. Numerous other gold-anomalous target areas have been identified by geochemistry and require drilling.
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 primarily a West African 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.
For further details about Merrex Gold's exploration activities or to view the most recent corporate presentation visit Merrex's website at www.merrexgold.com.
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On Behalf of the Board,
Gregory Isenor, P.Geo., President & CEO