Mr. Gregory Isenor reports
MERREX GOLD-SIRIBAYA PROJECT UPDATE -- EXPLORATION TO CONTINUE
Merrex Gold Inc. has provided the following update for its Siribaya gold project in Mali.
Siribaya gold project
Merrex management is pleased to announce that discussions with project operator Iamgold Corp. 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. The company is 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-million, rather than $6.9-million 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 megastructure; and d) additional termite mound geochemical sampling to tighten up certain grid areas to 100 metres by 100 metres. The primary impact of the budget reduction will be in reduced drilling meterage over all. Further details of the proposed program will be announced as they are finalized.
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 chief executive officer 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 comprising approximately 910 square kilometres of gold-prolific exploration permits and permit 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 National Instrument 43-101-compliant gold resource estimated at 303,900 ounces grading 2.34 grams per tonne (g/t) indicated and 301,400 ounces grading 2.17 g/t inferred (July 31, 2012, ACA Howe International Ltd.); 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.
Mr. Isenor, PGeo, 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.
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