Merrex Reports First Resource Estimate for the Diakha
HALIFAX, NOVA SCOTIA -- (February 9, 2016) - Greg Isenor, President and CEO of Merrex Gold Inc., ("Merrex" or the "Company") (TSX Venture: MXI) announces: Initial Resource Estimate for Diakha Deposit The Company today announced the initial mineral resource estimate for the Diakha deposit located on the Merrex-IAMGOLD 50/50 JV Siribaya gold project in western Mali, West Africa. The resource estimate, which includes resources estimated for previously known zones at Zone 1B and Taya Ko (part of Zone 1A) along the Siribaya trend as well as the new Diakha deposit, is comprised of Indicated Resources totalling 2.1 million tonnes averaging 1.90 grams of gold per tonne for 129,000 ounces and Inferred Resources comprised of 19.8 million tonnes averaging 1.71 grams of gold per tonne for 1.1 million ounces. The bulk of the estimate is derived from the newly discovered Diakha deposit which is open in all directions and at depth and has significant potential for expansion. The mineral resource estimate prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition Standards incorporated by reference in National Instrument 43-101 is summarized in the following table at a cut-off grades ranging from 0.45 to 0.60 grams of gold per tonne. The effective date of this resource estimate is December 31, 2015. SIRIBAYA PROJECT - MINERAL RESOURCE ESTIMATE December 31, 2015 Classification Zone Tonnage Gold Grade Contained Gold Indicated Zone 1B 2,102,000 1.90 g/t 129,000 ounces Total Indicated Resource 2,102,000 1.90 g/t 129,000 ounces Inferred Zone 1B 4,094,000 1.25 g/t 200,000 ounces " Taya Ko 882,000 1.02 g/t 29,000 ounces " Diakha 14,840,000 1.81 g/t 863,000 ounces Total Inferred Resource 19,816,000 1.71 g/t 1,092,000 ounces Notes: 1. CIM definitions were followed for classification of Mineral Resources. 2. Cut-off grades range from 0.45 to 0.60 g/t Au and vary by weathering material type. 3. Mineral Resources are estimated using a gold price of US$1,500 per ounce. 4. Bulk density varies from 1.55 g/cm3 to 2.63 g/cm3 based on deposit and weathering code. 5. The resources are constrained by a Whittle optimized pit shell. 6. Numbers may not add due to rounding. 7. Assays are capped prior to compositing. Capping levels reduced the resource estimate gold grade for Diakha by approximately 12%, and for Zone 1B and Taya Ko by approximately 4%. Commentary "This Diakha resource estimate, combined with resources at 1B and Taya Ko, now shows independently verified resources in excess of 1,000,000 ounces (1,092,000 ounces Inferred, 129,000 ounces Indicated). This is a significant milestone and a major accomplishment for a junior gold explorer" commented Merrex President Greg Isenor. "As stated above, the Diakha deposit remains open in all directions and at depth, and I believe that there is significant potential to expand the current resource with infill and expansion drilling. Diakha was advanced from a grass roots discovery in May 2014 to an initial resource in December 2015, a period of only 20 months, which is a remarkable achievement, and on behalf of the management and the shareholders of Merrex I extend our congratulations to our JV exploration team." About the Resource Estimate The mineral resource for the Diakha deposit incorporates assay results from 216 diamond and reverse circulation drill holes totalling 25,696 metres, and for Zone 1B and Taya Ko zones, incorporates results from 129 drill holes totalling 3,903 metres. The estimate was prepared using a block model constrained with 3D wireframes of the principal mineralized domains. Values for gold were interpolated into blocks using inverse distance squared (ID2). A preliminary open pit optimization algorithm was run on the estimated grade block model to constrain the resource and to support the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") requirement that Mineral Resources have 'reasonable prospects for eventual economic extraction'. The resource estimate assumes a long-term gold price of US$1,500/ounce. Only mineralization contained within the preliminary pit shell has been included in the resource estimate. In support of the mineral resource estimate SGS Minerals Services in Lakefield, Ontario, completed preliminary metallurgical testing on three composite samples prepared from Diakha diamond drill core which indicated that the gold mineralization is not refractory and that a gold recovery of approximately 92% can be expected from a conventional leach / carbon in pulp (CIP) circuit. For additional details about the resource estimate readers are referred to the supporting NI 43-101 Technical Report which will be posted on SEDAR at www.sedar.com no later than 45 days after the date of this release. About Merrex's Siribaya Gold Project The Siribaya Gold Project is a 50/50 joint Merrex-IAMGOLD advanced-stage gold exploration project in West Mali which consists of 11 contiguous exploration permits which cover a total area of 876.5 square kilometres and is located in the Kdougou-Kniba inlier of the West African Craton region of western Mali along the borders with Senegal and Guinea. The Diakha, Siribaya 1B, and Taya Ko deposits are hosted within highly prospective, Birimian-aged metasedimentary, volcanic and intrusive rocks proximal to the Senegal-Mali Shear Zone. At Diakha, gold mineralization occurs within an albitized sandstone similar to IAMGOLD's Boto gold deposit located approximately 10 kilometres to the north along strike. Zone 1B and Taya Ko occur within the north-northeast trending Siribaya structural trend, which extends over 10 kilometres along strike, and gold mineralization occurs within breccia-hosted stockworks or fault related silicified zones. During 2014 and 2015 activity at the project was focussed primarily on the Diakha deposit area which is located along the Fekola-Boto trend in the western-most portion of land package approximately 10 kilometres south along strike of IAMGOLD's Boto gold deposit (evaluation studies in progress) and approximately 20 kilometres south along strike from B2Gold's Fekola deposit (mine construction commenced). Next Steps The mineralization at Diakha remains open along strike and at depth where further drilling is warranted. In 2016, additional drilling is planned to increase confidence in the current resources and continue to expand the mineralization along strike and at depth. Jubilee Zinc Exploration License The Province of Nova Scotia Department of Natural Resources has granted to the Company an exploration license over certain property contiguous to the Company's Jubilee lead-zinc prospect near Little Narrows, Nova Scotia. The grant is subject to various conditions including completion of formal documentation which is in progress. Further details will be announced once all paperwork has been completed.