HALIFAX, NOVA SCOTIA ? (Marketwire ? July 16, 2008) ? Merrex
Gold Inc. (?Merrex? or the ?Company?) announces that the private placement
announced June 12, 2008 is withdrawn due to adverse market conditions for
equity financings, especially for junior resource companies such as Merrex.
Alternate financing sources are being investigated.
?Notwithstanding the significant results achieved to date or
the considerable potential of both of Merrex?s Siribaya Gold Project in Mali,
West Africa or its Jubilee Zinc Deposit in Cape Breton, Nova Scotia, there was
insufficient support in the equity markets at terms acceptable to management to
warrant continuing with the financing effort?, commented Merrex President and
CEO Greg Isenor.
Siribaya Gold
Project, Mali
Merrex?s Siribaya Gold Project is within a 700 square
kilometre contiguous land package hosting an estimated 100 kilometres of
gold-anomalous structural lineaments. Extensive diamond and rotary air
blast drilling has identified extensive gold mineralization along a 10
kilometre section of the Siribaya Structure. At Area 55 of Zone 1B a
hydrothermal breccia-hosted, very high grade zone (5.07 g/t over 33
metres and 5.92 g/t over 20 metres) of gold mineralization
over a minimum of 200 metres strike length, over 200 metres depth and open to
the north, south and at depth is under active exploration. This Zone appears to
extend for an additional two kilometres.
Phase II (2008) diamond drill program is underway to test the depth and
strike extension of this gold mineralization and an additional 4,000 metres of
core drilling has been completed. The assay results of this drilling will be
released as soon as results have been received and interpreted. A NI 43-101
compliant resource estimate has been commissioned.
Management believes that the Siribaya Project has the
potential to host a substantial gold deposit. Drilling has shown that the Area
55 mineralized zone is continuous for 200 metres on a north-south strike
length. An intersection 400 metres to the south is believed to be the same
zone. Drilling 2,000 metres to the south intersected the controlling fault and
artisanal workings in the same area exploited sulphide-rich gold-bearing rocks.
The Area 55 mineralized zone was drill-confirmed to 200 metres depth and the gold-bearing
sulphide/massive sulphides are open at depth. The average grades present in
certain drill holes within Area 55 is between 3.0 to 5.0 grams Au per tonne.
Jubilee Zinc Deposit
Merrex owns
a 228 claim block located in Cape
Breton, Nova Scotia. Diamond
drilling has defined a mineralized zone over 2.1 kilometres long and open to
the north (the Jubilee Main Zone) with drill intersections as high as 21.16% zinc-lead over 2.7 metres
including 41.39% zinc-lead over 1.2 metres.
Drilling
also intersected zinc-lead mineralization in zones outside of the Jubilee Main
Zone including one to the east which yielded assays as high as 5.3% zinc-lead
over 9.6 metres including 10.25%
zinc-lead over 4.15 metres (Hole MJ-07-24). These zones appear to
run parallel to the Jubilee Main Zone but may also be controlled to some extent
by cross structures. This type of parallel and cross faulting is common to
carbonate-hosted zinc-lead deposits. An additional 16 core holes were drilled
in the parallel zones. Results will be released when assays have been received
and interpreted.
A NI 43-101 compliant resource estimate of 3.1 million
tonnes grading 4.71% Zinc equivalent was completed by Mercator Geological
Services Limited. This resource will be updated with recent drill results.
About Merrex
Merrex is a mineral resource exploration company focused on
exploration for gold in West Mali, Africa, zinc in Cape
Breton, Nova Scotia, nickel in West
Voisey's Bay, Labrador, and gold in Red
Lake, Ontario, with a
solid organization of people and projects to enable continued aggressive
exploration, discovery, and growth.
FOR FURTHER INFORMATION PLEASE CONTACT:
Greg Isenor
President & CEO
(902) 832-5555
Or visit our website at www.merrexgold.com
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.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES
NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OF THIS RELEASE.