Merc Acquires Damoti Gold Resource-Updates Activities
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TORONTO, ONTARIO, Aug 05 (MARKET WIRE) --
Merc International Minerals Inc. ("Merc") (TSX VENTURE: MRK) is pleased
to announce that it has executed an option agreement to acquire 100% of
Anaconda Mining Inc.'s interest in the Damoti Lake gold project in the
Northwest Territories.
The Damoti Lake gold project is located 200 km north of Yellowknife,
Northwest Territories and extends over 2,849 hectares of land in six
mining leases. An independent, National Instrument 43-101 compliant
resource estimate was completed in September 2005 for Anaconda Mining
Inc. ("ANX"). Using a cut-off grade of 8 grams gold per tonne, the
measured and indicated mineral resource estimate for the Horseshoe
deposit totaled 40,600 tonnes grading 26.17 grams of gold per tonne, with
a further inferred mineral resource estimate of 17,800 tonnes grading
16.38 grams of gold per tonne.
The Damoti Lake gold project was also the subject of a 1996 underground
exploration program, as well as a historical, 1997 non National
Instrument 43-101 compliant resource estimate and a historical, 1997 non
National Instrument 43-101 compliant preliminary economic analysis by
Sierra Mining & Engineering of Reno, Nevada. Additional information with
respect to the Damoti Lake gold project, including the results from the
historical exploration programs and studies, are contained in a technical
report dated December 15, 2005, filed on SEDAR by ANX and entitled
"Technical Report and Resource Estimate on the Damoti Lake Property,
Northwest Territories, Canada". This report was prepared by Mr. Eugene
Puritch, P.Eng., of P&E Mining Consultants Inc. Mr. Puritch and P&E
Mining Consultants Inc. are both independent of both ANX and Merc.
The results from the last two drill programs completed in 2004-2005 on
the Damoti property are as follows:
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PHASE 2 DRILLING PROGRAM 1,300 m in 19 holes
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Hole From (m) To (m) Intersection (m) Grade (g Au/t)
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Horseshoe Zone
D04-344 30.15 32.15 1.0 13.03 Delineation Hole
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Horseshoe Zone
D04-345 No significant values Delineation Hole
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Horseshoe Zone
D04-346 94.65 99.50 4.40 4.43 Delineation Hole
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Horseshoe Zone
D04-347 84.30 86.65 2.35 19.73 Delineation Hole
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Horseshoe Zone
D04-348 63.30 64.43 0.83 30.79 Delineation Hole
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Horseshoe Zone
D04-349 63.80 65.70 1.90 35.84 Delineation Hole
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Horseshoe Zone
D04-350 No significant values Delineation Hole
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Horseshoe Zone
D04-351 97.45 98.35 0.90 7.24 Delineation Hole
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D04-352 99.35 102.80 3.50 3.6 Exploration Hole
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110.00 111.00 1.00 12.98
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D04-353 25.55 27.10 1.55 14.56 Exploration Hole
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Horseshoe Zone
D04-354 5.90 6.57 0.67 504.09 Delineation Hole
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9.15 9.50 0.35 42.14
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Horseshoe Zone
D04-355 24.80 27.50 3.30 6.76 Delineation Hole
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32.00 32.40 0.42 14.60
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48.85 41.60 0.75 10.66
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Horseshoe Zone
D04-356 15.85 8.10 2.25 31.34 Delineation Hole
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Including 15.85 16.42 0.57 96.69
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Horseshoe Zone
D04-357 No significant values Delineation Hole
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Horseshoe Zone
D04-358 6.52 7.84 1.32 19.32 Delineation Hole
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21.22 22.78 1.56 11.85
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Horseshoe Zone
D04-359 No significant values Delineation Hole
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Horseshoe Zone
D04-360 64.80 75.33 10.53 63.48 Delineation Hole
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80.77 82.60 1.83 15.68
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D04-361 66.35 77.60 11.25 32.21 Delineation Hole
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Horseshoe Zone
D04-362 22.17 23.47 1.30 21.84 Delineation Hole
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PHASES 3 DRILLING PROGRAM 1,470 m in 13 holes
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D05-363 No significant results Exploration Hole
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D05-364 No significant results Exploration Hole
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D05-365 14.00 17.02 3.02 2.04 Exploration Hole
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D05-366 No significant results Exploration Hole
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D05-367 No significant results Exploration Hole
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D05-368 No significant results Exploration hole
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D05-369 227.23 228.40 1.17 10.37 Exploration Hole
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D05-370 227.50 229.24 1.74 4.04 Exploration Hole
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D05-371 26.22 26.59 0.37 4.71 Exploration Hole
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D05-372 No significant results Exploration Hole
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D05-373 35.40 37.63 2.23 4.55 Exploration Hole
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D05-374 103.60 106.60 2.50 11.77 Exploration Hole
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Horseshoe Zone
D05-375 74.40 78.01 3.61 33.88 Step Out Hole
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Numerous drill ready targets exist on the property including the Lard,
Red Mountain, North Horseshoe zones as well as the Granite showing. Merc
intends to re-model all the geological data with a goal of increasing the
overall resource.
Under the terms of the agreement, Merc can acquire a 100% interest in the
Damoti Lake gold project from ANX subject to an existing 2% net smelter
royalty by paying CDN$250,000 and issuing ANX 1,250,000 Merc common
shares. The option agreement is scheduled to close on or before August
31, 2008 and is subject to the approval of the TSX Venture Exchange. ANX
owns a 100% interest in mining lease DAM 3 that holds the Horseshoe Zone
deposit and an 80% interest in the balance of the Damoti Lake mining
leases. Borthwick Lake - Ontario
The proposed 2008 exploration over the Borthwick Lake gold-silver
property located 200 km. north of Red Lake Ontario has been delayed while
Merc consults with the Sandy Lake First Nation. Merc remains hopeful that
community consultations will allow ground access in the near future but
Merc cannot guarantee that an agreement will be reached.
Lingman Lake - Ontario
Compilation work completed on Merc's Lingman Lake gold property located
325 km north of Red Lake Ontario has confirmed that the West zone and NW
zone mineralization are open along strike. Exploration work completed in
1998 for Echo Bay Mines Ltd. and Wolfden Resources Inc., identified the
surface expression of the zones roughly 75 metres west of the previous
drilling. The surface expression of the West zone returned 6.57 grams
gold per tonne over 2.5 metres, while the surface expression of the NW
zone returned 9.02 grams gold per tonne over 1 metres. Two new showings
were also identified to the north with the northernmost one returning
8.98 grams gold per tonne over 1 metre. (Work Programme On The Lingman
Lake Property by VYTYL Exploration Services, Aug. 20, 1998.)
Merc is continuing to discuss the potential of consolidating the Lingman
Lake land package (Press Release May 3, 2008) prior to completing any
field work.
The foregoing disclosure is based on exploration data and geological
reports supplied by ANX that have been reviewed and compiled by Richard
A. Graham, Geol., who is a qualified person for the purpose of National
Instrument 43-101. Mr. Graham is an independent qualified person as
defined by NI 43-101 and has reviewed the contents of this press release.
Merc is a junior exploration company that offers shareholders leverage to
gold-silver by acquiring projects with historic resource estimates that
have the geological potential to be enhanced through both modern day
exploration and dramatically higher gold-silver prices.
This news release may contain forward-looking statements based on
assumptions and judgments of management regarding future events or
results. Such statements are subject to a variety of risks and
uncertainties which could cause actual events or results to differ
materially from those reflected in the forward-looking statements. The
Company disclaims any intention or obligation to revise or update such
statements.
The TSX Venture Exchange does not accept responsibility
for the adequacy or accuracy of this release.
Contacts:
Merc International Minerals Inc.
Thomas Pladsen
President and CEO
(647) 287-3778
(416) 628-5911 (FAX)
Email: tompladsen@hotmail.com
Copyright 2008, Market Wire, All rights reserved.
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