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Merit Mining
Corp.’s published strategy is, “Growth through advanced stage
exploration, development, production, acquisitions, strategic
alliances, joint ventures and mergers.” The Vancouver-based
company has recently taken a significant step toward advancement
of that strategic vision by accomplishing the commissioning of
their 200 tonne per day (tpd) mill for their Greenwood Gold
Project in March, 2008; the processing of a 10,000 tonne bulk
sample at the mill and, this past May 8, receipt of its Mine and
Mill Operating Permits to operate at that production rate for
the life of the mine. An important milestone was also reached
with the signing of an “Impacts and Benefits Agreement” with the
Osoyoos Indian Band.
Merit’s
Greenwood Gold Project, which is presently the company’s main
focus, is comprised of three main deposits, two of which are
located on the Canadian side of the Canada/USA border and one on
the American side. The Canadian deposits are called
“Lexington-Grenoble” and “Golden Crown” while the American is
known as “Lone Star” in Washington State.
As a result of
their exploration and development programs at the three
projects, Merit has been able to publish NI 43-101 compliant
resource estimates for all three; the results for the two
Canadian properties being published in October, 2006 and the
American in September, 2007.
Estimates for
Lexington-Grenoble include 297,000 tonnes of Measured and
Indicated resources containing 79,800 ounces of gold plus 8.85
million pounds of copper plus 45,000 tonnes in the “Inferred”
category containing 9,500 oz Au and 1.02 million lbs copper.
Golden Crown’s estimated resources shows 105,000 tonnes of
Indicated resource containing 46,500 oz Au plus 1.27 million lbs
copper, with 8,000 additional tonnes in the “Inferred”
classification.
Lone Star’s
deposit resource estimate detailed 63,000 tonnes of Indicated
and 682,000 tonnes of Inferred resources containing a total of
34,600 oz Au and 33.26 million lbs copper.
Company
geologists indicate that the three deposits remain open at their
edges with the opportunity to expand their resources by further
exploration drilling.
Merit has
several other important projects, specifically including the “J
&L Project” located about 45 km north of Revelstoke along the
road leading to the Mica dam on the Columbia River. J&L is
comprised of two known polymetallic base and precious metal
deposits known as the “Main” and “Yellowjacket” zones.
Previous
mining activities at the Main Zone have left 2.0 km of
underground drifting, crosscuts and raises and Merit has been
conducting underground drilling at the Main Zone which is
exposed for a distance of 0.85 km along the drift. The
Yellowjacket Zone sub parallels and is in the immediate hanging
wall of the Main Zone.
Historic
(non-compliant with NI 43-101) estimates indicate the
possibility of a significant ore body and Merit plans to
complete a fully compliant resource estimate at J&L by year-end
2008. The company recently completed a 40 person mining camp
structure to facilitate development works.
The company
has several other properties in its portfolio as part of its
plan for building shareholder value over time and plans to use
the production base at the Greenwood Gold Project to further its
exploration and development programs.
An in-depth
study will be completed following a property visit, presently
scheduled for May 27-28, 2008.
Leonard Melman
May 24, 2008
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