Merit Mining Corp.
| Report date | May 24, 2008 |
|---|---|
| Symbol | MEM |
The Melman Report - Merit Mining Corp.
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.