Press release from Marketwire
Geologix Outlines Aggressive Exploration and Development Programs for 2010 and Hosts Conference Call
Monday, May 31, 2010
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 31, 2010) - Geologix Explorations Inc. (TSX:GIX)(FRANKFURT:GF6)(BERLIN:GF6)(MUNICH:GF6)(STUTTGART:GF6) (the "Company") is pleased to provide an update on its exploration and development plans for the balance of 2010. In support of this news release, the Company will also be hosting a telephone conference call on Tuesday June 1, 2010 at 11:00 am Pacific Standard Time (2:00 pm Eastern) to discuss the 2010 work programs. To participate in the conference call see details at the bottom of this release.
Following an extensive process of project evaluations, the Company has achieved its two objectives of acquiring new property assets during 2009, and joint venturing multiple secondary property assets during the 1st quarter of 2010. For the balance of 2010 the Company intends to focus its exploration efforts in Mexico where it plans systematic programs of drilling and development at both the Tepal and Libertad Projects. Coincident with this, the Company will continue to identify and evaluate new opportunities in Mexico as they arise.
Tepal Project - Michoacan, Mexico
The Tepal Gold-Copper Porphyry Project hosts a resource estimated at 437,000 indicated ounces ("ozs") and 716,000 inferred ozs of gold and 147.1 million indicated pounds ("lbs") and 265.4 inferred lbs of copper. A report on the Tepal Project dated November 4, 2009, prepared for the Company by ACA Howe International Ltd. and filed on SEDAR, has estimated the property resources as of September 24, 2008 as tabulated below:
---------------------------------------------------------------------------- Gold Equivalent Category Tonnes Gold g/t Gold Oz. Copper % Copper lbs. Oz. ---------------------------------------------------------------------------- Indicated 24,995,000 0.544 437,000 0.267 147,130,000 841,608 ---------------------------------------------------------------------------- Inferred 54,964,000 0.405 716,000 0.219 265,370,000 1,445,768 ---------------------------------------------------------------------------- Tonnage figures, ounces of gold and pounds of copper have been rounded up or down to the nearest 1,000 tonnes, 1,000 ounces and 10,000 pounds respectively. Tonnes are metric tonnes, g/t are metric grams/tonne. Ounces and pounds are imperial measure using 2205 lbs = 1 metric tonne. Gold equivalent estimated using US$800/oz. gold and US$2.20/lb copper metal prices. (gold ozs + ((copper lbs x US$2.20)/US$800)) = Gold equivalent gold ozs. Details of the key assumptions, parameters and methods used in these estimates are contained in the Company's press release dated November 5, 2009.
The Company has concluded its preliminary work on the Tepal Project and is now preparing to begin a two-phased resource expansion drill program commencing in the 2nd quarter of 2010. Phase 1 drilling will consist of 5,000 metres ("m"), with an additional 5,000 m anticipated in a Phase 2 program to be designed based on Phase 1 results.
Preparatory work for the drilling program consisted of a 3 x 5 kilometre ("km") geophysical survey over the central claim area on which the existing resource is found. The survey delineated multiple new target areas; a prospective target surrounding the known resource, and three additional new target areas ranging from 500 m to 2,000 m east of the current resource zones. These new targets share similar geophysical signatures to those identified over the area containing the resource. The Company expects to mobilize two drill rigs to Tepal. One drill will test the area surrounding the known resource, and the second drill exploring the peripheral target areas to the east. The sole objective of the program is to expand the gold and copper resource.
While preparing exploration efforts at Tepal, the Company conducted extensive economic evaluation of the existing resource. Work to date has consisted of pit optimization, mine scheduling, metallurgical test work, and process methods. Initial metallurgical test work indicates the resource would produce a high quality commercial gold/copper/silver concentrate. Further metallurgical optimization work during the 2nd quarter is continuing in preparation for a preliminary economic assessment targeted for completion in the 3rd quarter of 2010. Any additional resources identified through the 2010 drilling will be included in a revised assessment at the end of the year.
Libertad Project - Sonora State, Mexico - Exploration
The Libertad Project is an early stage gold-silver epithermal vein and stockwork system identified over 1.8 kms in length that previously had no systematic sampling and has never been drilled. The Company has grid trenched and sampled the system and concluded a 1.8 km x 1 km geophysical survey (IP) over the core area. Trenching results indicate the gold-silver mineralization is continuous over the strike length and the geophysical survey indicates a large anomaly, 1300 m x 700 m resides directly under the mineralized trenches.
During the 2nd quarter of 2010, the Company plans a 2,000 m drill program. Initial holes are plotted to test beneath the trenches to determine the style and character of mineralization. Drills will then be targeted at depth to test the zone where geophysical surveys indicate the geophysical signature widens to 700 m at the 125 m depth level.
The Company has entered into joint ventures on all of its Peruvian properties.
La Joya - Exploration
Empresa Minera Los Quenuales S.A. ("EMLQ"), a Peruvian subsidiary of the Glencore Group, has been granted an option to earn up to 70% interest in the La Joya property and is committed to a minimum of 1,500 m of drilling by March 23, 2011. Precious metal mineralization (gold, silver +/- copper and molybdenum) is located in the Central Zone of La Joya where an interpreted intrusive unit intrudes the sediments. The area of potential mineralization measures approximately 2,500 m from south to north. Gold values in these areas are as high as 6.59 grams per tonne ("g/t") gold and occur in gossan zones. Silver anomalies assayed as high as 1,411 g/t silver in the Central Zone.
A second zone of mineralization is located at La Joya West, where a structurally controlled, intrusive related zone of mineralization is dominated by zinc and lead mineralization. Mineralization is hosted in mantos, replacement bodies and structures within calcareous sediments. Maximum analytical results are 60% zinc and 25.5% lead in select samples.
Liscay, Largatija, Lachoc, Mirko, San Felipe, Sura, Toro Blanco and Cayhua - Exploration
These properties are currently optioned to Rae Wallace Mining Company ("RWMC"), a private company incorporated in Idaho, USA in 1916 and under new management since 2007. RWMC is currently lead by President and CEO, George Cole, a 35 year veteran of the mining industry and former Vice President of Exploration at Cominco American Inc., and Vice President, Steven Friberg, a former consultant with over 35 years in the mining industry. The Company understands RWMC intends to complete a private placement or public financing no later than September 30, 2010 and list its shares for trading on an American or Canadian stock exchange. As part of RWMC's obligations under its option agreements, the Company will be granted publicly listed shares of RWMC.
RO - Exploration
The RO claims are adjacent to the historical high grade Sleeper Mine and are optioned to Montezuma Mines Ltd., a subsidiary of CMQ Resources Inc. Under the terms of the option, Montezuma may earn a 55% interest in the RO Property by funding US$3,000,000 in qualified expenditures over a five year period. Montezuma has indicated to the Company that it intends to spend $490,000 on the property this year conducting geochemistry and geophysical surveys. No interest is earned until US$3,000,000 has been expended.
Silver Cloud - Exploration
The Silver Cloud Property is located adjacent to the Hollister Mine currently operated by Great Basin Gold. During 2009, the Company acquired a 100% interest in the project subject to a 5% NSR royalty. The property is available for joint venture opportunities.
The Company's Resource Geologist, Andrew Hamilton, B.Sc., P. Geo., a 'qualified person' for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Properties of the Canadian Securities Administrators, has reviewed and verified the data contained in this news release.
Conference Call Details
To participate in the conference call, please dial the appropriate number listed below approximately five minutes prior to the commencement of the call.
Dial In Numbers:
Toll Free from Canada and USA: 1-877-385-4099
Participant Pass Code: 3734588#
Geologix Explorations Inc. is a mineral exploration company focused on acquiring, exploring and developing mineral resource opportunities with the potential to host world class mineral deposits. The Company's current primary focus is the Tepal Gold-Copper Porphyry Project in Michoacan State, Mexico, where the Company is aggressively exploring for potential resource expansion, and advancing toward preliminary economic assessment of the project in its ongoing effort to upgrade and increase the scale and viability of this emerging project.
FOR FURTHER INFORMATION PLEASE CONTACT:
Geologix Explorations Inc. Jeffrey Wilson V.P. Corporate Communications (604) 694-1742 or Toll Free: 1(888) 694-1742 firstname.lastname@example.org
Geologix Explorations Inc. Dunham Craig President & CEO (604) 694-1742 email@example.com www.geologix.ca
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.