Geologix Explorations Inc.: Additional Drilling at Tepal Expands Tizate Zone
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/17/11 -- Geologix Explorations Inc. (TSX: GIX)(FRANKFURT: GF6)(BERLIN: GF6)(MUNICH: GF6)(STUTTGART: GF6) (the 'Company') is pleased to announce that additional assay results from its 2010 resource expansion drilling program at the Tepal project in Michoacan State, Mexico, have expanded the area of mineralization at the newly identified Tizate zone ('Tizate').
Results from the latest 11 drill holes significantly expand the outline of the known mineralization at Tizate, and indicate that much of the mineralization in this zone begins at, or near surface and extends to vertical depths of up to 300 metres ('m'), sometimes ending in mineralization. See the following link: http://media3.marketwire.com/docs/gix117.pdf or the Company's website for accompanying Tizate plan maps and sections. Highlight intercepts include:
-- Hole TEP-10-31 encountered 0.41 grams per tonne ('g/t') gold and 0.24
percent ('%') copper from surface to 33 m
-- Hole TEP-10-36 encountered 0.36 g/t gold and 0.22% copper from surface
to 112.2 m
-- Hole TEP-10-39 encountered 0.28 g/t gold and 0.23% copper from surface
to 98.6 m
President and CEO Dunham Craig stated, 'The development of the Tizate zone is a significant exploration addition to the Tepal project. As mineralization starts at, or near surface, with little or no stripping anticipated, mining costs are projected to be less than those in our 2010 Preliminary Economic Assessment (PEA). The addition of this newly delineated zone gives encouragement that the potential mine life at Tepal could be significantly expanded, with little impact to the capital costs already covered by the 2010 PEA study, which in turn, greatly benefits the project economics. We are also quite excited by the increased depth of the mineralization encountered to the northeast, as we feel we may be entering the center of the system. We are sufficiently confident in the potential economic benefit of this zone that we've dedicated two drill rigs, and 10,000 metres of additional drilling to continue to test the Tizate area.'
A total of 14 holes drilled at Tizate by Geologix, combined with historical drill results, have expanded the outline of this significant new gold and copper zone, as defined by intercepts greater than the economic cut off used in the previously released PEA completed by SRK Consulting, to an area of 1,000 metres ('m') by 500 m and remains open in several directions, specifically at depth and to the northeast where grades and widths appear to be increasing.
The Company has commenced work for an updated resource estimation, which will include these Tizate results, and is expected to be completed by the end of the 1st quarter, while a revised Preliminary Economic Assessment is expected to be completed early in the 2nd Quarter. Subsequent to the completion of the revised PEA, the Company plans to initiate a prefeasibility level study for the Tepal project that will include all zones outlined to date.
The table below exhibits assay results from the outstanding Tizate zone drill holes from the 2010 Phase 1 program. Drill intercepts have been trimmed to above the 2010 PEA base case economic cut off using $900 gold and $2.75 copper metal prices.
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Hole ID From To Interval (m) Au g/t Cu %
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TEP-10-029 0.00 115.00 115.00 0.19 0.20
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TEP-10-029 140.00 146.00 6.00 0.07 0.15
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TEP-10-029 214.00 222.00 8.00 0.19 0.20
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TEP-10-029 232.00 236.00 4.00 0.60 0.16
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TEP-10-031 0.00 33.00 33.00 0.41 0.24
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TEP-10-032 23.40 66.00 42.6 0.07 0.23
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TEP-10-033 10.00 126.10 116.1 0.18 0.16
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TEP-10-033 145.00 389.25 244.25 0.11 0.19
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TEP-10-034 0.00 33.00 33.00 0.24 0.23
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TEP-10-034 89.00 113.00 24.00 0.06 0.19
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TEP-10-034 191.00 200.65 9.65 0.56 0.06
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TEP-10-034 261.30 264.80 3.50 0.52 0.01
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TEP-10-034 313.80 324.70 10.90 0.44 0.05
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TEP-10-034 339.00 345.00 6.00 0.47 0.05
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TEP-10-034 369.00 379.45 10.45 2.50 0.14
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TEP-10-035 NSV
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TEP-10-036 2.00 114.20 112.20 0.36 0.22
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TEP-10-036 140.20 148.00 7.80 0.26 0.18
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TEP-10-036 176.00 186.00 10.00 0.23 0.12
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TEP-10-036 219.00 269.15 50.15 0.24 0.18
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TEP-10-037A 75.00 108.00 33.00 0.12 0.12
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TEP-10-037A 129.20 241.95 121.75 0.17 0.15
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TEP-10-037A 342.00 350.00 8.00 0.12 0.15
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TEP-10-038 2.00 9.00 7.00 0.11 0.22
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TEP-10-038 29.00 132.00 103.00 0.17 0.19
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TEP-10-038 152.00 156.00 4.00 0.19 0.11
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TEP-10-039 0.00 98.60 98.60 0.28 0.23
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TEP-10-040 2.20 71.50 68.95 0.20 0.25
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The style of mineralization in the Tizate zone mineralization is the same has been encountered in the North and South zones, consisting of disseminations and stockwork, mainly in intermediate intrusive rocks. Primary sulphide mineralization consists of pyrite, chalcopyrite and lesser bornite. Present data suggests that in the Tizate Zone this mineralization occurs as a series of horizontal to shallowly dipping blankets.
Geologix'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 verified the data (including sampling and analytical data) and prepared the information contained in this news release. All samples from the project were sent from the project to ALS-Chemex and taken to their sample preparation facility in Guadalajara, Jalisco State, Mexico, with the analytical work being completed at their North Vancouver, B.C. laboratory. A QA/QC program has been implemented to ensure all core and sample handling procedures are in accordance with the best possible practices. The assay protocol includes the insertion of standards, blanks and duplicates into the sample stream.
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 primary focus is the Tepal Gold-Copper Porphyry Project in Michoacan State, Mexico, where the Company has completed a Preliminary Economic Assessment study ('PEA') of the existing resource and is continuing to aggressively explore for additional gold and copper mineralization in an effort to expand the size of the resource and scale of the possible future mining operation.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Geologix Explorations Inc.
Jeffrey Wilson
V.P. Corporate Communications
(604) 694-1742 or Toll Free: 1(888) 694-1742
jwilson@geologix.ca
Geologix Explorations Inc.
Dunham Craig
President & CEO
(604) 694-1742
dcraig@geologix.ca
www.geologix.ca