Geologix Explorations Inc.: New Resource Estimate Increases Indicated and Inferred Tonnes at Tepal Project
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/16/11 -- Geologix Explorations Inc. (TSX: GIX)(FRANKFURT: GF6)(BERLIN: GF6)(MUNICH: GF6)(STUTTGART: GF6)(the 'Company' or 'Geologix') is pleased to announce the results of a revised resource estimate prepared by SRK Consulting (Canada) Inc. ('SRK'), incorporating the results from the Company's drilling program from July to December 2010 at the North, South, and Tizate zones on the Tepal Project in Michoacan state, Mexico. The results of the SRK resource estimate indicate an increase in the resource of 131% in Indicated tonnes, and an increase of 69% in Inferred tonnes. A revised Preliminary Economic Assessment ('PEA') utilizing the results from this March 2011 resource estimate, is expected to be completed by SRK in the second quarter of 2011.
Current Total Tepal Project Resource Estimate by SRK - March 2011
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Au Cu Au Cu AuEq
Zones Category Tonnes (g/t) (%) (oz.) (lbs.) oz.(i)
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North, South
& Tizate Indicated 57,800,000 0.42 0.24 800,000 311,100,000 1,700,000
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North, South
& Tizate Inferred 93,200,000 0.28 0.20 800,000 414,800,000 2,100,000
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Au = gold, Cu = copper, g/t = grams per tonne, % = percent, oz. = ounces,
lbs. = pounds, and AuEq = gold equivalent.
(i) AuEq is calculated using $900 Au, $2.75Cu metal prices (AuEq = (lbs.
Cu x $2.75/$900) Au oz.). Assumes 100% metallurgical recovery. Note:
Resource numbers above are rounded to nearest 100,000 tonnes, 100,000 oz
Au, 100,000 lbs Cu and 100,000 oz AuEq
Percentage Increase of Current Resource Estimate over Previous Resource
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Category Tonnes (t) Au (oz.) Cu (lbs.) AuEq (oz.)(i)
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Indicated 131% 82% 111% 91%
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Inferred 69% 11% 56% 37%
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Dunham Craig, President & CEO stated 'We are very pleased with this updated resource estimate, as it evidences an increase in tonnes, gold ounces, and copper pounds in both the Indicated and Inferred categories, yet is only reflective of results from the Company's first phase of drilling on the project. A second phase of resource expansion drilling is currently underway, with a specific focus on the Tizate zone. Additional drilling results from this program and the completion of an updated PEA are expected this spring, in advance of a pre-feasibility program proposed to commence before the summer.'
The resource estimate completed by SRK utilizes several different parameters from the previous resource estimated by ACA Howe & Associates ('ACA').
-- The SRK estimate constrains the reported resource within a Whittle pit
shell based on $1,200 Au/ oz. and $3.00/lb. Cu and a $5.00 cut-off
whereas the ACA resource was not pit constrained.
-- The SRK drill data was constrained by a nominal $8.70 equivalent
wireframe calculated using a $900 gold price and $2.75 copper price. The
ACA drill data was constrained using 0.18 g/t gold ($5.20 equivalent
grade shell).
-- The SRK interpolation was carried out in multiple passes and required 5
samples from 2 drill holes to qualify a block for reporting. The ACA
final interpolation pass required 1 sample from 1 drill hole.
Previous Total Tepal Project Resource Estimate by ACA - November 2009(i)
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Au Cu Au Cu AuEq
Zones Category Tonnes (g/t) (%) (oz.) (lbs.) (oz.)(i)
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North &
South Indicated 25,000,000 0.54 0.27 440,000 147,100,000 890,000
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North &
South Inferred 55,000,000 0.41 0.22 720,000 265,400,000 1,530,000
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(i) Refer to the Company's news release dated November 5, 2009, and Sedar
filing dated November 4, 2009.
Note: Resource numbers above are rounded to nearest 100,000 tonnes, 10,000
oz Au, 100,000 lbs Cu and 10,000 oz AuEq
The Tepal North and South Zones were not uniformly assayed for Ag and Mo and values are not included in the resource estimate for these zones. The company intends to re - assay pulps during prefeasibility studies. The Tizate Zone was assayed for Ag and Mo by the company and is included in the resource estimate.
Current Tizate Zone Resource Estimate by SRK - March 2011
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Zones Category Tonnes Au (g/t) Cu (%) Ag (g/t) Mo (%)
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Tizate Indicated 11,300,000 0.23 0.20 2.24 .007
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Tizate Inferred 45,700,000 0.20 0.18 2.33 .006
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Ag =silver, Mo = molybdenum
Metallurgical work is underway on the Tizate zone to the same standards previously reported in the October 2010 PEA and will be incorporated into the revised SRK PEA expected to be delivered in April 2011.
The mineral resources were estimated using Gemcom GEMs Version 6.2.3 block modeling software. Grades for Au and Cu were interpolated by ordinary kriging into blocks that are 10 metres by 10 metres by 5 metres in height representing the mineralized envelopes. Grades for Mo and Ag were estimated by inverse distance weighted to the second power. Grades were estimated inside mineralized envelopes based on an $8.70 US equivalent cut-off, designed by Geologix and validated by SRK. The blocks were interpolated in three successive passes with each pass having a larger search volume. Search radii were designed from variogram parameters and local drill spacing. Blocks were only interpolated if at least five samples representing at least two drill holes were found within the search radius. Mineral resources were further constrained within a Whittle resource pit shell based on $1,200 Au/oz and $3.00/lb for Cu and reported above a $5.00 economic cut-off. Only blocks within the Whittle shell are reported as mineral resources
All assays were composited to a 2 metre length prior to block estimation, grades were evaluated for outliers and gold assay grades were capped to 4 g/t and copper grades were capped to 1.5% prior to compositing. Blocks were classified as Indicated Mineral resource if at least five samples from two drill holes were found within a 60 m by 40 m by 30 m search for Tepal or within a 90 metre by 60 metre by 50 metre search for the Tizate.
The resource estimate was completed by Dr. Gilles Arseneau, P. Geo, Principle Consultant, Geologist, of SRK Consulting (Canada) Inc., Vancouver, B.C. and is based on a geological interpretation supplied by the Company to SRK. Dr. Arseneau is an 'independent qualified person' for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators and has verified the data disclosed in this release. The Company's Resource Geologist, Andrew Hamilton, B.Sc., P. Geo., a 'qualified person' for the purposes of NI 43-101, has verified the data (including sampling, analytical and test data) and prepared or supervised the preparation of the information delivered to SRK.
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
Toll Free in Canada and USA: 1(888) 694-1742
jwilson@geologix.ca
Geologix Explorations Inc.
Dunham Craig
President & CEO
(604) 694-1742
dcraig@geologix.ca
www.geologix.ca