Geologix Explorations Inc.: New Tepal Resource Estimate Increases Measured & Indicated Tonnes by 324%
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/27/12 -- Geologix Explorations Inc. ("Geologix", the "Company") (TSX: GIX)(FRANKFURT: GF6)(BERLIN: GF6)(MUN: GF6)(STUT: GF6) is pleased to announce an updated resource estimate for its Tepal Project in Michoacan State, Mexico which incorporates the results from drilling 41,247.5 metres ("m") at the North, South, and Tizate zones during 2011. The updated resource estimate was completed by Micon International Ltd. ("Micon") and reports a 324% tonnage increase in the resource Measured and Indicated categories compared to the previous resource of March 16, 2011. A pre-feasibility study utilizing the results from this March 2012 resource estimate is targeted to be completed by the end of the second quarter of 2012.
Resources are reported within three Whittle optimized resource pit shells utilizing metal prices, metallurgical recoveries, operating costs and pit slope angles (details below). Results from the update resource estimate are as follows:
Updated Total Tepal Project Resource Estimate(1) - March 2012
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Tonnes Au Cu Ag Mo Au Cu AuEq(2)
Category (t)(g/t) (%)(g/t) (%) (oz.) (lbs) (oz.)
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Measured 34,100,000 0.48 0.25 0.95 0.002 528,000 185,000,000 1,037,000
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Indicated 153,700,000 0.26 0.19 1.67 0.004 1,276,000 628,000,000 3,003,000
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Meas & Ind 187,800,000 0.30 0.20 1.54 0.004 1,804,000 813,000,000 4,040,000
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Inferred 35,700,000 0.16 0.15 1.68 0.006 182,000 120,000,000 512,000
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Au = gold, Cu = copper, Ag = silver, Mo = molybdenum, g/t = grams per tonne,
% = percent, oz. = ounces, lbs. = pounds
(1) The in situ resource stated in the table conforms to CIM guidelines for
reasonable potential for economic extraction and is not to be confused as
reserves. Resource numbers above are rounded to nearest 100,000 tonnes,
1,000 oz Au, 1,000,000 lbs Cu and 1,000 oz. AuEq
(2) AuEq = gold equivalent and is calculated using gold and copper only
using $1000 Au, $2.75 Cu metal prices (AuEq = (lbs. Cu x $2.75/$1000) + Au
oz.). All dollar values stated are $USD.
For comparison with the March 2011 resource estimate please see the Company's March 16, 2011 News Release at www.geologix.ca (http://www.geologix.ca/s/NewsReleases.asp?ReportID=447597&_Type=News&_Title=New-Resource-Estimate-Increases-Indicated-and-Inferred-Tonnes-at-Tepal-Proj).
The March 2012 resource estimate now includes results for Ag and Mo in the Tepal North and South Zones which were not consistently assayed in historic drill programs. Infill drilling and the re-assaying of 1688 historic pulps supplied sufficient data to permit Ag and Mo to be estimated for these zones.
Dunham Craig, President & CEO stated, "Our 2011 work exceeded our target expectations. The 2011 program was designed to drill the existing resource to Measured and Indicated category for inclusion in a prefeasibility study and to test for expansion in areas that were open. We are very pleased with both results and areas remain open for drill testing to examine potential further inclusion in a future definitive feasibility study. This coupled with the recently released new and untested exploration targets, requires the Company to engage in a 2012 drill program to further define the property's potential."
The resources for the three main zones are shown in the tables below.
North Zone - Resource Estimate(1) - March 2012
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Au Cu Ag Mo Au Cu AuEq(2)
Category Tonnes (g/t) (%) (g/t) (%) (oz) (lbs) (oz)
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Measured 14,100,000 0.50 0.29 0.78 0.002 228,000 89,000,000 473,000
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Indicated 55,300,000 0.30 0.21 1.01 0.002 533,000 252,000,000 1,226,000
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Meas & Ind 69,400,000 0.34 0.22 0.96 0.002 761,000 341,000,000 1,699,000
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Inferred 900,000 0.22 0.21 1.21 0.003 7,000 4,000,000 18,000
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South Zone - Resource Estimate(1) - March 2012
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Au Cu Ag Mo Au Cu AuEq(2)
Category Tonnes (g/t) (%) (g/t) (%) (oz) (lbs) (oz)
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Measured 20,000,000 0.47 0.22 1.07 0.002 300,000 96,000,000 564,000
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Indicated 21,000,000 0.45 0.20 1.17 0.002 305,000 91,000,000 555,000
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Meas & Ind 41,000,000 0.46 0.21 1.12 0.002 605,000 187,000,000 1,119,000
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Inferred 400,000 0.40 0.16 0.95 0.002 5,000 2,000,000 11,000
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Below the South Zone pit shell, indicated and inferred material has been identified that has not had economic parameters applied and is not included in the resource estimate. This material totals 4.8 million tonnes grading 0.57 g/t Au, 0.27% Cu, 1.12 g/t Ag and 0.003% Mo at a $20.00 equivalent cut-off, which is considered a preliminary suitable equivalent value that could potentially give a reasonable prospect for economic extraction. However, an underground economic study needs to be completed to identify the appropriate cut-off. The material remains open in several directions and requires further drilling to identify size, grade and reasonable economic potential for inclusion into stated mineral resources.
Tizate Zone - Resource Estimate(1) - March 2012
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Au Cu Ag Mo Au Cu AuEq(2)
Category Tonnes (g/t) (%) (g/t) (%) (oz) (lbs) (oz)
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Indicated 77,400,000 0.18 0.17 2.29 0.006 438,000 285,000,000 1,222,000
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Inferred 34,400,000 0.15 0.15 1.70 0.007 170,000 115,000,000 486,000
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Oxide and Sulphide Resources(1) - March 2012
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Tonnes Au Cu Ag Mo Au Cu AuEq(2)
Category (t)(g/t) (%)(g/t) (%) (oz) (lbs) (oz)
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Oxide Meas
& Ind 21,100,000 0.34 0.21 1.18 0.002 233,000 96,000,000 497,000
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Oxide
Inferred 700,000 0.19 0.13 2.01 0.002 4,000 2,000,000 10,000
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Sulphide
Meas & Ind 166,700,000 0.29 0.20 1.59 0.004 1,571,000 717,000,000 3,543,000
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Sulphide
Inferred 35,000,000 0.16 0.15 1.67 0.007 177,000 118,000,000 502,000
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The mineral resources were estimated using Datamine Studio V3 mining software. Grades for Au, Cu, Ag and Mo were interpolated by ordinary kriging into blocks that are 10 metres by 10 metres by 5 metres in height representing the mineralized envelopes. Grades were estimated inside the mineralized envelopes based on an $8.70 equivalent cut-off calculated using a $1000 gold price and $2.75 copper price, designed by Geologix and validated by Micon. Mineral resources were further constrained within a Whittle resource pit shell based on $1,300 Au/oz and $3.30/lb for Cu (Ag and Mo values were not included) and reported above a $5.00 economic cut-off. The Whittle pit shell constraints utilized the following parameters:
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Metallurgical Recoveries
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North and South Zones Oxide: 78.4% Au, Cu 14.3% - Sulphide
60.7% Au, 87.4% Cu
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Tizate Oxide: 68.8% Au, Cu 6.8% - Sulphide
66.2% Au, 85.3% Cu
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Metals Used and Metal Prices ($USD)
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Gold, Copper $1300 Au, $3.30 Cu
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Operational Constraints
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Pit Slope Angle 45 degrees
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Operating Cost (Oxide and Sulphide) Mining:$1.35/t, Processing: $4.30/t,
G&A: $0.68/t
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All assays were composited to a 2 metre length prior to block estimation, and composite grades were evaluated for outliers. After evaluation, capping was applied to both oxide and sulphide mineralization for Au, Cu, Ag and Mo, where needed. 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. For the North and South zones interpolation passes one and two correspond to a classification of Measured and Indicated respectively and required at least five samples representing at least two drill holes. The remaining blocks within the North and South zone resource solids were interpolated with a third pass, which required at least 4 samples from at least one hole and were classified as Inferred. The Tizate zone was interpolated in two passes. The first required at least five samples representing at least two drill holes for a classification of Indicated, the second required at least 4 samples from at least one hole for a classification of Inferred.
The resource estimate was completed by David Makepeace, M.Eng., P. Eng., Senior Geologist, of Micon International Ltd., Vancouver, B.C. and is based on geological interpretation supplied by the Company to Micon. Mr. Makepeace 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 news release. The Company's Resource Geologist, Andrew Hamilton, B.Sc., P. Geo., a 'qualified person' for the purposes of NI 43-101, has approved the disclosure contained in this news release.
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 completed a Preliminary Assessment study ("PA") in April 2011 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.
Dunham Craig
President & CEO
604.694.1742 or Toll Free: 1.888.694.1742
dcraig@geologix.ca
Geologix Explorations Inc.
Jeffrey Wilson
VP Corporate Communications
604.694.1742 or Toll Free: 1.888.694.1742
jwilson@geologix.ca
www.geologix.ca