Geologix Explorations Inc.: Tepal Resource Expansion Drilling Intersects 95 Metres of 1.18 g/t Gold and 0.39% Copper Outside Current Resource
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/25/10 -- Geologix Explorations Inc. (TSX: GIX)(FRANKFURT: GF6)(BERLIN: GF6)(STUTTGART: GF6)(MUNICH: GF6) (the 'Company') is pleased to announce initial assay results from the Company's ongoing drill program at the Tepal project in Michoacan, Mexico. All drilling in the current program is focused exclusively on resource expansion and exploration targets, with no in-fill drilling. To date 22 resource expansion holes have been drilled around the perimeter of the North and South zones, with step-outs ranging from 50 to 150 metres from prior resource drilling. Assays from 16 of these holes are reported here. Results indicate the presence of significant gold and copper mineralization outside the previously outlined resource boundaries, with all reported intercepts grading above the economic cut-off used in the recent Preliminary Economic Assessment ('PEA') report (see news release of October 12, 2010). Furthermore, this mineralization remains open in several directions and will require additional step-out drill testing to determine its extent. See the PDF version of this release or the Company's website for accompanying drill plan and sections. Alternatively, to see the associated drill plan and sections, please click on the following link: http://media3.marketwire.com/docs/gix1025.pdf.
Highlight intersections from the drilling around the North and South zones
include:
-- Hole TEP-10-020 which intersected 95.0 metres ('m') of 1.18 grams per
tonne ('g/t') gold and 0.39 percent ('%') copper and ended in
mineralization;
-- Hole TEP-10-019 which intersected 112.2 metres of 0.35 g/t gold and
0.21% copper; and
-- Hole TEP-10-006 which intersected 62.0 metres of 0.51 g/t gold and 0.25%
copper
Dunham Craig, President & CEO stated, 'We are very pleased with the resource expansion potential evolving around the two PEA pits designed by SRK Consulting based on the existing NI-43-101 resource. The drilling up to 1 kilometre east of the pit area looking for new zones, which is not reported here, is progressing well and we look forward to compiling the results in the near future. The PEA has given us clear guidelines to what is required for positive economic value and in conjunction with our better understanding of geology, we feel our project development is solidly based going forward. The Company recommends viewing the plans and sections to evaluate the significance of these drill results.'
Further assay details are outlined in Table 1 below. NSV 'No Significant Value' indicates that assay values are below the economic cut off used in the 2010 PEA ($900 Au, $2.75 Cu metal prices). Drill intercepts reported below may or may not be economic at this time and will be determined in a future study.
Further assay details are as follows:
TABLE 1 - TEPAL PROJECT DRILL SUMMARY - RESOURCE EXPANSION HOLES
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Hole ID Zone From To INT (m) Au g/t Cu %
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TEP-10-001 West IP 185.00 211.00 26.00 0.20 0.14
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TEP-10-002 West IP NSV
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TEP-10-003 West IP NSV
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TEP-10-004 North 0.00 31.00 31.00 0.36 0.15
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and North 49.00 86.50 37.50 0.27 0.17
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and North 141.70 149.00 7.30 0.29 0.29
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TEP-10-006 North 0.00 35.00 35.00 0.16 0.12
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and North 47.00 75.00 28.00 0.21 0.18
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and North 107.00 169.00 62.00 0.51 0.25
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TEP-10-007 North 0.00 28.00 28.00 0.02 0.34
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TEP-10-012 North 11.00 22.00 11.00 0.12 0.21
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TEP-10-014 North NSV
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TEP-10-015 West IP 164.00 175.00 13.00 0.21 0.07
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TEP-10-016 North NSV
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TEP-10-017 North 108.35 146.45 38.10 0.18 0.18
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TEP-10-018 South NSV
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TEP-10-019 North 63.00 175.20 112.20 0.35 0.21
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TEP-10-020 South 159.00 177.00 18.00 0.33 0.20
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and South 191.00 286.00 95.00 1.18 0.39
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TEP-10-021A North NSV
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TEP-10-022 South 64.00 138.00 74.00 0.25 0.16
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and South 160.00 172.70 12.70 0.26 0.19
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The current drill program is designed to drill a total of 11,500 metres in 55 holes, with 23 of the holes testing around the North and South zones, and an additional 32 holes aimed at testing multiple newly delineated targets to the east of the current resource zones, including the Tizate zone and other potential zones in 2010. This represents the first phase of drilling at Tepal by Geologix and is solely aimed at identifying additional mineralization to expand the resource, and increasing the scale of this emerging project. Additional assay results from the remaining drill holes will be issued as they become available.
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 delivered by Geologix personnel to the ALS-Chemex 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 in Canada + USA: 1-888-694-1742
jwilson@geologix.ca
Geologix Explorations Inc.
Dunham Craig
President & CEO
(604) 694-1742 or Toll Free in Canada + USA: 1-888-694-1742
dcraig@geologix.ca
www.geologix.ca