Geologix Accelerates Programs at Tepal With 7 Drill Rigs
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/13/11 -- Geologix Explorations Inc. (TSX: GIX)(FRANKFURT: GF6)(BERLIN: GF6)(MUNICH: GF6)(STUTTGART: GF6) (the 'Company') is pleased to announce the commencement of multiple accelerated work programs at the Tepal project in Michoacan state, Mexico.
Following the completion of the Company's successful 2010 resource expansion drilling programs and the receipt of the April 2011 Preliminary Assessment report completed by SRK Consulting (Canada) Inc., the Company elected to accelerate the project's development by dual streaming its advancement through initiating prefeasibility programs while continuing to test ongoing resource expansion and exploration drilling targets outside the currently known zones.
A total of seven drill rigs have been contracted and are scheduled to arrive on site in June. It is expected that five of the drills will be allocated to prefeasibility drilling in and around the North, South, and Tizate zones to provide the necessary infill drilling data to bring the current Tepal resource to a Measured and Indicated category as required for prefeasibility. At the same time, the remaining drills will be utilized for ongoing resource expansion and exploration drilling outside the known zones. These drills will then be utilized to test any subsequent targets delineated by this summer's property-wide exploration work.
President and CEO Dunham Craig stated, 'The completion of the April 2011 Preliminary Assessment Report was a major milestone for the Tepal Project. It verified favourable assessed project economics of the currently known zones and evidenced to us that Tepal's advancement warranted a dual stream approach with ongoing aggressive exploration and resource expansion work, paralleled by the preparation and commencement of a prefeasibility study to advance toward the permitting stage.'
A portion of the upcoming drilling program will provide sampling for advanced metallurgical studies. Major Drilling International Inc. and Intercore Perforaciones S. de R.L. de C.V. have been engaged to complete a total of 40,000 metres of drilling in this extensive 2011 drill campaign. In preparation for this program and ongoing development at the Tepal project, the Company has completed construction of a 60-man full facility camp on site.
In an effort to delineate new targets at Tepal, the Company has initiated property-wide exploration programs aimed at testing nearly 160 square kilometres of previously untested ground. Commencing later this month, the Company will conduct an airborne geophysical survey over the entire 172 square kilometre land package. Silt sampling, prospecting, mapping and soil geochemical grid surveys are already underway over much of the prospective area. Upon compilation of this work, exploration drilling will test any newly delineated targets.
Subsequent to the data cut-off of the last resource estimate, the Company has completed over 10,000 metres of resource expansion drilling at the Tizate Zone and is awaiting final compilation of results.
Exploration is expected to continue for the next 2 years with final environmental impact, archeological, water and prefeasibility engineering studies initiated as part of the preparatory work required for advancing the project towards project financing. The Company expects the drilling and other necessary prefeasibility work to be completed near the end of the first quarter of 2012. The Company has budgeted C$8.0 million for the completion of the prefeasibility programs with additional funding available for future exploration target drilling. Upon successful completion of these programs, the Company will be positioned to submit the necessary permitting applications to the Mexican government.
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.
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