TSX : GIX
Frankfurt, Berlin, Stuttgart & Munich: GF6
GEOLOGIX DISCOVERS ADDITIONAL ZONE OF BONANZA GRADES AT LISCAY PROJECT, PERU ? MOBILIZES TWO RIGS TO INITIATE DRILLING
Vancouver, B.C., October 21, 2008 Geologix Explorations Inc. (the ?Company?) is pleased to announce two diamond drill rigs have been mobilized to the Company?s Liscay Project in Peru to commence a phase-one drilling program on multiple untested target areas. The Company is also pleased to announce the discovery of new outcrops of bonanza-grade mineralization, returning grades up to 32 g/t gold and 1,020 g/t silver across 0.4 metres, which will be one of several targets in the upcoming drill program at Liscay.
The drilling program will consist of approximately nine holes totalling 1,500 metres, and will target outcropping mineralization as well as geophysical anomalies at greater depth and below cover. The Liscay Project hosts several zones of bonanza-grade precious-metal mineralization occurring as veins, stockworks, and mineralized structural zones. Two principal zones, the NE Zone and SW Zone have been the focus of preliminary exploration work, where previous work returned values up to 76.6 g/t gold and 1,205 g/t silver across 1.3 metres (see press release dated May 07, 2008). These mineralized trends have been found to exceed 5 kilometres in length, have no prior drilling, and show no evidence of previous prospecting. Induced polarization (IP) geophysical surveys completed over these areas have yielded distinct resistivity and chargeability anomalies at surface and down-dip (plunge) of the outcropping. The geophysical anomalies are interpreted to be zones of increased quartz deposition (silicification or broader veins in the case of resistivity anomalies) or increased sulphide content within the structures (in the case of chargeability anomalies).
Elsewhere at Liscay, recent mapping and sampling has discovered a third zone of outcropping bonanza-grade mineralization. This zone is exposed along a strike of 100 metres (covered along trend), in aggregate is up to 10 metres wide, and hosts multiple mineralized quartz breccia replacements zones. Individual structures have been found to grade up to 32 g/t gold and 1,020 g/t silver across 0.4 metres. Numerous samples grading + 4 g/t gold and +100 g/t silver across widths up to 1.0 metre have come from this newly discovered zone. This new zone will be tested as part of the drill program.
Dunham Craig, President and CEO states: ?The Liscay Project represents a significant high-grade gold and silver target and key property asset for Geologix. We?re excited about the commencement of this initial diamond drill program and the opportunity to better understand and evaluate the potential of the project. The ongoing discoveries of bonanza-grade mineralization along significant strike increases the priority of the property within the Company?s project pipeline, which also includes San Agustin in Mexico, a large tonnage low grade deposit that?s rapidly advancing toward pre-feasibility.?
The Liscay Project is a 50/50 joint venture with Newmont Peru S.R.L., a subsidiary of Newmont Mining Corporation (NYSE:NEM), with Geologix acting as operator.
Geologix's Chief Geologist, Andrew B. Carstensen M.Sc. (CPG), 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, analytical and test data) and prepared or supervised the preparation of the information contained in this new release.
Quality Assurance & Control
The Company has implemented a quality assurance and control (QA/QC) program to ensure sampling and analysis of all exploration work is conducted in accordance with the best possible practices. The QA/QC policy includes the chain of custody monitoring, insertion of blanks, standards and duplicates in the initial samples submitted. The laboratory provides an additional internal control program.
Geologix Explorations Inc. is a mineral exploration company focused on acquiring, exploring and developing gold properties in North and South America. The Company has a wealth of experience in the mining industry taking early stage exploration prospects to final feasibility and ultimately to production.