Tepal Drilling Identifies Significant New
Gold and Copper Zone
View News Release and Maps in PDF Format
Vancouver, B.C., December 16, 2010 - Geologix
Explorations Inc. (TSX: GIX) (the "Company") is pleased announce
results from its ongoing resource expansion drilling program at the Tepal project in Michoac�n State, Mexico. Results from the
first 3 holes drilled by Geologix at the Tizate Zone ("Tizate"),
combined with historical drill results, have identified a significant new zone
of gold and copper mineralization approximately 1400 metres
("m") east of the resource areas outlined in the North and South
zones. See the PDF version of
this release or the Company's website for accompanying Tizate plan maps and section
To date, drilling at Tizate has outlined an area 400
m by 700 m as defined by mineralized intercepts greater than the economic cut
off used in the Preliminary Economic Assessment study ("PEA")
completed by SRK Consulting in October of 2010. The Tizate
zone remains open to the northeast, southwest, and to depth, with grades
appearing to increase to the northeast and at depth. Further Tizate zone drilling will continue through to mid-December
and restart as early as possible in 2011.
President and CEO Dunham Craig stated, "We are very excited about the
potential of the Tizate zone to significantly
increase tonnage and extend the current PEA mine life of the Tepal project. The near surface Tizate
mineralization, which remains open in multiple directions, is giving us
encouragement to accelerate the drilling in this zone and we have recently
placed a second drill in the area. We are looking to include the drill results
from the Tizate zone and the expansion drilling in
the North and South zones in a revised resource calculation for the entire
property early in 2011. By establishing the economics of the original resource
through the 2010 PEA, these resource expansion results can now be applied
directly into the existing project economics, and potentially impact favourably on a revised PEA, updated Net Present Value
("NPV") estimate and future cash flow model, as all capital costs and
repayment have been factored into the previous resource estimate."
The table below exhibits the Geologix and historical
drill holes that are used to define the mineralized envelope diagrammed in map
attachments to this release. Drill intercepts have been trimmed to above the
2010 PEA base case economic cut off using $900 gold and 2.75 copper metal
prices.
Drilled
By
|
Hole
ID
|
From
|
To
|
Length
|
Gold g/t*
|
Copper %
|
Geologix
|
TEP-10-005
|
59.00
|
119.00
|
60.00
|
0.22
|
0.19
|
Geologix
|
and
|
160.40
|
199.00
|
38.60
|
0.22
|
0.24
|
Geologix
|
TEP-10-008
|
20.20
|
32.40
|
12.20
|
0.20
|
0.20
|
Geologix
|
and
|
56.00
|
118.00
|
62.00
|
0.22
|
0.28
|
Geologix
|
TEP-10-009
|
37.00
|
159.95
|
122.95
|
0.37
|
0.16
|
Geologix
|
and
|
173.00
|
202.70
|
29.70
|
0.51
|
0.19
|
Historical
|
AS-07-002
|
22.00
|
58.00
|
36.00
|
0.15
|
0.13
|
Historical
|
AS-07-003
|
88.00
|
101.65
|
15.65
|
0.10
|
0.15
|
Historical
|
AS-07-025
|
16.05
|
34.00
|
17.95
|
0.17
|
0.37
|
Historical
|
and
|
50.00
|
161.00
|
91.00
|
0.17
|
0.18
|
Historical
|
AS-07-035
|
62.00
|
96.00
|
34.00
|
0.13
|
0.15
|
Historical
|
T-44
|
1.52
|
74.68
|
73.16
|
0.15
|
0.17
|
Historical
|
and
|
89.92
|
152.40
|
62.48
|
0.24
|
0.18
|
Historical
|
T-46
|
0.00
|
106.68
|
106.68
|
0.16
|
0.17
|
Historical
|
T-48
|
18.29
|
106.68
|
88.39
|
0.32
|
0.14
|
* g/t = grams per tonne
The style of mineralization in the Tizate zone
mineralization is the same has been encountered in the North and South zones,
consisting of disseminations and stockwork, mainly in
intermediate intrusive rocks. Primary sulphide
mineralization consists of pyrite, chalcopyrite and lesser bornite.
Present data suggests that in the Tizate Zone this
mineralization occurs as a series of horizontal to shallowly dipping lenses.
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 sent from the project to ALS-Chemex and taken to their 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 Michoac�n 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.
CONTACT:
Jeffrey Wilson
V.P. Corporate Communications
Phone: (604) 694-1742
Toll Free in Canada and USA:
1 (888) 694-1742
Email: jwilson@geologix.ca