|June 22, 2009|
Geologix Options Libertad Gold-Silver Property In Sonora, Mexico
|Vancouver, B.C., June 22, 2009 - Geologix Explorations Inc. (TSX: GIX) is pleased to announce that it has signed a binding Letter of Intent (LOI) with Riverside Resources Inc., whereby Geologix has the right to acquire up to an 85% interest in the Libertad Property in Sonora State, Mexico.|
The Libertad Property is located 20 kilometres (km) south of the La Fortuna Del Cobre porphyry copper district and 15 km south east of the Gulf of California deep water port town of Puerto Libertad. Access and infrastructure are excellent as the property is traversed by a major paved road and power lines. The city of Hermosillo is located 250 km to the southeast of the property.
Dunham Craig, President & CEO stated, "The Libertad represents an exciting opportunity for Geologix to pursue its acquisition mandate in Mexico with a project that meets the Company's size criteria and fits its gold, silver, and copper focus. The combination of a sizeable land position, excellent access and infrastructure, favourable geology, and significant gold showings represent a unique opportunity for Geologix. We see this as the first of what we hope to be several acquisitions for the year."
The Libertad property is comprised of the 160 km² Libertad concessions and the central 485 hectare Destierro property. The Destierro property has encountered numerous geochemical surface samples with analytical results of up to 8.0 grams per tonne (g/t) gold (Au) and up to 198 g/t silver (Ag). The property has never been drill tested. Mineralization throughout the property shows evidence of a low sulphidation system with bladed quartz textures and banded adularia-quartz veins overprinting earlier shear zone mineralization. The targets of exploration activities will be low sulphidation stockwork and shear zone related gold-silver mineralization as well as porphyry related disseminated copper and molybdenum mineralization.
Previous detailed geological mapping and sampling programs on the Libertad Project appear to have identified a potential strike length of exposed anomalous gold values of over 1.8 km. Quartz veining in stockwork and sheeted zones greater than 6 metres wide as well as sheared volcanics have returned gold values ranging up to 8.5 g/t Au in grab samples. Silver values of 30 to 198 g/t Ag in the same structures show that the mineralized zones have a multi-precious element character.
1. For Geologix to earn an initial 60% interest:
a. Year one Exploration Expenditures of $250,000 are committed;
2. Additional Option: For Geologix to earn an additional 25%interest:
a. Subsequent to the exercise of the Initial Option, within 24 months, an additional $2.0 million exploration expense and $500,000 in cash or shares.3. If Riverside dilutes to less than 10%, their interest is converted to a 2% NSR on gold and silver and a 1% NSR on copper and molybdenum. GIX may elect to buy 0.5% of the 2% gold-silver NSR for $1.0 million anytime between years one and six.
All above noted funds are in U.S. dollars. Completion of the acquisition is subject to the completion of a definitive agreement and exchange approval.
Geologix Explorations Inc. is a mineral exploration company focused on acquiring, exploring and developing mineral properties in North and South America.
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