News

Show printable version of 'Tepal Drilling Identifies Significant New Gold and...' in a New Window

News

 December 16, 2010
Tepal Drilling Identifies Significant New Gold and Copper Zone

 
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 Michoacán 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 Michoacán 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

Dunham Craig
President & CEO
Phone: (604) 694-1742
Email: dcraig@geologix.ca
Website: www.geologix.ca
 
 

You can view the Next News item: Wed Dec 29, 2010, Geologix Expands Land Position at Tepal Project

You can view the Previous News item: Tue Nov 16, 2010, Share Price Triggers Warrants' Forced Exercise Provision

You can return to the main News page, or press the Back button on your browser.