Dec 17 2010
Geologix Explorations Inc. (TSX:GIX)(FRANKFURT:GF6)(BERLIN:GF6)(MUNICH:GF6)(STUTTGART:GF6) has announced 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.
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."
Drill intercepts have been trimmed to above the 2010 PEA base case economic cut off using $900 gold and 2.75 copper metal prices.
The style of mineralization in the Tizate zone mineralization is the same as 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.
Source: Geologix Explorations Inc.