Oct 25 2010
Geologix Explorations Inc. (TSX:GIX)(FRANKFURT:GF6)(BERLIN:GF6)(STUTTGART:GF6)(MUNICH:GF6) has announced initial assay results from the Company's ongoing drill program at the Tepal project in Michoacán, Mexico.
All drilling in the current program is focused exclusively on resource expansion and exploration targets, with no in-fill drilling. To date 22 resource expansion holes have been drilled around the perimeter of the North and South zones, with step-outs ranging from 50 to 150 metres from prior resource drilling. Assays from 16 of these holes are reported here. Results indicate the presence of significant gold and copper mineralization outside the previously outlined resource boundaries, with all reported intercepts grading above the economic cut-off used in the recent Preliminary Economic Assessment ("PEA") report (see news release of October 12, 2010). Furthermore, this mineralization remains open in several directions and will require additional step-out drill testing to determine its extent.
Highlight intersections from the drilling around the North and South zones include:
- Hole TEP-10-020 which intersected 95.0 metres ("m") of 1.18 grams per tonne ("g/t") gold and 0.39 percent ("%") copper and ended in mineralization;
- Hole TEP-10-019 which intersected 112.2 metres of 0.35 g/t gold and 0.21% copper; and
- Hole TEP-10-006 which intersected 62.0 metres of 0.51 g/t gold and 0.25% copper
Dunham Craig, President & CEO stated, "We are very pleased with the resource expansion potential evolving around the two PEA pits designed by SRK Consulting based on the existing NI-43-101 resource. The drilling up to 1 kilometre east of the pit area looking for new zones, which is not reported here, is progressing well and we look forward to compiling the results in the near future. The PEA has given us clear guidelines to what is required for positive economic value and in conjunction with our better understanding of geology, we feel our project development is solidly based going forward. The Company recommends viewing the plans and sections to evaluate the significance of these drill results."
NSV "No Significant Value" indicates that assay values are below the economic cut off used in the 2010 PEA ($900 Au, $2.75 Cu metal prices). Drill intercepts reported below may or may not be economic at this time and will be determined in a future study.
Further assay details are as follows:
The current drill program is designed to drill a total of 11,500 metres in 55 holes, with 23 of the holes testing around the North and South zones, and an additional 32 holes aimed at testing multiple newly delineated targets to the east of the current resource zones, including the Tizate zone and other potential zones in 2010. This represents the first phase of drilling at Tepal by Geologix and is solely aimed at identifying additional mineralization to expand the resource, and increasing the scale of this emerging project. Additional assay results from the remaining drill holes will be issued as they become available.
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.
Source: Geologix Explorations Inc.