|January 19, 2010|
Geologix Notifies Arian Of Intention To Proceed With Option To Purchase 100% Interest In The Tepal Gold-Copper Project, Mexico
|Vancouver, B.C., January 19, 2010 -- Geologix Explorations Inc. (the "Company" or "Geologix") is pleased to announce it has completed its due diligence and technical reviews of the Tepal Gold-Copper Project, Mexico of Arian Silver Corp. and delivered notice to Arian of the Company's election to proceed with an Option to Purchase a 100% interest in the Project subject to execution of a definitive agreement between Arian and Geologix.|
Under the terms of the previously announced agreement (see Geologix news release dated November 5, 2009), Geologix can elect to complete the purchase of 100% of the property, subject to a 2.5% net smelter return royalty to the underlying vendor, by delivering to Arian US$1.45 million before February 23, 2010 and a further US$1.55 million to Arian before February 23, 2011. Of the first payment, US$517,500 will be satisfied by Geologix forgiving a loan in the same amount made to Arian. At Geologix's election, up to 50% of both payments may be satisfied in Geologix shares, subject to Toronto Stock Exchange approval. The Company will also assume the remaining underlying property option agreement payments of US$900,000 payable before June 6, 2010, and a further US$2.3 million before June 6, 2011 to the underlying vendor.
Dunham Craig, President & CEO stated, "Following four months of extensive due diligence and technical review, Geologix is pleased to enter into this agreement as we believe the Tepal Project is a good fit for the Company. The Geologix team has extensive experience in exploration and development of these types of gold-copper porphyry systems which combined with our experience in Latin America, specifically Mexico, creates an excellent synergy between management and project."
Upon execution of a definitive agreement, the Company intends to initiate an exploration program comprised of geophysical surveys, trenching, and drilling. Prefeasibility work is underway and will continue in conjunction with the ongoing exploration programs.
The Tepal Project:
The Tepal project hosts a resource estimated at 1.15 million ounces ("ozs") of gold and 413 million pounds ("lbs") of copper (see details below). The project is located in the northwest portion of Michoacán State, Mexico. Access and infrastructure are excellent, with paved roads, deep sea port access, and low topographical relief. The project is comprised of 6 concessions covering approximately 138 square kilometres.
A report on Tepal dated November 4, 2009 prepared by ACA Howe International Ltd. for Geologix has estimated the property resources as of September 24, 2008 as tabulated below:
The estimate is based upon 92 drill holes and utilizes a 0.18 g/t gold envelope that honours geology to constrain the mineralization. An inverse distance method was used to the power of (ID3) to interpolate into 25 x 25 x 20 metre blocks using Micromine software. It is reported using a 0 g/t gold cut off. To the Company's knowledge, such resources will not be materially affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues. The known resource remains open for possible expansion in multiple directions and numerous highly prospective targets remain untested throughout the project area.
The project has a total of 129 drill holes (62 diamond drill and 67 reverse circulation) totalling 20,121 metres which led to the identification of two main mineralized zones, the North Zone and the South Zone, which host the current resource estimate. In addition, surface geochemical surveys throughout much of the project area indicate numerous highly prospective untested gold and copper anomalies; most notably to the east of the current deposits (see geochemical maps on the Company's website).
Geologix's independent resource consultant, Galen White, B.Sc., FGS, MAusIMM, Principal Resource Geologist, CSA Global (UK) Ltd, formally of ACA Howe, a 'qualified person' for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Properties of the Canadian Securities Administrators, prepared the information that forms the basis of, and verified the data (including sampling, analytical and test data) contained in, this new release.
Geologix Explorations Inc. is a mineral exploration company focused on acquiring, exploring and developing mineral properties in North and South America.
For further information contact:
V.P. Corporate Communications
Phone: (604) 694-1742
Toll Free in Canada and USA:
1 (888) 694-1742
President & CEO
Phone: (604) 694-1742
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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