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VANCOUVER, BRITISH COLUMBIA–(Marketwired – Aug. 31, 2017) – Geologix Explorations Inc. (TSX VENTURE:GIX)(FRANKFURT:GF6)(BERLIN:GF6)(MUN:GF6)(STUT:GF6) (“Geologix” or the “Company“) is pleased to provide an update to shareholders regarding the Company’s exploration activities at its 100% owned Tepal Gold/Copper Project located in Michoacán state, Mexico. After a multi-year hiatus due to prevailing low metals prices, the Company recently reinitiated field work following the completion of a $1.2M oversubscribed financing (see press release dated June 22, 2017). Geologix’s new management and technical team are currently focused on realizing the value and potential of Tepal through a staged exploration approach that is designed to expand the economic resource base and make additional discoveries, with the goal of enhancing the Preliminary Economic Assessment (“PEA“) (see press release dated January 19, 2017) prior to advancing the project to the pre-feasibility and/or feasibility stage.
Tepal work program highlights:
- Re-logging of selected drill hole intersections from the South Pit indicates mineralization remains open both inside and beneath the current economic pit shell, suggesting potential to improve the existing resource though additional drilling.
- High grade mineralization is structurally controlled with potential to extend beyond the current economic pit shells.
- 54 rock chip and grab assay samples collected from a cross section of alteration and mineralization settings from within the three existing pit boundaries as part of a sample audit have successfully confirmed the mineralization observed at surface.
- Initial assay results were as expected, ranging from weakly anomalous to high grade. The strongest assays include: 3.54g/t Au with 0.227% Cu (sample 10413); and 0.446g/t Au with 1.37% Cu (sample 425862) (see Table 3 for assay highlights).
- An additional 484 outcrop chip samples were collected and quantified for alteration and magnetic susceptibility.
- A US$300,000 budget has been assigned for this stage of exploration, sufficient to achieve current goals. Complete results from this program are expected early in Q4 2017 and will be used to assess additional exploration needs and for drill planning purposes.
Kiran Patankar, Geologix’s President and Chief Executive Officer, stated: “Restarting substantive field work at Tepal is a significant milestone for the Company. Few gold/copper development projects can boast an established economic resource with the kind of scalability and exploration upside we are seeing at Tepal. We have assembled a technical team led by Gillian Kearvell, whose extensive and successful track record of making world-class discoveries in Southern Mexico is bona fide, in order to take a fresh look at the project. The initial findings from this summer’s field program are highly encouraging and suggest that we have just scratched the surface of Tepal’s true potential.”
Gillian Kearvell, VP Exploration of Geologix, further commented: “Michoacán has a rich mining history, yet it remains largely unexplored by modern methods. Tepal is a notable exception where initial field results suggest that we may still be on the periphery or distal to the main deposit. Our technical team is implementing a staged and cost-effective exploration program that we believe, when combined with ongoing data interpretation, may lead to new discoveries and an enhanced resource base. Now that work is underway and results are coming in, I am even more excited about Tepal’s potential and look forward to providing regular updates on our exploration activities.”
Tepal work program details:
The early-stage exploration program for 2017 is focused on recently identified controls on mineralization. Complete results from this work are expected early in Q4 2017 and will provide recommendations for additional exploration and drilling vectors. Specific elements of the early-stage exploration program are summarized in Table 1.
Table 1 – Early-stage exploration progress as of August 31, 2017:
|Activity/Location||South Pit||North Pit||Tizate||Samples|
Systematic structural, alteration and physical properties mapping is ongoing. Alteration mapping has been completed for all three pits and a selection of drill core from the south pit has been re-logged. Re-logging of selected core from all previous drilling will be an ongoing exercise as part of the reinterpretation of previous results. Table 2 provides selected drill hole intersections from the South Pit indicating mineralization may remain open inside the current pit boundaries (see TEP-11-043), suggesting a potential to increase the resource through additional drilling. Table 2 also highlights selected “in pit” intersections that remain open beneath the pit (examples include: TEP-11-043, TEP-11-012, TEP-11-128), or include deeper drill hole intersections that are excluded from the current resource (examples include: TEP-11-012, TEP-10-026, TEP-11-128 and TP-11-130).
Mineralization in the South Pit includes a structurally controlled mineralization that remains largely untested and warrants follow up exploration and drilling. It is anticipated that current exploration activities will also identify similar potential as exploration progresses to other areas of the property.
Table 2 – Selected South Pit drill hole assay results (highlighted intervals are partly or wholly excluded from the current mineral resource and merit follow-up exploration):
To date, 484 outcrop chip samples have been collected and quantified for alteration and magnetic susceptibility using a Niton portable XRF and a Terraplus KT-10 susceptibility meter, with another 694 Niton XRF and 1008 susceptibility readings taken in drill core. Geophysical re-interpretation and modelling is ongoing at this time. An additional 54 rock chip and grab assay samples collected from a cross section of alteration and mineralization settings from within the three existing pit boundaries as part of a sample audit have successfully confirmed the mineralization observed at surface. Assay results received on August 11, 2017 were as expected, ranging from weakly anomalous to high grade. The strongest assay results received included 3.54g/t Au with 0.227% Cu from sample number 10413, and another with 0.446g/t Au and 1.37% Cu in sample number 425862. Assay highlights from this work are summarized in Table 3.
Table 3 – Highlights from surface rock chip sample assay results, Tepal Project alteration study (selected rock chip samples assaying >1 g/t Au or >20g/t Ag or >1% Cu or >100ppm Mo):
|Sample||Au (g/t)||Ag (g/t)||Cu %||Mo (ppm)|
A map with the locations of rock chip samples, Niton XRF samples, and drill hole mineral intersections described in this press release is provided in Figure 1.
Figure 1 – Tepal work program sample and re-logged drill hole locations: http://media3.marketwire.com/docs/GeologixB.jpg
Payments to Former CEO:
The Company also announces that, in connection with Dunham Craig ceasing to be the Company’s President and CEO in 2016, it has agreed to make four payments of $63,020.83 less any applicable withholding taxes, to Mr. Craig over the next four years. The payments are subject to TSX Venture Exchange approval. Geologix would like to thank Mr. Craig for his many years of service, dedication and commitment to the Company during his tenure as President and CEO and we look forward to a long continuing relationship in his current role as Chairman of the Board of Directors.
About Geologix Explorations Inc.
Geologix is a mineral exploration and development company focused on acquiring, exploring, and developing mineral resource opportunities with the potential to host profitable mining operations. The Company’s primary focus is the Tepal Gold/Copper Project in Michoacán state, Mexico.
Dunham L. Craig, B.Sc., P.Geo, Chairman of the Board of Directors of Geologix, is the Qualified Person (as that term is used in National Instrument 43-101 Standards of Disclosure for Mineral Projects) who has approved and assumes responsibility for the technical disclosures in this press release.
This Press Release may contain statements which constitute ‘forward-looking, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company’s future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including the Company’s Annual Information Form and quarterly and annual Management’s Discussion & Analysis, which may be viewed on SEDAR at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
President and Chief Executive Officer
Thu, 31 Aug 2017 20:30:00 GMT