Geologix Updates Resource Estimate for the San Agustin Project
02 June 2008 - 10:23PM
Marketwired Canada
Geologix Explorations Inc. (TSX
VENTURE:GIX)(FRANKFURT:GF6)(BERLIN:GF6)(STUTTGART:GF6)(MUNICH:GF6) -
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Geologix Explorations Inc. is pleased to announce an updated mineral resource
estimate for its San Agustin polymetallic project in central Durango State,
Mexico of an Indicated Resource of 2.65 million gold equivalent ounces and an
Inferred Resource of 2.48 million gold equivalent ounces. The estimate is based
on the results of Geologix's Phase I and Phase II drill programs using project
drill holes SA-1 to SA -166 along with historic data, but does not include any
results from the more than fifty drill holes completed in the Phase III drilling
program. Highlights of the Phase III expansion results were announced on April
28, 2008 and May 12, 2008, with further updates expected on a regular basis.
"We are very pleased with the size of this resource estimate, especially since
it does not include any Phase III Expansion drilling results," stated Dunham
Craig, President and CEO. "Phase III drilling indicates that the mineralization
continues significantly beyond the current resource and we expect to further
update the resource estimate during the third quarter of this year depending on
timely receipt of drill assays. To date, the San Agustin Project has exceeded
our expectations and we continue to be excited about its growth potential."
The effective date of the resource estimate is May 27, 2008, which reflects
drilling completed up to February 15, 2008.
Table 1: San Agustin Mineral Resource at
greater than or equal too $US10 RMV(a) (Capped)
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Category Tonnes Gold g/t Silver g/t Lead% Zinc%
--------------------------------------------------------------------
Indicated 60,797,000 0.49 11.7 0.05 0.51
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Inferred 53,378,000 0.42 14.6 0.09 0.58
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(a) Recovered Metal Value - see text below
Table 2: Contained Metal(a)
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Category Tonnes Gold oz Silver oz Lead Lbs Zinc Lbs Gold Equiv
(a) Oz.
---------------------------------------------------------------------------
Indicated 60,797,000 909,898 19,897,000 60,986,000 628,889,000 2,647,000
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Inferred 53,378,000 685,000 21,798,000 96,379,000 627,931,000 2,491,000
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(a) On the basis of the resource in Table 1, Contained Metal and Gold
Equivalence were estimated using commodity prices and metallurgical
recovery rates detailed below.
Table 3: Mineral Resource by Oxide and Sulphide Zone (Capped)
------------------------------------------------------------------
Zone Category Tonnes Gold Silver Lead% Zinc%
g/t g/t
------------------------------------------------------------------
Oxide Indicated 9,685,000 0.57 18.2 0.09 0.21
------------------------------------------------------------------
Inferred 5,409,000 0.48 21.0 0.12 0.20
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------------------------------------------------------------------
Sulphide Indicated 51,113,000 0.48 10.5 0.05 0.56
------------------------------------------------------------------
Inferred 47,969,000 0.42 13.8 0.09 0.62
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The resource estimate was completed by Dr. Gilles Arseneau, P. Geo, Chief
Geologist, of Wardrop Engineering Inc, Vancouver, B.C. and is based on a
geological interpretation supplied by Geologix to Wardrop. Dr. Arseneau is an
'independent qualified person' for the purposes of National Instrument 43-101
Standards of Disclosure for Mineral Projects of the Canadian Securities
Administrators and has verified the data disclosed in this release. 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, analytical and test data) and prepared or supervised the
preparation of the information delivered to Wardrop.
Mineralized outlines, at 50 metre intervals, were defined by a US$10 gross metal
value (GMV) cut off using metal prices of US$550 for gold, US$10 for silver,
US$0.50 for lead and US$1.00 for zinc. The rings were tied together to form
three-dimensional solids. Variography results were used to interpolate grades
into 15 by 15 by 15 metre blocks using ordinary kriging (OK). Mineral resources
were classified as Indicated Mineral Resource if at least six composites
representing at least three drill holes were found within an elongated 150 by 80
metre search ellipse. Resources were classified as Inferred Mineral Resource if
at least 6 composites from at least three drill holes were found within an
elongated 200 by 120 metre search ellipse. Assay grades were composited to three
metre lengths prior to resource estimation.
The resource was reported above a US$10 recoverable metal value (RMV) cut off
using commodity prices based on a four year rolling average for all metals
($USD) and recoveries of: Gold - $559.74/oz and 95%, Silver - $10.17/oz. and
87%, Lead - $0.69/lb. and 91%, and Zinc - $1.04/lb and 92%. Metal recoveries are
based on initial metallurgical test work completed and were previously released
by the Company on October 10, 2007. Extensive metallurgical testing programs
continue to further define and optimize metallurgical processes and recoveries,
with updates expected before the end of 2008.
A total of 17,490 samples in 166 drill holes, representing approximately 30,600m
of drilling were used for the estimate. Of this 87 drill holes totalling
13,280m, are historic reverse circulation drill holes and 75 drill holes
totalling 16,320m are diamond drill holes completed by the Company. All metals
were assessed for capping with gold values capped at 9 g/t Au and silver values
capped at 300 g/t Ag. Studies showed that no capping was required for lead or
zinc. The resource estimate is centered on the Main Zone, Zone 2 and Zone 4 as
is illustrated on the plan map located on the company's website www.geologix.ca.
Under the terms of the San Agustin Acquisition Agreement with Silver Standard
Resources, Inc. (SSR), the Company is required to make a payment to SSR based on
a gold and silver resource estimate once certain drilling obligations as defined
by the agreement have been completed (see Geologix press release September 20,
2007). Once the Company completes the remaining drilling obligations and assays
are received, Wardrop will prepare a separate resource estimate for the SSR
option agreement. Assay results from holes SA-1 to SA-166 plus 350 metres of
further drilling will be used for the resource, along with a different set of
parameters. For the SSR resource, a 0.5 g/t gold equivalent cut off (using a 50
g/t silver equals 1g/t gold ratio) will be used to determine the three
dimensional (3D) model constraints and resource reporting. Wardrop will design a
new 3D model for this estimation, and base metal values will not be included in
the SSR resource estimate.
Geologix Explorations Inc. is a mineral exploration company focused on
acquiring, exploring and developing gold properties in North and South America.
The Company has a wealth of experience in the mining industry taking early stage
exploration prospects to final feasibility and ultimately to production.
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