GIX Geologix Explorations (delisted)

Geologix Explorations Inc. (TSX
VENTURE:GIX)(FRANKFURT:GF6)(BERLIN:GF6)(STUTTGART:GF6)(MUNICH:GF6) is pleased to
announce that, further to a Letter of Intent announced in January of 2008, a
formal agreement to option the 1,472 hectare La Casita property - Los Arados
claim group from GFM Resources Ltd. (NEX:GFM.H) has been executed. 


The Property

The property is located in central Durango State, 40 kilometres (km) north of
Geologix's San Agustin project and 5.5 km southwest of the town of Rodeo in
Durango, Mexico.


At La Casita, gold mineralization in the 1 gram per ton (g/t) gold range occurs
sporadically in an area roughly 2 km long by 1.25 km wide within Tertiary felsic
volcanic and subvolcanic units that contain stockwork quartz veinlets and
disseminated pyrite. The highest gold values are associated with stockwork
quartz veinlets in rhyolitic volcanics and tuffs as well as in rhyolite dikes.


Based on Geologix's and GFM's sampling, numerous untested drill targets exist in
areas of shallow alluvium and post-mineral cover. These, and other prospective
targets, will be tested during an initial drilling program subsequent to
completion of geological mapping, sampling, and geophysics.


Geologix's rock-chip sampling on the claim group has returned assays up to 1.84
g/t gold and 247 g/t silver in silicified stockwork and breccia zones hosted in
subvolcanic rhyolites found on the property. Colluvium and post mineral
volcanics commonly mantle the gold-bearing rhyolites at La Casita-Los Arados,
especially along the northeast flank of a prominent peak on the property called
Cerro Colorado. In that zone, scattered rhyolite outcrops have returned assays
of more than 1 g/t gold along a northwest trending corridor for at least 950
metres. A similar corridor of gold mineralization occurs a kilometre southeast
of Cerro Colorado and trends east northeast along the south flank of a rhyolite
ridge called Cerra La Amarilla. That zone is at least 1000 metres long.


The Agreement

In order to acquire a 60% interest in La Casita, Geologix will: 

1. Pay GFM the sum of US $650,000 in cash over a period of up to four years as
follows:




a.   On signature of a definitive agreement        US $50,000 (paid)
b.   On or before the first anniversary thereof    US $100,000 
c.   On or before the second anniversary thereof   US $125,000 
d.   On or before the third anniversary thereof    US $150,000 
e.   On or before the fourth anniversary thereof   US $225,000 
Total                                              US $650,000 



2. Fund 100% of an exploration program totalling US $1,875,000, as follows:



a.   On or before the first anniversary    US $125,000 
b.   On or before the second anniversary   US $250,000 
c.   On or before the third anniversary    US $500,000 
d.   On or before the fourth anniversary   US $1,000,000 
Total                                      US $1,875,000 



Geologix will maintain the mineral concessions in good standing over the term of
the option, and will have the right to accelerate the schedule of payments and
work expenditures to earn its 60% interest.


Once Geologix has earned its 60% interest in La Casita, a joint venture between
Geologix and GFM will be formed. The Operator will be Geologix. The Operator
over the following three years must propose a minimum annual US $625,000 joint
venture budget to remain as operator. The joint venture committee may decide to
spend less over the period. Both parties may elect to contribute to the proposed
budget or have their interest diluted.


A feasibility study may be proposed by the Operator, or by the other party if
the Operator fails to do so, within three months of the end of the three-year
joint venture period. If one of the parties elects not to participate in the
funding of the feasibility study, the other party will earn an additional 11%
interest in the joint venture by the completion of a positive feasibility study.
If the feasibility study recommends taking the property into production and one
of the parties does not elect to participate, the other party will earn a
further 9% interest.


Director Retires

Mr. Raymond Gagnon has retired from Geologix's board of directors, effective
July 31, 2008 in order to pursue other interests but will remain an Advisor to
the Board of Directors. Geologix thanks Mr. Gagnon for his service and
contribution to the company and considers his continued advisory role to be a
strong asset to Geologix.


Oz Property Dropped

Also, Geologix has elected to terminate its option to acquire up to a 100%
interest in the OZ Property in northern Nevada. Geologix retains no interest in
the project.


Qualified Person

Geologix's President, Dunham Craig, 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 contained in this news release. 


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.

Geologix Explorations (delisted) (TSXV:GIX)
Historical Stock Chart
From Jun 2024 to Jul 2024

Geologix Explorations (delisted) (TSXV:GIX)
Historical Stock Chart
From Jul 2023 to Jul 2024