VANCOUVER, BRITISH COLUMBIA, Nov. 5, 2009 (Marketwire) -- Geologix Explorations Inc. (the "Company" or "Geologix") (TSX:GIX)(FRANKFURT:GF6)(BERLIN:GF6)(STUTTGART:GF6)(MUNICH:GF6) is pleased to announce it has entered into an agreement with Arian Silver Corp. ("Arian") whereby Geologix has been granted the exclusive rights to purchase Arian's 100% interest in the Tepal Gold-Copper Project in the state of Michoacan, Mexico.
The Tepal project hosts a resource estimated at 1.15 million ounces ("ozs") gold and 413 million pounds ("lbs") copper (see details below). Under the terms of the agreement, Geologix can elect to complete the purchase of 100% of the property, subject to a 2.5% net smelter return royalty, by delivering to Arian US$3.0 million in staged payments before February 23, 2011 (at Geologix's election, up to 50% payable in Geologix shares), and assuming the balance of Arian's obligations under the terms of the underlying property option agreement.
Dunham Craig, President & CEO stated, "We are excited to have the opportunity to acquire the Tepal Project as it represents an advanced stage Mexican project, with extensive prior drilling, a significant current resource estimation, and multiple exploration targets for possible expansion. The Tepal Project meets the Company's preferred project criteria on multiple levels and fits well with management's exploration and development expertise. In a collaborative effort with Arian, the Company is currently conducting a property scale geophysical (IP) survey and metallurgical test program."
The Tepal Project:
The Tepal Project is located in the northwest portion of Michoacan State, Mexico. Local and regional infrastructure is 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 prepared by ACA Howe International Ltd. has estimated the property resources as of September 24, 2008 as tabulated below:
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Category Tonnes Gold g/t Gold Oz. Copper % Copper lbs.
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Indicated 24,995,000 0.544 437,000 0.267 147,130,000
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Inferred 54,964,000 0.405 716,000 0.219 265,370,000
---------------------------------------------------------------------Tonnage figures, ounces of gold and pounds of copper have been rounded
up or down to the nearest 1,000 tonnes, 1,000 ounces and 10,000 pounds
respectively.
