Geologix's JV Partner CMQ Resources Commences Drilling at Geologix's RO Property (Sleeper South) in Nevada
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/12/11 -- Geologix Explorations Inc. (TSX: GIX)(FRANKFURT: GF6)(BERLIN: GF6)(MUN: GF6)(STUT: GF6) (the 'Company') is pleased to announce that Montezuma Mines Inc., a wholly owned subsidiary of CMQ Resources Inc. (TSX VENTURE: NV) ('CMQ'), commenced drilling on Geologix's RO Claims (South Sleeper project) on November 29, 2011. The project is owned by Geologix (Geologix (US) Inc.), and Montezuma is the Operator under an Exploration and Option to Enter Joint Venture Agreement.
The claims lie approximately 2 miles (1.6 kilometres) south of the Sleeper Mine in Humboldt County, Nevada. Eleven drill sites have been permitted under a Notice filed with the BLM. Montezuma anticipates that six or seven core holes will be drilled during the current drill program for a total of 4000-4500 feet (1220-1372 metres) in two of the target areas.
Montezuma has previously collected 1,700 soil and soil-gas samples on east-west oriented lines 100 metres (328 feet) apart with sample stations at 50 metres (164 feet). CO2/O2, Soil Gas Hydrocarbon (SGH), low temperature Hg (60 degrees C), Super Trace Au and soil analyses using aqua regia + ICP-MS multi-element suite (51 elements) were integrated and evaluated before 29 targets were selected.
Induced polarization/resistivity and ground magnetic data were acquired over the project area. The IP/resistivity data were acquired on 12 lines using a dipole array with a dipole length of 100 metres (328 feet). The ground magnetic survey was acquired along east-west lines with 50-metre (164-foot) line spacing. Seven major target areas were developed from the geophysics.
Under the terms of the Agreement, Montezuma may earn a 55% interest in the RO Property by funding US$3,000,000 in qualified expenditures over a five year period (no interest is earned in the project by Montezuma until an aggregate US$3,000,000 has been expended). Montezuma may then elect to earn an additional 10% interest by completing a bankable feasibility study. Following completion of a feasibility study, Montezuma may elect to earn an additional 5% by arranging financing at its expense for the project through to commercial production. Alternatively, Montezuma and Geologix may form a Joint Venture to further explore the project.
Geologix Explorations Inc. is a mineral exploration company focused on acquiring, exploring and developing mineral resource opportunities with the potential to host world class mineral deposits. The Company's primary focus is the Tepal Gold-Copper Porphyry Project in Michoacan State, Mexico, where the Company has completed a Preliminary Economic Assessment study ('PEA') of the existing resource and is continuing to aggressively explore for additional gold and copper mineralization in an effort to expand the size of the resource and scale of the possible future mining operation.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Geologix Explorations Inc.
Dunham Craig
President & CEO
604.694.1742 or Toll Free: 1.888.694.1742
dcraig@geologix.ca
Geologix Explorations Inc.
Jeffrey Wilson
VP Corporate Communications
604.694.1742 or Toll Free: 1.888.694.1742
jwilson@geologix.ca
www.geologix.ca
