Geologix Acquires Option to Earn 100% of La Carreta Property in Michoacan State, Mexico
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/29/12 -- Geologix Explorations Inc. (TSX: GIX)(FRANKFURT: GF6)(BERLIN: GF6)(MUN: GF6)(STUT: GF6) ('Geologix', the 'Company') is pleased to announce the acquisition of an option to earn a 100% interest in the La Carreta gold-copper-silver property in Michoacan State, Mexico. La Carreta property is located approximately 20 km north-east of the Company's Tepal project. The concession covers 207 hectares (2.07 square km) and is proximal to water and power, and accessible via paved highway and agricultural roads.
Initial grab samples taken by the Company provided analytical results of up to 2.16 g/t gold, up to 305.00 g/t silver, and 1.29% copper. Preliminary geological evaluation of the property shows the area to be underlain by Tertiary aged volcanics and volcaniclastics of an andesitic to rhyolitic nature. The area is crossed by several structural lineaments, one of which is seen to host precious and base metal mineralization. No previous exploration work has been conducted on the property and as such, work contemplated and completed by the Company is preliminary in nature at this stage.
Under the terms of the option agreement, Geologix has the right to earn a 100% interest in the concession by making staged payments totaling US$375,000 to the owner over a period of four years from the date of execution of the option. The payment schedule is as follows: US$5,000 on signature of agreement (paid), US$20,000 on the 1st anniversary of the agreement, US$50,000 on the second anniversary of the agreement, US$100,000 on the third anniversary of the agreement, and US$200,000 on the fourth anniversary of the agreement. The owner of the concession retains a 1% net smelter return (NSR) on any production on the property. Geologix has the right to acquire all of the NSR for a payment of US$1,000,000 at any time during the agreement.
The Company is planning a program of prospecting, mapping, and trenching in the second quarter of 2012 to define and delineate the potential of the zone of mineralization.
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 and analytical data) and prepared the information contained in this news release. All samples were collected from the Company's secure facilities at the Tepal project by ALS-Chemex, and taken to their sample preparation facility in Guadalajara, Jalisco State, Mexico, with the analytical work being completed at their North Vancouver, B.C. laboratory.
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 Assessment study ('PA') 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
