Geologix Explorations Inc.

Geologix Explorations Inc.

March 05, 2010 14:36 ET

Geologix Delivers 2010 Tepal Project Option Payment to Arian Silver

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 5, 2010) - Geologix Explorations Inc. (the "Company" or "Geologix") (TSX:GIX)(FRANKFURT:GF6)(BERLIN:GF6)(STUTTGART:GF6)(MUNICH:GF6) is pleased to announce that in accordance with the Company's previously announced Option to Purchase Agreement (the "Agreement") with Arian Silver Corporation ("Arian") for the purchase of a 100% interest in the Tepal Gold-Copper Project in Michoacán, Mexico, the Company has delivered US$725,000 cash and 3,434,193 common shares of the Company to Arian as consideration for the 2010 payment obligations under the terms of the Agreement. The shares issued to Arian are subject to a four month restricted sale period.

Further to the terms of the Agreement, Arian will advance to Geologix the sum of US$517,500 as full repayment of a loan delivered to Arian by the Company in September 2009 (see Geologix news releases dated November 5, 2009 and January 29, 2010 for full details on the terms of the Option Agreement).

Dunham Craig, President & CEO stated, "With the 2010 option payment obligations to Arian now fulfilled, the Company can focus on its ongoing exploration programs and field work at its two key projects, Tepal and Libertad. During the past 3 months, the Company has conducted systematic geophysical (IP) surveys on both projects in preparation for expected drill programs. At Tepal, the IP survey covered a 15 square kilometre ("km") area focused on the known resource zones and the additional core claim area. Results from this geophysical work are expected to assist in delineating drill targets in preparation for a drill program at Tepal designed to test the expansion potential of the known resource zones as well as multiple new target areas that have seen little or no prior drilling. With exploration programs ongoing, the Company is also progressing on multiple economic and technical studies at Tepal, including metallurgical studies designed to better understand the possible future economic viability of the project. We are pleased with our work to date and look forward to the commencement of drilling. We are also well advanced on the Libertad project field work (trenching and geophysics) and expect to have a drill plan design completed by the end of March."

The Tepal project is a gold/copper porphyry geological system located in the northwest portion of Michoacán State, Mexico. Access and infrastructure are excellent, with paved roads, deep sea port access, and low topographical relief. The project is comprised of 6 concessions covering approximately 138 square kilometres. Please see the company website for the Tepal NI 43-101 resource details.

The Libertad Project is a gold/silver vein-stockwork system identified over 1.6 km strike distance that has had no previous drilling. The 160 square kilometre project is located in Sonora State, Mexico approximately 250 km north west of Hermosillo. Phase 1 trenching has been completed and mechanized trenching equipment is being brought in to expand the trenches. A 1.6 km by 1 km geophysical survey is 50% complete and final results are expected at the end of March. Drill testing will commence as soon as practical thereafter.

Geologix Explorations Inc. is a mineral exploration company focused on acquiring, exploring and developing mineral properties in North and South America.

This press release includes forward-looking information. While we believe the anticipated results, performance or achievements expressed or implied by the forward-looking information are based on reasonable assumptions and expectations, you should not place undue reliance on them as they involve unknown and known risks, uncertainties and other factors which may cause the actual results of the Company to differ materially from those anticipated. You should review our documents filed with the securities authorities in Canada, including our AIF under the heading "Description of the Business – Risk Factors". These documents describe the material factors and assumptions that were applied in drawing the conclusions and making the forecasts and projections reflected in the forward-looking information and the material factors that could cause our actual results to differ materially. We undertake no obligation to update or revise any forward-looking statements or information made in this presentation.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Geologix Explorations Inc.
    Jeffrey Wilson
    V.P. Corporate Communications
    (604) 694-1742
    or Toll Free in Canada and USA: 1 (888) 694-1742
    Geologix Explorations Inc.
    Dunham Craig
    President & CEO
    (604) 694-1742