Geologix Explorations Inc.
TSX VENTURE : GIX
FRANKFURT : GF6

Geologix Explorations Inc.

January 07, 2008 08:00 ET

Geologix and Newmont Discover Significant New Gold/Silver Property in Peru

Claims Go to Newmont Alliance Project Status

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 7, 2008) - Geologix Explorations Inc. (TSX VENTURE:GIX)(FRANKFURT:GF6)

The Company is pleased to announce a new property, the Liscay Project (6,800 hectares), has been acquired as part of the on-going Geologix-Newmont (NYSE:NEM) Alliance reconnaissance effort in the Huancavelica region of central Peru. The Liscay Project was staked as a result of positive results from the Alliance 11,000 square kilometre regional program. The property covers an extensive vein swarm currently identified over an area 6 kilometres long and 4.5 kilometres wide. Precious-metal bearing epithermal veins and altered volcanic rocks are host to the newly discovered mineralization. No sign of previous prospecting or sampling in the area is evident, making this a new discovery in a highly prospective region of Peru.

Dunham Craig, President and CEO, states, "We have been working on the Alliance steadily with five crews for over a year in the belief that diligence would create new discoveries in Peru that were previously unknown. We are very pleased to see Liscay develop as one of the first discoveries and fully expect others to emerge over the coming months. On behalf of the Company, we extend a special thanks to our Peruvian field staff who have worked very hard on the Alliance and also compliment Newmont for their full support since the inception of the program. We foresee that this is just the beginning of our process for finding new gold/silver discoveries in Peru."

Reconnaissance sampling has shown precious-metals to occur throughout the Liscay property in multiple northeast vein swarms with grades varying between 0.3 to 7.2 g/t gold and 30 to 304 g/t silver (to see attachment please click on: http://www.ccnmatthews.com/docs/gix0107vetas_liscay.pdf). The multiple vein widths vary from 0.2 to 1.5 metres and display good lateral continuity. Large, altered zones up to 10's of metres wide hosting disseminated-style mineralization have also been identified with initial sampling. Over 20 individual veins have been found to date (to see photo please click on: http://www.geologix.ca/i/pdf/2008-01-07_VLP.pdf), with one vein being traced for 3 kilometres along strike. Due to the density of the vein swarm and the alteration style, the Alliance has converted the property to project status as potential for a large gold/silver mineralizing system appears evident from early stage prospecting results.

Additional exploration of Liscay will be conducted under a 50/50 joint-venture between the Alliance partners, with Geologix as operator. Work will commence in the first quarter of 2008 and will include detailed geologic mapping, soil geochemistry and intensive sampling of the veins as well as trenching to determine controls to precious-metal mineralization. Induced Polarization (IP) geophysical surveys are planned for the vein swarms as well as the disseminated targets to help prioritize subsequent trenching drilling targets.

The Company is continuing to evaluate through geological follow-up the numerous target areas identified through the Alliance's reconnaissance effort in the Huancavelica area. The Alliance partners are confident of additional acquisitions in the coming months and have agreed to expand reconnaissance efforts from the initially defined area of 11,000 square kilometres to an increased area encompassing 14,000 square kilometres.

Qualified Person

Geologix's Chief Geologist, Andrew B. Carstensen M.Sc. (CPG), 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.

Quality Assurance & Control

The Company has implemented a quality assurance and control (QA/QC) program to ensure sampling and analysis of all exploration work is conducted in accordance with the best possible practices. The QA/QC policy includes the chain of custody monitoring, insertion of blanks, standards and duplicates in the initial samples submitted. The laboratory provides an additional internal control program.

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.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933 (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration is available.

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

Contact Information

  • Geologix Explorations Inc.
    Michael Mallard
    V.P. Corporate Communications
    (604) 694-1742 or Toll Free in Canada & USA: 1-888-694-1742
    Email: mmallard@geologix.ca
    or
    Geologix Explorations Inc.
    Dunham Craig
    President & CEO
    (604) 694-1742 or Toll Free in Canada & USA: 1-888-694-1742
    Email: dcraig@geologix.ca
    Website: www.geologix.ca