Geoinformatics Exploration Inc.
TSX VENTURE : GXL

Geoinformatics Exploration Inc.

January 09, 2008 11:06 ET

Whistler Resource Estimate Confirms an Indicated Resource of 840,000 Ounces Gold and an Inferred Resource of 2.74 Million Ounces Gold

TORONTO, ONTARIO--(Marketwire - Jan. 9, 2008) - Geoinformatics Exploration Inc. (TSX VENTURE:GXL) ("Geoinformatics" or the "Company") is pleased to announce it has received the initial independent mineral resource estimate on the Whistler and Main Zones at its Whistler Project in Alaska. The report states that the greater Whistler Zone holds an Indicated Resource of 840,000 ounces of gold plus an Inferred Resource of 2.74 million ounces of gold. Consideration of the silver and copper mineralization associated with the gold, produces a gold equivalent resource of 1.31 million ounces in the Indicated category and 4.44 million ounces in the Inferred category.

The independent resource estimate was compiled by SRK Consulting (Canada) Inc. ("SRK") and complies with National Instrument (NI) 43-101 and Canadian Institute of Mining (CIM) guidelines for reporting mineral resources.

Highlights

SRK's Mineral Resource Statement confirms:

- An Indicated Resource containing 840,000 ounces of gold, 2.37 million ounces (Moz) of silver and 159 million pounds (Mlbs) of copper (which equates to 1.31 Moz in a gold equivalent resource);

- An Inferred Resource containing 2.74 Moz of gold, 9.44 Moz of silver and 573 Mlbs of copper (which equates to 4.44 Moz in a gold equivalent resource); and

- The Indicated category contains 30 million tonnes grading 0.87 grams per tonne ("g/t") gold, 2.46 g/t silver and 0.24% copper and the Inferred category contains 134 million tonnes grading 0.64 g/t gold, 2.18 g/t silver and 0.20% copper.

The resource estimation process has also highlighted several untested areas of the Whistler Zone that have the potential to increase the mineral resource significantly, which will be evaluated with follow-up drilling in 2008.

"The initial 43-101 compliant resource estimate on the Whistler Zone is a watershed milestone for Geoinformatics, as it quantifies a large gold resource that can be used as a valuation benchmark for the Company and continues to highlight the merits of our important alliance with Kennecott Exploration Company," commented Kevin L. Snook, Chairman of Geoinformatics. "The results of SRK's resource estimate clearly position Geoinformatics as holding one of the prime North American advanced exploration gold properties, and we will continue to work aggressively to enhance the project and increase its value to our shareholders."

Resource Estimate Summary

The total Indicated and Inferred Mineral Resources are presented in Table 1 below and encompass both the Whistler and Main Zones. The higher grade Main Zone is hosted within the broader mineralized envelope represented by the Whistler Zone.

SRK calculated the resource estimate based on a conceptually modeled and optimized open-pit design (described below) in which 93% of the current total tonnage is extractable through an open pit operation (cut-off grade of 0.3 g/t gold equivalent) and the remaining 7% (cut-off grade of 1.1 g/t gold equivalent) is potentially extractable by bulk underground mining methods following development of the open pit.



Table 1. Mineral Resource Statement(i) for the Whistler Gold Deposit,
Alaska, Prepared by SRK Consulting (Canada) Inc.

---------------------------------------------------------------------------
Tonnage and Grades Total Contained Metal
---------------------------------------------------------------------------
Resource Tonnage Gold Silver Copper Gold Gold Silver Copper Gold
Category (Mt) (g/t) (g/t) (%) Eq(3) (Moz) (Moz) (Mlb) Eq(3)
(g/t) (Moz)
---------------------------------------------------------------------------
Indicated
(open-
pit(1)) 30 0.87 2.46 0.24 1.35 0.84 2.37 159 1.31
---------------------------------------------------------------------------
Total
Indicated 30 0.87 2.46 0.24 1.35 0.84 2.37 159 1.31
---------------------------------------------------------------------------
Inferred
(open-
pit(1)) 123 0.59 2.07 0.19 0.98 2.33 8.19 515 3.86
---------------------------------------------------------------------------
Inferred
(under-
ground(2)) 11 1.16 3.55 0.24 1.66 0.41 1.26 58 0.59
---------------------------------------------------------------------------
Total
Inferred(4) 134 0.64 2.18 0.20 1.05 2.74 9.44 573 4.44
---------------------------------------------------------------------------
---------------------------------------------------------------------------

1. Reported within a conceptual pit shell and based on a cut-off grade of
0.3 g/t gold equivalent adjusted for metallurgical recovery (see
methodology below).

2. Reported based on an underground bulk mining method using a cut-off
grade of 1.1 g/t gold equivalent adjusted for metallurgical recovery.

3. Total grade and Total Contained Metal gold equivalent grade and ounces
estimated based on 100% recovery, $550 per ounce gold, $8 per ounce silver
and $1.50 per pound of copper.

4. Totals may vary due to rounding.

(i) Notes: Mineral resources, which are not reserves, do not yet have
demonstrated economic viability.

SRK is unaware of any environmental, permitting, legal, title,
taxation, socio-political, marketing or other relevant issues
that may materially affect this resource estimate


"We believe that the SRK resource estimate is just the beginning of the development of the Whistler area as a new porphyry province," stated Dr. Nick Archibald, Chief Executive Officer of Geoinformatics. "The Whistler Zone itself remains open in several directions and at depth, and numerous high-quality exploration targets with similar geophysical signatures have been identified in close proximity. We intend to drill test the Whistler Zone targets which have the potential to significantly increase the resource estimate."

Next Steps

Geoinformatics plans to aggressively advance the Whistler Zone through further definition drilling of mineralized zones in both the high-grade Main Zone, as well as the extended mineralized envelope. The objective of the program will be to move resources in the Indicated and Inferred categories, respectively, into higher categories as part of a plan to complete a feasibility study on the deposit as soon as possible.

In addition, the resource estimation process has highlighted several areas in the immediate vicinity of prior drilling that are currently untested and which have the potential to significantly increase the reported mineral resource estimate. Geoinformatics intends to conduct a comprehensive exploration program on these high-priority targets in 2008.

The third component for this year's strategy will be the drilling of currently-identified high-priority regional targets as successful identification of other regional mineralized zones could positively impact the economics of the Whistler Zone.

SRK Qualifications and Methodology

SRK is a worldwide independent engineering, environmental and geological consulting company with over 700 engineers and scientists and a reputation for excellence in the estimation of mineral resources. In August 2007, Geoinformatics engaged SRK to audit the Whistler Project and to prepare an initial independent technical report on it, compliant with NI 43-101 guidelines, which was filed on SEDAR (www.sedar.com) on November 8, 2007. The scope of work was expanded, as announced in November 2007, to include completing an independent estimate of the mineral resources in the Whistler Gold Deposit. The updated NI 43-101 report will be filed on SEDAR within 45 days.

The resource estimate prepared by SRK was based on a three-dimensional (3-D) geologic and mineralization model that integrated over 7,250 meters of drilling in 31 holes and included a block model. This drilling has been audited and validated by SRK in accordance with CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines and with National Instrument 43-101 guidelines.

Metal grades were estimated and incorporated into a block model that was constructed using capped composites and ordinary "kriging". A density factor of 2.72 tonnes per cubic metre was used to convert volumes into tonnage, based on 21 core specific gravity samples as determined by ALS Chemex Laboratory in Vancouver, Canada. Kriging is a geo-statistical technique commonly used in mineral resource estimates.

The near surface Whistler mineral resource has been modeled within a conceptual pit shell generated using Whittle Pit Optimization software. The Whistler in-pit mineral resource is based on a 0.30 g/t recovered gold equivalent in-pit cut-off grade assuming a 75% recovery for gold and silver and a 85% recovery for copper and using metals prices of US$550/oz for gold, US$1.50/lb for copper and US$8/oz for silver. Mining parameters used in the Whittle pit optimization were based on those from similar projects and include 2.5% pit mining losses, 35% pit slope angle, average mining cost of US$1.50/t rock and processing cost of US $7.50/t rock. Items such as refinery costs or concentrate shipping charges were not included in the calculation. Mineral resources are not reserves and do not have demonstrated economic viability.

About the Whistler Project

The Whistler Project was acquired as a target-of-merit from Kennecott in June 2007 (see "Kennecott - Geoinformatics Alliance Agreement" below), and encompasses approximately 440 contiguous sq. km. in relatively flat topography at the northeastern end of the prospective Southern Alaskan Range. This range hosts the giant Pebble copper-gold-molybdenum-silver deposit further to the southwest. The large property is located approximately 160 km. northwest of Anchorage, Alaska, and consists of 732 mining claims on state land designated for mineral exploration and development.

The Whistler Zone outcrops on a broad, relatively flat ridge with very little vegetation cover at an elevation of approximately 800 metres. The deposit has been interpreted from extensive drilling as a large gold-copper-silver porphyry system.

The Whistler Project also includes a significant number of regional exploration targets. These regional targets have largely been identified directly from geophysical "signatures" similar to that of the Whistler Zone or from Geoinformatics' proprietary auto-intrusion detection technology. Though the Whistler Zone is the only target found to-date which comes to surface, a number of regional targets have mineralized geochemistry samples, and several reconnaissance drill holes have intersected mineralization, including the Rainmaker Prospect with an intercept of 184 metres grading 0.44 g/t gold and 0.19% copper.

To view a map of "Figure 1. Whistler Project Location", please visit the link below:

http://www.ccnmatthews.com/docs/whistlerprojectlocation.pdf

Kennecott - Geoinformatics Alliance Agreement

All Whistler prospects and properties mentioned in this press release fall under the Kennecott-Geoinformatics Master Strategic Alliance Agreement (the "Alliance Agreement"). The Company entered into the Alliance Agreement effective March 2006 under which it is using its proprietary geo-science and technology platform (the "Geoinformatics Process") to identify, prioritize and drill more than 30 exploration drill targets over the initial two years of the Agreement. The Whistler Project was acquired by Geoinformatics as a target-of-merit under the Alliance Agreement in June 2007, and Kennecott retains a back-in right to acquire either a 51% or 60% interest in the Whistler Project under certain circumstances. Please refer to Geoinformatics' press-release dated August 14, 2006, for further information.

Qualified Persons

The technical content of this release has been reviewed by Darren Holden, MAusIMM, Executive Vice President - Operations of Geoinformatics. The resource estimate and technical report for the project was completed by George Wahl, an Associate Principal Resource Geologist with SRK and was reviewed by Dr. Jean-Francois Couture, P.Geo, of SRK. By virtue of their academic backgrounds and professional experience, Mr. Holden, Mr. Wahl and Dr. Couture are all "qualified persons" as defined by NI 43-101.

About Geoinformatics

The Geoinformatics Process integrates large-scale data aggregation, data mining and three-dimensional modeling, and has been designed to assist in understanding and quantifying risk at a much earlier stage of the exploration cycle than has traditionally been available. The Company's objective is to advance its properties to the stage of commercial development by applying faster, less expensive and more reliable analytical methods to resource exploration.

In addition to the Whistler Project, Geoinformatics is continuing to advance several exploration projects located in Utah (Stockton), the Battle Mountain Trend region of Nevada (Colorback), and the State of Sinaloa, Mexico (La Noria/Azulitas) to the resource estimate stage as quickly as possible. Fourteen Company-owned properties in the State of Sonora, Mexico, fall under a joint venture in which Azure Minerals Limited is earning a 51% interest by spending US$4 million. Geoinformatics also has an extensive portfolio of other direct and indirect property interests, joint ventures, and royalties covering a wide range of minerals in Mexico, Australia and New Zealand and North America.

This news release includes certain forward-looking statements concerning the future performance of Geoinformatics' business, operations and financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in Geoinformatics' securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and the reader is cautioned against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements.

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

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