Geoinformatics Exploration Inc.
TSX VENTURE : GXL

Geoinformatics Exploration Inc.

August 23, 2007 10:00 ET

Geoinformatics Acquires Utah Copper-Gold Porphyry Project

TORONTO, ONTARIO--(Marketwire - Aug. 23, 2007) - Geoinformatics Exploration Inc. (TSX VENTURE:GXL) ("Geoinformatics" or the "Company") is pleased to announce that it has accepted a copper-gold porphyry project (the "Stockton Project") near the town of Stockton, Utah, from Kennecott Exploration Company ("Kennecott") as the fourth "target-of-merit" to be conveyed to Geoinformatics pursuant to the terms of the Master Strategic Alliance Agreement (the "Alliance Agreement") executed between the companies in August 2006.

The Stockton Project is an advanced exploration project which hosts a partially-defined copper-gold porphyry system (the "Stockton Porphyry"). In addition, the Stockton property hosts at least two other exploration targets of interest to Geoinformatics. The Stockton Project consists of (i) several groups of unpatented mining claims held by Kennecott, and (ii) two "option-to-purchase" agreements with third-parties covering approximately 8.33 sq. km.



Highlights:

- Geoinformatics has received and accepted an offer letter from Kennecott
under which a 100% interest in the Stockton Project will be conveyed to
Geoinformatics as the fourth "target-of-merit" under the Alliance
Agreement.

- The Stockton Project hosts a partially-defined copper-gold porphyry
system with widespread mineralization starting at a depth of
approximately 225 metres, which is open in several directions and at
depth.

- Drill intercepts from drill holes across the Stockton Porphyry included:

---------------------------------------------------------
545.6 metres of 0.29% copper and 0.11 g/t gold including:
---------------------------------------------------------
85.4 metres 0.69% copper 0.23 g/t gold
---------------------------------------------------------
91.4 metres 0.44% copper 0.16 g/t gold
---------------------------------------------------------


---------------------------------------------------------
277.4 metres of 0.39% copper and 0.13 g/t gold including:
---------------------------------------------------------
189.0 metres 0.44% copper 0.13 g/t gold
---------------------------------------------------------
36.6 metres 0.46% copper 0.17 g/t gold
---------------------------------------------------------

- The Stockton Project is located in Tooele County, Utah, 15 km. from the
mining infrastructure associated with the Bingham Canyon Mine (copper
-gold-molybdenum) near Salt Lake City which is operated by an affiliate
of Kennecott.

- Drilling is expected to commence on the Stockton Porphyry in September
and several other prospective copper-gold porphyry targets have been
identified with the potential to extend the existing discovery.
Geoinformatics believes that its innovative three-dimensional modeling
and targeting methodologies can successfully target higher-grade copper
-gold zones in the Stockton system.

- The Stockton Project also hosts the potential for targets with other
styles of mineralization including:

- manto-style gold-silver-lead-zinc targets in sedimentary rocks; and

- near-surface, high-grade lead-zinc-silver-gold-copper veins among
historical workings on the property.


Project Background and History

The Stockton Project is located approximately 6 km. south of the town of Tooele in Tooele County, Utah, on the western side of the Oquirrh Range (Figure 1). Mining of high-grade lead-zinc-silver-gold-copper veins first started in the area in the 1870s and it is estimated that as much as 2.4 million tonnes of high-grade ore grading 10% lead, 155 g/t silver, 8% zinc, 1.2 g/t gold and 0.4% copper were extracted from over 50 km. of underground workings.

To view Figure 1, "Location of the Stockton Project", click the link below:

http://www.ccnmatthews.com/docs/geofigure1.jpg

Since the 1960s, various parties have explored the western side of the Oquirrh Range in search of buried copper-gold deposits. A large geophysical anomaly (6 km. by 1.5 km.) in the area has a similar magnetic signature to the Bingham Canyon area. In recent years, Kennecott has focused on specific geophysical magnetic and induced polarization ("IP") anomalies near the town of Stockton.

Stockton Copper-Gold Porphyry

Kennecott has completed 16 drill holes in the Stockton Project area of which two (SD15 and SD16) have intersected higher-grade portions of the Stockton Porphyry (Figure 2). Geoinformatics has received drill data from another 11 drill holes and of the total of 27 drill holes, some were either shallow or reconnaissance holes some distance from the Stockton Porphyry.



-------------------------------------------------------------
Depth Intersection Interval Copper Gold
Hole ID (metres) (metres) (metres) (%) (g/t)
-------------------------------------------------------------
SD16 274.0 545.6 0.29 0.11
-------------------------------------------------------------
including: 85.4 0.69 0.23
-------------------------------------------------------------
91.4 0.44 0.16
-------------------------------------------------------------
SD15 228.6 277.4 0.39 0.13
-------------------------------------------------------------
including: 189.0 0.44 0.13
-------------------------------------------------------------
36.6 0.46 0.17
-------------------------------------------------------------

The orientation of the mineralized structures has not yet been established,
and it is not possible to comment on the 'true width' of the mineralized
intersections.


Mineralization is hosted principally in a quartz-monzonite porphyry in sheeted dyke swarms and stocks on the margin of a large equigranular monzonite intrusion. The mineralized portions of the quartz-monzonite porphyry do not outcrop, and are capped by approximately 200 metres of brecciated and altered sedimentary rocks (see the discussion on manto-style targets below).

To view Figure 2 "Stockton Project prior drilling showing interpreted/extrapolated contours of % copper x metres", click the link below:

http://www.ccnmatthews.com/docs/geofigure2.jpg

Geoinformatics believes that there is potential for a considerable extension of the mineralized zones intersected in holes SD15 and SD16 (Figure 3) and it appears that the copper and gold grades are increasing northward. Geoinformatics has conducted preliminary three-dimensional ("3-D") modeling of the quartz-monzonite porphyry as the basis for planning drilling north of the existing drill intercepts.

To view Figure 3 "Cross-section on 4478800N", click the link below:

http://www.ccnmatthews.com/docs/geofigure3.jpg

Other Exploration Targets

Porphyry-related Copper-Gold Systems

In addition to the Stockton Porphyry, Geoinformatics has identified other areas within the Stockton Project with similar geophysical magnetic signatures to the Stockton Porphyry. The Company plans to investigate these areas following the drilling program at the Stockton Porphyry.

Manto-style Gold-silver-lead-zinc Targets in Sedimentary Rocks

Surface geochemistry covering an area approximately 400 by 600 metres lying directly above the Stockton Porphyry has produced rock-chip samples as high as 3.5 g/t gold and 62.1 g/t silver. The area has been mapped as consisting of brecciated and silicified sedimentary rocks.

High-grade Lead-zinc-gold-silver-copper Veins

Historic mining at the Calumet, Tip Top and Honerine Mines on the option-to-purchase properties extracted high-grade carbonate replacement lead-zinc-gold-silver-copper bearing veins. Since the last of these mining operations closed in the post-World War II era, there has been little exploration for these types of veins using modern exploration techniques.

Property Acquisition and Claim Blocks

The Stockton Project consists of (i) several groups of unpatented mining claims held by Kennecott (the "Kennecott Claims"), and (ii) two option-to-purchase agreements with private land holders ("the Option-to-purchase Agreements") covering the optioned properties shown in Figure 4 below (the "Option Lands"). The Option-to-purchase Agreements include (advance) option payments, which are applied against the purchase price of each property. The total area of the Stockton Project covers approximately 8.33 sq. km.

Expenditures on the Stockton Project will be counted as qualifying expenditures and it will be designated a "Target" for purposes of Geoinformatics' obligations under the Alliance Agreement.

To view Figure 4 "Stockton Claim Map", click the link below:

http://www.ccnmatthews.com/docs/geofigure4.jpg

The Option Lands encompass approximately 90% of the main Stockton Porphyry target identified by Geoinformatics, including 100% of the projected higher grade portion; 100% of the surface manto-style gold-silver-lead-zinc targets and most of the historic workings that were mined for the lead-zinc-gold-silver-copper bearing veins. The claims covering the remaining 10% of the main Stockton Porphyry identified by Geoinformatics are held by Kennecott Utah Copper Company, a related company to Kennecott, and are not being offered to Geoinformatics as part of the acquisition.

Exploration Program - 2007

For the balance of 2007, Geoinformatics intends to conduct an exploration program that will include:

1. Further refinement of the detailed 3-D geological and structural modeling of the (quartz-monzonite) Stockton Porphyry;

2. Application of Geoinformatics' proprietary 3-D targeting techniques to the entire Stockton Project property;

3. Drilling of a minimum of four deep holes on the Stockton Porphyry target, with drilling to commence in September 2007; and

4. Field reconnaissance and surveys on the balance of the property.

Environmental Matters

The area surrounding and including the Stockton Project was subject to mining for more than 70 years and several smelters, including the Jacobs Smelter, operated in and around the town of Stockton during this period.

Prior mining produced dumps of waste rock on the Stockton Project properties, which contain elevated levels of certain metals. Based on information available to Geoinformatics, these waste dumps appear to lie primarily on the Option Lands though there are small amounts of waste materials on the Kennecott Claims. In 2005, Kennecott contracted North American Mines Services to conduct an environmental reconnaissance investigation of soil and waste rock on its mining claims which determined that the claims contain elevated levels of such metals. It also retained Westland Resources Inc., engineering and environmental consultants, to prepare an assessment of environmental risks on the subject lands, which has been provided to Geoinformatics.

The town of Stockton and a surrounding area was listed on the U.S. National Priorities List (Superfund) by the U.S. Environmental Protection Agency in 1999 defining several contaminated zones, and a plan was designed to address soil and sediment contamination, ground water and other ecological impacts. It includes an area surrounding the town of Stockton known as Operable Unit 2 ("OU2"). A portion of the Option Lands lies within OU2.

Geoinformatics has retained Temkin, Wielga, Hardt and Longenecker LLP, a U.S. mining and environmental law firm based in Denver, Colorado to advise it on Stockton environmental matters.

Geoinformatics will acquire the Kennecott Claims shown in Figure 4 and will be assigned the Option-to-purchase Agreements. Geoinformatics does not believe that it will assume any environmental liabilities through the assignment of the Option-to-purchase Agreements until such time as and when the options-to-purchase are exercised. The Option-to-purchase Agreements specifically disclaim any responsibility of the option holder to the current landholders for historical environmental contamination. Geoinformatics may be subject to certain environmental liabilities or obligations in connection with the Kennecott Claims. U.S. court decisions dealing with the allocation of clean-up costs among the potentially responsible parties in a contribution action have considered a number of equitable factors, including the degree to which each party's actions contributed to the contamination. The planned exploration program for the Stockton Project has been designed to avoid disturbance of any contaminated area or known underground workings.

Kennecott - Geoinformatics Master Strategic Alliance Agreement

Geoinformatics and Kennecott have agreed to have the Stockton Project governed by the Kennecott-Geoinformatics Master Strategic Alliance Agreement. Please refer to Geoinformatics' press-release dated August 14, 2006, for further information concerning the Alliance Agreement. Under the terms of the Alliance Agreement, Kennecott retains a one-time back-in right or a 2% net smelter royalty if the back-in right is not exercised.

The Stockton project represents the fourth target-of-merit and final property to be transferred in the initial two-year term of the Alliance Agreement.

Qualified Persons

The data presented in this release has been compiled and verified by Darren Holden (MAusIMM) of Geoinformatics. The verification included a review of digital drill data including a review of quality assurance/quality control information supplied to Geoinformatics and as disclosed beneath Table 1 of this document. Mr. Holden is a qualified person as defined by National Instrument 43-101 ("NI 43-101") and has 12 years of experience in the minerals exploration and mining industry. In addition, field outcrop, surface exposure and drill-core has been reviewed by Mr. Timothy Master, Exploration Manager --Conterminous USA, Geoinformatics. This review included verification by making visual estimates of copper mineralisation based on observations of the mineral chalcopyrite (CuFeS2) in drill core and) comparing to laboratory assay results as presented in Table 1 of this release. Mr. Master is a qualified person as defined by NI 43-101 and has 30 years of experience in the minerals and exploration mining industry.

About Geoinformatics

Geoinformatics is a global exploration company which has developed a unique and innovative approach to minerals exploration.

Geoinformatics is exploring the Whistler Project ("Whistler") in the prospective Alaskan Range, which includes an advanced-stage gold-copper porphyry discovery and an associated multi-target exploration program. Whistler encompasses a 440 sq. km. land package and includes an ore zone defined by drilling with an intersection of 220 metres grading 1.49 g/t gold and 0.33% copper, as well as several high potential copper and gold targets.

The Company has entered into a Master Strategic Alliance Agreement (the "Alliance Agreement") with Kennecott under which it is using its proprietary scientific and technology platform (the "Geoinformatics Process") to identify and prioritize 30 or more exploration drill targets over the initial two years of the Alliance Agreement. Whistler has been conditionally offered to Geoinformatics as a target-of-merit under the Alliance Agreement, and Kennecott retains certain royalty and/or back-in rights on all Alliance projects.

In addition, Geoinformatics is actively exploring several significant properties located in British Columbia, the Battle Mountain Trend region of Nevada, and the State of Sinaloa, Mexico, and a joint venture with Azure Minerals Limited in the State of Sonora, Mexico. The Company 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.

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.

This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its 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 our current Annual Information Form and other recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements.



Table 1. Stockton Drill Hole Intercepts

---------------------------------------------------------------------------
0.1% copper cut
off, 1 metre
minimum intercept,
10 metres maximum
internal waste
---------------------------------------------------------------------------
Interval Copper Gold Silver Molybdenum
Hole_Id From To Width (%) (g/t) (g/t) (g/t)
---------------------------------------------------------------------------
06DDSTK036 294.0 308.0 14.0 0.11 0.01 0.29 26.11
---------------------------------------------------------------------------
06DDSTK036 309.0 451.5 142.5 0.26 0.11 0.95 83.70
---------------------------------------------------------------------------
06DDSTK036 469.5 486.0 16.5 0.16 0.21 0.42 71.00
---------------------------------------------------------------------------
06DDSTK036 496.4 535.0 38.6 0.25 0.12 0.94 160.83
---------------------------------------------------------------------------
06DDSTK037 358.5 375.5 17.0 0.09 0.04 0.78 7.18
---------------------------------------------------------------------------
06DDSTK037 391.5 459.5 68.0 0.13 0.10 0.84 19.26
---------------------------------------------------------------------------
06DDSTK037 512.0 516.0 4.0 0.19 0.08 1.80 55.00
---------------------------------------------------------------------------
less than
06DDSTK037 533.0 535.0 2.0 0.13 0.08 0.01 126.00
---------------------------------------------------------------------------
06DDSTK037 582.9 599.3 16.4 0.24 0.13 1.31 56.20
---------------------------------------------------------------------------
SD-11 234.7 268.2 33.5 0.21 0.04 0.18 41.64
---------------------------------------------------------------------------
less than
SD-13 198.1 213.4 15.2 0.10 0.03 0.01 3.00
---------------------------------------------------------------------------
SD-15 228.6 506.0 277.4 0.39 0.13 0.58 24.83
---------------------------------------------------------------------------
SD-16 274.3 819.9 545.6 0.29 0.11 0.84 67.77
---------------------------------------------------------------------------
SD-16 838.2 844.3 6.1 0.25 0.07 0.50 52.00
---------------------------------------------------------------------------
SD-21 182.9 198.1 15.2 0.14 0.07 1.00 7.00
---------------------------------------------------------------------------
SD-21 289.6 350.5 61.0 0.11 0.02 0.35 48.99
---------------------------------------------------------------------------
SD-21 365.8 387.1 21.3 0.16 0.03 1.07 151.58
---------------------------------------------------------------------------
SD-21 487.7 518.2 30.5 0.15 0.02 1.75 31.50
---------------------------------------------------------------------------
SD-21 566.9 715.4 148.4 0.15 0.04 0.25 76.50
---------------------------------------------------------------------------
less than
SD-26 329.2 426.7 97.5 0.14 0.03 0.01 34.25
---------------------------------------------------------------------------
SD-29 274.3 304.8 30.5 0.14 0.06 9.00 5.50
---------------------------------------------------------------------------
less than
SD-31 521.2 536.5 15.2 0.12 0.03 0.01 7.00
---------------------------------------------------------------------------
0.3% Cu cut
off, 1m
minimum intercept,
10 metres
maximum internal
waste
---------------------------------------------------------------------------
Interval Copper Gold Silver Molybdenum
Hole_Id From To Width (%) (g/t) (g/t) (g/t)
---------------------------------------------------------------------------
06DDSTK036 341.6 397.6 56.0 0.35 0.19 1.29 89.50
---------------------------------------------------------------------------
06DDSTK036 408.0 421.5 13.5 0.42 0.12 1.44 143.85
---------------------------------------------------------------------------
06DDSTK036 512.5 533.0 20.5 0.31 0.16 1.37 238.00
---------------------------------------------------------------------------
06DDSTK037 449.5 451.5 2.0 0.36 0.58 2.30 4.00
---------------------------------------------------------------------------
06DDSTK037 582.9 590.9 8.0 0.28 0.15 1.58 45.50
---------------------------------------------------------------------------
SD-11 253.0 268.2 15.2 0.29 0.07 0.10 29.40
---------------------------------------------------------------------------
SD-15 249.9 438.9 189.0 0.44 0.13 0.59 21.69
---------------------------------------------------------------------------
SD-15 466.3 502.9 36.6 0.46 0.17 1.25 20.84
---------------------------------------------------------------------------
SD-16 329.2 414.5 85.4 0.69 0.24 1.77 86.65
---------------------------------------------------------------------------
SD-16 460.3 551.7 91.4 0.40 0.16 1.33 64.07
---------------------------------------------------------------------------
SD-16 588.3 597.4 9.2 0.32 0.13 0.50 396.67
---------------------------------------------------------------------------
SD-16 737.6 740.7 3.0 0.34 0.10 0.50 160.00
---------------------------------------------------------------------------
SD-16 780.3 783.3 3.1 0.30 0.12 1.00 57.00
---------------------------------------------------------------------------
SD-21 378.0 381.0 3.1 0.39 0.08 3.00 57.00
---------------------------------------------------------------------------
SD-21 707.1 715.4 8.2 0.37 0.08 1.00 19.97
---------------------------------------------------------------------------


Calculated from historic data provided by Kennecott Exploration Company. Intercepts greater than 100 metres or greater than 0.4% copper highlighted in yellow.

SD series holes (1995 - 1997).

All assays carried out at the Rocky Mountain Geochemical Corporation (RGMC) Laboratory in Salt Lake, Utah by fire assay AAS (Au) and multi-element AAS (Ag, Cu, Pb, Zn, As, Bi, Mo). Check analysis for Au, Cu and Mo undertaken by Chemex Laboratories Sparks, Nevada. A combination of diamond core and RC samples with an average length of 4 metres and 8 metres, respectively, were collected for submission to the laboratory. Quality Assurance and Quality Control (QA/QC) measures were implemented to check laboratory precision and accuracy. Standard samples were inserted into the sample series of selected holes (SD08, 09, 10, 12, 13, 14, 16, 21 and 22) in a ratio of 1:20. Blind reject check samples were resubmitted to RGMC from selected holes (SD14, 15, 16 and 21) in a ratio of 1:30 and check analyses were undertaken at Chemex for selected holes (SD14, 15, 16, 21, 22, 23 and 25) also in a ratio of 1:30.

05DD and 06DD series holes (2005 - 2006)

All assays carried out at the ALS Chemex laboratory in Sparks, Nevada for Au-Fire Assay (Au-AA23) and multi-element package (ME-ICP61). All samples were of half-core with an average length of 2 metres. A QA/QC procedure was implemented including control standards (1:10), quarter core duplicates (1:20) and blanks (1:20).

The orientation of the mineralized structures has not yet been established, and it is not possible to comment on the 'true width' of the mineralized intersections.



Table 2. Collar Locations of all drill holes available to Geoinformatics

--------------------------------------------------------------------
Elevation Depth Dip Azimuth
Hole_ID Easting Northing (metres) (metres) (degrees) (degrees)
--------------------------------------------------------------------

--------------------------------------------------------------------
05DDSTK034 388228 4477344 1886 700 -80 30
--------------------------------------------------------------------
05DDSTK035 387771 4477590 1820 789 -90 0
--------------------------------------------------------------------
06DDSTK036 386213 4478731 1694 745 -65 313
--------------------------------------------------------------------
06DDSTK037 385789 4479239 1674 690 -70 120
--------------------------------------------------------------------
BH92-1 386548 4480530 1692 91 -90 0
--------------------------------------------------------------------
OMS90-1 385855 4480783 1524 110 -90 0
--------------------------------------------------------------------
RV-01 387197 4479330 1917 736 -80 180
--------------------------------------------------------------------
RV-02 386997 4477739 1788 31 -90 0
--------------------------------------------------------------------
RV-02A 386997 4477742 1788 31 -90 0
--------------------------------------------------------------------
SD-02 386118 4475916 1625 445 -90 0
--------------------------------------------------------------------
SD-06 387115 4477321 1762 354 -90 0
--------------------------------------------------------------------
SD-11 386431 4478764 1765 268 -90 0
--------------------------------------------------------------------
SD-13 386052 4478034 1683 305 -90 0
--------------------------------------------------------------------
SD-15 386455 4478771 1769 575 -90 0
--------------------------------------------------------------------
SD-16 386094 4478821 1701 846 -90 0
--------------------------------------------------------------------
SD-21 386122 4479253 1698 715 -90 0
--------------------------------------------------------------------
SD-24 386537 4478822 1762 116 -90 0
--------------------------------------------------------------------
SD-26 386659 4478726 1798 652 -70 90
--------------------------------------------------------------------
SD-27 388057 4478114 1929 317 -70 180
--------------------------------------------------------------------
SD-28 387081 4478540 1774 320 -70 90
--------------------------------------------------------------------
SD-29 386910 4478547 1762 335 -90 0
--------------------------------------------------------------------
SD-30 387308 4478758 1844 326 -90 0
--------------------------------------------------------------------
SD-31 386471 4479153 1753 728 -69 134
--------------------------------------------------------------------
STK-01 387663 4478052 1876 633 -90 0
--------------------------------------------------------------------
STK-02 386900 4478405 1771 536 -90 0
--------------------------------------------------------------------
STK-03 386855 4477937 1753 366 -90 0
--------------------------------------------------------------------
STK-04 387538 4477030 1782 572 -90 0
--------------------------------------------------------------------

All Easting, Northing and elevation coordinates reported in NAD27 UTM
Zone 12.


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

Contact Information

  • Geoinformatics Exploration Inc.
    Kevin L. Snook
    Chairman
    (416) 861-1300 x226
    Email: kevins@geoinformex.com
    or
    Geoinformatics Exploration Inc.
    Dr. Nick Archibald
    Executive Vice-Chairman and CEO
    (416) 861-1300 x224
    Email: nicka@geoinformex.com
    or
    Geoinformatics Exploration Inc.
    330 Bay Street, Suite 1109
    Toronto, Ontario M5H 2S8
    Website: www.geoinformex.com