Geoinformatics Exploration Inc.
TSX VENTURE : GXL

Geoinformatics Exploration Inc.

August 29, 2005 12:49 ET

Geoinformatics Announces the Acquisition of Four Properties in Alaska and British Columbia and Provides Update on the Tasmanian, New Zealand and Sanatana Projects

TORONTO, ONTARIO--(CCNMatthews - Aug. 29, 2005) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OR TO UNITED STATES PERSONS

Geoinformatics Exploration Inc. (TSX VENTURE:GXL)("Geoinformatics" or the "Company") is pleased to announce that it has acquired three properties in Alaska and one in British Columbia. The properties were brought to the attention of Geoinformatics through the West Cordilleran Alliance between Kennecott and Geoinformatics (refer news release dated 19th April; http://www.geoinformex.com). All properties were identified by Kennecott Exploration Company. In keeping with Geoinformatics' business model the properties will either be farmed out to other mineral explorers or kept as properties to seed a drill fund (refer news release dated 12th July; http://www.geoinformex.com).

Also, alliance partner Glass Earth Limited (TSXV:GEL; www.glassearthlimited.com) recently announced on August 17, 2005 that they had completed airborne geophysical surveys over the Coromadel/Central Volcanic Region in New Zealand. These are the largest ultra-detailed airborne magnetic (40,000 line km) and airborne gravity (6,000 line km) surveys ever carried out in New Zealand. The surveys were carried out over Glass Earth's prospecting permits covering the Coromandel/Central Volcanic Region of the North Island of New Zealand.

Further, alliance partner Resource Finance and Investment Limited (RFI; www.rfilimited.com) announced on August 21, 2005, an Aus $3.5 million Initial Public Offering ahead of a planned listing on the Australian Stock Exchange. RFI can earn a 75% interest in the nine Geoinformatics exploration licenses in Tasmania by sole funding exploration work up to completion of a pre-feasibility study. Geoinformatics is also eligible to receive 900,000 RFI shares and 250,000 share options based on progress with the Mt Read Volcanics Intervention Project ("MRVIP"), and is entitled to a further 5 million RFI shares and 100 000 options for the achievement of technical milestones based on multiples of gold or gold equivalent discovered and defined to an agreed confidence level within ten years of the commencement of the MRVIP which should commence once RFI is listed.

Finally, on July 28, 2005, alliance partner Sanatana Diamonds Inc. (AIM:SAN; www.sanatanadiamonds.com) announced it has commenced trading on the Alternative Investment Market (AIM) via an Initial Public Offering having raised GBP 2.1 million. A $6M field program under the management of Geoinformatics is currently underway. The program consists of flying a major aeromagnetics survey and a helicopter-based diamond indicator sampling program of around 2000 samples with some detailed follow-up geophysics. Geoinformatics has a 0.9% gross over-riding royalty on any diamond production.

Acquisition of Four Properties in Alaska and British Columbia

The Company has acquired three properties in Alaska including the Hope Creek, Tower Gold and Napoleon properties, all of which are located within the Eastern Tintina Belt between Fairbanks and the Alaskan-Yukon border. The Company has acquired a fourth property in British Columbia which is situated in the Quesnel Trough between the Kemess Mine and the Lorraine deposit.

The Hope Creek land holdings consist of 43 Alaska State mining claims totaling approximately 5,300 acres. The gold prospect is located 45 miles northeast of Fairbanks within a historic placer mining district along the Steese Highway. Hope Creek lies within a prominent east-west linear belt that controlled the emplacement of intrusives associated with gold-rich shears and faults. A central gold-arsenic-antimony anomaly extends through the center of the property. A helicopter borne aeromagnetic and radiometric survey was flown over the property in 1999-2000 and six reverse circulation drill holes were completed. Potential remains to locate intrusion-hosted gold targets within the property. All historic coarse placer gold distribution appears to relate to monzonite intrusions in the district.

The Tower Gold property consists of 16 Alaska state mining claims totaling 2,560 acres. Geoinformatics has negotiated an option to earn 100% interest in the property from prospector David Wright. The property is located adjacent to the Alaska Highway near the Richardson placer district (100,000 ounces of historical gold production). Limited sampling and mapping at Tower indicates this to be a property with potential for Fort Knox style mineralisation however the delineation of targets is hampered by deep loess and vegetation cover. Stream sediment samples range from 130-220 ppb Au and pan concentrates from 1,200-9,470 ppb. Alteration is associated with coarse granite porphyry and consists of quartz-pyrite veining along east-west and northwest trending joints and shears. The roughly one square mile area of poorly exposed granite exhibits a magnetic low consistent with a credible gold porphyry target.

The Napoleon land holdings consist of 61 Alaska State mining claims totaling approximately 6,500 acres. The gold prospect is located in the Forty Mile area of the Tintina Gold Belt. The property hosts widespread gold mineralization related to a Jurassic hornblende syenite porphyry. Gold is controlled by east-west and northwest trending high grade shears and by pervasive low grade alteration. Mineralization is found over a strike length of 4 miles with widths of up to 2 miles. Soil sampling and limited trenching have identified an anomalous gold area of one square mile that runs +50ppb Au. Other portions of the property have had limited soil sampling. Drilling showed that gold occurs broadly in the intrusion and there is potential to delineate targets for a Fort Knox or Pogo style mineralized system.

The fourth property in British Columbia consists of 47 claims transferred to Geoinformatics by Kennecott Exploration Company under the terms of the West Cordilleran Agreement. The property lies within the Quesnel Trough, roughly equidistant between the Kemess Mine and the Lorraine deposit. Mineralization consists of auriferous quartz veins, magnetite-rich skarn and mineralized shear zones within altered andesitic units of Takla Group volcanics and sediments. The most significant mineralization is a 200 metre by 100 metre magnetite-rich skarn zone with disseminated pyrite and chalcopyrite. Quartz veins, up to 2 metres wide, are found sporadically on the property and contain up to 5% pyrite and minor chalcopyrite.

Update on New Zealand Project with Glass Earth Limited

On August 17, 2005, alliance partner Glass Earth Limited (TSXV:GEL; www.glassearthlimited.com) announced the successful completion of airborne geophysical surveys over the Coromadel/Central Volcanic Region in New Zealand. These are the largest ultra-detailed airborne magnetic (40,000 line km) and airborne gravity (6,000 line km) surveys ever carried out in New Zealand. The surveys were carried out over Glass Earth's prospecting permits covering the Coromandel/Central Volcanic Region of the North Island of New Zealand.

Geoinformatics is now undertaking processing of the data and updating the existing data base leading to interpretation of the data and definition of drill targets.

Geoinformatics holds a 2% NSR on the project that is focused on gold, base metals and geothermal energy. It also has the right to acquire ground on targets that Glass Earth decides not to pursue.

Update on Tasmanian Project with Resource and Investments Limited (RFI)

On August 21, 2005, alliance partner RFI announced an Aus $3.5 million Initial Public Offering ahead of a planned listing on the Australian Stock Exchange. RFI can earn a 75% interest in Geoinformatics' nine exploration licences by sole funding exploration work up to completion of a pre-feasibility study. Geoinformatics will receive 150 000 RFI shares upon grant of the exploration licences in the names of both parties. Upon listing RFI has agreed to fund the MRVIP utilizing the Geoinformatics Process over an area of mutual interest in Tasmania which incorporates the Geoinformatics' licences and those held by or under joint venture to RFI. The MRVIP will deliver a series of high quality targets from extensional exploration in the Hellyer corridor to more regional targets on Alliance held ground. Geoinformatics will receive 750,000 RFI shares and 250,000 RFI share options in three tranches linked to progress with the MRVIP. Geoinformatics will also be entitled to a further 5 million RFI shares for the achievement of technical milestones based on multiples of gold or gold equivalent and defined to an agreed confidence level within ten years of the commencement of the MRVIP. An additional 100,000 RFI share options will be issued to Geoinformatics for achievement of such technical milestones on the ground around the old Hellyer mine.

RFI has assembled a commanding land position in north-west Tasmania, an area that hosts a number of large base-metal, tin and gold deposits including Rosebery, Henty, Hercules, Mt Lyall, Hellyer, Renison and Que River.

RFI has assembled six main project areas, some of which are the tenements in joint venture with Geoinformatics. They also include the Hellyer deposit where 10 exploration targets have already been identified, the Mt Charter gold deposit and a number of other targets prospective for Hellyer and Que River style high grade Zn-Pb-Ag-Au deposits that will be advanced rapidly to the drill testing stage. A drill rig will commence work in the third quarter of 2005.

Update on North West Territories project with Sanatana Diamonds Inc.

On July 28, 2005, alliance partner Sanatana Diamonds Inc. (AIM:SAN; www.sanatanadiamonds.com) announced that their shares commenced trading on the AIM via an Initial Public offering and raised GBP 2.1 million. A $6M field program under the management of Geoinformatics is currently underway over the 22 million acres of Map Permits currently under title to Sanatana. The program consists of flying a major aeromagnetics survey, one of the largest exploration airborne geophysical program flown in North America in the last 10 years, and a helicopter-based diamond indicator sampling program of around 2000 samples. Some detailed follow-up geophysics will be undertaken on selected geophysical and surface sampling anomalies.

Kennecott and Sanatana have agreed to enter into a joint venture agreement whereby Kennecott has agreed to invest Cdn $2.5 million in Sanatana's Initial Public Offering. Kennecott has also agreed to contribute Cdn $2.5 million towards Sanatana's 2005 exploration program and a further Cdn $2.5 million towards Sanatana's 2006 exploration program. If Kennecott makes these investments and contributions, it will earn a 15% interest in the MAcKenzie Diamond Project and an exploration joint venture will be formed.

Geoinformatics has a 0.9 % gross over-riding royalty on any diamond discoveries by Sanatana. It also has the ability to acquire targets not followed up by Sanatana.

About Geoinformatics

Geoinformatics is a global resources exploration company focused on the resources industry that exchanges intellectual capital for equity. Geoinformatics has long term relationships with some of the most senior mining companies in the world and provides a pipeline of exploration resource projects to the mining community. The Company takes an innovative approach to exploration. It has a dedicated team of geoscientists and technical experts who have developed a unique scientific and technology platform (the "Geoinformatics Process") which includes data aggregation, data mining and 3D modeling to identify drill targets. The Geoinformatics Process is aimed at understanding and quantifying risk at the exploration stage. The Company's goal is to provide the mining community faster and cheaper methods which leads to better success rates.

Qualified Person

The technical content of this release has been provided by Mr. Gerry Bidwell P.Geo and Dr. Nick Archibald CP.Geo/FAIMM. Mr. Bidwell and Dr. Archibald are qualified persons (as defined by National Instrument 43-101), both of whom have more than 30 years experience in the minerals exploration/mining industry.

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 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.



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

Contact Information

  • Geoinformatics Exploration Inc.
    Michael Smyth
    President & CEO
    (416) 861-1300 ext 222
    mikes@geoinformex.com
    www.geoinformex.com
    or
    Geoinformatics Exploration Inc.
    330 Bay Street, Suite 1109
    Toronto, ON M5H 2S8