Geoinformatics Exploration Inc.
TSX VENTURE : GXL

Geoinformatics Exploration Inc.

July 13, 2005 09:35 ET

Geoinformatics Announces Alliance Partnership with Eurogold on Saulyak Gold Deposit and Provides Update on Drill Fund Activities

TORONTO, ONTARIO--(CCNMatthews - July 13, 2005) - Geoinformatics Exploration Inc (TSX VENTURE:GXL) ("Geoinformatics") is pleased to announce that it has signed an alliance partnership with Eurogold Limited (ASX and AIM: EUG) ("Eurogold") the terms of which Geoinformatics undertook to provide geoscience expertise to aid in the development of the Saulyak Gold Deposit in SW Ukraine. As part of this alliance, Geoinformatics receives a fee for services and is granted a net smelter royalty on a sliding scale of up to 2% which rate applies to gold or gold equivalent sold in excess of 1.5 million ounces.

On July 1st, 2005, Eurogold (see www.asx.com under the symbol EUG) announced a substantial increase in the gold resource at Saulyak, in part due to the increased geological understanding resulting from the work undertaken on the deposit by Geoinformatics.

Saulyak Deposit

Eurogold has recently acquired a 100% interest in the Saulyak gold project located in south west Ukraine, close to the border with Romania. The Saulyak project was explored in detail by the USSR during the 1970s and 1980s, including more than 9 km of underground development on two levels and 30 km of diamond drilling. Mineralization is hosted by mesothermal quartz veins contained within a shallowly dipping sericite-carbonate schist zone that has been identified over a strike distance of 1 km and down dip for at least 1.3 km from the surface outcrops. The gold resources are contained within two areas which have been explored by means of underground development and drilling. Drilling from surface has also intersected high grade mineralization some considerable distance down-dip from the known resources.

Eurogold - Geoinformatics Alliance

Geoinformatics formed an alliance with Eurogold to undertake geological mapping, modeling and 3D targeting at the Saulyak mine. This has been completed and has led to an enhanced understanding of the nature and geometry of the deposit and the controls to mineralization. This in turn has allowed Eurogold to revise their resource estimates as announced in their July press release.

Under the terms of the alliance, Geoinformatics has been granted a net smelter royalty of 1% on gold or gold equivalent sold between 750,000 ounces and 1.5 million ounces and 2% on gold or gold equivalent sold over 1.5 million ounces. Eurogold has a first right of offer to buy-back this royalty provided the project has achieved a minimum resource of 2 million ounces of gold or gold equivalent, in which case the buy back will be calculated based on the value of a 2% NSR on such resource. The alliance also contemplates further stages of work by Geoinformatics in the mine lease area and the region.

Drill Fund Progress

Geoinformatics is continuing to explore opportunities to optimize monetization of the substantial asset portfolio that it is continuing to develop. Amongst the opportunities being considered is the concept of a drill fund to enhance drill testing on our large property portfolio. This is consistent with the development of our business model; reducing the time, cost, and increasing success rates of mineral exploration discovery.

Geoinformatics is continuing discussions with a number of parties about progressing the concept of the drill fund whereby Geoinformatics would provide high quality drill targets which would then be explored further by a dedicated experienced drilling team. These parties include mining companies, financiers and other parties who would finance and operate the drill fund. Geoinformatics would maintain an equity interest in the underlying properties. Management anticipates this strategy has the potential to provide greater value to our shareholders. Further announcements will be made as agreements are put in place.

Qualified Person

The technical content of this release has been provided by Dr. Nick Archibald CP.Geo/FAIMM. Dr. Archibald is a qualified person (as defined by National Instrument 43-101) who has more than 30 years experience in the minerals exploration/mining industry.

About Geoinformatics

Geoinformatics (www.geoinformex.com) is a global 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 and provides a pipeline of exploration resource projects to the mining community.

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
    mikes@geoinformex.com
    330 Bay Street, Suite 1109, Toronto, Ontario