Geoinformatics Exploration Inc.
TSX VENTURE : GXL

Geoinformatics Exploration Inc.

August 02, 2005 10:39 ET

Geoinformatics announces Alliance with Nickel Australia whereby Nickel Australia farms into Geoinformatics' property portfolio in Mexico

TORONTO, ONTARIO--(CCNMatthews - Aug. 2, 2005) - Geoinformatics Exploration Inc. (TSX VENTURE:GXL) ("Geoinformatics" or the "Company") is pleased to announce that it has signed a letter of agreement to enter into a strategic alliance and exploration joint venture with Nickel Australia Limited (ASX: NKL) whereby Nickel Australia can farm into Geoinformatics' property portfolio of 13 gold, silver and copper properties in Sonora, Mexico which is held through Geoinformatics' Mexican subsidiary Minera Geoinformatica, SA de CV. As part of this alliance, Nickel Australia will commit to expenditures of US$4 million within a period of four years to earn a 51% interest in the properties.

Mexican Property Portfolio

Geoinformatics' property portfolio has arisen out of the Geoinformatics-Kennecott Exploration Company Strategic Alliance Target Bank which covers the Porphyry Copper Belt of Arizona, New Mexico, Sonora and Chihuahua. The copper and silver-gold-polymetallic exploration properties were transferred to Geoinformatics by Kennecott under the Strategic Alliance agreement whereas some gold properties were staked and acquired following 12 months work by Geoinformatics of data aggregation, compilation, interpretation, 3D modeling and gold targeting.

The properties are all located within 250km of Hermosillo, Sonora and are located proximal to the Sonoran Batholith/paleo-arc system that hosts world class deposits such as Cananea and Caridad. The projects cover 600 km2 and contain epithermal gold-silver and porphyry copper-gold molybdenum mineralization. Surface sampling, trenching and drilling have returned gold, silver and copper results that require follow-up work, and drill-ready targets are immediately available on some of the projects.



The Geoinformatics' property portfolio is tabulated below.

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GRANTED
PROJECTS MINERALISATION STYLE
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San Juan Epithermal Au/Ag system with extensive old workings -
rock chip samples of 606 g/t Ag & 1.8g/t Au;
RC drill hole of 22m @ 92 g/t Ag
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Tabisco Strong alteration system with high grade epithermal
Au/Ag veins and old workings - rock chip sample of
9.4 g/t Au & 298 g/t Ag
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Jaguey Porphyry-related skarn & breccia system with outcropping
Cu and Au mineralisation -
rock chip samples of 7.0% Cu, 2.5 g/t Au & 118 g/t Ag
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Cardelena Porphyry Cu/Au system -
rock chip samples of 5.8% Cu & 11.6, 7.6 & 6.2 g/t Au
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Suaqui Verde Porphyry Cu/Mo system -
abundant outcropping Cu mineralisation
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El Chileno Extension of the porphyry intrusive system which hosts
the Cumobabi Cu/Mo mine.
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Potreritos Porphyry Cu/Au target - anomalous rock chip & stream
sediment sampling
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Pozo de Porphyry Cu/Au target - strongly anomalous Cu & Mo soil
Nacho sampling
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PROJECT
APPLICATIONS
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San Nicholas Strong alteration system - outcropping Cu mineralisation
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Baroyeca Porphyry Cu/Au target - contains old Cu & Au workings
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Batacosa Porphyry Cu/Au target - contains old Cu & Au workings
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El Llano High grade epithermal Au/Ag target -
de Nogal rock chip samples of 10.9, 5.3 & 4.6 g/t Au
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Santa Rosa High grade epithermal Au/Ag target -
de Matape rock chip samples of 15.7, 10.5 & 3.8 g/t Au
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Nickel Australia- Geoinformatics Alliance

Geoinformatics has signed an Alliance Agreement with Nickel Australia Limited whereby Nickel Australia will farm into Geoinformatics' property portfolio in Sonora, Mexico which is held through Geoinformatics' Mexican subsidiary Minera Geoinformatica, SA de CV. Under the agreement, Nickel Australia undertakes to spend US$4 million over four years on the properties to earn a 51% interest and can then earn a 75% interest by completing a pre-feasibility study within a period of six years. Geoinformatics has the right to elect to contribute its pro rata share once Nickel Australia has earned its 51% interest and again when it has earned a 75% interest. If it does not contribute it dilutes to 10% and then converts to a 2% NSR. The agreement also envisages an Alliance Area encompassing the states of Sonora and Chihuahua in Mexico in terms of which further properties within this Area that are obtained by Geoinformatics from the Geoinformatics - Kennecott Target Bank referred to above would be offered to the Nickel Australia Alliance and any properties acquired by either party in the Area would be offered to the Alliance.

Nickel Australia has committed to spend a minimum of US$1 million within two years and is entitled to withdraw thereafter. The agreement is conditional upon completion of a definitive Alliance Agreement between the parties.

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 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 in the world 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 ext 222
    mikes@geoinformex.com
    330 Bay Street, Suite 1109, Toronto, ON M5H 2S8