Geoinformatics Exploration Inc.
TSX VENTURE : GXL

Geoinformatics Exploration Inc.

June 09, 2005 09:27 ET

Geoinformatics Enters Into A Joint Venture With Redton Resources Inc. Covering 118,000 Hectares Of Contiguous Claims In The Quesnel Trough, British Columbia

TORONTO, ONTARIO--(CCNMatthews - June 9, 2005) - Geoinformatics Exploration Inc (TSX VENTURE:GXL) is pleased to announce that it has entered into a Joint Venture Agreement with Redton Resources Inc ("Redton") covering 118,000 hectares of contiguous claims in the Quesnel Trough, British Columbia (Figure 1). The Redton claim block which also includes the 4 Takla-Rainbow claims under option from Mr Lorne Warren, is highly prospective for alkalic-related deposits of copper-gold porphyry and epithermal gold affinity. It represents one of the largest contiguous claim holdings in British Columbia.

Prospectivity for Copper Gold Deposits in Alkali Porphyry Terranes

Alkalic igneous rocks are well documented around the world for their association with gold and gold-copper mineralization, being hosts to Porgera and Ok Tedi in Papua New Guinea, Emperor in Fiji, Cadia in Australia and Cripple Creek in the United States.

Alkalic igneous rocks are well-represented in British Columbia in the co-genetic Stikine and Quesnel Terranes, which together host the gold-rich porphyry copper deposits of Afton, Mt Polley, Galore Creek, Kemess and Mt Milligan. The Redton claim package is within the Quesnel Terrane and lies between the Lorraine deposit to the north and the Mt Milligan deposit to the south (Figure 2).

Propectivity of Project Area

Approximately half of the project area is underlain by Jurassic to Triassic shallow-water island-arc volcanics, volcaniclastics and sediments intruded by plutonic rocks of the same age and tectonic setting.

The other half of the project area has a slightly deeper erosional level and is underlain by late Triassic to Cretaceous island arc intrusives of highly variable composition.

Redton initially focused on the area because it displayed a concentration of high gold values that corresponded with alkali intrusive and extrusive rocks. The last major phase of exploration in the area was undertaken in the period 1988 to 1992 when over $2.6 million was expended on and immediately adjacent to the property by a number of companies including Teck Resources, Golden Rule Resources, Cathedral Gold and Placer Dome. However the area has not been covered by modern-day geochemical and geophysical techniques which have proven effective at locating alkali porphyry copper and gold deposits elsewhere in the world.

Redton has put together a comprehensive GIS database of information on previous exploration programs in the project area. This compilation and interpretation of results has pointed to two immediately identifiable multi-element geochemical anomalies that are characteristic of porphyry copper-gold mineralisation. This is in addition to significant gold mineralization on the Takla Rainbow claims.

The immediate focus of exploration will be confirmation and follow-up of identified geochemical anomalies and scoping of an aeromagnetic and radiometric survey to cover the project area.

Joint Venture Agreement and Takla Rainbow Option

Under the Joint Venture Agreement, Geoinformatics has the right to earn an 85% interest in the Redton claim block by incurring total expenditures of $4.75million over five years and making payments to Redton of $250,000 over four years plus a further $250,000 following completion of a feasibility study which recommends the placing of the property into commercial production. Redton's 15% interest will be free carried until the completion of a feasibility study at which time its interest converts to a 3% net smelter return royalty 1.5% of which may be acquired for $6.5 million. Geoinformatics paid $50,000 to Redton upon signature of the Joint Venture Agreement and cannot withdraw from the Agreement until it has spent a minimum of $500,000 in exploration expenditure.

Payments due to Mr Lorne Warren for the Takla-Rainbow claims are $135,000 over three years with the first payment of $25,000 due on 1 July 2005. Following the payments in the first three years, Mr Warren has the right to be paid $20,000 per annum as an advance royalty payment until the Takla-Rainbow property is placed into commercial production. Mr Warren retains a 3% net smelter return royalty which can be purchased for $3 million in total.

Kennecott Exploration Company has agreed to include the Redton and Takla Rainbow claim blocks within the broad ambit of their West Cordilleran Strategic Alliance Agreement with Geoinformatics and as such Kennecott will have a back in right on the project in terms of which it would ultimately be entitled to obtain a 58% interest in the project. The Redton project integrates perfectly into the work that Geoinformatics is carrying out under the West Cordilleran agreement which includes the building of a geodynamic three dimensional model of British Columbia and the acquisition of properties of merit previously identified by Kennecott.

Qualified Persons

The technical content of this release has been provided by Mr. Gerry Bidwell. P.Geol. 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 than 30 years experience in the 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.

Redton Resources Inc. (www.redton.com) is a privately held mineral exploration company based in Vancouver.

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.

Maps of the Quesnel Trough can be found under the following links:

http://www2.ccnmatthews.com/database/fax/2000/gxlFig1.pdf

http://www2.ccnmatthews.com/database/fax/2000/gxlFig2.pdf

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