Geoinformatics Exploration Inc.
TSX VENTURE : GXL

Geoinformatics Exploration Inc.

August 18, 2006 13:14 ET

Geoinformatics Provides North American Exploration Update

TORONTO, ONTARIO--(CCNMatthews - Aug. 18, 2006) -

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 provide an update on exploration activities in the United States and Mexico being undertaken by Geoinformatics' joint venture partners on properties where Geoinformatics has a direct equity ownership.

Summary of the highlights are as follows:

Sonora-Chihuahua Projects with Nickel Australia Ltd, Mexico

- Extensive, shallow gold mineralization intersected in RC drilling at Cardelena;

- Results include 30.5 metres @ 1.85g/t Au from 91.4 metres to end of hole; 176.8 metres @ 0.21g/t Au from surface; 125.0 metres @ 0.43g/t Au from 73.1 metres to end of hole; and 97.5 metres @ 0.25g/t Au from surface to end of hole;

- Nickel Australia is earning a 51% interest in 14 properties by spending US$4 million over four years.

Uncle Sam Gold Project with Midas Resources Ltd, Alaska

- Gold mineralization confirmed in 5 out of 7 RC drill holes;

- Drill intersections include 12.2 metres @ 1.47g/t Au and 7.6m @ 1.14g/t Au;

- Midas is earning a 75% interest by spending US$3 million over three years.

The Sonora-Chihuahua and Uncle Sam projects were identified and acquired by Geoinformatics after completion of regional targeting and 3D modeling under an agreement with the Kennecott Exploration Company ("Kennecott"), a subsidiary of Rio Tinto plc. Geoinformatics and Kennecott have executed a Master Strategic Alliance Agreement, which was announced on August 14, 2006, which provides for an aggressive exploration program to be undertaken by Geoinformatics on properties from Alaska through to Mexico.

Sonora-Chihuahua Projects - Nickel Australia Ltd

Nickel Australia has recently announced the results of a 6-hole reverse circulation drill program of 969 metres at Cardelena (refer to Nickel Australia's press release dated June 8, 2006; www.nickelaustralia.com.au).

Drilling intersected wide zones of gold and silver mineralization hosted in altered and silicified volcanics containing quartz-tourmaline-iron oxide breccias and quartz veining. Drill intercept are depicted in the Table 1 below.

This program was preliminary drilling undertaken to test two large gold-in-soil anomalies. Each soil anomaly is defined by a 100ppb Au threshold, and the anomalies contain consistently high gold values, including 1.64g/t Au, 1.57g/t Au and 0.91g/t Au. The northern anomaly extends over one kilometre in length and up to 200 metres in width, while the southern anomaly is over 700 metres long and up to 300 metres wide.

The results from this first drill program at Cardelena are encouraging. They confirm the presence of significant widths of primary gold mineralization commencing at or near the surface beneath the soil anomalies. These results highlight the potential of this project to host near surface gold mineralization.



TABLE 1: Significant Drill Intercepts - Cardelena
------------------------------------------------------------------------
Hole No From To Interval Au Ag AuEq Comments
(m) (m) (m) (g/t) (g/t) (g/t)
------------------------------------------------------------------------
CAR-RC-01 30.5 61.0 30.5 0.50 10.7 0.68
------------------------------------------------------------------------
Mineralization
commences at
CAR-RC-02 0.0 97.5# 97.5 0.25 2.6 0.29 surface and the
entire drill
hole is
mineralized
------------------------------------------------------------------------
CAR-RC-02A 0.0 176.8 176.8 0.21 4.7 0.29 Mineralization
commences at
surface
------------------------------------------------------------------------
CAR-RC-03 91.4 121.9# 30.5 1.85 9.2 2.00 Hole finished in
mineralization
------------------------------------------------------------------------
Including 112.8 115.8 3.0 11.65 23.8 12.1
------------------------------------------------------------------------
CAR-RC-03A 73.1 198.1# 125.0 0.43 4.0 0.50 Hole finished in
mineralization
------------------------------------------------------------------------
CAR-RC-04 6.1 12.2 6.1 0.16 17.3 0.45
------------------------------------------------------------------------
Note: Samples assayed at ALS Chemex (Vancouver) using method GRA21
(gold) & AA46 (silver); Drill intercepts calculated as weighted
averages using a 0.1g/t AuEq cut-off and no top cut; AuEq (gold
equivalent) grade has been calculated purely using gold to silver
price ratio of 1:60 and has no supporting metallurgical
information based on recoveries from testwork;
# - Hole finished in mineralization


Follow-up exploration has commenced with a detailed infill and extensional soil sampling program currently in progress. A trenching program was scheduled for July and further RC drilling will be carried out in August. The trenching and drilling will target the core of the gold soil anomalies to increase the likelihood of intersecting substantial widths of ore grade mineralization.



TABLE 2: Drill Hole Details - Cardelena
------------------------------------------------------------------------
Hole N. North (mN) East (mE) Dip Azimuth Total
Depth(m)
------------------------------------------------------------------------
CAR-RC-01 3 140 554 607 329 -70 degrees 360 degrees 201.2
------------------------------------------------------------------------
CAR-RC-02 3 140 166 607 262 -70 degrees 300 degrees 97.5
------------------------------------------------------------------------
CAR-RC-02A 3 140 163 607 265 -80 degrees 300 degrees 201.2
------------------------------------------------------------------------
CAR0RC-03 3 140 164 607 551 -70 degrees 360 degrees 121.9
------------------------------------------------------------------------
CAR-RC-03A 3 140 164 607 561 -80 degrees 035 degrees 198.1
------------------------------------------------------------------------
CAR-RC-04 3 140 651 607 577 -70 degrees 180 degrees 149.3
------------------------------------------------------------------------
Note: CAR-RC-02 & 03 encountered drilling difficulties, which required
them to be redrilled as CAR-RC-02A & 03A respectively.


Uncle Sam Project, Alaska- Midas Resources Ltd

Midas has announced the results from a 7-hole RC drill program (refer to Midas' press release dated April 28, 2006; www.midasresources.com.au).

Results are summarized in the following table:



TABLE 3: Uncle Sam Project RC Drill Hole Results - April 2006
(Using a 0.5g/t cut off value)
------------------------------------------------------------------------
Hole ID Coordinates Dip Azimuth EOH Mineralized DH Au
Interval Width (g/t)
-------------------- ----- ----
NAD27 Zone 6 Depth (m)
-------------------- ----------------------
Northing Easting (m) From To
-------------------- ----------------------
(m) (m) (m) (m)
------------------------------------------------------------------------
USR051 7,151,782 537,085 -60 45 18.3 ABANDONED
------------------------------------------------------------------------
USR052 7,151,782 537,085 -70 45 80.8 53.4 54.9 1.5 1.5
---------------------
59.5 61 1.5 1.6
------------------------------------------------------------------------
USR053 7,151,772 537,079 -60 225 123.5 106.8 109.8 3 1.2
------------------------------------------------------------------------
USR054 7,151,701 537,011 -90 Vert. 176.8 102.1 106.7 4.6 0.7
120.4 125 4.6 1.47
------------------------------------------------------------------------
USR055 7,151,708 537,180 -90 Vert. 116.3 51.8 64 12.2 1.47
------------------------------------------------------------------------
USR056 7,151,660 537,135 -90 Vert. 111.1 93 100.6 7.6 1.14
------------------------------------------------------------------------
USR057 7,151,876 537,186 -90 Vert. 86.9 NSR
------------------------------------------------------------------------
USR058 7,151,920 537,301 -90 Vert. 115.9 NSR
------------------------------------------------------------------------
Au by Fire Assay with AAS determination at IPL Laboratory, Vancouver;
Sample interval 5ft (1.52m); Results greater than 0.5 gpt Au; Maximum
10ft (3.04m) internal dilution; NSR equals No Significant Result
------------------------------------------------------------------------


Results to date indicate that gold mineralization is improving in tenor towards the margin of a granite intrusion. Five drill holes contained gold mineralization while USR 057 and USR 058, which are located farthest from the granite intrusion, did not intersect significant gold values. No drill holes have yet penetrated the main intrusive granite stock which is the primary target.

The mineralized drill holes have all intersected a 40 degrees south dipping shear zone that is interpreted as a hydrothermally altered structure. When this structure is projected down-dip it is expected that it will intersect the granite intrusion. More detailed geophysical modeling of magnetic data is required to help estimate the depth to the intrusion and the point where it is intersected by the mineralized structure.

Based on comparison with gold deposits such as Fort Knox, discrete structures that are mineralized some distance away from the intrusion may develop into significant ore bodies where these structures actually intersect the brittle rocks associated with the outer granite contact zone.

Qualified Persons

The technical content of this release has been provided by Dr. Nick Archibald, CP Geo/FAIMM and Mr. Gerry Bidwell PGeo. Dr. Archibald and Mr. Bidwell are qualified persons (as defined by National Instrument 43-101) who have more than 30 years experience in the minerals exploration/mining industry. Mr. Tony Rovira (MAIMM) of Nickel Australia is a qualified person providing the technical information on the Sonora Properties. Mr. Geoff Balfe (MAIMM) of Midas Resources is a qualified person providing the technical information on the Uncle Sam properties.

About Geoinformatics

Geoinformatics is a global exploration company which has developed a unique and innovative approach to resources exploration. The Company's team of geoscientists and technical experts has created a scientific and technology platform (the "Geoinformatics Process") which integrates data aggregation, data mining and three-dimensional modeling to identify and prioritize exploration drill targets. The Geoinformatics Process 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 has been to bring a faster, less expensive and more reliable analytical methodology to resources 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.

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

Contact Information

  • Geoinformatics Exploration Inc.
    Ms. Petra Decher
    President and CFO
    (416) 861-1300
    petrad@geoinformex.com
    or
    Geoinformatics Exploration Inc.
    Dr. Nick Archibald
    Executive Vice-Chairman and CEO
    (416) 861-1300
    nicka@geoinformex.com
    or
    Geoinformatics Exploration Inc.
    330 Bay Street, Suite 1109
    Toronto, Ontario, M5H 2S8
    www.geoinformex.com