Geoinformatics Exploration Inc.
TSX VENTURE : GXL

Geoinformatics Exploration Inc.

June 16, 2005 11:01 ET

Geoinformatics Reports on Exploration Update from Alliance Partner Glass Earth Ltd

TORONTO, ONTARIO--(CCNMatthews - June 16, 2005) - Geoinformatics Exploration Inc (TSX VENTURE:GXL) is pleased to announce that one of its Alliance Partners, Glass Earth Limited ("Glass Earth") (TSX-V: GEL), recently commenced the largest ultra-detailed airborne magnetic and airborne gravity surveys ever carried out in New Zealand (www.glassearthlimited.com). The surveys are being carried out over key areas of the Glass Earth prospecting permits covering the Coromandel Central Volcanic Region ("CCVR") of the North Island, New Zealand. The Coromandel Volcanic Region is the host to the epithermal gold Waihi / Martha Hill Mine owned by Newmont Mining.

Airborne Geophysical Surveys

The following extract is from a Glass Earth press release dated 8th June:

"The majority of the Glass Earth prospecting permits are covered by a layer of volcanic ash varying from several meters to tens of meters in thickness. This layer of volcanic ash masks the terrane from conventional exploration methods, requiring alternative exploration methods to be utilized, namely airborne geophysics.

Based on the collection, compilation and modeling of all available existing geological data over the CCVR, Glass Earth has identified 29 priority gold target areas that could potentially host large deposits of epithermal gold mineralization. In order to identify drill targets within these priority gold target areas, Glass Earth has commenced flying two major airborne geophysical surveys:

- A 40,000 line kilometer airborne magnetic survey currently being carried out by U.T.S of Perth, Western Australia. The survey commenced in March 2005 and is being conducted at 150 meter line spacings at an elevation of 60 meters above ground level. U.T.S are specialists in low level ultra-detailed aeromagnetic surveying, and pioneered the use of fixed-wing agricultural aircraft for airborne geophysical work.

- A 6,000 line kilometer airborne gravity survey currently being carried out by Bell Geospace Limited of Aberdeen, Scotland. This survey commenced in April, 2005 and is being flown at 450 meter line spacings at an elevation of 90 meters above the ground level. Bell Geospace Limited provides the only worldwide source of high quality full tensor gravity gradient data using their airborne 3D Air FTGTM system.

The two ultra-detailed airborne geophysical surveys are designed to:

- Provide data in sufficient detail that individual drill targets can be
located within the priority gold target areas

- Add new targets in areas where previously there was poor data coverage

- Provide an order of magnitude increase in the available high resolution magnetics in the CCVR

- Provide the first ever detailed gravity data set in the CCVR increasing the volume of data by two orders of magnitude.

The airborne geophysical programs are scheduled to be completed by the end of June 2005.

This will be followed by the interpretation of the data and the definition of drill targets during July and August 2005."

Geoinformatics - Glass Earth Alliance

Geoinformatics formed an Alliance with Glass Earth to undertake a major program of data collection, integration, interpretation, 3D/4D modeling through to exploration targeting ( "Intervention") focused on targeting for gold and geothermal energy in the over 12,000 sq km of largely unexplored terrane lying under cover in the CCVR. The Intervention ranked and scored gold and geothermal targets. Subsequently Glass Earth announced that it had assigned the geothermal rights to a private New Zealand company called GEX Limited, which assignment is still subject to approval by Geoinformatics. Several highly ranked gold targets exhibit Waihi-type (Martha Hill) signatures that are capable of hosting a world-class epithermal gold deposit. The Intervention results emphasized the importance of magnetics combined with ultra-detailed gravity to aid locating targets; hence the commissioning of the airborne gravity and magnetic surveys.

Under the terms of the Alliance Agreement, Glass Earth has the sole and exclusive right to apply for exploration permits or acquire rights with respect to all targets for the duration of its prospecting permits over the CCVR area. Geoinformatics has a 2% net smelter return royalty on any production from the targets by Glass Earth or its successors. In addition Geoinformatics has the right to acquire, at no cost, any targets abandoned by Glass Earth, subject to a corresponding 2% net smelter return royalty in favour of Glass Earth. Geoinformatics also has the right to acquire any targets that Glass Earth decides not to pursue. Following the termination of the Glass Earth prospecting permits, Geoinformatics will be entitled to acquire ground in the CCVR area for its own account without restriction.

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.

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.

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
    or
    Geoinformatics Exploration Inc.
    330 Bay Street, Suite 1109
    Toronto, ON M5H 2S8