Geologix Explorations Inc.

Geologix Explorations Inc.

September 28, 2005 09:02 ET

Geologix Earns an Undivided 60% Interest in the Silver Cloud Property, Nevada

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 28, 2005) - Geologix Explorations Inc. ("Geologix") (TSX VENTURE:GIX) is pleased to report it has earned an undivided 60% interest in the Silver Cloud Property in Nevada. Teck Resources Inc. ("TRI"), a wholly-owned subsidiary of Teck Cominco Limited holds the remaining undivided 40% interest in the Property.

As disclosed in Geologix's press release dated February 11, 2004, its wholly owned subsidiary Geologix (U.S.) Inc. ("Geologix US") entered into an agreement with Placer Dome US Inc. ("Placer") whereby it acquired Placer's interest in an option agreement (between Placer and TRI) in respect of the Property. Placer retains a 2% NSR royalty on Geologix US's interest (capped at US$4,000,000) of which one-half (1%) may be purchased for US$1,000,000.

Under the option agreement with TRI, Geologix US earned an undivided 60% interest in the 544 claims comprising the Silver Cloud Property by incurring an aggregate of US$1,500,000 in expenditures by September 30, 2005. Geologix US and TRI shall enter into a joint venture agreement to govern operations on the property going forward. Geologix US will be the initial operator of the joint venture.

The Silver Cloud Property is located 25 kilometres southeast of the Newmont's Midas Deposit (reported to host 4 million ounces of gold and 45 million ounces of silver) and eight kilometres southwest of the Ivanhoe Deposit (of Great Basin Gold & Hecla) reported to contain approximately 653,000 tonnes grading 44 grams of gold and 240 grams of silver per tonne (924,000 ounces of gold and 5 million ounces of silver). Silver Cloud, Ivanhoe and Midas are all low sulphidation, gold-silver, high-grade vein systems located in Tertiary volcanic and underlying Paleozoic rocks in the northern Carlin Trend of Nevada.

Previous exploration at Silver Cloud has encountered shallow anomalous gold mineralization and deeper high grade gold and silver mineralization beneath a mercury-bearing, hot spring system. Approximately 21 drill holes were completed from 1999-2003 by TRI and Placer, results include significant intercepts of: 1.5 metres of 145 g/t gold at a depth of 318 metres and 12.2 metres of 5.53 g/t at a depth of 208 metres from separate target areas.

Geologix US has been actively mapping, conducting geophysical and geochemical surveys and drilling on the Silver Cloud property since May of 2004.

Geologic mapping of the property has redefined the surface geology, alteration and structure from previous mapping. The surface geophysical surveys have identified major structural blocks and property-sized structures (gravity) and subsurface alteration expressions (E-Scan). The geochemical surveys have shown that the more mobile, lithophile elements tend to follow the structural trend associated with the higher level mercury mineralization while gold, silver, arsenic and selenium trend in an east-west fashion within broad zones of argillic alteration. The east-west trend of alteration and geochemistry mimics the trend of mineralization discovered at the nearby Hollister property.

In January 2005 diamond drilling commenced on the highest priority drill sites. Two deep drill holes totalling 1,603 meters (5,258 feet) were completed.

Drilling has discovered a number of geochemically anomalous structures the Company interprets to represent the upper portions of potentially mineralized structures at depth. Hole 05SC-001 is characterized by intense pervasive alteration and numerous, geochemically anomalous, sulfide-rich hydrothermal breccias quite similar in appearance to those known in the vicinity of the Sleeper Gold Deposit (Sleeper Mine past production of 1.7 million ounces at a cash cost of less than US $100 oz.). Hole 05SC-002 encountered a number of banded veins developed within strong structures that appear to have focused hydrothermal activity. The banded quartz veins, texturally similar to those at Sleeper, Midas and Ivanhoe are enriched in gold, silver, and selenium, also characteristic of the high-grade deposits regionally. Comprehensive multidiscipline modeling is underway to determine locations where higher grade gold and silver concentrations could be expected both laterally and/or vertically.

Geologix's CEO, Robert D. Willis, B.Sc., P.Eng., a 'qualified person' for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects, has reviewed and verified the data disclosed in this news release.

Geologix Explorations Inc. is a mineral exploration company focused on acquiring, exploring and developing mineral properties in North and South America. It has a wealth of experience in the mining industry taking early stage exploration prospects to final feasibility and ultimately to production.

This News Release may contain forward-looking statements including, but not limited to, comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

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

Contact Information