Geologix Explorations Inc.

Geologix Explorations Inc.

July 17, 2007 08:30 ET

Geologix Increases Land Holdings at San Agustin Project, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 17, 2007) - Geologix (TSX VENTURE:GIX)(FRANKFURT:GF6) is pleased to announce that it has signed an option agreement to acquire a 100% interest in the Consejo Property from a private land owner. The option calls for cash payments of $135,000 over a 5 year period. There are no work commitments or any additional payments associated with the option. The property is named "Consejo" which differs from the Mexican government agency "CONSEJO" referenced below.

Dunham L. Craig, P.Geo, President and CEO stated: "We are pleased with the acquisition as the Consejo Property has an almost identical geological footprint to the San Agustin Property. It increases our prospective working area significantly and is adjacent to what Geologix believes could be the same San Agustin mineralizing system on to the Consejo Property."

The property covers an area of 400 hectares and adjoins the San Agustin Project on its western boundary. The geology is similar to the geology observed on the San Agustin Property with Tertiary subvolcanic dacite plugs intruding Cretaceous aged sedimentary units. Strong north easterly trending structural zones with associated high grade mineralization has been worked on in the past by CONSEJO (an agency of the Mexican Government).

The historical work was conducted between 1981 and 1985 and consisted of trenching (283m), channel sampling (872m), diamond drilling (1,429.70m - 12 holes) and 151.50m of underground development. In 1985 CONSEJO calculated resources on the property as follow:

Gold Silver Lead Zinc
Tonnes (grams/tonne) (grams/tonne) (%) (%)
Oxides 6,364 1.36 225.14 -- --
Sulphides 38,222 0.88 1,041 5.0% 3.5%

CONSEJO's resource report does not provide sufficient information for Geologix to determine how the resource compares to the various types of mineral resources referred to in National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian securities administrators. Nevertheless, Geologix believes that the estimate is relevant as it shows significant grades of mineralization on the property which are similar to those encountered on the San Agustin property. Furthermore, Geologix believes that the estimate is reliable as it was prepared by CONSEJO, a respected mining development agency. Notwithstanding, Geologix cautions that a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves under National Instrument 43-101 and Geologix is not treating the historical estimate as current mineral resources or mineral reserves. In light of that, the historical estimate should not be relied upon.

Geologix intends to advance the project with geological mapping and sampling, geophysics, trenching and diamond drilling in 2007.

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

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

Contact Information

  • Geologix Explorations Inc.
    Michael Mallard
    V.P. Corporate Communications
    (604) 694-1742 or Toll Free in Canada & USA: 1-888-694-1742
    Geologix Explorations Inc.
    Dunham Craig
    President & CEO
    (604) 694-1742 or Toll Free in Canada & USA: 1-888-694-1742