Geologix Explorations Inc.
TSX VENTURE : GIX

Geologix Explorations Inc.

July 19, 2005 08:30 ET

Geologix (U.S.) Inc. Signs Agreement with Metallic Ventures (U.S.), Inc. to Explore Scraper Springs Project in Nevada

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 19, 2005) - Geologix Explorations Inc. (the "Company") (TSX VENTURE:GIX) is pleased to announce that its wholly owned subsidiary Geologix (U.S.) Inc. has signed an Exploration and Option Agreement with Metallic Ventures (U.S.), Inc., a wholly owned subsidiary of Metallic Ventures Gold Inc.(TSX-MVG), to explore the Scraper Springs Project in Elko County, Nevada.

The agreement gives Geologix the exclusive option to acquire a 60% interest in the Scraper Springs Project by spending (U.S.)$1,500,000 in exploration expenditures by December 31, 2010.

Geologix will spend (U.S.)$375,000 (firm) by December 31, 2006 and a minimum of (U.S.)$300,000 per year thereafter in order to maintain the agreement. Geologix may also acquire an additional 10% interest in the project by spending an additional (U.S.)$1,000,000 in exploration expenditures by December 31, 2012.

Geologix may terminate the Agreement at any time after spending the initial (U.S.)$375,000 by providing 30 days written notice to Metallic.

When Geologix has exercised its option to acquire either a 60% or 70% interest in the project, Metallic and Geologix will establish a joint venture in respect of the project, of which Geologix will be the operator.

Commenting on the Agreement, Jeffrey Ward, CEO of Metallic said, "we are very pleased to have the experienced Geologix team involved in the Scraper Springs Project and believe they will determine and test the full potential of the project. This Agreement will also allow the Metallic geologic and operations staff to continue its focus on the advancement of our Converse and Goldfield Projects."

Project Background

The Scraper Springs Project is located approximately 60 miles northwest of Elko, Nevada and seven miles northeast of Newmont's Ken Snyder Mine. Metallic owns or controls approximately 7,800 acres (12.2 square miles) of land in the Scraper Springs Project area. The land package consists of a combination of wholly owned unpatented mining claims, leased mining claims, and leased fee lands. The project is situated on a regional gravity high and the northwest projection of the Carlin Gold Trend.

Geologists have identified a granodiorite intrusive that has been dated at 38.9 Ma which is similar in age and composition to intrusives important to the core of the Carlin Trend where over 100 million ounces of gold from past and future mining by various companies have been identified. Geologic mapping centered on the intrusive has identified a window of Ordovician Vinini Formation and Pennsylvanian-Permian Overlap Sequence, that have been hydrothermally altered by the intrusive event. Surrounding this window are altered volcanic flows dated at 39-40 Ma which are contemporaneous with the intrusive event. Detailed geologic mapping, ground magnetics, and soil and rock sampling have identified numerous surface gold anomalies that are accompanied by a trace element suite typical of Carlin-type deposits. Silicification has been mapped over a wide area in potential sedimentary and volcanic host rocks associated with the intrusive and fault zones.

During 1993 an unrelated company drilled 10 holes to the east of the intrusive testing associated gold anomalies while not recognizing the intrusive itself. One of these holes SS-1, penetrated 75 feet averaging 0.023 opt Au at a depth from 325 to 400 feet (results are not NI 43-101 compliant). This hole was in silicified Vinini siltstones near the intrusive contact. A 12 hole reverse circulation drilling program was completed in 2004 and 6 of the holes encountered weakly anomalous gold mineralization.

The results of geologic mapping, geochemistry, geophysics, and RC drilling completed in the project area to date demonstrate the potential for the discovery of sediment-hosted gold mineralization typical of Carlin-type gold deposits throughout northern Nevada.

These results have been prepared under the guidance of Jeffrey Ward, a mining engineer and the Chief Executive Officer of the Company, who is a "qualified person" as such term is defined in NI 43-101 with the ability and authority to verify the authenticity and validity of this data.

All samples have been collected by Geologix's Nevada field crews in accordance with industry standards. Sample analysis was completed by ALS Chemex Laboratory Services Limited of Vancouver, British Columbia. Samples were fire assayed for gold, with AA finish; results for other elements used the ICP procedure The Company's Vice President, Exploration, Andrew Carstensen., a 'qualified person' for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Properties, has verified the data disclosed in this news release including sampling, analytical and test data.

Geologix Exploration Inc. is a mineral exploration company focused on acquiring, exploring and developing mineral 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.

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.

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