Vancouver, B.C., February 4, 2013 — Geologix Explorations Inc. (the “Company” or “Geologix”) is pleased to announce that recent prefeasibility study (“PFS”) optimization metallurgical test work indicates the potential to increase overall gold recovery in the sulphide mill design by 16.4% and silver recoveries by 31.4% compared to the April 2011 Preliminary Assessment Study (“PA”) completed by SRK Consulting (Canada) Inc. (report available on SEDAR). Sulphide processing material in the PA accounted for 90% of the total processed material (10% Oxide).
MILLING: 2011 PA STUDY | Overall Recoveries | |||
|---|---|---|---|---|
tonnes (millions) | Au % | Ag%* | Cu% | |
| North & South Zones | 79.9 | 60.7% | 0.0% | 87.4% |
| Tizate Zone | 50.5 | 66.2% | 55.5% | 85.3% |
| Weighted Average Recovery | 62.8% | 21.5% | 86.6% | |
MILLING: PFS Optimization Study** | Overall Recoveries | |||
tonnes (millions) | Au % | Ag% | Cu% | |
| North & South Zones | 79.9 | 79.7% | 41.0% | 88.2% |
| Tizate Zone | 50.5 | 78.5% | 71.8% | 85.9% |
| Weighted Average Recovery | 79.2% | 52.9% | 87.3% | |
| Weighted Average Recovery Increase | 16.4% | 31.4% | 0.7% | |
** PA tonnage is used for comparison purposes only and not an indication of future PFS tonnage
President and CEO Dunham Craig stated “The increased recovery change is significant in considering PFS mill design, mine planning and economics. In September 2012, during a project review, consultants identified that a significant percentage of the gold and silver recovery could be increased by modifying portions of the PFS mill design. Test work was initiated immediately and concluded in January 2013. Results are currently being incorporated into the PFS expected to be completed in the 1st quarter of 2013.
“The Company believes the PFS optimization study benefited the project due to allowing a design that will closely reflect and expedite a future definitive study. As an added benefit, during the optimization study period additional vendor quotations were obtained, increasing the accuracy of the PFS study. A cost benefit study is underway to process the oxide material in the mill which has the potential to assist in reducing initial capital requirements and allow operating efficiency.”
Phase 2 drilling in Target Area 3 resulted in similar results as previously reported. Although potential benefit is indicated in this area, the Company believes deployment of its resources are best allocated to concluding the PFS at this time. Other target areas drilled resulted in non-significant results.
President and CEO, Dunham Craig, B.Sc., P. Geo., a ‘qualified person’ for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Properties of the Canadian Securities Administrators, has verified the data and approved this news release. Verification was conducted by utilizing external metallurgical consultants to review the data in conjunction with Company staff. Repeat verification assays were requested for specific portions of the test work. All samples were stored at the Company’s secure facilities at the Tepal project until driven in Company trucks and arranged carriers to the G&T Metallurgical Services Ltd. facilities located in Kamloops, B.C. All test work was completed by G&T Metallurgical Services Ltd.
Geologix Explorations Inc. is a mineral exploration company focused on acquiring, exploring and developing mineral resource opportunities with the potential to host world class mineral deposits. The Company’s primary focus is the Tepal Gold-Copper Porphyry Project in Michoacán state, Mexico, where the Company recently completed upgraded resource estimation, which will be the basis of an upcoming pre-feasibility. Field programs at Tepal are ongoing as the Company continues to explore for additional mineralization throughout the property, in an effort to expand the size of the resource and scale of a possible future mining operation.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
