Geologix Explorations

Geologix Explorations Inc Acquiring, exploring & developing gold properties in North and South America.

over 15 years ago

2008-11-06 08:18 ET - News Release

Mr. Dunham Craig reports:

GEOLOGIX REPORTS INCREASED RESOURCE ESTIMATE FOR SAN AGUSTIN PROJECT, MEXICO

Geologix Explorations Inc. (the "Company") (TSX VENTURE:GIX)(FRANKFURT:GF6)(BERLIN:G... is pleased to announce an updated mineral resource estimation on the Company's San Agustin Project in Durango, Mexico. The October 30, 2008 estimate reports a 100% increase in the Indicated tonnes and a 74% increase in the Inferred tonnes over the prior San Agustin mineral resource estimate announced by the Company in June of 2008. The deposit remains open for expansion at depth and in three directions.

The contained metal within the new resource estimate has increased to:

Table 1: Contained Metal(i)

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                      Gold          Silver           Lead            Zinc
Category             (M oz.)         (M oz.)       (M lbs.)        (M lbs.)
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Indicated             1.61            48.3            161           1,320
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Inferred              1.08            37.3            143             983
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(i) Based on the resource estimate in Table 2.

Dunham Craig, President and CEO, stated, "The ability to nearly double the resource in only five months speaks to the consistency and continuity of the project's mineralization, and the quality and expertise of the Geologix team. Having drilled only about 20% of the project area, we see the potential for San Agustin to emerge into one of the larger scale mineral projects in the Americas."

Mineral resources for the October 2008 estimate are defined within an optimized Whittle 4D pit that incorporates project metal recoveries, estimated operating costs and four year average metal prices.

Table 2: San Agustin Mineral Resource (Capped)(i)

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Category          Tonnes     Gold g/t    Silver g/t      Lead %    Zinc %
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Indicated    122,150,000         0.41          12.3        0.06      0.49
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Inferred      92,921,000         0.36          12.5        0.07      0.48
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(i) For Whittle Pit input parameters see text below.


Table 3: Mineral Resource by Oxide and Sulphide Zone (Capped)

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Zone       Category        Tonnes   Gold g/t  Silver g/t   Lead %  Zinc %
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Oxide      Indicated   21,781,000       0.40        15.9     0.07    0.18
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           Inferred    11,834,000       0.36        15.3     0.08    0.18
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Sulphide   Indicated  100,369,000       0.41        11.5     0.06    0.55
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           Inferred    81,087,000       0.36        12.1     0.06    0.52
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A total of 26,806 samples in 240 drill holes, representing approximately 49,525 metres of drilling were used for the estimate. Of these, 91 drill holes totalling 14,278 metres are historic (87 reverse circulation and four diamond drill holes) and the other 149 drill holes totalling 35,247 metres are diamond drill holes completed by the Company. The results from 24 holes completed following the data cut-off date for this latest resource estimate were not included but will be used for any subsequent resource estimations. All metals were assessed for capping and old values were capped at 10 g/t (grams per tonne), silver at 200 g/t, lead at 0.5% and zinc at 3%. The resource estimate is centered on the Main Zone, Zone 2 and Zone 4 as is illustrated on the plan map located on the Company's website www.geologix.ca.

Mineralized outlines were defined on 50 metre sections using a US$10 gross metal value (GMV) cut off using metal prices of US$631.97 for gold, US$11.63 for silver, US$0.78 for lead and US$1.11 for zinc. The outlines were joined to form three-dimensional solids. Metal grades were interpolated into 15 by 15 by 15 metre blocks using ordinary kriging (OK). Mineral resources were classified as Indicated Mineral Resource if at least nine composites from at least three drill holes were found within an elongated search ellipse measuring 150 by 80 metres. Resources were classified as Inferred Mineral Resource if at least 9 composites from at least three drill holes were found within an elongated search ellipse measuring 200 by 120 metres. Assay grades were composited to five metre lengths prior to resource estimation.

The resource is reported using Whittle 4D Pit optimization software. Parameters used in the estimate include commodity prices based on ($USD) gold $631.97/oz, silver $11.60/oz, lead $0.78/lb and zinc $1.11/lb. For oxide ores (heap leach) recoveries were estimated at 68% for gold and 40% for silver. Sulphide ores recoveries were estimated at 72% for gold, 74% for silver, 50% for lead and 62% for zinc.

Operating costs used are based on an estimated 50,000 tonne per day operation ($USD): mining ore and waste - $1.05/ tonne, G&A - $0.45, oxide processing cost - $1.90, sulphide processing cost - $4.75. A 45 degree pit angle slope was assumed. Metal recoveries were determined from on-going metallurgical tests. Operating costs were derived from studies on existing operations with similar deposit types.

The resource estimate was completed by Dr. Gilles Arseneau, P.Geo., Chief Geologist of Wardrop Engineering Inc., Vancouver, B.C. and is based on a geological interpretation supplied by the Company to Wardrop. Dr. Arseneau is an 'independent qualified person' for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators and has verified the data disclosed in this release. The Company's Resource Geologist, Andrew Hamilton, B.Sc., P.Geo., a 'qualified person' for the purposes of NI 43-101, has verified the data (including sampling, analytical and test data) and prepared or supervised the preparation of the information delivered to Wardrop.

The Company has a right to earn a 100% interest in the San Agustin property through an option agreement with Silver Standard Resources Inc. See the Company's website for details of the agreement.

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 Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

CONTACT INFORMATION:

Geologix Explorations Inc.

Jeffrey R. Wilson

V.P. Corporate Communications

(604) 694-1742

Toll Free in Canada and USA: 1-888-694-1742

Email: jwilson@geologix.ca

Geologix Explorations Inc.

Dunham Craig

President & CEO

(604) 694-1742