Vancouver, B.C., November 20, 2012 – Geologix Explorations Inc. (TSX: GIX) (“Geologix” and the “Company”) wishes to provide an update on the status of the Company’s current pre-feasibility study (“PFS”) from its Tepal gold-copper project in Michoacán state, Mexico.
An extensive amount of data collection, along with the compilation of various forecasted project economics and assumptions necessary for the completion of the PFS have largely been completed. In the later stages of the preparation of the PFS, a new engineering concept was proposed as an alternative processing procedure with the potential to optimize the project’s capital costs, operating costs, and production profile. Follow-up work to evaluate this alternative mine plan has been initiated as, in spite of delays to the completion of the PFS, it is in the best interest of the Company to adequately examine any potentially beneficial processes before completion of this important PFS report.
Dunham Craig, President & CEO stated, “In the process of the study, our consulting engineers have recommended review of several areas that offer potential benefit to the project. Although we recognize that delays have caused uncertainty for some investors, the primary purpose of this PFS is to accurately evaluate and understand the potential mine plan and economics in a manner that will permit the Company to subsequently advance from PFS to a Bankable Feasibility stage as efficiently as possible. The Company is also focused on attaining a study that is sufficiently detailed to be utilized in initiating project finance discussions with various potential third parties. We believe the additional time invested today will benefit the project and the Company in the future.”
As part of the current review, the Company has engaged JDS Energy & Mining Inc. to evaluate the optimal project processing and mine plan, and complete the Tepal project’s final PFS. Final alternative process testing and metallurgical work is expected to be finalized by the end of December 2012, allowing for the completion of the final PFS within the 1st Quarter of 2013.
Subsequent to the last Preliminary Assessment (“PA”), the Company reported an updated and upgraded resource estimate reported on March 27, 2012. The latest resource evidenced a substantial increase in resource tonnage, specifically in the Measured and Indicated categories. As such the current PFS is being modeled with a substantially larger mine plan and daily through-put than was modeled in the 2011 PA.
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.
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