Junior Resource Exploration Company
Geologix Explorations (TSX: GIX) is a junior resource exploration company originally brought to my attention by Peter Grandich and, prior to the world financial meltdown two years ago was one of his favorite companies and largest holdings (if my memory serves me correctly).
(Mr. Grandich has shown himself to be quite astute when it comes to picking resource stocks; though I am not sure if he currently has an opinion on this company.)
Geologix did not fare to well through that market slaughter and has yet to recover, trading near its lows.
Yet the company continues to move forward and has just released drill results, republished below:
Re: News – Monday, July 19, 2010
Title: First Two Drill Holes At Libertad Discover Significant New Gold And Silver Structure Near Surface
Vancouver, B.C., July 19, 2010 – Geologix Explorations Inc. (TSX: GIX) (the “Company”) is pleased announce initial drill assay results from its Libertad gold-silver project in Sonora, Mexico. The first two diamond drill holes in this previously undrilled gold/silver system have encountered significant gold and silver mineralization over sizeable widths. Assay results include intercepts of 26.05 metres (“m”) of 1.02 grams/tonne (g/t) gold and 65.10 g/t silver in the first hole, and 50.80 m of 0.51 g/t gold and 32.30 g/t silver in the second hole. Drill holes 001 and 002 were collared along the northern extent of the 1.6 kilometre exposed gold and silver surface structure (visit www.geologix.ca for Libertad plan map).
Dunham Craig, President & CEO stated “We are very pleased with the start of this program. Our recent trenching and geophysical work told us there may be a large system at play here, and the first two holes appear to support our interpretation by yielding intercepts of significant grade and continuity over sizable widths. These holes were drilled 100 metres apart and the continuity of mineralization we see in these initial assays, combined with trenching results, indicates the presence of a robust mineralized structure and the potential to delineate a much larger system over a significant strike length. Ongoing drilling continues to step out along the current 1.6 kilometre strike to the south.”
Further assay details from the highlight intercepts from the first two holes include:
| Hole No. | From | To | Intercept | Gold | Silver | Gold Equivalent* |
| (metres) | (metres) | (metres) | grams/tonne | grams/tonne | grams/tonne | |
| LIB-10-001 | 45.65 | 71.70 | 26.05 | 1.02 | 65.10 | 2.03 |
| including | 55.25 | 67.50 | 12.25 | 1.83 | 88.40 | 3.20 |
| LIB-10-002 | 48.6 | 99.4 | 50.80 | 0.51 | 32.30 | 1.01 |
| including | 77.3 | 89.3 | 12.00 | 0.65 | 57.00 | 1.54 |
| * Gold Equivalent calculated using $900/oz gold and $14/oz silver | ||||||
The drill program at Libertad includes a proposed 2,000 metres of diamond drilling. Initial holes have been designed to test the northern portion of the structure to determine the style and character of the mineralization, while subsequent holes will seek to trace the structure along strike to the south with additional shallow holes. Based on initial results, drilling will then test the structure at depth where geophysical surveys indicate the presence of a geophysical (IP) anomaly that widens to 700 metres at a depth of 125 metres.
The Libertad project is located 250 kilometres (km) northwest of Hermosillo, and represents an early stage exploration project hosting a gold-silver mineralized vein system that has never been drilled previously.
Geologix can earn up to an 85% interest in the project from Riverside Resources Inc. through a series of staged payments to Riverside totalling US$900,000 and work expenditures of US$5,000,000 over a period of six years.
Geologix’s Resource Geologist, Andrew Hamilton, 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 reviewed and verified the data contained in this news release.
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 is aggressively exploring for potential resource expansion, and advancing toward preliminary economic assessment of the project in its ongoing effort to upgrade and increase the scale and viability of this emerging project.
(Contact information available at the Geologix website.)
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Geologix Exploration seems to this author to be a viable company with good prospects in its future; please perform your own due diligence before buying this stock (or selling!).
