Overview


Based in Vancouver, British Columbia, Geologix Explorations Inc. (TSX: GIX) is a mineral exploration company clearly focused on acquiring, exploring and developing mineral resource opportunities. With the potential to host world class mineral deposits, Geologix’s primary focus is the Tepal Gold-Copper Porphyry Project in Michoacán State, Mexico. The company has completed two Preliminary Economic Assessment studies and continues to test for resource expansion and new target delineation to further explore the project’s potential. Recently, Geologix announced a new upgraded resource estimation from the property, and has commenced a pre-feasibility study to be complete in July of 2012. All human and financial resources are currently going into the Tepal project with the Company aiming for production in 2014.


Investment Highlights


  • Tepal project hosts a measured and indicated resource of 1.8M oz gold and 813.0M lbs copper
  • 2011 PEA reported $749 M net positive earnings EBITDA1 (undiscounted)
  • Pre-feasibility study on newly reported resource estimation currently underway
  • Seven new geophysical targets delineated outside the current resource area
  • Drilling of new targets expect for summer of 2012
  • Strong, experienced management team

Key Properties

 

Tepal Project


The Tepal Project, located in Michoacan State, Mexico is 70 kilometres west of Apatzigán and 170 kilometres south of Guadalajara, one of the largest cities in Mexico. The town of Tepalcatepec is 15.5 kilometers from the property. The Tepal Project is comprised of five concessions totaling approximately 1,400 hectares. Access and infrastructure in the project are excellent, with paved roads, deep sea port access, and low topographical relief. Geologix Exploration acquired a 100 percent interest in the Tepal Property by way of an Option to Purchase Agreement with Arian Silver Corp.


In March of 2012, Geologix announced the updated resource estimate incorporating results from drilling 41,247.5 metres at the North, South, and Tizate zones during their 2011 drilling program. The updated resource estimate reported a 324 percent tonnage increase in the Measured and Indicated categories compared to the previous resource of March 2011. A pre-feasibility study utilizing the results from this March 2012 resource estimate is targeted to be completed. Results from the updated resource estimate are featured on the company’s website.


Tepal Project — 2011 North Zone Section 2117000N [detail]

From October 2011 to January of 2012, the Company announced a series of assay results from an extensive 30,000 metre, 160 hole program of infill and resource expansion drilling. Results to date have been encouraging as they continue to achieve Geologix’ three main objectives; expanding the deposit’s size potential, encountering intervals of higher than average grade (specifically at depth), and confirming the potential to upgrade the resource to a higher mineral category. The latest results reported in January of 2012, stated the discovery of a higher grade system at depth in the project’s South Zone. Highlights from the latest batch of results include hole TEP-11-026 which intersected 104.80m grading 1.45 g/t gold and 0.44% copper, within a broader interval of 188.80m of 1.04 g/t gold and 0.40% copper to a drill depth of 498.00m, extending the mineralization approximately 200m below the bottom of the model pit used in the April 2011 PEA mine plan.

Similarly, holes TEP-11-128 and TEP-11-130 also encountered encouraging gold and copper mineralization well below the bottom of the PEA pit outline. This higher grade mineralization remains open in multiple directions and appears to be plunging moderately to the south. The March 2012 resource estimate now includes results for Ag and Mo in the Tepal North and South Zones which were not consistently assayed in historic drill programs. Infill drilling and the re-assaying of 1688 historic pulps supplied sufficient data to permit Ag and Mo to be estimated for these zones. The resources for the three main zones are shown on the company’s website.


La Carreta


The La Carreta gold-copper-silver property is located approximately 20 km north-east of the company’s Tepal project in Michoacán State Mexico. Geologix Exploration has an option to earn a 100% interest in the property. The concession covers 207 hectares (2.07 square km) and is proximal to water and power, and accessible via paved highway and agricultural. Initial grab samples taken by the Company provided analytical results of up to 2.16 g/t gold, up to 305.00 g/t silver, and 1.29 percent copper. No previous exploration work has been conducted on the property and as such, work contemplated and completed by the Company is preliminary in nature at this stage.


La Joya — Glencore Joint Venture


The La Joya property is located in Huancavelica Department in the Central Andean Mountains, approximately 185 kilometres southeast of the Lima, Peru. The La Joya Property comprises 17 concessions totaling 14,600 hectares. Access to the property is via the paved Central Highway through the towns of La Oroya and Huancayo.


In March of 2010, Empresa Minera Los Quenuales S.A. (“EMLQ”), a Peruvian subsidiary of the Glencore Group, were granted an option to earn up to 70% interest in the La Joya property. According to the terms of the agreement, EMLQ may earn an initial 51% interest in the property by completing $2,000,000 in expenditures over three years and they are committed to performing a minimum of 1,500m of drilling. Upon successful completion of these expenditures, a joint venture will be formed (49% Geologix and 51% EMLQ). EMLQ may earn an additional 19% interest in the project, for a total of 70%, by providing a bankable feasibility study within 6 years of formation of the joint venture. The bankable study must be completed within 2 years from the election to exercise the additional 19% interest. EMLQ may exercise the right to off-take 100% of the metal production on terms that are arm’s length, by providing Geologix with the proportion of project financing to commercial production on a loan basis to be repaid from 90% of cash flow.

Precious metal mineralization consisting of gold, silver, copper and molybdenum is located in the Central Zone of La Joya where an interpreted intrusive unit intrudes the sediments. The area of potential mineralization measures approximately 2,500 m from south to north. Gold values in these areas are as high as 6.59 grams per tonne (“g/t”) gold and occur in gossan zones. Silver anomalies assayed as high as 1,411 g/t silver in the Central Zone.


Summary


Following Geologix Exploration’s highly successful exploration and drilling programs of 2011 on the Tepal Project, the company released an updated resource estimate in March of 2012 reporting a 324 percent increase in the resource Measured and Indicated categories compared to the previous resource of March 2011, moving over 84 percent of the resource into those categories. A pre-feasibility study utilizing the latest resource estimate is now targeted for completion by the end of June 2012.


Management


Dunham L. Craig, P.Geo.
CEO, President and Director

Dunham Craig graduated from the University of British Columbia with a Degree in Geology in 1988. From 1970 to 1983, he worked in the heavy construction industry and also operated his own construction company for seven years. Upon graduation from university, he served as a project geologist for Cominco Exploration Ltd. and later consulted for Cominco and Kennecott Canada Inc. Subsequently in 1993, as the vice president of exploration and corporate development for Wheaton River Minerals, Dunham was responsible for the discovery of three mineral deposits at Wheaton River’s highly profitable Golden Bear mine and for participating in the project through bankable feasibility and bank financing. He later directed the acquisition of the Bellavista Gold Project in Costa Rica and oversaw its design through bankable feasibility.

From 2002 to 2005, he was a member of the initial management team of Glencairn Gold Inc. that acquired and developed two operating mines in Central America. Dunham joined Geologix in 2005 as its President and was later appointed CEO and President by the Board in 2006.


Siegfried (Sig) Weidner, B.Sc.
Vice President, Exploration

Mr. Weidner has 25 years’ experience in mineral exploration. He spent 18 years of continuous service with Rio Algom Ltd./Billiton/BHP Billiton. His exploration experience includes Advanced Project Management, Project Management from Greenfields Exploration to Pre-feasibility stage and Manager of Operations for North America/Europe. Mr. Weidner was a valuable member and leader of effective exploration teams and has been awarded the Prospector of the Year (New Brunswick PDAC branch) award in 1993 and the international Bill Dennis (PDAC) Prospector of the Year award in 1998 for the discovery of the Spence Porphyry Copper deposit in Chile.


Evelyn Abbott, B.Sc., CMA
Chief Financial Officer and Corporate Secretary

Ms. Abbott graduated in 1987 with Bachelor of Science from Mount Allison University and received her Certified Management Accounting (CMA) designation in 1997. Ms. Abbott has more than 15 years of finance and accounting experience with senior financial roles in the biotech, manufacturing and logistics industries. She started her career in public accounting and progressed to an eight year tenure with The Tibbett & Britten Group, a multinational public logistics company.

During her time with Tibbett & Britten, Ms. Abbott was the Controller of Summit Logistics Inc. for three years and was then promoted to Director of Finance for Tibbett & Britten North America, with financial responsibility for eight subsidiaries and over $350 million in annual revenue. Ms. Abbott has also worked as a Chief Financial Officer in the manufacturing sector and was most recently Director of Finance for B.C. Research Inc. and Vizon Scitec Inc.


Corporate Profile on Stockhouse


Executives:
 Dunham L. Craig P.Geo.
Dunham L. Craig P.Geo.
President & CEO

Dunham Craig graduated from the University of British Columbia with a Degree in Geology in 1988. From 1970 to 1983, he worked in the heavy construction industry and also operated his own construction company for seven years. Upon graduation from university, he served as a project geologist for Cominco Exploration Ltd. and later consulted for Cominco and Kennecott Canada Inc. Subsequently in 1993, as the vice president of exploration and corporate development for Wheaton River Minerals, Dunham was responsible for the discovery of three mineral deposits at Wheaton River’s highly profitable Golden Bear mine and for participating in the project through bankable feasibility and bank financing. He later directed the acquisition of the Bellavista Gold Project in Costa Rica and oversaw its design through bankable feasibility.

From 2002 to 2005, he was a member of the initial management team of Glencairn Gold Inc. that acquired and developed two operating mines in Central America. Dunham joined Geologix in 2005 as its President and was later appointed CEO and President by the Board in 2006.