Geoinformatics Strengthens Ownership Position in La Noria Project
Wed Jul 9, 11:35 AMKennecott Exploration Releases Back-in Right
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TORONTO, July 9 /CNW/ - Geoinformatics Exploration Inc. (TSX-V: GXL.V) ("Geoinformatics" or the "Company") is pleased to announce that it has strengthened its ownership position in the La Noria Project ("La Noria") in Sinaloa, Mexico. Kennecott Exploration Company ("Kennecott", a subsidiary of Rio Tinto plc) has relinquished its back-in right on La Noria and will retain a 2% net smelter returns royalty ("NSR") as its only interest in the property.
La Noria hosts a National Instrument 43-101 ("NI 43-101") compliant Inferred mineral resource of 5.6 million tonnes grading 0.54% copper, 12.2 grams per tonne (g/t) silver, 0.08 g/t gold and 0.04% molybdenum (0.06% MoS(2)) combining to a copper-equivalent grade of 0.90%. Geoinformatics has also drilled several potentially economic occurrences of copper, molybdenum, silver, and gold on the 202 sq. km. La Noria property as well as identified two high-potential targets through rock chip sampling.
Dr. Nick Archibald, Geoinformatics' Chief Executive Officer, commented, "We have achieved considerable exploration success on the La Noria property in a relatively short time period. The property continues to be a strong candidate to define sufficient resources in multiple polymetallic ore-bodies to support a profitable small-to-medium scale concentrate-based mining operation. We are pleased that our strategic partner, Kennecott, has agreed to release the back-in right on La Noria to allow us to advance this property more aggressively".
The release of the Kennecott back-in right at La Noria gives Geoinformatics a 100% unencumbered interest in a large project subject only to an NSR. Geoinformatics will be evaluating a range of strategic alternatives to advance further exploration and development of this valuable property.
La Noria Project
La Noria lies in low-rolling hills that are transected by numerous roads and tracks accessible for most of the year and is well-serviced with electric power. It is situated approximately 60 km. northeast of the port of Mazatlan and 35 km. from a main rail-line. The La Noria Azulitas resource and other prospects are all located within 10 km. of each other and are typically exposed at surface. Geoinformatics recently increased its landholding at La Noria by staking adjacent claims.
The defined NI 43-101 resource and drill and exploration success to-date at La Noria include:
- The Azulitas Prospect has an NI 43-101-compliant Inferred mineral
resource of 5.63 million tonnes grading 0.90% copper-equivalent based
on 75% recoveries of gold and silver and 85% recoveries of copper and
molybdenum and mineral prices of US$550 per oz. gold, US$8 per oz.
silver, US$1.50 per lb. copper and US$10 per lb. molybdenum (oxide).
- The Los Laureles Prospect has numerous mineralized drill
intersections including 107 metres grading 0.12% molybdenum
(0.20% MoS(2)), 0.14% copper, 0.08 g/t gold and 11.9 g/t silver
within a breccia zone with mapped extents over 750 metres by up to
180 metres in width.
- The Mozulitas Prospect's two drill holes to-date include 57 metres
grading 0.10% molybdenum (0.17% MoS(2)) and a higher-grade interval
of 12 metres grading 0.32% molybdenum (0.53% MoS(2)).
- The initial drilling on the Amarillito Prospect produced an
intersection of 65 metres grading 0.31% copper and 11.60 g/t silver.
- High-grade rock-chip samples and soil anomalies have been recorded
extensively at early-stage prospects, "El Tiro" and "El Zapote East".
Geoinformatics' ongoing objective at La Noria is to identify sufficient resources as quickly as possible from several of these prospects that may have the potential to support an integrated mining operation.
Kennecott - Geoinformatics Strategic Alliance
Prior to the release of the back-in right, La Noria fell under the Master Strategic Alliance Agreement between Geoinformatics and Kennecott ("Alliance Agreement"). The Company entered into the Alliance Agreement effective March 2006 under which it has been using its proprietary geo-science and technology platform (the "Geoinformatics Process") to successfully identify, prioritize and drill more than 30 exploration drill targets over the initial two years of the Agreement. The La Noria assets were acquired by Geoinformatics as a target-of-merit under the Alliance Agreement. Please refer to Geoinformatics' press-release dated August 14, 2006, for further information.
Under the terms of the Alliance Agreement, Geoinformatics may be required to deliver an "order-of-magnitude" study on a target or project in order to obtain a decision by Kennecott on the exercise of its back-in right. In the case of La Noria, Kennecott based its decision to release the back-in right without delivery of such a study based on its review of drill and other exploration results
Qualified Person
The technical content of this release has been compiled by Darren Holden, MAusIMM, Executive, Vice President - Operations of Geoinformatics. Mr. Holden is a Qualified Person as defined under NI 43-101 guidelines.
About Geoinformatics
Geoinformatics is a North American-focused minerals exploration company which has developed a unique approach to exploration applying innovative and proprietary technology.
The Company recently announced an independent NI 43-101-compliant mineral resource estimate with an Indicated Resource of 840,000 ounces of gold and an Inferred Resource of 2.7 million ounces on the initial discovery zone at the Whistler Project in southern Alaska. The Indicated category contains 30 million tonnes grading 0.87 g/t gold, 2.46 g/t silver and 0.24% copper and the Inferred category contains 155 million tonnes grading 0.62 g/t gold, 2.15 g/t silver and 0.19% copper. Significant copper and silver mineralization increases the Indicated gold-equivalent mineral resource to 1.3 million ounces and the Inferred mineral resource to 4.4 million ounces.
Geoinformatics is also actively exploring several advanced projects located in Sonora (Mexico), Utah, the Cortez Trend region of Nevada, and British Columbia. Geoinformatics has an extensive portfolio of other direct and indirect property interests, joint ventures, and royalties covering a wide range of minerals in Mexico, Australia, New Zealand and North America.
This news release includes certain forward-looking statements concerning the future performance of Geoinformatics' business, operations and financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and Geoinformatics cautions against placing undue reliance thereon. Neither Geoinformatics nor its management assumes any obligation to revise or update these forward-looking statements.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
ContactsDr. Nicholas J. Archibald
Chief Executive Officer
Tel: (416) 861-1300 x224
Email: nicka@geoinformex.com Mr. Kevin L. Snook
Chairman
Tel: (416) 861-1300 x226
Email: kevins@geoinformex.com Geoinformatics Exploration Inc.
330 Bay Street
Suite 1109
Toronto
Ontario
M5H 2S8
www.geoinformex.com
535.02 (5.57%)
