Geoinformatics Acquires Utah Copper-Gold Porphyry Project
August 23 2007 - 10:00AM
Marketwired Canada
Geoinformatics Exploration Inc. (TSX VENTURE:GXL) ("Geoinformatics" or the
"Company") is pleased to announce that it has accepted a copper-gold porphyry
project (the "Stockton Project") near the town of Stockton, Utah, from Kennecott
Exploration Company ("Kennecott") as the fourth "target-of-merit" to be conveyed
to Geoinformatics pursuant to the terms of the Master Strategic Alliance
Agreement (the "Alliance Agreement") executed between the companies in August
2006.
The Stockton Project is an advanced exploration project which hosts a
partially-defined copper-gold porphyry system (the "Stockton Porphyry"). In
addition, the Stockton property hosts at least two other exploration targets of
interest to Geoinformatics. The Stockton Project consists of (i) several groups
of unpatented mining claims held by Kennecott, and (ii) two "option-to-purchase"
agreements with third-parties covering approximately 8.33 sq. km.
Highlights:
- Geoinformatics has received and accepted an offer letter from Kennecott
under which a 100% interest in the Stockton Project will be conveyed to
Geoinformatics as the fourth "target-of-merit" under the Alliance
Agreement.
- The Stockton Project hosts a partially-defined copper-gold porphyry
system with widespread mineralization starting at a depth of
approximately 225 metres, which is open in several directions and at
depth.
- Drill intercepts from drill holes across the Stockton Porphyry included:
---------------------------------------------------------
545.6 metres of 0.29% copper and 0.11 g/t gold including:
---------------------------------------------------------
85.4 metres 0.69% copper 0.23 g/t gold
---------------------------------------------------------
91.4 metres 0.44% copper 0.16 g/t gold
---------------------------------------------------------
---------------------------------------------------------
277.4 metres of 0.39% copper and 0.13 g/t gold including:
---------------------------------------------------------
189.0 metres 0.44% copper 0.13 g/t gold
---------------------------------------------------------
36.6 metres 0.46% copper 0.17 g/t gold
---------------------------------------------------------
- The Stockton Project is located in Tooele County, Utah, 15 km. from the
mining infrastructure associated with the Bingham Canyon Mine (copper
-gold-molybdenum) near Salt Lake City which is operated by an affiliate
of Kennecott.
- Drilling is expected to commence on the Stockton Porphyry in September
and several other prospective copper-gold porphyry targets have been
identified with the potential to extend the existing discovery.
Geoinformatics believes that its innovative three-dimensional modeling
and targeting methodologies can successfully target higher-grade copper
-gold zones in the Stockton system.
- The Stockton Project also hosts the potential for targets with other
styles of mineralization including:
- manto-style gold-silver-lead-zinc targets in sedimentary rocks; and
- near-surface, high-grade lead-zinc-silver-gold-copper veins among
historical workings on the property.
Project Background and History
The Stockton Project is located approximately 6 km. south of the town of Tooele
in Tooele County, Utah, on the western side of the Oquirrh Range (Figure 1).
Mining of high-grade lead-zinc-silver-gold-copper veins first started in the
area in the 1870s and it is estimated that as much as 2.4 million tonnes of
high-grade ore grading 10% lead, 155 g/t silver, 8% zinc, 1.2 g/t gold and 0.4%
copper were extracted from over 50 km. of underground workings.
To view Figure 1, "Location of the Stockton Project", click the link below:
http://www.ccnmatthews.com/docs/geofigure1.jpg
Since the 1960s, various parties have explored the western side of the Oquirrh
Range in search of buried copper-gold deposits. A large geophysical anomaly (6
km. by 1.5 km.) in the area has a similar magnetic signature to the Bingham
Canyon area. In recent years, Kennecott has focused on specific geophysical
magnetic and induced polarization ("IP") anomalies near the town of Stockton.
Stockton Copper-Gold Porphyry
Kennecott has completed 16 drill holes in the Stockton Project area of which two
(SD15 and SD16) have intersected higher-grade portions of the Stockton Porphyry
(Figure 2). Geoinformatics has received drill data from another 11 drill holes
and of the total of 27 drill holes, some were either shallow or reconnaissance
holes some distance from the Stockton Porphyry.
-------------------------------------------------------------
Depth Intersection Interval Copper Gold
Hole ID (metres) (metres) (metres) (%) (g/t)
-------------------------------------------------------------
SD16 274.0 545.6 0.29 0.11
-------------------------------------------------------------
including: 85.4 0.69 0.23
-------------------------------------------------------------
91.4 0.44 0.16
-------------------------------------------------------------
SD15 228.6 277.4 0.39 0.13
-------------------------------------------------------------
including: 189.0 0.44 0.13
-------------------------------------------------------------
36.6 0.46 0.17
-------------------------------------------------------------
The orientation of the mineralized structures has not yet been established,
and it is not possible to comment on the 'true width' of the mineralized
intersections.
Mineralization is hosted principally in a quartz-monzonite porphyry in sheeted
dyke swarms and stocks on the margin of a large equigranular monzonite
intrusion. The mineralized portions of the quartz-monzonite porphyry do not
outcrop, and are capped by approximately 200 metres of brecciated and altered
sedimentary rocks (see the discussion on manto-style targets below).
To view Figure 2 "Stockton Project prior drilling showing
interpreted/extrapolated contours of % copper x metres", click the link below:
http://www.ccnmatthews.com/docs/geofigure2.jpg
Geoinformatics believes that there is potential for a considerable extension of
the mineralized zones intersected in holes SD15 and SD16 (Figure 3) and it
appears that the copper and gold grades are increasing northward. Geoinformatics
has conducted preliminary three-dimensional ("3-D") modeling of the
quartz-monzonite porphyry as the basis for planning drilling north of the
existing drill intercepts.
To view Figure 3 "Cross-section on 4478800N", click the link below:
http://www.ccnmatthews.com/docs/geofigure3.jpg
Other Exploration Targets
Porphyry-related Copper-Gold Systems
In addition to the Stockton Porphyry, Geoinformatics has identified other areas
within the Stockton Project with similar geophysical magnetic signatures to the
Stockton Porphyry. The Company plans to investigate these areas following the
drilling program at the Stockton Porphyry.
Manto-style Gold-silver-lead-zinc Targets in Sedimentary Rocks
Surface geochemistry covering an area approximately 400 by 600 metres lying
directly above the Stockton Porphyry has produced rock-chip samples as high as
3.5 g/t gold and 62.1 g/t silver. The area has been mapped as consisting of
brecciated and silicified sedimentary rocks.
High-grade Lead-zinc-gold-silver-copper Veins
Historic mining at the Calumet, Tip Top and Honerine Mines on the
option-to-purchase properties extracted high-grade carbonate replacement
lead-zinc-gold-silver-copper bearing veins. Since the last of these mining
operations closed in the post-World War II era, there has been little
exploration for these types of veins using modern exploration techniques.
Property Acquisition and Claim Blocks
The Stockton Project consists of (i) several groups of unpatented mining claims
held by Kennecott (the "Kennecott Claims"), and (ii) two option-to-purchase
agreements with private land holders ("the Option-to-purchase Agreements")
covering the optioned properties shown in Figure 4 below (the "Option Lands").
The Option-to-purchase Agreements include (advance) option payments, which are
applied against the purchase price of each property. The total area of the
Stockton Project covers approximately 8.33 sq. km.
Expenditures on the Stockton Project will be counted as qualifying expenditures
and it will be designated a "Target" for purposes of Geoinformatics' obligations
under the Alliance Agreement.
To view Figure 4 "Stockton Claim Map", click the link below:
http://www.ccnmatthews.com/docs/geofigure4.jpg
The Option Lands encompass approximately 90% of the main Stockton Porphyry
target identified by Geoinformatics, including 100% of the projected higher
grade portion; 100% of the surface manto-style gold-silver-lead-zinc targets and
most of the historic workings that were mined for the
lead-zinc-gold-silver-copper bearing veins. The claims covering the remaining
10% of the main Stockton Porphyry identified by Geoinformatics are held by
Kennecott Utah Copper Company, a related company to Kennecott, and are not being
offered to Geoinformatics as part of the acquisition.
Exploration Program - 2007
For the balance of 2007, Geoinformatics intends to conduct an exploration
program that will include:
1. Further refinement of the detailed 3-D geological and structural modeling of
the (quartz-monzonite) Stockton Porphyry;
2. Application of Geoinformatics' proprietary 3-D targeting techniques to the
entire Stockton Project property;
3. Drilling of a minimum of four deep holes on the Stockton Porphyry target,
with drilling to commence in September 2007; and
4. Field reconnaissance and surveys on the balance of the property.
Environmental Matters
The area surrounding and including the Stockton Project was subject to mining
for more than 70 years and several smelters, including the Jacobs Smelter,
operated in and around the town of Stockton during this period.
Prior mining produced dumps of waste rock on the Stockton Project properties,
which contain elevated levels of certain metals. Based on information available
to Geoinformatics, these waste dumps appear to lie primarily on the Option Lands
though there are small amounts of waste materials on the Kennecott Claims. In
2005, Kennecott contracted North American Mines Services to conduct an
environmental reconnaissance investigation of soil and waste rock on its mining
claims which determined that the claims contain elevated levels of such metals.
It also retained Westland Resources Inc., engineering and environmental
consultants, to prepare an assessment of environmental risks on the subject
lands, which has been provided to Geoinformatics.
The town of Stockton and a surrounding area was listed on the U.S. National
Priorities List (Superfund) by the U.S. Environmental Protection Agency in 1999
defining several contaminated zones, and a plan was designed to address soil and
sediment contamination, ground water and other ecological impacts. It includes
an area surrounding the town of Stockton known as Operable Unit 2 ("OU2"). A
portion of the Option Lands lies within OU2.
Geoinformatics has retained Temkin, Wielga, Hardt and Longenecker LLP, a U.S.
mining and environmental law firm based in Denver, Colorado to advise it on
Stockton environmental matters.
Geoinformatics will acquire the Kennecott Claims shown in Figure 4 and will be
assigned the Option-to-purchase Agreements. Geoinformatics does not believe that
it will assume any environmental liabilities through the assignment of the
Option-to-purchase Agreements until such time as and when the
options-to-purchase are exercised. The Option-to-purchase Agreements
specifically disclaim any responsibility of the option holder to the current
landholders for historical environmental contamination. Geoinformatics may be
subject to certain environmental liabilities or obligations in connection with
the Kennecott Claims. U.S. court decisions dealing with the allocation of
clean-up costs among the potentially responsible parties in a contribution
action have considered a number of equitable factors, including the degree to
which each party's actions contributed to the contamination. The planned
exploration program for the Stockton Project has been designed to avoid
disturbance of any contaminated area or known underground workings.
Kennecott - Geoinformatics Master Strategic Alliance Agreement
Geoinformatics and Kennecott have agreed to have the Stockton Project governed
by the Kennecott-Geoinformatics Master Strategic Alliance Agreement. Please
refer to Geoinformatics' press-release dated August 14, 2006, for further
information concerning the Alliance Agreement. Under the terms of the Alliance
Agreement, Kennecott retains a one-time back-in right or a 2% net smelter
royalty if the back-in right is not exercised.
The Stockton project represents the fourth target-of-merit and final property to
be transferred in the initial two-year term of the Alliance Agreement.
Qualified Persons
The data presented in this release has been compiled and verified by Darren
Holden (MAusIMM) of Geoinformatics. The verification included a review of
digital drill data including a review of quality assurance/quality control
information supplied to Geoinformatics and as disclosed beneath Table 1 of this
document. Mr. Holden is a qualified person as defined by National Instrument
43-101 ("NI 43-101") and has 12 years of experience in the minerals exploration
and mining industry. In addition, field outcrop, surface exposure and drill-core
has been reviewed by Mr. Timothy Master, Exploration Manager --Conterminous USA,
Geoinformatics. This review included verification by making visual estimates of
copper mineralisation based on observations of the mineral chalcopyrite (CuFeS2)
in drill core and) comparing to laboratory assay results as presented in Table 1
of this release. Mr. Master is a qualified person as defined by NI 43-101 and
has 30 years of experience in the minerals and exploration mining industry.
About Geoinformatics
Geoinformatics is a global exploration company which has developed a unique and
innovative approach to minerals exploration.
Geoinformatics is exploring the Whistler Project ("Whistler") in the prospective
Alaskan Range, which includes an advanced-stage gold-copper porphyry discovery
and an associated multi-target exploration program. Whistler encompasses a 440
sq. km. land package and includes an ore zone defined by drilling with an
intersection of 220 metres grading 1.49 g/t gold and 0.33% copper, as well as
several high potential copper and gold targets.
The Company has entered into a Master Strategic Alliance Agreement (the
"Alliance Agreement") with Kennecott under which it is using its proprietary
scientific and technology platform (the "Geoinformatics Process") to identify
and prioritize 30 or more exploration drill targets over the initial two years
of the Alliance Agreement. Whistler has been conditionally offered to
Geoinformatics as a target-of-merit under the Alliance Agreement, and Kennecott
retains certain royalty and/or back-in rights on all Alliance projects.
In addition, Geoinformatics is actively exploring several significant properties
located in British Columbia, the Battle Mountain Trend region of Nevada, and the
State of Sinaloa, Mexico, and a joint venture with Azure Minerals Limited in the
State of Sonora, Mexico. The Company also has an extensive portfolio of other
direct and indirect property interests, joint ventures, and royalties covering a
wide range of minerals in Mexico, Australia and New Zealand and North America.
The Geoinformatics Process integrates large-scale data aggregation, data mining
and three-dimensional modeling, and has been designed to assist in understanding
and quantifying risk at a much earlier stage of the exploration cycle than has
traditionally been available. The Company's objective is to advance its
properties to the stage of commercial development by applying faster, less
expensive and more reliable analytical methods to resource exploration.
This news release includes certain forward-looking statements concerning the
future performance of our business, its operations and its 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
current Annual Information Form and other recent securities filings available at
www.sedar.com. Actual events or results may differ materially from those
projected in the forward looking-statements and we caution against placing undue
reliance thereon. We assume no obligation to revise or update these
forward-looking statements.
Table 1. Stockton Drill Hole Intercepts
---------------------------------------------------------------------------
0.1% copper cut
off, 1 metre
minimum intercept,
10 metres maximum
internal waste
---------------------------------------------------------------------------
Interval Copper Gold Silver Molybdenum
Hole_Id From To Width (%) (g/t) (g/t) (g/t)
---------------------------------------------------------------------------
06DDSTK036 294.0 308.0 14.0 0.11 0.01 0.29 26.11
---------------------------------------------------------------------------
06DDSTK036 309.0 451.5 142.5 0.26 0.11 0.95 83.70
---------------------------------------------------------------------------
06DDSTK036 469.5 486.0 16.5 0.16 0.21 0.42 71.00
---------------------------------------------------------------------------
06DDSTK036 496.4 535.0 38.6 0.25 0.12 0.94 160.83
---------------------------------------------------------------------------
06DDSTK037 358.5 375.5 17.0 0.09 0.04 0.78 7.18
---------------------------------------------------------------------------
06DDSTK037 391.5 459.5 68.0 0.13 0.10 0.84 19.26
---------------------------------------------------------------------------
06DDSTK037 512.0 516.0 4.0 0.19 0.08 1.80 55.00
---------------------------------------------------------------------------
less than
06DDSTK037 533.0 535.0 2.0 0.13 0.08 0.01 126.00
---------------------------------------------------------------------------
06DDSTK037 582.9 599.3 16.4 0.24 0.13 1.31 56.20
---------------------------------------------------------------------------
SD-11 234.7 268.2 33.5 0.21 0.04 0.18 41.64
---------------------------------------------------------------------------
less than
SD-13 198.1 213.4 15.2 0.10 0.03 0.01 3.00
---------------------------------------------------------------------------
SD-15 228.6 506.0 277.4 0.39 0.13 0.58 24.83
---------------------------------------------------------------------------
SD-16 274.3 819.9 545.6 0.29 0.11 0.84 67.77
---------------------------------------------------------------------------
SD-16 838.2 844.3 6.1 0.25 0.07 0.50 52.00
---------------------------------------------------------------------------
SD-21 182.9 198.1 15.2 0.14 0.07 1.00 7.00
---------------------------------------------------------------------------
SD-21 289.6 350.5 61.0 0.11 0.02 0.35 48.99
---------------------------------------------------------------------------
SD-21 365.8 387.1 21.3 0.16 0.03 1.07 151.58
---------------------------------------------------------------------------
SD-21 487.7 518.2 30.5 0.15 0.02 1.75 31.50
---------------------------------------------------------------------------
SD-21 566.9 715.4 148.4 0.15 0.04 0.25 76.50
---------------------------------------------------------------------------
less than
SD-26 329.2 426.7 97.5 0.14 0.03 0.01 34.25
---------------------------------------------------------------------------
SD-29 274.3 304.8 30.5 0.14 0.06 9.00 5.50
---------------------------------------------------------------------------
less than
SD-31 521.2 536.5 15.2 0.12 0.03 0.01 7.00
---------------------------------------------------------------------------
0.3% Cu cut
off, 1m
minimum intercept,
10 metres
maximum internal
waste
---------------------------------------------------------------------------
Interval Copper Gold Silver Molybdenum
Hole_Id From To Width (%) (g/t) (g/t) (g/t)
---------------------------------------------------------------------------
06DDSTK036 341.6 397.6 56.0 0.35 0.19 1.29 89.50
---------------------------------------------------------------------------
06DDSTK036 408.0 421.5 13.5 0.42 0.12 1.44 143.85
---------------------------------------------------------------------------
06DDSTK036 512.5 533.0 20.5 0.31 0.16 1.37 238.00
---------------------------------------------------------------------------
06DDSTK037 449.5 451.5 2.0 0.36 0.58 2.30 4.00
---------------------------------------------------------------------------
06DDSTK037 582.9 590.9 8.0 0.28 0.15 1.58 45.50
---------------------------------------------------------------------------
SD-11 253.0 268.2 15.2 0.29 0.07 0.10 29.40
---------------------------------------------------------------------------
SD-15 249.9 438.9 189.0 0.44 0.13 0.59 21.69
---------------------------------------------------------------------------
SD-15 466.3 502.9 36.6 0.46 0.17 1.25 20.84
---------------------------------------------------------------------------
SD-16 329.2 414.5 85.4 0.69 0.24 1.77 86.65
---------------------------------------------------------------------------
SD-16 460.3 551.7 91.4 0.40 0.16 1.33 64.07
---------------------------------------------------------------------------
SD-16 588.3 597.4 9.2 0.32 0.13 0.50 396.67
---------------------------------------------------------------------------
SD-16 737.6 740.7 3.0 0.34 0.10 0.50 160.00
---------------------------------------------------------------------------
SD-16 780.3 783.3 3.1 0.30 0.12 1.00 57.00
---------------------------------------------------------------------------
SD-21 378.0 381.0 3.1 0.39 0.08 3.00 57.00
---------------------------------------------------------------------------
SD-21 707.1 715.4 8.2 0.37 0.08 1.00 19.97
---------------------------------------------------------------------------
Calculated from historic data provided by Kennecott Exploration Company.
Intercepts greater than 100 metres or greater than 0.4% copper highlighted in
yellow.
SD series holes (1995 - 1997).
All assays carried out at the Rocky Mountain Geochemical Corporation (RGMC)
Laboratory in Salt Lake, Utah by fire assay AAS (Au) and multi-element AAS (Ag,
Cu, Pb, Zn, As, Bi, Mo). Check analysis for Au, Cu and Mo undertaken by Chemex
Laboratories Sparks, Nevada. A combination of diamond core and RC samples with
an average length of 4 metres and 8 metres, respectively, were collected for
submission to the laboratory. Quality Assurance and Quality Control (QA/QC)
measures were implemented to check laboratory precision and accuracy. Standard
samples were inserted into the sample series of selected holes (SD08, 09, 10,
12, 13, 14, 16, 21 and 22) in a ratio of 1:20. Blind reject check samples were
resubmitted to RGMC from selected holes (SD14, 15, 16 and 21) in a ratio of 1:30
and check analyses were undertaken at Chemex for selected holes (SD14, 15, 16,
21, 22, 23 and 25) also in a ratio of 1:30.
05DD and 06DD series holes (2005 - 2006)
All assays carried out at the ALS Chemex laboratory in Sparks, Nevada for
Au-Fire Assay (Au-AA23) and multi-element package (ME-ICP61). All samples were
of half-core with an average length of 2 metres. A QA/QC procedure was
implemented including control standards (1:10), quarter core duplicates (1:20)
and blanks (1:20).
The orientation of the mineralized structures has not yet been established, and
it is not possible to comment on the 'true width' of the mineralized
intersections.
Table 2. Collar Locations of all drill holes available to Geoinformatics
--------------------------------------------------------------------
Elevation Depth Dip Azimuth
Hole_ID Easting Northing (metres) (metres) (degrees) (degrees)
--------------------------------------------------------------------
--------------------------------------------------------------------
05DDSTK034 388228 4477344 1886 700 -80 30
--------------------------------------------------------------------
05DDSTK035 387771 4477590 1820 789 -90 0
--------------------------------------------------------------------
06DDSTK036 386213 4478731 1694 745 -65 313
--------------------------------------------------------------------
06DDSTK037 385789 4479239 1674 690 -70 120
--------------------------------------------------------------------
BH92-1 386548 4480530 1692 91 -90 0
--------------------------------------------------------------------
OMS90-1 385855 4480783 1524 110 -90 0
--------------------------------------------------------------------
RV-01 387197 4479330 1917 736 -80 180
--------------------------------------------------------------------
RV-02 386997 4477739 1788 31 -90 0
--------------------------------------------------------------------
RV-02A 386997 4477742 1788 31 -90 0
--------------------------------------------------------------------
SD-02 386118 4475916 1625 445 -90 0
--------------------------------------------------------------------
SD-06 387115 4477321 1762 354 -90 0
--------------------------------------------------------------------
SD-11 386431 4478764 1765 268 -90 0
--------------------------------------------------------------------
SD-13 386052 4478034 1683 305 -90 0
--------------------------------------------------------------------
SD-15 386455 4478771 1769 575 -90 0
--------------------------------------------------------------------
SD-16 386094 4478821 1701 846 -90 0
--------------------------------------------------------------------
SD-21 386122 4479253 1698 715 -90 0
--------------------------------------------------------------------
SD-24 386537 4478822 1762 116 -90 0
--------------------------------------------------------------------
SD-26 386659 4478726 1798 652 -70 90
--------------------------------------------------------------------
SD-27 388057 4478114 1929 317 -70 180
--------------------------------------------------------------------
SD-28 387081 4478540 1774 320 -70 90
--------------------------------------------------------------------
SD-29 386910 4478547 1762 335 -90 0
--------------------------------------------------------------------
SD-30 387308 4478758 1844 326 -90 0
--------------------------------------------------------------------
SD-31 386471 4479153 1753 728 -69 134
--------------------------------------------------------------------
STK-01 387663 4478052 1876 633 -90 0
--------------------------------------------------------------------
STK-02 386900 4478405 1771 536 -90 0
--------------------------------------------------------------------
STK-03 386855 4477937 1753 366 -90 0
--------------------------------------------------------------------
STK-04 387538 4477030 1782 572 -90 0
--------------------------------------------------------------------
All Easting, Northing and elevation coordinates reported in NAD27 UTM
Zone 12.
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