August 6, 2008
Geo Minerals and Alix Resources Target Coal in Saskatchewan’s Empress Basin
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 6, 2008) - GEO MINERALS LTD. (TSX VENTURE:GM) and ALIX RESOURCES CORP (TSX VENTURE:AIX) (The "Companies") announce that Applications for Coal Prospecting Permits have been filed in south-western Saskatchewan along highly prospective grounds that cover Cretaceous Mannville stratigraphy on the Alberta border. The area has been described in many Government of Saskatchewan publications as the Empress Basin. The area applied for was previously drilled for oil and gas in the early 1970's. The Companies intend to drill this new prospect as early as possible.
The Companies have located a report dated 1974 covering the Empress Basin, written by Douglas D. Campbell, P.Eng, Ph.D, of Dolmage Campbell and Associates. This report assesses data compiled in the area and discusses the geological stratigraphy of the area and the geophysical results of electrologs that were completed on over 30 oil and gas exploratory holes that were drilled in an approximate 60-mile diameter.The report states:
"Because the zone registers essentially identically in the electrologs from all of the holes over an area about 60 miles in diameter and is everywhere from 30 to 50 feet in thickness, the in situ reserves of the material are immense; in excess of 100 billion tons."
"If it is assumed at this time that the 40-foot anomalous zone detected in the electrologs contains a single seam of coal at least 10 feet in thickness, then the possible reserve tonnage of such a seam, throughout the 3600 square mile basin, would be in the order of 40 billion tons. If it is pessimistically assumed that only 10 percent of this coal is recoverable, the reserve to a plant would still be about 4 billion tons, a very major energy resource."
"Since the majority of the Lower Cretaceous coal in the Rocky Mountains and Foothills has some coking characteristics and since it appears that the coaly zone in the drilled basin is of Lower Cretaceous age, there is good reason to expect that some of the coal in that zone may coke."
The conclusion of Douglas D. Campbell's report contains the following excerpt: "The geophysical and geological evidence available to date on the possible coal-bearing zone lying at a depth of 3,000 feet on the southern Albertan-Saskatchewan border is sufficient to indicate the reasonable chance of the occurrence in the basin of a coalfield whose reserves could reach billions of tons."
The report also contains the following: "In late 1973 Mr. Bell obtained the drill cuttings of hole D7-18 (?) from the interval where it traversed the anomalous zone of possible coal. The cuttings, consisting of shale, coaly shale, and hard, bright coal, were examined by the writer and one vial of them was sent for proximate analysis. The purpose of this test was primarily to determine if the coal has coking characteristics, even though the sample was not representative and was a mixture of coal and shale."
"Dry basis analysis, made by General Testing Laboratories in Vancouver, reported:
- Ash____________________28.43% - Volatile Matter________39.53% - Fixed Carbon__________ 32.04% - Sulphur________________ 3.05% - BTU/lb.________________9,790 - Free Swelling Index________0"
Further in the report it is summarized: "The sample and its analysis indicate that the anomalous zone contains bituminous coal and coaly shale. The electrologs suggest that the zone is mostly coal, rather than shale."
Some information on Dolmage Campbell and Associates has been researched. Of note is the fact that Dolmage Campbell and Associates was a consulting firm that was engaged at the time in major coal studies for governments and private companies. In 1975, Dolmage Campbell authored a study on Coal in B.C. titled Northern Rocky Mountain Coal Resources, in which Douglas Campbell uses several geological interpretations to infer coal resources for among others, the Quinetette Coalfield located in northeastern B.C., a link to this report can be found at http://www.em.gov.bc.ca/DL/COALReports/ 081a.pdf.
The area of Saskatchewan this report covers has been applied for by the Companies. The Companies will announce any confirmation of the Coal Prospecting Permits that become validated through the government of Saskatchewan's permitting office process. The process time frame is determined by the permitting office and all companies in the process are dealt with similarly and given the same assurances and guarantees by the Government of Saskatchewan.
The technical data and estimates are based on data developed prior to implementation of N.I. 43-101 and as such should be treated as an historic estimate and should not be relied upon as if it were compliant with N.I. 43-101. The Companies are treating the hypothetical reserves discussed in this report as what they are in today's terms: historic resource estimates. There is only limited data to base these historic resource estimates upon and no feasibility study.
The technical contents of this release were approved by Alix's director and qualified person as defined by National Instrument 43- 101, Dr. David Hedderly-Smith.
Consideration to be paid by the Companies for this transaction are as follows:
The Companies will pay staking costs pertaining to the Townships and upon receipt of comfort letters the Companies will issue 100,000 shares each. Upon receipt of coal prospecting permits the Companies will issue a further 50,000 shares each. Contingent on the Companies obtaining reports recommending further work in excess of $1,000,0000, on the one year anniversary of the coal prospecting permits the Companies will issue a further 100,000 shares each and pay $40,000 total and on the second year anniversary the Companies shall issue a further 100,000 shares each and pay $60,000 total.
For further information we invite you to visit us at www.geominerals.ca.
Geo Minerals is a junior exploration company actively seeking mineral and energy opportunities for the benefit of all our stakeholders.
ON BEHALF OF THE BOARD
Michael England, President
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