Geo Minerals: option-to-earn 100% interest

Acquisition
As of August 27th 2009, Geo Minerals has executed a lease-option agreement with Bronco Creek Exploration Inc. to earn a 100% interest on the Copper Springs porphyry copper property located in south-central Arizona. Terms for the property are for Geo Minerals to incur CAD$2,750,000 in work expenditures, pay cumulative advanced royalty payments of CAD$505,000, and issue a total of 3,000,000 common shares plus 1,200,000 warrants over the 5 year term of the agreement. A 2.5% NSR with a provision to buy back 0.25% for CAD$1,500,000 any time before a feasibility study and a further 0.25% buy back for CAD$3,500,000 any time prior to production will apply.

Property Overview
The Copper Springs property, located approximately 90 miles east of Phoenix, consists of 216 mining claims and 640 acres of fee land for a total of more than 5,000 acres in the Globe-Miami district. New geologic work on the property has led to the recognition that the district’s well known copper deposits are the faulted and titled portions of a cluster of large porphyry copper-molybdenum systems. Of the porphyry centers identified in the district, the southern center (the Copper Springs porphyry) has the largest root footprint – as well as the largest, most productive capping vein system (~10.5Mt @ 5% Cu production & ~67Mt @ 1.3% Cu resources) of any other in the district. Through the application of these and other new geologic insights, BCE has further recognized that the structural blocks that contain the central portion of the southernmost system are projected to lie beneath gravel cover within the BCE property position. The primary exploration targets are structural blocks analogous to the main Miami-Inspiration deposits (~10 Mt Cu production/resources) that include the buried Miami East deposit just north of the Copper Springs property (reported by Long in 1996 to contain 181 Mt at 1.35% copper). These blocks lie at intermediate to higher structural levels within the Copper Springs porphyry center and target mineral assemblages suspected to contain higher primary copper grades within reactive hosts’ rocks and favourable conditions for supergene enrichment.

Phase One Drilling
A total of 1,189 meters of air-rotary and mud-rotary drilling was completed in 2 vertical drill holes – CSN-05 @ 518 meters deep and CSN-06 @ 671 meters deep. Drill hole CSN-05 encountered unconsolidated gravels to a depth of 518 meters. Rock chips containing native copper were encountered in several intervals within this hole. Drill hole CSN-06 was collared 460 meters to the west-northwest of CSN-05, and encountered similar unconsolidated gravels to a depth of 430 meters. Between 424 and 431 meters depth, a volcanic tuff was encountered which may represent the Apache Leap Tuff, a regionally extensive mid-Tertiary volcanic rock that post-dates and often overlies the faulted and rotated blocks of Laramide porphyries. The presence of the volcanic rock in addition to a change in the characteristics of the recovered material suggested that an older Tertiary conglomerate had been intersected. This second conglomeratic unit, interpreted to be the Whitetail Conglomerate, continued for the remainder of the drill hole. At 482 meters, native copper was encountered along fractures and mineral boundaries in granitic fragments within the conglomerate. These native-copper-bearing granitic fragments continued for the next 189 meters, at which point drilling operations ceased due to technical challenges for the equipment on site. Drill hole CSN-06 was cased to 518 meters for future re-entry.

Looking Ahead: Phase Two Drilling
In light of these encouraging early stage drill results, a second phase work program is expected to resume in the near future.