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SISSON PROJECT: TUNGSTEN‐MOLYBDENUM
New Brunswick, Canada
DISCLAIMER
This presentation by Geodex Minerals Ltd. (the “Company”) contains forward‐looking statements, including, in particular, statements about the Company’s plans, strategies and prospects. These statements have been based on the Company’s current assumptions, expectations and projections about future events. Although the Company believes that the expectations reflected in these forward‐looking statements are reasonable, the Company can give no assurance that these expectations will prove to be correct or that results anticipated in the forward‐looking statements will be achieved. These forward‐looking statements include risks and uncertainties. These risks and uncertainties include, among other things, market conditions, industry uncertainty and other factors.
NEW
BRUNSW
ICK, CANADA
STRONG EXPLORATION PORTFOLIO Critical metals focus: REE, molybdenum,
tungsten, tin, indium Builds on Geodex’s recognized expertise
and successes over the past nine years in New Brunswick
SISSON PROJECTTungsten‐Molybdenum
Near term production capability Large, open pittable deposit Excellent infrastructure and location
for world market access Stable, mining – friendly jurisdiction
with capable labour force Hunter Dickinson/Northcliff earning
70% interest by spending $17M or commencing mine construction
Sisson
Cumberland
Jake LeeMt Pleasant
West
Dungarvon
SNAPSHO
T UPDATE
SNAPSHOT UPDATE (SINCE DECEMBER 2010)
Sisson JV Project Sisson operational transition to Northcliff (Hunter Dickinson Inc) completed smoothly Feasibility Study, EIA, permitting progressing well Northcliff went public, raised $28 million at $1/share
Geodex Geodex share price currently in range of $0.14 to $0.18 2.6M warrants exercised, adding $0.6M to cash position, currently $0.85M in treasury Maintaining New Brunswick and critical metal focus Exploration acquisition strategy implemented, 3 new REE/critical metal projects 2011 exploration program underway, including drilling to test new projects and targets
Tungsten Market Tungsten price has jumped from less than $300 to $460/mtu (record high) China export quota was 100% filled in 2010 China increased export tax to 15% for 2011 Security of supply concerns continue
SHARE STRUCTU
RE –AU
GUST 2011
AUGUST 2011
SHARES OUTSTANDING 107.1 million shares FULLY DILUTED 123.9 million shares CASH ON HAND $0.85 million
52 Week Range: $0.07 ‐ $0.33
GEO
DEX MINERALS
MANAGEMENT & DIRECTORS
Mark Fields, President, CEO, DirectorJack Maris, Chairman, DirectorJack M. Marr, VP Exploration, Director Jack Patterson, Director David M. Buckle, DirectorNeil S. Seldon, Director
Blaine Bailey, CFONeil D. Humphreys, Chief GeologistDavid Martin, Vice President, New Brunswick Operations
ADVISORY BOARD
Michael MacLeod, P.Eng., M.Eng., MBADavid Sinclair, Ph.DRaymond Dujardin, P.Eng.
GEO
DEX MINERALS
Primary Asset Sisson Project, New Brunswick
Development Stage Feasibility
Metals Tungsten, Molybdenum
Key Factors Strong Co‐Venturer: Northcliff Resources is managed by Hunter Dickinson Inc., an experienced mine development group
Favourable location: excellent infrastructure, in a politically stable country and mining knowledgeable jurisdiction
Big deposit: Potential for low cost, large, open‐pit mine Commodity price: Appealing tungsten supply & demand
dynamic Simple: Simplicity of project
TSX.V: GXMFrankfurt: G2W
SISSON JV AG
REEMEN
T
NORTHCLIFF RESOURCES (HUNTER DICKINSON COMPANY)
Earns 70% interest by achieving the earlier of C$17 million in expenditures or commencing mine construction
Will seek debt financing arrangements for mine construction and development Northcliff (Hunter Dickinson) purchased private placement for $1M Geodex
shares at $0.30 (160% premium to market)
Ownership after earn‐in: 30% Geodex Minerals70% Northcliff ResourcesNo royalties
SISSON DEVELO
PMEN
T CONCEPT
Zone IZone I
Zone IIIZone III
Zone IIZone II
Ellipse Zone
SISSON PATH TO PRODUCTION
2005‐2011: Over 50,000m of drilling carried out, 1:1 strip ratio, mineralization open to depth
Mar 2007: First resource estimate Jan 2009: Updated resource estimate Mar 2009: Preliminary economic
assessment Dec 2009: Updated resource estimate Oct 2010: Northcliff (Hunter Dickinson)
enters into JV Nov 2010: Feasibility, EIA and permitting
program begun Aug 2011: Feasibility study, EIA continue
on track for Q3 2012 completion Production targeted for late 2014
SISSON DEVELO
PMEN
T CONCEPT
Process Plant
Power Line
Bird Brook Tailings Area
Right Ingredients for developing a low‐cost mine
Potential Open Pit Mine producing 20,000 tonnes per day
Infrastructure on or near project includes:
o hydro lineo provincial highwayo railwayo sea ports
Previously logged area with extensive road network
Feasibility Study, Environmental Impact Assessment, permitting in progress
Capable, experienced work force
Fraser Institute annual survey consistently ranks New Brunswick as a desirable jurisdiction for exploration and development
SISSON 2009 RESO
URCE M
ODEL
MINERAL RESOURCE, ZONE III & ELLIPSE
Zone III & Ellipse
Tonnes % W03 %Mo % W03Equivalent(2.02:1)
W03 (tonnes)
Mo (tonnes)
M & I 177,400,000 0.094 0.031 0.157 167,000 55,000
Inferred 69,000,000 0.086 0.033 0.153 ‐ ‐
1. December 2009, 43‐101 compliant report by Mercator Geological Services2. M & I = Measured & Indicated3. At 0.10% WO3 equivalent threshold grade, based on %WO3 + (%Mo x 2.02)
SCOPIN
G STU
DY MAY 2009
1
Production
Method Open Pit
Mine Life 20 Years
Process Mill with Gravity / Flotation
Recoveries W03 Mo
Pre‐Sorting before Milling
96% 84%
Total Mined Ore 74% 70%
¹ This assessment is preliminary in nature and it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary assessment will be realized. The mineral resources discussed here are not mineral reserves and do not have demonstrated economic viability.
Jack M. Marr, M.Sc., P.Geo., and David Martin, B.Sc., P.Geo., CGA, are the QPs responsible for the Sisson Project.
SCOPIN
G STU
DY MAY 2009
Metal Scoping Study Price Assumptions per Unit
Current Prices per
Unit
W03(APT Price)
$US 220/ mtu*
(US $10/lb)
$US 460/ mtu*
(US $21/lb)
Mo $US 15.00/lb $US 15.00/lb
* 1 mtu = 10kg
SCOPIN
G STU
DY MAY 2009
Capital Cost $ US (million)1
Capital Cost $ 263
30 % Contingency $ 78
Total Capital Cost $ 341
1 Conversion used: $1CDN = $0.85
Operating Cost $ CDN Per Tonne $ US Per Tonne1
Mine Ore + Waste 2.60 2.22
Plant 4.66 3.96
G & A 0.66 0.56
Total 7.92 6.74
Cost per mtu W03 Equivalent $ US1
Operating Costs $ 59.92
Offsite Costs $ 35.13
Total $ 95.05
SCOPIN
G STU
DY MAY 2009
Annual Average Metal
Production
MTU (10kg = 1MTU)
Tonnes Annual Revenue $US
(million)
30% Ownership $US (million
W03 470,000 4,700 103 31
Mo ‐ 1,600 52 16
Total ‐ ‐ 155 47
Financial 30% Ownership
IRR (from year – 2) 23%
NPV (8% discount) $US 372 mill $US 112 mill
Payback Year 4
TUNGSTEN
PRICE
TUNGSTEN APT* EUROPEAN FREE MARKET US$ PER MTU
*APT = Ammonium Paratungstate1mtu =10kg WO3
Source: Metal Bulletin
0
50
100
150
200
250
300
350
400
450
500
20‐Ju
l‐11
15‐Ju
n‐11
11‐M
ay‐11
30‐M
ar‐11
23‐Feb
‐11
19‐Ja
n‐11
8‐De
c‐10
3‐Nov‐10
1‐Oct‐10
25‐Aug
‐10
21‐Ju
l‐10
16‐Ju
n‐10
12‐M
ay‐10
7‐Ap
r‐10
26‐Feb
‐10
22‐Ja
n‐10
4‐De
c‐09
30‐Oct‐09
25‐Sep
‐09
21‐Aug
‐09
17‐Ju
l‐09
12‐Ju
n‐09
8‐May‐09
1‐Ap
r‐09
25‐Feb
‐09
21‐Ja
n‐09
5‐De
c‐08
31‐Oct‐08
26‐Sep
‐08
22‐Aug
‐08
18‐Ju
l‐08
13‐Ju
n‐08
9‐May‐08
4‐Ap
r‐08
27‐Feb
‐08
23‐Ja
n‐08
12‐Dec‐07
7‐Nov‐07
3‐Oct‐07
29‐Aug
‐07
25‐ Ju
l‐07
20‐Ju
n‐07
16‐M
ay‐07
11‐Apr‐07
2‐Mar‐07
26‐Ja
n‐07
Average Price
SISSON, SCO
PING STU
DY MAY 2009
‐150
50
250
450
650
850
1050
1250
1450
10
15
20
25
30
35
40
45
50
55
‐40% ‐30% ‐20% ‐10% $220 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%110%
IRR % NPV@8% ($US M)
US $300/mtuIRR 34%
NPV US $700M @ 8% Discount
Base Case ScenarioIRR 23%
NPV US $372M @ 8% Discount
WO3 PRICE ($US)
NPV/IRR SENSITIVITY TO WO3 PRICE
US $450/mtuIRR 52%
NPV US $1,316M @ 8% Discount
SISSON, CU
RRENT PRO
GRAM
CURRENT PROGRAMQ3, 2012 expected completion
Feasibility study Environmental Impact Assessment
Production targeted for late 2014
SISSON, PO
TENTIAL IM
PROVEM
ENTS
POTENTIAL IMPROVEMENTS
Pre‐sorting to reduce low grade feed to mill Increase recoveries Increase mining rate Additional discoveries Construct tungsten powder (APT) plant
NEW
BRUNSW
ICK, CANADA
STRONG EXPLORATION PORTFOLIO
Critical metals focus: REE, molybdenum, tin, tungsten, indium
Builds on Geodex’s recognized expertise and successes over the past nine years in New Brunswick
Sisson
Cumberland
Jake LeeMt Pleasant
West
Dungarvon
GEO
DEX MINERALS
EXPLORATION STRATEGYGoal: Increase shareholder value in short term through drilling discovery
Strategic and prospective critical metal exploration portfolio, geology characterized by intrusive suites with critical metal prospectivity
Geodex has recognized expertise and successes over the past nine years in New Brunswick (eg: Sisson and Mt Pleasant West)
Portfolio anchored by Sisson tungsten‐molybdenum deposit, complemented by discovery potential:
Dungarvon: Molybdenum, tungsten, tin Cumberland: REE Jake Lee: REE, gold Mt Pleasant West: Tin, tungsten, indium, REE
2011 program underway, drilling in late summer/fall 2011
Exploration portfolio an important part of Geodex’s full value
GEO
DEX MINERALS
DUNGARVON PROJECT Evidence of large mineralized system:
Six documented molybdenum, tungsten and/or tin occurrences over 8km by 1.5 km;
Covers contact zone of Late Devonian Dungarvon Granite, similar geologic environment to other New Brunswick critical metal deposits;
Extensive Mo +/‐W +/‐ Sn mineralized float and soil anomalies; Reconnaissance drilling in 2007 intersected granite hosted molybdenum and
tungsten mineralization including: 0.032% Mo over 85m (including 0.065% Mo over 27m) and 0.017% Mo and 0.020% WO3 over 64.15m (including 0.039% Mo and 0.022% WO3 over 17.7m);
Thick till exists in this area, as elsewhere in central New Brunswick, which masks the underlying molybdenum, tungsten and tin mineralization.
Drilling planned in late summer/fall 2011
GEO
DEX MINERALS
CUMBERLAND PROJECT Rare Earth Element focus:
Multiple coincident magnetic and spectrometric thorium & potassium anomalies over 4.5km oval area;
Three grab samples from quarry on property average 725 LREE and 312 ppm HREE, 2258 zirconium.
Exploration program began in June, drilling planned in late summer/fall 2011
GEO
DEX MINERALS
SUMMARY Attractive investment rationale Feasibility study, EIA targeted for Q3 2012 completion Production targeted for late 2014 Critical metals with strong demand/supply dynamics Large, simple deposit and positive metallurgical results Good accessible location in Eastern Canada, excellent infrastructure Supportive mining knowledgeable jurisdiction Northcliff (Hunter Dickinson) co‐venturer with strong mine building experience Geodex’s Sisson portion funded to $17M expenditure or commencing mine construction Strategic and prospective critical metal exploration portfolio
TUNGSTEN
USES
A UNIQUE METAL
Hardest of all metals Highest melting point Lowest expansion coefficient High thermal and electrical
conductivity Highest density (equal to gold)
TUNGSTEN
PRIMARY U
SES
ESSENTIAL FOR CONSTRUCTION & MANUFACTURING!
Source: ITIA ‐ 2009
(Hardmetal)
WORLD M
INE PRO
DUCTIO
N
CHINA G
OVERN
MEN
T POLICY &
RECENT ACTIO
NS
1991 ‐ Tungsten listed as one of the “Protective Resources”
2001 ‐ Policy of Qualified Tungsten Exporter and Export Supplies
2005 ‐ 2006 ‐ Export rebate reduced from 13% to 8% and then cancelled
2007 – present ‐ Export duty introduced, currently 15%
Source: China Minmetals Nonferrous Metals Co., Ltd – 2009, personal communication
No new tungsten mining licenses until June 2011 – confirms goal of managing limited resources
Slight decrease in export quota in 2011
Net Result: China shifted from policy of encouraging tungsten exports to discouraging tungsten exports
CHINA GOVERNMENTPOLICY 1991 ‐ 2009
RECENT ACTIONS