SISSON PROJECT: TUNGSTEN MOLYBDENUM. New Brunswick, Canada

Transcription

1 SISSON PROJECT: TUNGSTEN MOLYBDENUM New Brunswick, Canada

2 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. DISCLAIMER

3 Mt Pleasant West Sisson Cumberland Jake Lee SISSON PROJECT Tungsten Molybdenum NEW BRUNSWICK, CANADA STRONG EXPLORATION PORTFOLIO Critical metals focus: REE, indium, tungsten, molybdenum, tin Builds on Geodex s recognized expertise and successes over the past seven years in New Brunswick Development stage: feasibility Excellent location for world market access and infrastructure Stable, mining friendly jurisdiction with excellent labour force Hunter Dickinson/Northcliff earning 70% interest by spending $17M or commencing mine construction

4 SNAPSHOT UPDATE (SINCE DECEMBER 2010) Sisson JV Project Sisson operational transition to Northcliff (Hunter Dickinson Inc) completed smoothly Feasibility Study, EIA, permitting progressing well, no negative surprises Northcliff going public shortly, raising funds at $1/share SNAPSHOT UPDATE Geodex Geodex share price increased to range of $0.20 to $ M warrants exercised, adding $0.6M to cash position, currently $1.1M in treasury Maintaining New Brunswick and critical metal focus Exploration acquisition strategy implemented to add new REE, critical metal projects to portfolio 2011 exploration program being finalized, will include drilling to test new projects and targets Tungsten Market Tungsten price has jumped from less than $300 to $463/mtu (record high) China export quota was filled 100% in 2010 China increased export tax to 15% for 2011 Security of supply concerns continue

5 JUNE 2011 SHARES OUTSTANDING FULLY DILUTED CASH ON HAND 52 Week Range: $0.055 $ million shares million shares $1.1 million SHARE STRUCTURE JUNE 2011

6 MANAGEMENT & DIRECTORS Mark Fields, President, CEO, Director Jack Maris, Chairman, Director Jack M. Marr, VP Exploration, Director Jack Patterson, Director David M. Buckle, Director Neil S. Seldon, Director GEODEX MINERALS Blaine Bailey, CFO Neil D. Humphreys, Chief Geologist David Martin, Vice President, New Brunswick Operations ADVISORY BOARD Michael MacLeod, P.Eng., M.Eng., MBA David Sinclair, Ph.D Raymond Dujardin, P.Eng.

7 Primary Asset Development Stage Metals Sisson Project, New Brunswick Feasibility 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 GEODEX MINERALS TSX.V: GXM Frankfurt: G2W

8 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) SISSON JV AGREEMENT Ownership after earn in: 30% Geodex Minerals 70% Northcliff Resources No royalties

9 Bird Brook Tailings Area Power Line Process Plant Right Ingredients for developing a low cost mine Infrastructure on or near project includes: o provincial highway o hydro line o railway o deep water ports Previously logged area with extensive road network Feasibility Study, Environmental Impact Assessment, permitting in progress Fraser Institute annual survey consistently ranks New Brunswick as a desirable jurisdiction for exploration and development SISSON DEVELOPMENT CONCEPT Potential Open Pit Mine producing 20,000 tonnes per day

10 Ellipse Zone Core Zone Zone II Zone III Zone I East Flank TUNGSTEN MOLYBDENUM 50,000m of drilling carried out since 2005, 1:1 strip ratio, mineralization open to depth Spring 2009: Preliminary economic assessment completed Dec 2009: New resource calculation completed Oct 2010: Northcliff (Hunter Dickinson) enters into JV Nov 2010: $13.7M Feasibility, EIA and permitting program begun 2011: Feasibility study, EIA continue on track SISSON DEVELOPMENT CONCEPT

11 Zone III & Ellipse MINERAL RESOURCE, ZONE III & ELLIPSE Tonnes % W0 3 %Mo % W0 3 Equivalent (2.02:1) W0 3 (tonnes) Mo (tonnes) M & I 177,400, ,000 55,000 Inferred 69,000, SISSON 2009 RESOURCE MODEL 1. December 2009, compliant report by Mercator Geological Services 2. M & I = Measured & Indicated 3. At 0.10% WO3 equivalent threshold grade, based on %WO3 + (%Mo x 2.02)

12 Method Mine Life Production Open Pit 20 Years Process Mill with Gravity / Flotation Recoveries W0 3 Mo Pre Sorting before 96% 84% Milling Total Mined Ore 74% 70% SCOPING STUDY MAY 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.

13 Metal W0 3 (APT Price) Scoping Study Price Assumptions per Unit $US 220/ mtu* (US $10/lb) Current Prices per Unit $US 463/ mtu* (US $21/lb) Mo $US 15.00/lb $US 16.55/lb SCOPING STUDY MAY 2009 * 1 mtu = 10kg

14 Capital Cost $ US (million) 1 Capital Cost $ % Contingency $ 78 Total Capital Cost $ 341 Operating Cost $ CDN Per Tonne $ US Per Tonne 1 Mine Ore + Waste Plant G & A Total SCOPING STUDY MAY 2009 Cost per mtu W0 3 Equivalent $ US 1 Operating Costs $ Offsite Costs $ Total $ Conversion used: $1CDN = $0.85

15 Annual Average Metal Production MTU (10kg = 1MTU) Tonnes Annual Revenue $US (million) 30% Ownership $US (million W ,000 4, Mo 1, Total SCOPING STUDY MAY 2009 Financial 30% Ownership IRR (from year 2) 23% NPV (8% discount) $US 372 mill $US 112 mill Payback Year 4

16 IRR % NPV/IRR SENSITIVITY TO WO 3 PRICE Base Case Scenario IRR 23% NPV US 8% Discount US $460/mtu IRR 53% NPV US 8% Discount ($US M) SISSON, SCOPING STUDY MAY WO3 PRICE ($US)

17 CURRENT $13.7M NORTHCLIFF FUNDED PROGRAM Feasibility study Drill program for metallurgical work, resource modeling Environmental Impact Assessment Permitting SISSON, CURRENT PROGRAM

18 POTENTIAL IMPROVEMENTS Pre sorting to reduce low grade feed to mill Increase recoveries Increase mining rate Additional discoveries Construct tungsten powder (APT) plant SISSON, POTENTIAL IMPROVEMENTS

19 Mt Pleasant West Sisson Cumberland Jake Lee NEW BRUNSWICK, CANADA STRONG EXPLORATION PORTFOLIO Critical metals focus: REE, indium, tungsten, molybdenum, tin Builds on Geodex s recognized expertise and successes over the past seven years in New Brunswick

20 EXPLORATION STRATEGY Goal: 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 seven years in New Brunswick (eg Sisson and Mt Pleasant West) Portfolio anchored by Sisson tungsten molybdenum deposit, complemented by drill hole discovery potential: Cumberland: REE Jake Lee: REE, gold Mt Pleasant West: Tin tungsten indium REE Nashwaak: Tungsten Planning approximately $1M 2011 program, intent is to drill a number of drill targets in summer/fall 2011 GEODEX MINERALS Exploration portfolio an important part of Geodex s full value

21 TUNGSTEN PRICE TUNGSTEN APT* EUROPEAN FREE MARKET US$ PER MTU Average Price May 11 6 Apr Feb Jan 11 3 Dec Oct Sep Aug 10 2 Jul May Apr 10 5 Mar Jan 10 4 Dec Oct Sep Aug 09 3 Jul May Apr 09 6 Mar Jan Dec Oct Sep Aug 08 9 Jul May Apr Mar 08 1 Feb Dec 07 9 Nov 07 3 Oct Aug Jul 07 8 Jun 07 2 May Mar 07 9 Feb 07 3 Jan Nov Oct 06 1 Sep 06 *APT = Ammonium Paratungstate 1mtu =10kg WO3 Source: Metal Bulletin

22 SUMMARY Attractive investment rationale Large, simple deposit and positive metallurgical results Good accessible location in Eastern Canada, excellent infrastructure Supportive mining knowledgeable jurisdiction Critical metals with strong demand/supply dynamics Major $13.7M program underway for feasibility study, EIA, permitting Geodex s next Sisson funding is after $17M expended or commencing mine construction Northcliff (Hunter Dickinson) co venturer with strong mine building experience Strategic and prospective critical metal exploration portfolio GEODEX MINERALS

23 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)

24 ESSENTIAL FOR CONSTRUCTION & MANUFACTURING! (Hardmetal) TUNGSTEN PRIMARY USES Source: ITIA 2009

25 WORLD MINE PRODUCTION

26 CHINA GOVERNMENT POLICY Tungsten listed as one of the Protective Resources 2001 Policy of Qualified Tungsten Exporter and Export Supplies 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 RECENT ACTIONS 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 GOVERNMENT POLICY & RECENT ACTIONS