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 GEODEX MINERALS AND TUNGSTEN Tungsten Essential to a wide range of applications in world economy; China dominance and export controls a crucial factor in markets; European Union lists as one of 14 critical minerals; US lists as Conflict Mineral; Price near record highs. GEODEX & TUNGSTEN Geodex Sisson Project one of world s largest tungsten deposits; Feasibility Study, submission of EIA on target for Q3 2012; Production objective is late 2014; JV partner Northcliff of Hunter Dickinson group, proven mine building experience; New drill discovery on 100% owned Dungarvon project. 3

4 A UNIQUE METAL Hardest of all metals Highest melting point Lowest expansion coefficient High thermal and electrical conductivity Highest density (equal to gold) TUNGSTEN PROPERTIES 4

5 ESSENTIAL FOR CONSTRUCTION & MANUFACTURING! CHINA DOMINATES 4% 3% 2% 4% 5% 16% 2008 World Production Source Global Tungsten Uses 66% Source: ITIA Cemented Carbide (Hardmetal) Mill Products Super Alloys Lighting Steels Chemical Other TUNGSTEN PRIMARY USES 6% 5% 16% China 75% Other Countries Russia Canada Source: US Geological Survey

6 CHINA GOVERNMENT POLICY Pattern of Increasing Government Oversight and Reduced Exports Tungsten listed as one of the Protective Resources 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% RECENT ACTIONS No new tungsten mining licenses confirms goal of managing limited resources Annual decreases in export quota CHINA GOVERNMENT POLICY & RECENT ACTIONS 6

7 23-Nov Oct-11 7-Sep Jul Jun May Mar Feb-11 7-Jan Nov Oct-10 8-Sep Jul Jun May-10 7-Apr Feb Jan Nov Oct 09 9 Sep Jul Jun May 09 3 Apr Feb Jan Nov Oct Sep 08 6 Aug Jun May Apr Feb Jan 08 7 Dec Oct Sep Aug 07 6 Jul May Apr 07 TUNGSTEN APT* EUROPEAN FREE MARKET US$ PER MTU Average Price TUNGSTEN PRICE *APT = Ammonium Paratungstate 1mtu =10kg WO3 Source: Metal Bulletin 7

8 Sisson Mt Pleasant West Dungarvon Jake Lee SISSON PROJECT Tungsten-Molybdenum NEW BRUNSWICK, CANADA EXPLORATION PORTFOLIO Critical metals 8

9 GEODEX MINERALS - FEBRUARY 2012 SHARES OUTSTANDING FULLY DILUTED CASH ON HAND million shares million shares $0.6 million SHARE STRUCTURE 52 Week Range: $ $0.33 9

10 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. 10

11 Primary Asset Sisson Project, New Brunswick Development Stage Feasibility, EIA scheduled for completion Q Metals Tungsten, Molybdenum Key Factors Simple: Simplicity of project GEODEX MINERALS Big deposit: Potential for low cost, large, open-pit mine TSX.V: GXM Frankfurt: G2W Favourable location: excellent infrastructure, in a politically stable country and mining knowledgeable jurisdiction Strong Co-Venturer: Northcliff Resources is managed by Hunter Dickinson Inc., an experienced mine development group Commodity: Appealing tungsten demand & supply dynamic 11

12 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 SISSON JV AGREEMENT Northcliff (Hunter Dickinson) purchased private placement for $1M Geodex shares at $0.30 (160% premium to market) Northcliff went public in June, 2011, raising $28 million at $1/share Ownership after earn-in: 30% Geodex Minerals 70% Northcliff Resources No royalties 12

13 SISSON PATH TO PRODUCTION 2004: Geodex acquired Sisson : 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 Jan 2012: Feasibility study, EIA submission continue on track for Q completion Production targeted for late 2014 Ellipse Zone Zone I Zone II Zone III SISSON DEVELOPMENT CONCEPT 13

14 Bird Brook Tailings Area Power Line Process Plant Simplicity: The Right Ingredients for a Low-cost Mine Infrastructure on or near project includes: o hydro line o provincial highway o railway o sea ports Previously logged area with extensive road network Feasibility Study, Environmental Impact Assessment, permitting in progress Capable, experienced work force Fraser Institute surveys consistently rank New Brunswick as a highly desirable mining jurisdiction, ranked Number 1 worldwide in 2012 SISSON DEVELOPMENT CONCEPT Potential Open Pit Mine producing 20,000 tonnes per day 14

15 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) 15

16 Scoping Study, 2009 Cost Results 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 SCOPING STUDY MAY 2009 Plant G & A Total Cost per mtu W0 3 Equivalent $ US 1 Operating Costs $ Offsite Costs $ Total $ Conversion used: $1CDN = $

17 IRR % NPV/IRR SENSITIVITY TO WO 3 PRICE Base Case Scenario IRR 23% NPV US 8% Discount US $300/mtu IRR 34% NPV US 8% Discount US $450/mtu IRR 52% NPV US 8% Discount ($US M) SISSON, SCOPING STUDY MAY % -30% -20% -10% $220 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%110% -150 WO3 PRICE ($US) 17

18 CURRENT PROGRAM On Target for Q3, 2012 completion Feasibility study Environmental Impact Assessment submission Production targeted for late 2014 SISSON, CURRENT PROGRAM 18

19 POTENTIAL IMPROVEMENTS FROM 2009 PEA Increase metal recoveries Increase mining rate Additional discoveries Construct tungsten powder (APT) plant Tungsten price has doubled SISSON, POTENTIAL IMPROVEMENTS 19

20 Sisson Dungarvon STRONG EXPLORATION PORTFOLIO Critical metals focus: Tungsten, molybdenum, tin, REE, indium Builds on Geodex s recognized expertise and successes over the past nine years in New Brunswick NEW BRUNSWICK, CANADA Mt Pleasant West Jake Lee Discovery potential not recognized as part of Geodex s full value 20

21 DUNGARVON PROJECT Discovery in 2011 Phase I drill program 0.022% W0 3 over 31m (from 40 to 71m); Tested edge of boulder area in glacial till; Further drilling planned in 2012 to test for higher grades. GEODEX MINERALS Evidence of large mineralized system: Covers contact zone of Devonian Dungarvon Granite, similar geologic environment to other New Brunswick critical metal deposits; Six documented molybdenum, tungsten and/or tin occurrences over 8km by 1.5 km; Glacial till masks underlying mineralization; Three areas with boulders up to 3mx3m in glacial till, assays up to 6.7% W0 3, 0.8% Mo; Reconnaissance drilling in 2007 intersected molybdenum and tungsten mineralization. 21

22 SUMMARY Large, simple deposit in supportive and mining knowledgeable jurisdiction Feasibility study, submission of EIA on track for Q completion Good accessible location in Eastern Canada, excellent infrastructure, skilled labour force Northcliff (Hunter Dickinson) co-venturer with strong mine building experience GEODEX MINERALS Tungsten price at record highs, Strong demand/supply dynamic, several governments list tungsten criticality to economies Production targeted for late 2014 Value anchored by Sisson, discovery potential through Dungarvon 2012 drilling 22

23 SISSON PROJECT: TUNGSTEN-MOLYBDENUM APPENDIX MATERIAL

24 Method Mine Life Production Open Pit 20 Years Process Mill with Gravity / Flotation Recoveries W0 3 Mo Pre-Sorting before Milling 96% 84% 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., are the QPs responsible for the Sisson Project. 24

25 Metal W0 3 (APT Price) Scoping Study Price Assumptions per Unit $US 220/ mtu* (US $10/lb) Current Prices per Unit $US 465/ mtu* (US $21/lb) Mo $US 15.00/lb $US 14.60/lb SCOPING STUDY MAY 2009 * 1 mtu = 10kg 25

26 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 Above revenues based on: Tungsten price $US 220/mtu (current price $US 465/mtu) Molybdenum price $US15.00/lb (current price $US14.60/lb) 26

27 Global Tungsten Consumption 2008 EU 26% Japan 9% NAFTA 16% ROW 17% China 32% Source: British Geological Survey World Mineral Production Statistics TUNGSTEN PRODUCTION & CONSUMPTION 27

28 Mining and Construction CEMENTED CARBIDES Tooling Turning, Milling, Drilling CEMENTED CARBIDES Hard & Resistant: Wear Parts Woodcutting 28

29 Tool Steels STEELS/ALLOYS Heat Resisting Steel and Cast Steel Stainless Steel & Valve Steels STEELS \ ALLOYS Tungsten Alloys High Speed Steel 29

30 Tungsten Electrodes for Plasma Spray MILL PRODUCTS Incandescent Lamps MILL PRODUCTS LCD Technology & Modern Integrated Circuitry High Temperature Furnaces 2800ºC 30

31 Chemical Products OTHER APPLICATIONS Sports & Leisure Time OTHER APPLICATIONS Biology Jewellery 31

32 New Technologies Deep Drilling (wear & corrosion resistant drill heads) Power Generation (alloy in turbine blades) Thermonuclear Energy (ITER divertor surface) Chip Technology (3-D vias for interconnections) Tungsten & the Environment RESEARCH & DEVELOPMENT Catalyst to clean exhaust fumes or products from toxic compounds Saves fossil fuels through energy saving devices As a substitute for toxic lead and chromium Directional Drilling Chip Technology RESEARCH & DEVELOPMENT Medical Industry Micro Machining Brain Implant Needle Arrays 32

33 TUNGSTEN SUPPLY AND DEMAND 33

34 PUBLIC TUNGSTEN PRICING SOURCES Bloomberg TUNGSTEN PRICING Minor Metals 34

35 EXPLORING FOR AND IDENTIFYING TUNGSTEN Collecting rock samples by drilling, examination of drill core Shipping to certified laboratory for analysis Use of UV light EXPLORING FOR AND IDENTIFYING TUNGSTEN 35