SISSON PROJECT: TUNGSTEN MOLYBDENUM New Brunswick, Canada
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
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 Mt Pleasant West Sisson Jake Lee Dungarvon Cumberland SISSON PROJECT Tungsten 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 NEW BRUNSWICK, CANADA
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 SNAPSHOT UPDATE 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
AUGUST 2011 SHARES OUTSTANDING FULLY DILUTED CASH ON HAND 52 Week Range: $0.07 $0.33 107.1 million shares 123.9 million shares $0.85 million SHARE STRUCTURE AUGUST 2011
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.
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
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
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 Ellipse Zone Zone I Zone II Zone III SISSON DEVELOPMENT CONCEPT
Bird Brook Tailings Area Power Line Process Plant Right Ingredients for developing 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 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
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 0.094 0.031 0.157 167,000 55,000 Inferred 69,000,000 0.086 0.033 0.153 SISSON 2009 RESOURCE MODEL 1. December 2009, 43 101 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)
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 2009 1 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.
Metal W0 3 (APT Price) Scoping Study Price Assumptions per Unit $US 220/ mtu* (US $10/lb) Current Prices per Unit $US 460/ mtu* (US $21/lb) Mo $US 15.00/lb $US 15.00/lb SCOPING STUDY MAY 2009 * 1 mtu = 10kg
Capital Cost $ US (million) 1 Capital Cost $ 263 30 % Contingency $ 78 Total Capital Cost $ 341 Operating Cost $ CDN Per Tonne $ US Per Tonne 1 Mine Ore + Waste 2.60 2.22 Plant 4.66 3.96 G & A 0.66 0.56 Total 7.92 6.74 SCOPING STUDY MAY 2009 Cost per mtu W0 3 Equivalent $ US 1 Operating Costs $ 59.92 Offsite Costs $ 35.13 Total $ 95.05 1 Conversion used: $1CDN = $0.85
Annual Average Metal Production MTU (10kg = 1MTU) Tonnes Annual Revenue $US (million) 30% Ownership $US (million W0 3 470,000 4,700 103 31 Mo 1,600 52 16 Total 155 47 SCOPING STUDY MAY 2009 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 Average Price 500 450 400 350 300 250 200 150 100 50 0 20 Jul 11 15 Jun 11 11 May 11 30 Mar 11 23 Feb 11 19 Jan 11 8 Dec 10 3 Nov 10 1 Oct 10 25 Aug 10 21 Jul 10 16 Jun 10 12 May 10 7 Apr 10 26 Feb 10 22 Jan 10 4 Dec 09 30 Oct 09 25 Sep 09 21 Aug 09 17 Jul 09 12 Jun 09 8 May 09 1 Apr 09 25 Feb 09 21 Jan 09 5 Dec 08 31 Oct 08 26 Sep 08 22 Aug 08 18 Jul 08 13 Jun 08 9 May 08 4 Apr 08 27 Feb 08 23 Jan 08 12 Dec 07 7 Nov 07 3 Oct 07 29 Aug 07 25 Jul 07 20 Jun 07 16 May 07 11 Apr 07 2 Mar 07 26 Jan 07 *APT = Ammonium Paratungstate 1mtu =10kg WO3 Source: Metal Bulletin
IRR % 55 50 45 40 35 30 25 NPV/IRR SENSITIVITY TO WO 3 PRICE Base Case Scenario IRR 23% NPV US $372M @ 8% Discount US $300/mtu IRR 34% NPV US $700M @ 8% Discount US $450/mtu IRR 52% NPV US $1,316M @ 8% Discount NPV @8% ($US M) 1450 1250 1050 850 650 450 SISSON, SCOPING STUDY MAY 2009 20 250 15 50 10 40% 30% 20% 10% $220 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%110% WO3 PRICE ($US) 150
CURRENT PROGRAM Q3, 2012 expected completion Feasibility study Environmental Impact Assessment Production targeted for late 2014 SISSON, CURRENT PROGRAM
Pre sorting to reduce low grade feed to mill Increase recoveries Increase mining rate Additional discoveries Construct tungsten powder (APT) plant SISSON, POTENTIAL IMPROVEMENTS POTENTIAL IMPROVEMENTS
Mt Pleasant West Sisson Dungarvon Jake Lee Cumberland 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 NEW BRUNSWICK, CANADA
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 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 GEODEX MINERALS 2011 program underway, drilling in late summer/fall 2011 Exploration portfolio an important part of Geodex s full value
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% WO 3 over 64.15m (including 0.039% Mo and 0.022% WO 3 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 GEODEX MINERALS
Rare Earth Element focus: CUMBERLAND PROJECT 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. GEODEX MINERALS Exploration program began in June, drilling planned in late summer/fall 2011
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 GEODEX MINERALS
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)
ESSENTIAL FOR CONSTRUCTION & MANUFACTURING! (Hardmetal) TUNGSTEN PRIMARY USES Source: ITIA 2009
WORLD MINE PRODUCTION
CHINA GOVERNMENT POLICY 1991 2009 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 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