Advanced tungsten - molybdenum - copper resources.
Geodex Minerals Ltd. (TSX.V: GXM) flagship project is Sisson Brook, a large, open-pittable tungsten-molybdenum-copper deposit located near Fredericton, in the central part of the province.
In November, 2007, Geodex received a positive Preliminary Economic Assessment or Scoping Study on Sisson Brook prepared by Wardrop Engineering Inc. and the company is presently working towards the completion of a pre-feasibility study.New Brunswick Property
Geodex’s second major project is Mount Pleasant West, a large claim block located adjacent to the Mount Pleasant mine south of Fredericton.
This mine, presently owned by Adex Mining Inc., was operated briefly by Billiton in the mid-1980s and contains deposits of molybdenum-tungsten and tin-indium. Geodex’s focus is on the indium potential in the Mount Pleasant camp and the company’s land holdings cover what is probably the world’s largest area of premium indium exploration targets.
Sisson Brook Tungsten-Molybdenum-Copper Deposit
Sisson Brook Project Advantages
Sisson Brook has been considerably expanded by Geodex drilling since 2005. The mineralized area extends for over 2 km, encompassing at this point two northern zones with tungsten and copper and a central, more significant zone of tungsten and molybdenum over 300 m wide (Zone III). Zone III has been the subject of three resource estimates and a Preliminary Economic Evaluation by Wardrop Engineering in November 2007.
The deposit will have the benefit of low-cost open-pit mining in an easily accessible area and a willing labour force. Concentrate will be trucked to the port of Saint John, about two hours away on the Bay of Fundy coast.
The largest mine in the nearby Bathurst mining district is due to close in mid 2010 after a 60 year mine life. This may have a positive impact on the supply of equipment and labour for the project and encourage the New Brunswick government to fast track the Sisson Brook development.
During 2007, Geodex made a significant discovery of a higher grade molybdenum zone on the eastern edge of the Sisson Brook deposit (News Release, October 30, 2007). Assay results from the first hole in what is known as the ‘East Flank’ zone returned 85.5 metres grading 0.305% Mo and 0.080% WO3 from a depth of 128.5 – 214.0 metres. This was included in a section from 16.7 – 214.0 metres which assayed 0.12% Mo and 0.073% WO3.
Sisson Brook has the advantage of unsurpassed logistics. It lies on crown land, which is a major advantage for resource development in the province. The area has been partially logged, there is ready access from a network of logging roads and a power line crosses the property. It is located close to several small towns which are serviced by a rail line and provincial highway 107.
Construction and production would create many needed employment opportunities in the province of New Brunswick.
The company estimates about 750 jobs for local people during construction and 300 during full operations of the mine, ranging from trucking to office administration. Three drills are presently on the property exploring extensions to various zones.
Geodex’s Mount Pleasant West Project comprises a 10 km by 20 km block of claims adjacent to the formerly-producing Mount Pleasant mine (owned by Adex Mining Inc.) and located south of Fredericton in southwestern New Brunswick. Geodex’s land position includes claims acquired by staking and through joint venture agreements with other companies. As is the case at Sisson Brook, Mount Pleasant West is well-located in an area with excellent logistics and infrastructure.
Billiton Exploration Canada Ltd. produced molybdenum and tungsten at Mount Pleasant between 1983-1985 at a milling design rate of 650,000 tonnes/year. The mine closed due to falling metal prices. In addition to the molybdenum and tungsten ore bodies, Billiton also delineated important underground resources of tin and indium. The Mount Pleasant mine-site still exists with hydro, mine and mill buildings and tailings facilities.
Geodex was an early participant in the renewed exploration activities in the Mount Pleasant camp, attracted by the excellent potential for further discoveries and the rapidly escalating prices for the metals present at the Mount Pleasant mine The price of indium in particular has soared from price of US$70 / kilogram in 2001 to as much as US$ 1,000 / kilogram in 2006 and is worth approximately US$690 / kilogram in early 2008.
Following research of available government data of the area around the mine, Geodex accumulated a large land position covering numerous historic showings, soil geochemical anomalies and mineralized boulders which had never been adequately followed up due to the 1980s collapse in metal prices.
Option Agreement with Teck Cominco
In June 2007, Geodex granted Teck Cominco an option, exercisable up to the later of July 1, 2009 and completion of the next $2.5 million in exploration on the Mount Pleasant properties by Geodex, to elect to acquire a 51% interest in Geodex’s Mount Pleasant properties by spending $6.5 million on exploration over four years and a further 14% interest by spending a further $15 million or taking any project to feasibility.
This agreement indicates the interest of the major company in the future of indium and the potential of the Mount Pleasant camp. It should help to secure a reliable source of funding as the many properties are advanced towards development.