Objective Capital Global Mining Investment Conference - Tungsten: Mark Fields

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Objective Capital Global Mining Investment Conference
Tungsten - The Commodity Super Cycle
30 Sep 2009
by Mark Fields, Geodex Minerals

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  • Picture, % usage , couple examples.
  • Pg 74 worldwide production
  • Graph from USGS ranging from 2004 (1985) – 2009 or ITIA pg 125
  • Objective Capital Global Mining Investment Conference - Tungsten: Mark Fields

    1. 1. London Global Mining Investment Conference<br />16.25 Tungsten<br />Mark Fields<br />President & CEO<br />Geodex Minerals<br />Stationers Hall, London<br />Wednesday 30th September 2009<br />www.ObjectiveCapitalConferences.com<br />
    2. 2. TUNGSTEN<br />The Commodity Super Cycle<br />
    3. 3. Disclaimer<br />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.<br />
    4. 4. Tungsten Price<br />Tungsten APT* European free market $ per mtu<br />Source: Metal Bulletin<br />*APT = Ammonium Paratungstate<br /> 1mtu =10kg<br />
    5. 5. TUNGSTEN Primary USES<br />A Unique Metal<br /><ul><li>Hardest of all metals
    6. 6. Highest Melting Point
    7. 7. Lowest Expansion Coefficient
    8. 8. High Thermal and Electrical Conductivity</li></ul>Source: ITIA - 2009<br />
    9. 9. Cemented Carbides<br />Mining and Construction<br />Tooling – Turning, Milling, Drilling<br />Woodcutting<br />Hard & Resistant: Wear Parts<br />
    10. 10. Cemented Carbides con’t<br />Source: ITIA - 2009<br />
    11. 11. Steels/Alloys<br />Heat Resisting Steel and Cast Steel<br />Sea Water Resistant<br />Tool Steels <br />Stainless Steel & Valve Steels<br />High Speed Steel <br />
    12. 12. Steels/Alloys<br />Wear Protection<br />Diamond Tools<br />Tungsten Alloys<br />
    13. 13. MILL PRODUCTS<br />Incandescent Lamps<br />Fluorescent Lamps & Tubes<br />High Intensity discharge Lamps<br />Lamps & Tungsten Wires<br />
    14. 14. MILL PRODUCTS<br />Chips<br />High Performance Switches<br />LCD’s<br />Electrodes<br />
    15. 15. Other applications<br />Chemical Products<br />Sports & Leisure Time<br />Biology<br />Jewellery<br />
    16. 16. Research and Development<br />New Technologies<br /><ul><li>Deep Drilling
    17. 17. Fossil Power Generation
    18. 18. Thermonuclear Energy
    19. 19. Chip Technology</li></ul>Tungsten & the Environment<br /><ul><li>Catalyst to clean exhaust fumes or products from toxic compounds
    20. 20. Saves fossil fuels through energy saving devices
    21. 21. As a substitute for toxic lead and chromium</li></ul>Medical Industry <br /><ul><li>Micro Machining Brain Implant Needle Arrays</li></ul>Directional <br />Drilling<br />Chip Technology<br />
    22. 22. Annual World Tungsten Production<br />Source: ITIA - 2009<br />
    23. 23. World Mine Production<br />World Production 2008<br />tonnes of tungsten<br />
    24. 24. World Tungsten Reserves<br />Source: ITIA - 2009<br />3 million tonnes, W content<br />
    25. 25. CHINA FACTORS<br /><ul><li>China has dominated tungsten markets for the past 20 years, and currently supplies over 75% of world’s tungsten.
    26. 26. China has recently shifted from an exporter to a net importer with an increasing focus on producing downstream tungsten products.
    27. 27. China now prohibits tungsten exploration by foreign companies.
    28. 28. Tungsten prices have increased as China’s expansion and infrastructure build-out surpassed tungsten mine capacity.
    29. 29. Geodex has opportunity to position itself as a key supplier in world tungsten industry.</li></li></ul><li>CHINA FACTORS CON’T<br /><ul><li>1991 - Tungsten listed as one of the ‘Protective Resources”
    30. 30. 2001 - Policy of Qualified Tungsten Exporter and Export Supplies
    31. 31. 2005 - Export rebate reduced from 13% to 8%
    32. 32. 2006 - Export rebate further reduced and cancelled
    33. 33. 2007 - Export duty introduced at 5%
    34. 34. 2008 - Export duty increased to 10%
    35. 35. 2009 - Export reduced to 5%</li></ul>Source: China Minmetals Nonferrous Metals Co., Ltd - 2009<br />
    36. 36. World’s 10 Largest Tungsten Deposits<br />*Includes only Measured & Indicated Resources. Additional Inferred Resource of 43,000t W<br /> (Sisson Brook excludes molybdenum values) <br />Source: US Geological Survey and updated by ITIA and Geodex in 2009<br />
    37. 37. Geodex Minerals <br />TSX.V: GXM<br />Frankfurt: G2W<br />
    38. 38. Share Structure <br />September 2009<br />SHARES OUTSTANDING 87.7 million shares<br />FULLY DILUTED 101.1 million<br />CASH ON HAND $0.7 million <br /> 52 Week High-Low: $0.10 - $1.37<br />
    39. 39. New Brunswick, Canada<br />Sisson Brook <br /><ul><li>Located within one hour drive of Fredericton, provincial capital of New Brunswick
    40. 40. Stable, mining - friendly jurisdiction with excellent labour workforce
    41. 41. Geodex owns 70% directly and 16% indirectly, no royalties</li></li></ul><li>SISSON BROOK MINE DEVELOPMENT PLAN<br />Right ingredients for developing low-cost mine<br /><ul><li>Infrastructure on or near project includes:
    42. 42. hydro line
    43. 43. provincial highway
    44. 44. railway
    45. 45. deep water port
    46. 46. Previously logged area with</li></ul> extensive road network<br /><ul><li> Geotechnical, environmental and community studies continue to progress</li></ul>Bird Brook <br />Tailings Area<br />Process Plant<br />Potential Open Pit Mine <br />producing 20,000 tonnes per day<br />Power Line<br />1000 m<br />
    47. 47. SISSON BROOK DEPOSIT<br />Tungsten - Molybdenum<br />Zone I<br />Zone II<br /><ul><li>46,500m of drilling carried</li></ul> out since 2005<br /><ul><li>Jan 2009, new resource calculation completed
    48. 48. Feb 2009 preliminary economic assessment completed
    49. 49. Initiating pre-feasibility study</li></ul>Zone III<br />Core Zone<br />East Flank<br />Ellipse Zone<br />500 m<br />
    50. 50. SISSON BROOK LEVEL PLAN - ZONE III 275 m ELEVATION<br />Cross – Section 5136700<br />Core Zone<br />W<br />E<br />Ellipse Zone<br />300 m<br />
    51. 51. SISSON BROOK CROSS - SECTION 5136700<br />200 m<br />
    52. 52. 2009 RESOURCE MODEL<br />Sisson Brook January 2009 43-101 Resource Calculation Zone III & Ellipse<br />* At 0.125% WO3 equivalent cutoff grade, based on %WO3 + (%Mo x 2.02)<br /> M & I = Measured & Indicated <br />
    53. 53. Scoping Study May 2009¹<br />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. <br />Jack M. Marr, M. Sc. P. Geo., is the QP, responsible for the Sisson Brook project.<br />
    54. 54. Scoping Study May 2009<br />* 1 mtu = 10kg<br />¹Conversion used: $1CDN = $0.85 US<br />
    55. 55. Scoping Study May 2009<br />
    56. 56. Proposed Prefeasibility Program<br />Purpose<br /><ul><li>Identify and outline the potential commercial development scenario
    57. 57. Provide the basis for future work programs including feasibility report
    58. 58. Mine Design Engineering
    59. 59. Metallurgical Testing
    60. 60. Process Facilities Design
    61. 61. General Engineering and Infrastructure Design
    62. 62. Environmental Monitoring
    63. 63. Waste Management Design
    64. 64. Financial Modeling and Analysis</li></li></ul><li>Geodex Minerals <br />TSX.V: GXM<br />Frankfurt: G2W<br />
    65. 65. London Global Mining Investment Conference<br />Mark Fields<br />President & CEO<br />Geodex Minerals<br />Mark Fields joined Geodex Minerals as President and CEO in May 2009. Mr Fields holds a B.Sc. in Geology from the University of British Columbia and a B. Comm. (Honours) from Queen’s University. <br />Mr Fields was a member of the management team which participated in the sale of La Teko Resources Ltd to Kinross Gold Corporation and he was involved in the acquisition and development of the Diavik diamond mine for the Rio Tinto Group. As Executive Vice President of Pine Valley Mining Corporation, he was a key member of the executive team which brought the Willow Creek coal mine into commercial production. He is an independent director of three companies listed on the TSX Venture Exchange.<br />Stationers Hall, London<br />Wednesday 30th September 2009<br />www.ObjectiveCapitalConferences.com<br />

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