New Geodex Resource Model increases Sisson Brook Tungsten-Molybdenum-Copper deposit to 243.9 million tonnes ‘Measured and Indicated’ and 154.4 million tonnes ‘Inferred’.
Geodex Minerals Ltd., (the ‘Company’) is pleased to report receipt of an updated resource estimate for its Sisson Brook deposit, located north of Fredericton, New Brunswick. This resource estimate confirms the expanding size of the resource in Zone III and for the first time places a proportion of the resource in the much more reliable ‘Measured and Indicated’ categories. As in previous resource estimates, this study was independently prepared by Mercator Geological Services Limited (Mercator) of Dartmouth, Nova Scotia under supervision of Mr. Michael Cullen, P. Geo. and Mercator staff Geologist Mr. Matthew Harrington. Mr. Cullen is a ‘Qualified Person’ as defined under National Instrument 43-101 (NI 43-101). The estimate is considered compliant with NI 43-101 and a Technical Report supporting the estimate will be posted on SEDAR within 45 days.
This resource estimate is again based solely on the southern half of the Sisson Brook deposit, referred to as Zone III, which was partially drilled by Texasgulf/Kidd Creek Mines in the period from 1979 to 1982. Geodex has carried out exploratory and drilling programs in the area since 2005. Two previous resource estimates in the ‘Inferred’ category have been prepared, documented in News Releases of March 28, 2007 and October 17, 2007. The latter was incorporated into a ‘Preliminary Economic Assessment’ (Scoping Study) which was delivered by Wardrop Engineering in November, 2007 and summarized in a News Release of November 16.
Zone III is a 1.5 km long, fracture-controlled area of tungsten and molybdenum mineralization which is localized along a gabbro-volcanic contact area. It has a north-northeasterly trend and is up to 500 m wide through its central area. Surface area is approximately 61 hectares. All indications are that the zone itself and the fractures within it are steeply-dipping. One deep hole drilled in 2007 stayed in mineralization to its final depth of 500 m.
The present resource estimate tabulated below is based on 128 angled drill holes, most of which were
drilled in 2006 and 2007. Assays were composited into 3 metre intervals for the resource model. See
below for more detailed methodology. Protocol for insertion of duplicates, blanks and standard check
samples was designed by Mercator. Analyses were carried out using Neutron Activation methods by
Actlabs of Ancaster, Ontario.
Drilling in 2007 on Zone III took place on fences at 50 m intervals between the 100 m spaced
lines of previous years. This allowed much more certainty in the status of the resource and this is
reflected in the appearance of resources in the “’Measured and Indicated’ categories.
Updated June 2008 Mineral Resource Estimate and Classification.
(tonnage figures are rounded)
---------------------------------------------------------------------------
Thresh-
old
Equiva- Measured Indicated Inferred
lent Tonnes % % Tonnes % % Tonnes % %
WO3% (millions) WO3 Mo (millions) WO3 Mo (millions) WO3 Mo
---------------------------------------------------------------------------
---------------------------------------------------------------------------
0.025 18.6 0.067 0.025 225.3 0.061 0.019 154.4 0.049 0.020
---------------------------------------------------------------------------
0.075 15.2 0.075 0.029 160.0 0.073 0.025 103.4 0.059 0.027
---------------------------------------------------------------------------
0.125 10.3 0.086 0.036 92.5 0.088 0.033 55.4 0.072 0.036
---------------------------------------------------------------------------
0.175 5.6 0.099 0.047 47.4 0.100 0.043 25.7 0.085 0.047
---------------------------------------------------------------------------
0.225 3.0 0.109 0.060 22.6 0.111 0.055 11.4 0.094 0.060
---------------------------------------------------------------------------
-------------------------------------------------------------------------
Thresh-
old
Equiva-
lent Tonnes % % Percentage of total
WO3% Combined Categories (millions) WO3 Mo threshold tonnage
-------------------------------------------------------------------------
-------------------------------------------------------------------------
0.025 Measured and Indicated 243.9 0.061 0.020 61.2
-------------------------------------------------------------------------
0.075 Measured and Indicated 175.2 0.073 0.025 62.9
-------------------------------------------------------------------------
0.125 Measured and Indicated 102.8 0.088 0.033 65.0
-------------------------------------------------------------------------
0.175 Measured and Indicated 53.0 0.099 0.044 67.3
-------------------------------------------------------------------------
0.225 Measured and Indicated 25.6 0.111 0.056 69.2
-------------------------------------------------------------------------
- WO3% Equiv. equals WO3% +(Mo % x 3.35)
NI 43-101 does not permit addition of Measured/Indicated to
Inferred Resources but it is clear that the new resource calculation
indicates significant tonnage increases from the 2007 estimate,
particularly in the higher grade categories. Increases range from 37.0%
at the lowest threshold level (0.025% WO3 Equiv.) to an increase of
134.2% at the highest (0.225% WO3 Equiv.). The lowest threshold figure
attests to the large size of the deposit which has not yet been totally
defined. It should however be considered a mineralized footprint at
this time since it is still the company's intention to explore for
higher grade areas within and around this envelope. The company expects
that grades at the mid-level threshold (0.125 WO3 Equiv.) will be the
mine target grades.
Metal Content
The company notes that both molybdenum (currently at $US 32-33/lb
as oxide) and tungsten (currently at $US 12/lb APT) prices have
remained strong for the past few years. The table below shows total
pounds of metal in the various threshold categories shown above. Note
that these are 'in situ' quantities and process recoveries will be
lower. Tonnages and metal content are rounded.
BY CATEGORY
--------------------------------------------------------------------------
MEASURED
Threshold & Mo
Equivalent INDICATED WO3 WO3 total metal
WO3 (millions) % total metal (lbs) Mo% (lbs)
--------------------------------------------------------------------------
0.025 243.9 0.061 328 mill 0.020 108 mill
--------------------------------------------------------------------------
0.075 175.2 0.073 282 mill 0.025 97 mill
--------------------------------------------------------------------------
0.125 102.8 0.088 199 mill 0.033 75 mill
--------------------------------------------------------------------------
0.175 53.0 0.099 116 mill 0.044 51 mill
--------------------------------------------------------------------------
0.225 25.6 0.111 63 mill 0.056 32 mill
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Threshold Mo
Equivalent INFERRED WO3 WO3 total metal
WO3 (millions) % total metal (lbs) Mo% (lbs)
--------------------------------------------------------------------------
0.025 154.4 0.049 167 mill 0.020 68 mill
--------------------------------------------------------------------------
0.075 103.4 0.059 134 mill 0.027 62 mill
--------------------------------------------------------------------------
0.125 55.4 0.072 88 mill 0.036 44 mill
--------------------------------------------------------------------------
0.175 25.7 0.085 48 mill 0.047 27 mill
--------------------------------------------------------------------------
0.225 11.4 0.094 24 mill 0.060 15 mill
--------------------------------------------------------------------------
TOTAL
---------------------------------------------------
Threshold
Equivalent WO3 Mo
WO3 total metal (lbs) total metal (lbs)
---------------------------------------------------
0.025 495 mill 176 mill
---------------------------------------------------
0.075 416 mill 159 mill
---------------------------------------------------
0.125 287 mill 119 mill
---------------------------------------------------
0.175 164 mill 78 mill
---------------------------------------------------
0.225 87 mill 47 mill
---------------------------------------------------
- WO3% Equiv. equals WO3% +(Mo % x 3.35)
The company cautions that current prices may not be maintained for
the development period or the life cycle of any resulting mine.
However, it remains confident that the near-surface, open-pittable
nature of the deposit and the excellent access/power structure in New
Brunswick will make any development more than competitive.
A full program is now underway on the deposit to produce the data
necessary for a pre-feasibility study to be delivered by Wardrop
Engineering in late September 2008. Three drills are presently on the
property exploring extensions to various zones although it is intended
that the block model in this present study will be used in the
pre-feasibility report. Aside from all the development planning,
Wardrop Engineering will be carrying out mine design and grade
optimization studies over the course of the summer to ensure that the
best grades are mined early in the life of the mine. These will form
the 'starter pits' or high-grade areas to aid in early recovery of
capital costs. The company will also be aggressively exploring seven
other properties in the vicinity of the planned Sisson Brook minesite.
Rescan Environmental Services Ltd. is proceeding with a
wide-ranging environmental program in the area and has started work on
community relations and aboriginal studies. A Fredericton-based
company, TerrAtlantic Engineering Limited, is working on geotechnical
and hydrogeological aspects of the planned open pit along with
locations for process plant and tailings. Interim reports will be
provided to Wardrop for inclusion in the pre-feasibility study this
fall.
Jack Marr, M.Sc., P.Geo., is the in-house QP for this project and
Mr. Michael Cullen, P. Geo. of Mercator is responsible for technical
information specific to the resource estimate presented in this press
release.
Estimation Methodology
The resource estimate was carried out using Surpac®
modeling software, inverse distance squared grade interpolation and 3.0
meter down hole assay composites capped at 0.35% Mo and 0.6% WO3. Block
size was 10 meters (x) by 10 meters (y) by 5 meters (z) with
sub-blocking at 5 meters (y) by 5 meters (x) by 5 meters (z). A grade
interpolation search ellipse with major axis range of 175 meters
oriented at 010 azimuth in a vertical plane and plunging 50 degrees to
the north was used with a major/semi major axis ratio of 1 (175 meters)
and a major/minor axis ratio of 10 (17.5 meters). The model is fully
constrained within a peripheral three dimensional solid. A specific
gravity factor of 2.87 grams/centimeter3 was used for mineralization
hosted by gabbro and a factor of 2.77 grams/centimeter3 was used for
mineralization hosted by mixed volcanic and sedimentary lithologies. A
WO3 Equivalent (WO3 Eq.) factor of WO3 Eq.% equals WO3% +(Mo% x 3.35)
was developed on the basis of 3 year metal pricing, 70% WO3 recovery
and 85% Mo recovery factors reported in the project scoping study by
Wardrop Engineering Inc. dated November 7, 2007. Several cutoff values
were used, the lowest at 0.025% WO3 Eq.
Measured resources were defined as any block having 12 included
assay composites showing averaged distance from the block of 25% of the
major axis range (43.75 meters), with the block being 30 meters or less
from at least one included composite. Indicated resources were defined
as any block having 12 included assay composites showing averaged
distance from the block of 50% of the major axis range (87.5 meters),
with the block being 60 meters or less from at least one included
composite. Inferred resources were defined as all blocks within the
peripheral deposit constraint not identified as Indicated or Measured
resources.
Forward Looking Statement
Certain information regarding the Company contained in this press
release may constitute forward-looking statements within the meaning of
applicable securities laws. Forward-looking statements may include
estimates, plans, opinions, forecasts, projections or other statements
that are not statements of fact. Although the Company believes that
expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such expectations will prove
to have been correct. The Company cautions that actual performance will
be affected by a number of factors, many of which are beyond the
Company's control, and that future events and results may vary
substantially from what the Company currently foresees.
On Behalf of the Board of Directors
GEODEX MINERALS LTD.
Jack M. Maris, President
For further information contact:
Christopher R. Anderson, V.P Business Development
(604) 689-7771, Toll free 1-888-999-3500, Email: info@geodexminerals.com
Visit our website at www.geodexminerals.com
