Properties

Dungarvon

Dungarvon Molybdenum -- Tungsten - Tin Property

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Introduction
As a result of Geodex's exploration success at the developing Sisson project the Company is actively seeking similar properties in New Brunswick. The recently acquired Dungarvon property, located in central New Brunswick, 80 km northeast of Fredericton, was acquired in 2011 and has the potential to host Sisson-style large tonnage open-pittable tungsten-molybdenum deposits as well as high-grade tungsten-tin-molybdenum veins.

Geodex has an option agreement with two New Brunswick prospectors to acquire a 100% interest in the property through an initial $25,000 payment and subsequent staged payments over four years totaling a further $175,000. The vendors retain a 2 % net smelter royalty, of which Geodex has the right to purchase half for $1 million.

Regional Geological Setting

The claims cover a section of the Dungarvon Pluton which is part of a cluster of Middle Devonian-aged granitic intrusions named the Burnthill Brook Granites. These intrusions contain numerous showings and several significant hydrothermal deposits of the tin-tungsten-molybdenum-fluorine suite, including the formerly producing Burnthill tungsten mine. Deposits typically occur at or near the intrusive contacts in fault and fracture systems, often with northwest-southeast trends.

Mineralization and Property Potential

Exploration by Billiton and Kidd Creek Mines / Falconbridge in the 1980s on ground now covered by Geodex claims resulted in the discovery of two main areas of interest - Fall Brook and Peaked Mountain. Kidd Creek completed surface geology, geochemical and geophysical surveys to define targets but stopped exploration without drilling these.

In 2007, First Narrows Resources Corp. drilled a fence of four shallow and three deep holes to test part of the Dungarvon Pluton contact zone at Peaked Mountain. Two of the deeper holes intersected significant molybdenum and tungsten mineralization highlighted by:

Hole 4717-07-006: 0.032% Mo, 0.008% WO3 over 85m
(including - 0.065% Mo, 0.010% WO3 over 27m)

Hole 4717-07-007: 0.017% Mo, 0.020% WO3 over 64m
(including - 0.039%Mo, 0.022% WO3 over 18m)

Kidd Creek's work identified I.P. and VLF anomalies, tungsten and molybdenum soil geochemical anomalies and most significantly, two areas of mineralized float boulders interpreted to be near-source. The most impressive of these is an area approximately 1,100m by 250m in size with numerous metavolcanic and gabbro boulders mineralized with scheelite and more locally, molybdenite and wolframite. Kidd Creek reported assay values up to 6.7% WO3 in samples from the boulders. Glacial ice movement directions suggest a bedrock source for these boulders towards the prospective intrusive contact.

The second principal target on the property is at Fall Brook, located about five kilometres north of Peaked Mountain. This area is marked by the presence of molybdenum and tungsten-bearing float boulders and molybdenum and tin soil anomalies.

In September, 2011, Geodex completed a six-hole, 635 metre diamond drilling program on the property. Four holes tested targets in the Peaked Mountain area while two holes were drilled at Fall Brook. All holes were in areas not previously drill-tested.

The first drill hole, DU-11-01, was drilled at an azimuth of 045° and a dip of -45° to test the periphery of the mineralized boulder field. It intersected 0.022% of WO3 (tungsten oxide) over 30.90 metres, from 40.35 to 71.25 metres. This near-surface zone locally contained molybdenite with up to 0.017% molybdenum over 1.5 metres from 44.85 metres to 46.35 metres. The tungsten occurs as scheelite in what appears to be two main fracture and quartz vein sets cutting a fine grained mafic intrusion.

Hole DU-11-2 was drilled at a 225° azimuth and a dip of -45° from the same drill set-up as DU-11-01. The bottom 13 metres to the end of the hole at 89 metres contained weak scheelite in a similar mafic intrusion. The remaining drill holes intersected varying levels of weak tungsten and molybdenum mineralization.

The 2011 drilling results are encouraging as they show the presence of significant widths of intrusive related tungsten mineralization in multiple vein sets on the periphery of the main target on the property - the zone of abundant mineralized boulders. Geodex is planning a significant program of drilling to follow-up the 2011 discovery at Peaked Mountain as well as assessing other areas on the large property. The good road access and location in central New Brunswick permits Geodex to conduct significant programs at a very reasonable cost compared to many other jurisdictions.


David Martin, B.Sc., P.Geo., Geodex's Vice President, New Brunswick, is a qualified person under NI 43-101 and is responsible for the design and conduct of the programs carried out by the Company on the Dungarvon Project.

The Company expressly warns readers not rely on the information herein for investment or other related purposes. Accordingly, any use of this information is at their own risk and without liability to the Company. The information contained herein is not, and under no circumstances is to be construed as either a public or private offer of solicitation to purchase securities in the capital stock. The reader is referred to his/her professional investment advisor regarding investment or related decisions respecting the securities of the company.