Properties

Properties Overview

Metal Information

Sisson Brook

Sisson Brook Tungsten-Molybdenum Deposit

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Overview

Sisson Brook is a large porphyry-type tungsten-molybdenum deposit located in west-central New Brunswick, Canada. The project is in the pre-feasibility development stage.

In 2004 Geodex optioned a 70% interest in the property from Champlain Resources, a private, Nova Scotia-based company. In November, 2007, Geodex acquired a controlling interest in Champlain and as a result now effectively owns an 86% interest in Sisson Brook.

Texas Gulf / Kidd Creek Mines Ltd. discovered the first tungsten and molybdenum mineralization at Sisson Brook, and between 1978 -- 1982, that company outlined two tungsten-copper zones ('Zones I and II') and the much larger tungsten-molybdenum deposit, 'Zone III'.

Since acquiring the property Geodex has worked primarily on delineating the resources in Zone III, and the economic studies completed to-date have considered only the potential mine development of Zone III and the smaller 'Ellipse' tungsten-molybdenum zone off-shoot.

Recent Project Development

Preliminary Economic Assessment (Scoping Study) Report May, 2009
Wardrop Engineering completed a Preliminary Economic Assessment Report on Sisson Brook in November, 2007 ( News Release November 16, 2007). The results were positive and the report recommended that work proceed to the pre-feasibility study level.

In a News Release dated March 2, 2009 Geodex released an updated Preliminary Economic Assessment Report. This study was based largely on new data which included an expanded block model of the deposit, and the results of a metallurgical testing program done at SGS Labs in Vancouver.*

The results of the new report show robust economic fundamentals of a pre-tax NPV of $US 372 million, using a discount rate of 8%, and an IRR of 23%. This was based on a mining and crushing rate of 20,000 tonnes per day.

The metallurgical testing results from SGS are a key development for the economic viability of the Sisson Brook deposit. The SGS work indicates that the use of a pre-concentration circuit would allow for 96% of the tungsten and 83.8% of the molybdenum to be recovered in slightly more than half of the feed material. This would increase grade to the mill and reduce capital and operating costs.

*Technical Report by Mercator Geological Services,January 2009

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., is the QP, responsible for the Sisson Brook project.

Updated Resource Estimate, December, 2009
(Based on the Technical Report by Mercator Geological Services, January 2009)

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Engineering and Geotechnical Work

This work is being supervised by TerrAtlanic Engineering Ltd. of Fredericton, N.B. It involves geotechnical and hydro-geological studies of the planned open-pit, and potential process plant and tailings pond locations. This includes studies on groundwater flows, surface soils and open-pit slope stabilities. The work is largely completed and ready for inclusion in the pre-feasibility report.

Community and Environmental Studies

This work is being coordinated by Rescan Environmental Services Ltd. which has an extensive background in dealing with these aspects of resource project development.

In the spring of 2008, Geodex held five open-house meetings to provide information to the public about progress on the Sisson Brook development. Company representatives were present for question-and-answer sessions and poster displays.

On September 5, 2008 Geodex registered the Sisson Brook project with the New Brunswick Department of the Environment. This is the first step in the province's Environment Impact Assessment Process.

Baseline environmental studies began in 2007 and are continuing. This work is being carried out by Rescan with assistance from TerrAtlantic. Rescan is collecting data on environmental components such as air quality, vegetation and wetlands etc., as well as land use, archaeology and socio-economic aspects of potential mine development.

First Nations

Geodex has met with the relevant First Nations group and will advance discussion as the project moves forward.

The Sisson Brook Project: Advantages for Mine Development

The deposit is amenable to mining by low-cost open-pit methods.
Location in a mining-friendly jurisdiction.
Excellent logistics: logging roads provide access to all parts of the property and a paved highway, railway line and power line cross the property.
The property is located on Crown land in a sparsely populated part of the province.

Approximately 50% of the claims have been logged and no major environmental problems are expected.
Water is readily available at the site.
Two deep-water ports are available within several hours by road from the property

Geology and Mineralization at Sisson Brook

Regional Geology and Exploration History

The Sisson Brook deposit occurs at the eastern contact of Nashwaak Granite-Howard Peak Granodiorite batholith, part of a central northeasterly-trending belt of Late Silurian to Late Devonian plutons in central New Brunswick. These intrusions host important
granite-related tungsten-tin-molybdenum-antimony deposits in addition to Sisson Brook, the most important of which are the formerly-producing Burnthill tungsten mine and the Lake George antimony mine. In the southern part of the province a parallel intrusive belt of Late Devonian age contains the Mount Pleasant tungsten-molybdenum-tin-indium mine and related showings.

Sisson Brook straddles the contact between the Howard Peak granodiorite and a deformed sequence of Ordovician Teteguche Gp. volcanic and sedimentary rocks. Separating these two units at the deposit is a gabbro body up to 200 metres wide. This unit is probably an older phase of the Howard Peak granodiorite, although it could be a separate intrusion related to a northeasterly-trending series of small gabbroic plugs of similar age.

Property Geology

The Sisson Brook deposit comprises four steeply-dipping, linear zones of porphyry-style, vein and fracture-controlled tungsten, molybdenum and copper mineralization. Zones I, II and III, the original Kidd Creek discoveries, all strike roughly north-south. The more recently-discovered Ellipse zone has a northwest-southeast orientation.

Geodex drilling results show that the zones merge and are in fact part of a much larger hydrothermal mineralizing system with an area of at least nine square kilometres. Mineralization in all zones begins at the till-bedrock interface and is open at depth.

The Zone III tungsten and molybdenum zone is the largest and best-explored part of the deposit. It is at least 1,500 metres long and up to 700 metres wide. Zone III narrows considerably at its southern end but remains open in that direction. The zone straddles a major north-south shear zone at the gabbro-felsic volcanic contact.

Zone III contains an oval shaped core which is approximately 600 metres by 300 metres in surface area. This core zone is open to the east-northeast and includes drill hole SB-07-53, one of the richest drilled to date on the property. This hole included an intersection of 85.5 metres from 128.5 -- 214.0m assaying 0.305% Mo and 0.080% WO3.

The Ellipse Zone is a northwest trending splay off of the southern end of Zone III. It contains similar metal grades and mineralogy as found in Zone III and is the only deposit found so far which is entirely hosted by intrusive rocks. The Ellipse zone is approximately 800 metres long and up to 350 metres wide where it merges with the main part of Zone III.

Zones I and II were formed during a younger mineralizing episode and comprise smaller tungsten and copper-bearing zones which merge with the northeastern corner of Zone III. Both are hosted entirely by Porten Road Fm. metavolcanics and metasediments.

The larger Zone I deposit varies in true width from a few metres up to 36 metres and has been traced for about 900 metres along strike. As yet, there are no 43-101-compliant resource estimates for these deposits. Kidd Creek calculated a (pre 43-101) resource of 7.5 million tons grading 0.21% WO3 and 0.35% Cu for Zone I.

Zones I and II have wolframite as the dominant tungsten mineral, whereas in Zone III the main tungsten mineral is scheelite. This difference is interpreted to be due to differences in the nature of the wall rocks (scheelite deposition being favoured by the calcium-rich gabbroic rocks in Zone III) and possibly a temperature drop during later metal deposition which favoured the deposition of wolframite in Zones I and II.

A broad metal zoning is present at Sisson Brook with the molybdenum-tungsten core in Zone III surrounded by a copper-tungsten ring represented by Zones I and II to the north and zones of low-grade copper-tungsten mineralization intersected in drilling to the west and south. The Nashwaak Pb-Zn-Sb-Ag showing to the east of Sisson Brook may be evidence of a peripheral base metal -- silver zone.

The Zone III deposit is characterized by being sulphide-poor. There is a lack of visible pyrite and pyrrhotite in the drill core and the observations are confirmed by the results of SGS metallurgical testing and preliminary acid rock drainage (ARD) studies.

A variety of narrow (generally <1m wide) felsic dykes, most abundant in the gabbro, are spatially associated with Zone III, suggesting that the molybdenum-tungsten mineralization is genetically related to the emplacement of a buried quartz-feldspar porphyry stock. This intrusion acted as a heat engine driving the hydrothermal system and the main source of metals in the deposit. The major fault zone at the gabbro contact provided the principal conduit for the mineralizing fluids. Metal zoning patterns and the presence of high-grade molybdenum in the East Flank suggest the buried stock is located below Zone III.

The depth extent of the Sisson Brook deposit is still unknown. Most of the holes in Zone III ended in mineralized rock. Geodex has drilled only one deep hole, SB-07-66, which reached a vertical depth of 525 metres below surface, compared to a maximum vertical depth of 325 metres in other Zone III holes. SB-07-66 was drilled from the same set-up and in the same direction as the molybdenum-rich hole SB-07-53 but at a steeper dip angle of -70°.

Significantly, low-grade tungsten (scheelite) and molybdenum mineralization is still present at the bottom on SB-07-66. The last 20 metres of core assayed 0.023% Mo and 0.030% WO3.

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David Martin, B.Sc., P.Geo., CGA, Geodex's Regional Manager for New Brunswick is a qualified person under NI43-101 and is responsible for the design and conduct of the programs carried out by the Company on the Sisson Brook project. Mr. Martin has reviewed this release and approves its contents.

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.