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TSX-V: GXM FFT: G2W Sept 2014

TSX-V: GXM Sept 2014 FFT: G2W - Intercontinental Gold …€¦ ·  · 2014-09-04Antimony is quite rare with estimates of the abundance of antimony in the Earth's crust ranging from

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TSX-V: GXM

FFT: G2W

Sept 2014

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.

Forward Looking Statements

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Forward looking statements

Consolidator of producing and past-producing Antimony (and Tin) assets with focus on Nova Scotia, Spain and Australia (and locations around the Mediterranean Basin). Acquire ONLY past-producing or currently producing mines (small scale is not necessarily a deterrent) Exploration to identify mineability (rather than a resource) Pursue past-producing Sb mines with short reactivation time-frames Acquire producing property, upgrading with flotation/concentrator Ensure relatively low-cost access to smelters Seek only uncomplicated mining locations (not isolated or overly rugged terrain) Property acquisition through staking of lapsed licenses and bargain basement buying

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Geodex – Strategy

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Geodex – Capital Structure

Public company, listed on the TSX-V (Canada) SHARES OUTSTANDING 20.2 million shares Warrants @ $0.10 to $0.12 3.1 million Options @ $0.10 to $0.12 2.2 million

FULLY DILUTED 25.5 million shares INSIDERS 27% CLOSE SUPPORTERS ~ 21%

N.B. - Sept 2012: 10:1 share consolidation

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Management

MANAGEMENT & DIRECTORS

Christopher Ecclestone President, CEO, Director Jack Maris Chairman, Director Mark Fields, P.Geo., B.Comm. Director Jack Patterson, M.Sc., P. Geo. Director David M. Buckle, B.Sc., MBL Director Gorden Glenn, B.Sc. Director David Martin, P. Geo. VP, New Brunswick Operations Blaine Bailey, CGA Chief Financial Officer

ADVISORY BOARD

Dr Michael Hirschberger

Alternate Name: Stibium Color: Silver Atomic Number: 51 Atomic Weight: 121.76

Antimony is quite rare with estimates of the abundance of antimony in the Earth's crust ranging from 0.2 to 0.5 ppm. Sparkling lumps of broken crystal like this are how bulk antimony is commonly sold Antimony in its elemental form is a silvery white, brittle crystalline solid that exhibits poor electrical and heat conductivity properties. Commercial forms of antimony are generally ingots, broken pieces, granules, and cast cake. Other forms are powder, shot, and single crystals.

Antimony (Sb) - The Element

Antimony trioxide is the most important of the antimony compounds and is primarily used in flame-retardant formulations. These flame-retardant applications include such markets as children's clothing, toys, aircraft and automobile seat covers.

Antimony - Applications

The most important use of antimony metal is as a hardener in lead for storage batteries. The metal also finds applications in solders and other alloys. Antimony is also used as an alloy in small arms ammunition, buckshot, tracer ammunition, and cable sheathing.

Antimony supplies come from two sources, primary mining and recycling (largely from batteries). The latter has been in decline in recent years. Mine production Reserves 2009 2010e Bolivia 3,000 3,000 310,000 China 140,000 120,000 950,000 Russia (recoverable) 3,500 3,000 350,000 South Africa 2,800 3,000 21,000 Tajikistan 2,000 2,000 50,000 Other countries 3,300 4,000 150,000 World total (rounded) 155,000 135,000 1,800,000 Source: USGS

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Supply Sources

Besides the patchy artisanal sources such as Bolivia and Burma, countries such as Canada and Australia (as well as Slovakia, Spain and Italy) have been producers of note at various times in recent decades. Canada’s mines were producing until as recently as the 1980s and 1990s before being pushed out of business by predatory pricing by the Chinese. The main non-Chinese producers on a measurable scale is: Consolidated Murchison in Sth Africa, owned by Village Main Reef (deep, grade challenged and labour issues) – offtake goes to Traxys, processed in India Costerfield in Victoria, Australia, owned by Mandalay Resources. Offtake goes to China to expedite gold recovery from concentrate Hillgrove in NSW, Australia (owned by Hong Kong group) – offtake probably will go to China also for gold by-product retrieval

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Supply Sources

Supply Sources

Two actions caused production reductions in China, the world’s leading antimony producer. In March 2010, the Government froze approval of any new projects for antimony mining, then the Government shut down about 100 antimony smelters (according to the USGS) in China’s dominant antimony-producing region, an action aimed at closing illegal mines and curbing pollution. Chinese annual production represents one sixth of its total reserves. As usual one needs to take both production and reserve numbers for China with the usual caveats. China has gone from over 85% of global mine production ten years ago to around 63% currently. However, some industry sources have mused that China could stop exports in the future and even become a net importer in coming years. There is a possibility that China might “panic” as it did with Rare Earths and introduce draconian measures to “conserve supplies”

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Role of China

The price of Antimony soared in recent years. Prices had been depressed since the early 1980s until the middle of the last decade. However in the last five years the price has moved strongly higher on supply problems with the main producer, China.

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Antimony Pricing

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Antimony Pricing Historical

Antimony mining tends to be shallow underground mining or open-pit. Mining and processing is relatively straightforward with the caveat that finding smelters willing to take the metal, due to environmental considerations is the challenge. Globally antimony mining has historically had narrow geographical distribution. The “hot-spots” have been China, Canada’s Maritime provinces, the Eastern states of Australia, South East Asia (Burma, Thailand, Laos), Bolivia, Central America (Mexico/Honduras), Turkey, South Africa and in Europe production in the Iberian peninsula, Italy, Slovakia and France. There has been production also in Siberia. The US has scarcely featured and most of Africa and South America has shown little prospectivity. Gold/Antimony mining represents an interesting opportunity where the Sb credits could provide a by-product revenue stream.

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Prospective Areas of Interest

In the decades up until the 1980s, Spain was the leading miner of the metal in Europe. The largest mine was the San Antonio u/g mine, mill and roaster in the province of Badajoz.

Our acquisition is the open-pit feeder mine to the San Antonio complex, some 70 miles distant.

15 Spain and Antimony

The Jacaranda Mine is located about 4 miles east of Herrera del Duque (Badajoz), on the western slope of the Sierra de la Dehesa, in the vicinity of Arroyo de Cañada Mojada. Access to the workings is by a road that originates in the town of Herrera del Duque. The past mining operation was carried out using open-pit techniques during the last operating period (1970-1977) the stibnite ore was hand-cobbed.

16 Spanish Project Details - Mina Jacaranda

17 Mina Jacaranda – Area Geology

The West Gore antimony–gold deposits are located in west-central Nova Scotia, approximately 50 km northwest of Halifax. The initial discovery and mining date back to the late 1800s. Mining continued intermittently into the 1930s. Antimony and gold bearing veins occur in multiple sub-parallel northwest trending faults. Antimony and gold also occur in sheared wall rock, of which there could be increased potential. Two significant veins are indicated on the exploration licence of Elk Exploration Ltd. Past mining was mainly within the area of the Elk Exploration Ltd. licence. There are also reports of antimony and gold bearing waste rock dumps.

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The West Gore Mine – Nova Scotia

Underground development and antimony–gold mining occurred during 1884–1917 with some further development until 1939. In a 1957 report, Cameron Consulting Engineers stated that “about 100,000 tons of material were removed including between 70,000 and 80,000 tons of milling ore” that averaged “at least 4% antimony and about 0.1 oz. Troy gold.” A later report by JVX Ltd. stated “the mine produced some 3,000 tons of antimony.” Most past production was from the Main Vein – Dr. Mosher Fissure. There are as many as 8 shafts on this vein. Development was conducted on the Brook Vein – Berggren Fissure (2 shafts) and the Flowers Vein (2 shafts).

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West Gore – Historical Production

A 1944 report by George Packard estimated 56,200 tons of material on waste/tailings dumps containing and estimated 1.2 million pounds of antimony and 2,528 ounces of gold. Later reports document further sampling / metallurgical studies of the tailings / waste piles.

Antimony is an interesting niche metals market. Before dismissing it as “too small” though we would note the US produces no Sb and yet imports 22,000 tpa and the price recently peaked at over $15,000 per tonne. To this should be added the opportunities to penetrate markets in Asia (outside of China) and in Europe.

Prices are high and indications are that production may remain constrained by Chinese policies. There is a possibility that the tide of Chinese exports may have been turned. China falling into deficit would produce higher prices and a scramble for production.

Antimony is not a difficult product to mine though mines are rarely large

First movers will be first into production and able to generate cash to further strengthen their position

Adding a roaster helps control the value-added chain and enhance margins

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The Opportunity