Geodex Releases Independent 'Preliminary Economic Assessment' on the Sisson Brook Tungsten-Molybdenum-Copper Deposit, New Brunswick, Canada



    Trading Symbol : GXM

    VANCOUVER, Nov. 16 /CNW Telbec/ - Geodex Minerals Ltd. (TSX-V: GXM), (the
'Company') is pleased to report receipt of an independent Preliminary Economic
Assessment (PEA) for its 70%-owned Sisson Brook tungsten-molybdenum-copper
deposit, located north of Fredericton, New Brunswick. The NI 43-101-compliant
report was completed by Wardrop Engineering Inc. (Wardrop) in Vancouver with
financial and operating estimates considered accurate to plus/minus 35%. The
complete PEA report will be filed on SEDAR within one week. The PEA will be
the first stage in increasingly more detailed studies as development on the
project continues. A pre-feasibility assessment will continue from this point
to be completed by the summer of 2008.
    The PEA is 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. This tungsten and molybdenum-dominant
part of the large Sisson Brook mineralized system was defined by 7,053 m of
diamond drilling in 2006 and an approximate 14,500 m of diamond drilling in
2007 (infill drilling not yet complete).
    In October 2007, a Resource Estimate at five cut-of grades, as shown in
the table below was prepared by Mercator Geological Services Limited
(Mercator) of Dartmouth, Nova Scotia and details were released in a News
Release of October 17, 2007. The resource estimate is categorized as being in
the 'Inferred Category' as defined under Canadian Institute of Mining,
Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves
Definitions and Guidelines as amended by the CIM council in 2005. The estimate
reflects a series of WO3% (ie tungsten trioxide)-equivalent cut-offs. This was
done to help public understanding of the resource at this time, since
approximately equal contributions are made to unit value by both tungsten and
molybdenum. The conversion of molybdenum to its equivalent in WO3 was based on
a factor of 2.97 to reflect averaged relative pricing of the two metals over
the 37 month period beginning in January, 2004. Metallurgical and processing
recoveries were assumed to be 100% for this conversion.

    
    Table 1  Mineral Resource Estimate for Sisson Brook Zone III -
             October 17, 2007 Effective Date
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Resource  Equivalent        Tonnes    Tonnes    W03 %     Mo % Equivalent
    Category       W03 %                (Rounded)                     W03 %
               Threshold                millions
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Inferred       0.025   290,784,224     290.8    0.059   0.020      0.118
    -------------------------------------------------------------------------
    Inferred       0.075   214,997,356     215.0    0.069   0.024      0.140
    -------------------------------------------------------------------------
    Inferred       0.125   109,039,490     109.0    0.084   0.032      0.179
    -------------------------------------------------------------------------
    Inferred       0.175    43,440,318      43.4    0.100   0.043      0.227
    -------------------------------------------------------------------------
    Inferred       0.225    15,836,218      15.8    0.121   0.054      0.281
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (*) Notes: Mo and WO3 values capped at 0.7% and 1.2% respectively; WO3
        Equivalent = (WO3% + 2.97(*)Mo %)

    Timing of the Resource Estimate did not allow it to include approximately
75% of the infill holes drilled in 2007 samples of which are in the process of
being prepared and assayed. Nor does it (or the PEA) reflect the
newly-discovered East Flank zone, located on the margin of Zone III, where
recent high-grade molybdenum assays were reported in a News Release of October
30, 2007. These additions, along with ongoing evaluation of drill results from
the tungsten-copper rich Zones I and II are anticipated to positively affect
future Resource Estimates for the property.
    This PEA study should be considered preliminary in nature; 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. Mineral resources that are not mineral
reserves do not have demonstrated economic viability. There is no certainty
that this preliminary assessment will be realized.

    PEA - Base Case Highlights.

    Wardrop has advised that for the base case situation, metal prices and
exchange rates conforming to the SEC guidelines, basically a three-year
backward-rolling average, discounted a further 20%, be used. Therefore Base
Case = SEC Guidelines - 20%.

    All dollars are Canadian unless otherwise stated.

    Metal price basis
      Molybdenum                                                $US 21.60/lb
      Tungsten                                                   $US 8.00/lb

    Average Annual metal production
      Molybdenum (lbs)                                           3.3 million
      Tungsten (lbs)                                             8.1 million

    Pre-Tax Payback (years)                                        2.7 years

    Pre-Tax Internal Rate of Return  Base Case                         29.8%
                                     Base case
                                      -30% (in metal prices)           15.0%

    Pre-tax Net Present Value        Base Case                  $693 million
    (8% discount rate)               Base case
                                      -30% (in metal prices)    $186 million

    Exchange Rate (US/C)                                                1.17

    Annual Throughput (tonnes)                                   6.8 million

    Grade to Process Plant (first ten years)
      Molybdenum (Mo%)                                                0.026%
      Tungsten (W03%)                                                 0.081%

    Strip Ratio (first ten years)                                      1.1:1

    Milling Rate (tonnes/day)                                         20,000

    Tungsten Recovery                                                    70%
    (Aggregate gravity/flotation)

    Molybdenum Recovery                                                  85%

    Initial Capital Cost                                        $353 million
    (excludes working capital and environmental costs)

    Operating Cost (first ten years)                             $9.16/tonne

    Projected Mine Life                                             31 years


    Infrastructure

    The proposed open pit mine has good infrastructure such as permanent
roads, a nearby rail line and a power grid crossing the property. Small towns
such as Napadogan and Stanley are present to the north and east respectively
and there are many other small settlements at greater distance. The capital
city of Fredericton lies 100 km to the southeast and the port of Saint John on
the Bay of Fundy, the same distance south of it.

    Mine Plan and Production

    The PEA contemplates an open pit mine based on the inferred resource
tabulated above. A Surpac block model with Whittle pit optimization was used
to design the mine scheduling. Nominal mine throughput is 20,000 tonnes/day.
Operational constraints such as berms and access roads have not been included
at this level of detail.
    The mine plan includes conceptual designs and layouts for the waste dumps,
roads and tailings impoundment.

    Metallurgy

    The design selected is based on general tungsten and molybdenum recovery
practices and principles. Mineralogical studies to date and a short
metallurgical test program last winter were scoping in nature but disclosed no
unfavourable aspects. A comprehensive study by SGS Lakefield Research Limited
on 2007 sample material is now underway.

    Processing

    The processing facilities will be designed to treat an annual plant feed
of 6.8 million tonnes per year of 343 working days.
    Processing at this point involves delivery of ore into a dump pocket, four
stages of crushing and screening followed by rod mill grinding. After primary
sulphide conditioning and flotation, molybdenum is floated, cleaned and
bagged. A gravity circuit is then used to produce a tungsten concentrate.
Tungsten flotation follows regrinding of the gravity concentrate tailings and
secondary sulphide flotation.


    Table 2. Capital Cost Estimates

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Area    Description                                               Amount
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Direct Costs
    -------------------------------------------------------------------------
    A       Overall Site                                          $5,699,360
    B       Mining                                               $20,677,550
    C       Crushed Ore Storage and Reclaim                      $52,703,837
    E       Grinding and Flotation                              $105,317,610
    F       Tailings                                             $24,027,710
    G       Site Services and Utilities                           $1,657,809
    J       Ancillary Buildings                                   $7,441,595
    K       Plant Mobile Equipment                                $2,086,340
    -------------------------------------------------------------------------
    Indirect Costs
    -------------------------------------------------------------------------
    X       Project Indirects                                    $69,601,000
    Y       Owners Costs                                          $5,000,000
    Z       Contingency (20%)                                    $58,843,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Estimated Total                                             $353,056,212
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Table 3. Operating Costs

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                               Operating Costs
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                          $ Per Tonne            $ Per Tonne
                                       Material Mined          Ore Milled (*)
    Unit Mining Cost (CDN$/t)                    1.30                   2.74
    Unit Processing Cost (CDN$/t ore)                                   5.33
    G&A Cost (CDN$/t ore processed)                                     1.09
    Total                                                               9.16
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (*) first ten years


    Table 4. Pre-Tax NPV and IRR Summary

         IRR & NPV Results @ 8% Discount Rate for Different Cases
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Case            Molybdenum          Tungsten Price            NPV    IRR
                         Price            ($US/mtu)             ($CDN)    (%)
                       ($US/lb)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                    Mo in Mo03    Flotation      Gravity        000's
                                Concentrate  Concentrate
                                        W03          W03
    -------------------------------------------------------------------------
    Base Case             21.6        117.6        164.8      692,688   29.8
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Three Year Average    27.0        146.9        205.6    1,118,238   40.6
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Current Price/
     Exchange Rate        32.3        150.9        211.3    1,000,828   37.7
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    70% of Base Case      15.1         82.3        115.4      186,494   15.0
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    


    Recommendations

    Wardrop concludes that based on the parameters assumed in this
Preliminary Economic Assessment, an open pit mine operating at 20,000 tpd
would be profitable and a viable financial investment. The results are
significantly robust to justify proceeding with studies at the preliminary
feasibility level, the next stage of development.
    All modelling, metallurgical, geotechnical, environmental, design and
cost studies should be advanced to meet this end.

    Qualified persons

    Mr. Jack Marr, M.Sc., P.Geo., is the in-house Qualified Person for this
project and Mr. Michael Cullen, P. Geo. is responsible for technical
information specific to the Resource Estimate presented by Mercator Geological
Services Ltd..
    Mr. Andy Nichols, P.Eng., Chief Mining Engineer of Wardrop Engineering
Inc. is the Qualified Person for matters relating to mine design and financial
analysis. Mr. Andre De Ruijter, P.Eng., Senior Metallurgical Engineer of
Wardrop Engineering Inc. is the Qualified Person for matters related to
metallurgy and mineral processing.

    Ownership

    Geodex is proceeding to earn a 70% interest in the Sisson Brook property
under the terms of a Letter Agreement dated October 25, 2004 with Champlain
Resources Inc., a private Nova Scotia-based company. Geodex expects to be
vested in December 2007 reflecting expenditure of the $2 million work
commitment which is already exceeded. There are no attached royalties. The
initial letter agreement was replaced by a full Option and Joint Venture
Agreement on July 6, 2006, encompassing the terms of the LOA.

    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'

    Jack M. Maris,
    President


    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the accuracy or adequacy of this release.




For further information:

For further information: Christopher R. Anderson, V.P Business
Development, (604) 689-7771, Toll free 1-888-999-3500,
info@geodexminerals.com; Visit our website at www.geodexminerals.com; Renmark
Financial Communications Inc.: Neil Murray-Lyon,
nmurraylyon@renmarkfinancial.com; Christine Stewart,
cstewart@renmarkfinancial.com, (514) 939-3989, Fax: (514) 939-3717,
www.renmarkfinancial.com

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