Giraffe,
Looks like they may be going after the Mount Pleasant Mine in New Brunswick. Estimates place the in-situ metal value of US$8-10 billion as a minimum. The mine briefly operated 25 years ago and holds potential, given the current high metal prices.
A major company is negotiating with Adex Minerals who own the mining rights. Either Teck-Cominco or Falconbridge will the major company involved. I don't know how much Geodex will benefit, but they indentified an opportunity and initiated the process over a year ago, and now brought in a major company to help with the negotiations. Maybe even as a JV partner.
Indium is the speciality metal of importance. Probably over $3 billion alone in that mine and home to the world's largest known reserves of this metal. Flat screen plasma TV's is a major user of this metal. US$1000/kg and strong demand.
Both of the abovementioned majors recover indium as a by-product of smelting zinc. But the Mount Pleasant Mine indium is actually mined and not recovered from flue dust. Whichever company gets the mine, will control the world market for indium to a significant degree.
In preparation for the eventual opening of the mine, Geodex has acquired all of the surrounding land. Good prospects are on that property and rich indium grab samples have been found. Geodex will drill the property later in 2006.
stockhouse.ca
Geodex has a property in New Brunswick called Sisson Brook. John Kaiser, the newsletter writer, likes this play. Currently there are two drills on the property doing infill drilling every 100 metres, to get a NI 43-101 compliant resource definition completed.
At the Calgary Mining Show in April 2006 (Cambridge House sponsored), John Kaiser told the audience he owns quite a lot of Geodex. He took part in two private placements in the 10-15 cent range.
The dip to 22 cents this week was a shakeout in my opinion, as insiders were buying in the 26-30 cent range recently. Going back a few months and 40-42 cents was the going price for insider purchases.
Until the resource definition at Sisson Brook is completed and the outcome at Mount Pleasant known, I would hold on to this stock. We are talking billions of dollars here, and for a small company like Geodex, the impact could be substantial.
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