Tungsten

[Tackler]

Geodex options New Brunswick claims from Union Gold


2006-01-27 17:16 ET - News Release

Mr. Jack Maris reports

GEODEX ANNOUNCES COMPLETION OF OPTION AGREEMENT FOR STRATEGIC LAND POSITION, NEW BRUNSWICK.

Geodex Minerals Ltd. has signed an option agreement with Union Gold Inc., covering three blocks of claims in the Mount Pleasant area of New Brunswick. The total number of claims is 88. This land position lies on the west and south sides of the former Mount Pleasant mine.

The company can earn a 60-per-cent interest in the claims by paying the optionor a total of 500,000 shares over three years and committing to expenditures of $300,000 in that period. The company can increase its ownership to 80 per cent in the following two years by payment of a further 500,000 shares. Union Gold will retain a 1.5-per-cent net smelter return, half subject to buyback, and will gain another 1-per-cent NSR in exchange for its 20-per-cent equity if it elects not to proceed to joint venture.

This acquisition complements several land positions, such as Kedron and Beech Hill, which the company already owns in the region and is exploring for tin, tungsten, molybdenum and indium. The thrust of the exploration is to integrate modern surveys with many older prospects, geochemical anomalies and float discoveries in the belt. The target is mineralization related to high-level granitic cupolas of late Devonian age, which may not outcrop under the thin but extensive cover of glacial till.

This news release has been approved by J. Marr, PGeo, as a qualified person.

Geodex Minerals also announces that it has granted options to purchase a total of 100,000 common shares in the capital stock of the company at a price of 18 cents each for a period of five years to a director and consultant.