2012 05 02 Geologix Corp Final - Toronto Stock Exchange · 3...

CORPORATE�PRESENTATION�|�November��2011

Growth�ThroughAcquisition,�Exploration�

and�Development

Growth�ThroughAcquisition,�Exploration�

and�DevelopmentCORPORATE�PRESENTATION�|�May�2012

This�presentation�includes�forward�looking�information.�While�we�believe�the�anticipated�results,�performance�or�achievements�expressed�or�implied�by�the�forward�looking�information�are�based�on�reasonable�assumptions�and�expectations,�you�should�not�place�undue�reliance�on�them�as�they�involve�unknown�and�known�risks,�uncertainties�and�other�factors�which�may�cause�the�actual�results�of�the�Company�to�differ�materially�from�those�anticipated.�You�should�review�our�documents�filed�with�the�securities�authorities�in�Canada,�including�our�AIF�under�the�heading�“Description�of�the�Business�– Risk�Factors”.�These�documents�describe�the�material�factors�and�assumptions�that�were�applied�in�drawing�the�conclusions�and�making�the�forecasts�and�projections�reflected�in�the�forward�looking�information�and�the�material�factors�that�could�cause�our�actual�results�to�differ�materially.�We�undertake�no�obligation�to�update�or�revise�any�forward�looking�statements�or�information�made�in�this�presentation.

2

Forward�Looking�Statement

3

An�advanced�stage�gold�copper�open�pit�project�in�Mexico�with�strong�economics�and�significant�exploration�upside.

Tepal�Project,�Mexico2012�New�Resource��Prefeasibility�in�2nd Quarter

Upsizing�production�rates�50%�to�35,000�tpd

New�Target�Drilling�in�2nd Quarter7�new�target�areas,�3�ready�for�drilling�now

Bankable�Feasibility�3rd &�4th QuarterProduction�Targeted�for�2014�

Company�Overview

Shares�Outstanding 136.1�M

Options� 11.6�M

Warrants Nil

Debt NilFully�Diluted 147.7�M

Cash&�Receivables�(Jan�1,�2012) CDN�$9.7�M

Fully�Diluted�Market�Cap CDN�$33�M20�Day�Average�Share�Price $0.2720�Day�Average�Volume� 394,308

Insider�Holdings 5%

4

Share�Structure

5

Board�of�Directors�&�AdvisorsGraham�Thody,�CAChairman,�Director

� 25�years�industry�experience.� Currently�serves�as�President�&�CEO�of�UEX�Corporation,�Director�of�Baja�Mining.

Dunham�Craig,�B.Sc.,�P.Geo.President�,�CEO,�Director

� 20�years�industry�experience;�discovery�through�development�&�production.� Cominco,�Wheaton�River�(VP�Corp�Dev.),�Glencairn (VP�Corp�Dev.)� Development�of�2�operating�mines�through�BFS�and�production.

Randy�Smallwood,�B.Sc.,�P.EngDirector

� President�&�CEO�of Silver�Wheaton�Corp.� 20�years�experience,�with�specific�experience�in�mine�development�and�operations.� Goldcorp,�TeckCominco,�Homestake ,�Westmin Resources, Wheaton�River�Minerals.

George�Brack,�B.Sc.,�MBA,�CFADirector

� 25�years�experience�investment�banking,�corporate�development,�M&A.� Prior�President�of�Macquarie�North�America,�Managing�Director�Mining�Group�Scotia�Capital.

Mauricio�Candiani,�MBADirector

� President�&�CEO�of�Candiani Mining,�previous�Federal�Congressman�in�Mexico.� Extensive�background�in�Latin�American�divesture�deals,�equity�and�M&A�transactions.� Previous�Advisor�to�Southern�Copper,�Endeavour�Silver,�La�Camera,�and�Mitsui.

Eduardo�Luna,�MBAAdvisor�to�the�Board

� Executive�Vice�President�&�President,�Mexico�of�Primero Mining.� Prior�President�Goldcorp Mexico,�Prior�President�Luismin Mining�Mexico.

Robert�Willis, P.Eng.Advisor�to�the�Board

� Chairman�&�CEO,�San�Marcos�Mining,�Past��Director,�President,�and�Chairman�,�Geologix,�Prior�President�and�CEO�of�Manhattan�Minerals�Corp., Prior�President�and�CEO�of�Pioneer�Metals�Corp.

6

Key�Management

Siegfried�(Sig)�Weidner,�B.Sc.VP�Exploration

� 25�years�experience,�including�18�years�at�Rio�Algom/Billiton/BHP�Billiton with�extensive�experience�throughout�the�Americas.

� Lead�the�team�responsible�for�the�discovery�of�BHP’s�Spence�Porphyry�Copper�deposit�in�Chile�and�awarded�PDAC Prospector�of�the�Year�award�in�1998.

� Previous BHP Exploration�Manager,�North�America�&�Europe.

Faysal Rodriguez,�M.Sc.,�L.�EngManager,�Mexico

� 15�years�in�the�mining�industry.��A�Mexican�national.� Responsible�for�permitting�Glamis Gold’s�El�Sauzal Project (Mexico),�and�Agnico�Eagle’s,�

Pinos Altos�Project (Mexico).��Strong�background�in�Mexican�project�permitting,�mining�and�community�relations.

Jeffrey�R.�WilsonVP�Corporate Communications

� 18�years�in�the�mining�and�mining�investment�industries.�Extensive�buy�side�and�sell�side�contacts�through�North�America�and�Europe

� Previously�acted�as�an�independent�investor�relations�consultant�to�several�mineral�exploration�companies�including�Silver�Quest�Resources.��Previous�Director�of�Aquiline�Resources�Ltd. and�Welcome�Opportunities�Ltd.�(now�Endeavour�Mining�Corporation)

Evelyn�Abbott,�B.Sc.,�CMA.CFO�&�Corporate�Secretary

� 15�years�of�finance�and�accounting�experience� Previous�Director�of�Finance�for�Tibbett�&�Britten�North�America�(a�multinational�public�

logistics�company),�with�financial�responsibility�for�eight�subsidiaries�and�over�$350�million�in�annual�revenue.�Previous�Director�of�Finance�for�B.C.�Research�Inc.�and�Vizon Scitec Inc.

7

Share�Price�Performance�&�Milestones

Tizate�Expansion�Drill�Results

Tizate�Expansion�Drill�Results

Drilling�Extends�South�Zone�at�Depth

Drilling�Extends�South�Zone�at�Depth

Property�wide�Airborne�Completed

Property�wide�Airborne�Completed

Drilling�Discovers�High�grade�at�Depth

Drilling�Discovers�High�grade�at�Depth Geophysics�

Identifies�7�New�Targets

Geophysics�Identifies�7�New�Targets

Tepal�2012�Resource�Estimate�

Announced

Tepal�2012�Resource�Estimate�

Announced

Company�Asset�Overview

8

NEVADA�JV

PERU�JV

TEPAL�GOLD�COPPER�PROJECT

TEPAL�GOLD�COPPER�PROJECT

Primary�Focus:�Mexico

Upcoming�Prefeasibility

Category Tonnes�(M)

Goldg/t Copper�% Gold�Oz.�

(M)Copper�lbs�

(M)Au��Oz.�Equiv*�

(M)Measured 34.1 0.48 0.25 0.528 185.0 1.037Indicated 153.7 0.26 0.19 1.276 628.0 3.003

M&I 187.8 0.30 0.20 1.804 813.0 4.040Inferred 35.7 0.16 0.15 0.182 120.0 0.512

March,�2012�Tepal�Resource:

Secondary

Peru:La�Joya:�Au,�Cu,�Zn,�Pb

(JV�with�Glencore)

Nevada:RO:�Au,�Ag�– Joint�VenturedSilver�Cloud:�Au�Ag(available�for�option)

The�in�situ�resource�stated�in�the�table�conforms�to�CIM�guidelines�for�reasonable�potential�for�economic�extraction�and�is�not�to�be�confused�as�reserves.��Resource�numbers�above�are�rounded�to�nearest�100,000�tonnes,�1,000�oz.�Au,�1,000,000�lbs.�Cu�and�1,000�oz.�AuEq.AuEq =�gold�equivalent�and�is�calculated�using�gold�and�copper�only�using�$1000�Au,�$2.75�Cu�metal�prices�(AuEq =�(lbs.�Cu�*$2.75/$1000)�+�Au�oz.).��All�dollar�values�stated�are�$USD.

9

TEPAL�PROJECT�/�MICHOÁCAN,�MEXICO

GIX�Resource�Growth Profile – Au�Equiv.�ozs

10

TEPAL PROJECT / MICHOACAN, MEXICO

TEPALPROJECT

TEPALPROJECT

Project�Location�MapTEPAL�PROJECT�/�MICHOÁCAN,�MEXICO

11


Local�Infrastructure

• Town�of�Tepalcatepec– Town�population�of�16,000– Well�educated�workforce– Large�percentage�of�people�work�away�from�home– 14�kilometres�from�site

• Power– 50�megawatts�available�today– 14�kilometres�from�site

• Land– Topography�is�a�“natural”�for�construction– Surface�land�is�privately�owned– Ranch�land�– no�churches�or�buildings– No�archaeological�sites�or�protected�areas

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Metallurgy

• Ore�Processing:

– Oxide�~10%�of�total�ore• Heap�Leach:�77.3�%�gold�recovery• Standard�industry�process�– simple�&�well�known

– Sulphide�– ~90%�of�total�ore• Flotation�circuit:�recovery�86.6%��Cu,�62.8%��Au• Concentrate�sold�in�Mexico�or�Pac�Rim�Smelters• Coarse�grind�size:�energy�efficient• Concentrate�is�very�clean�and�in�demand• Concentrate�grade�is�26%�Cu�and�28�g/t�Au• Standard�industry�process�– simple�&�well�known

TEPAL�PROJECT�|�MICHOACÁN,�MEXICOPEA�Site�Layout

13

Layout conceptual – not a final engineered drawing


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2011�PEA�HighlightsBase�Case�($1000�Au,�$2.75�Cu,�$16�Ag)

$749�M�net�positive�earnings�EBITDA1

3.48�M�ounces�gold�equivalent2 in�mine�plan

1.14�to�1.0�Strip�Ratio��life�of�mine�(“LOM”)

$478�per�ounce�gold�equivalent�on�a�co�product�basis

$312�M�Capital�Cost

18.1�year�mine�life

4.1�years�to�payback

96%�of�current�resource�converts�to�PEA�mine�plan

1 EBITDA: earnings before interest, taxes & depreciation allowance2 Gold equivalent used in this presentation is estimated using 2011 PA Base Case of $1000/oz. Au, $16/oz. Silver and $2.75 Cu metal

prices: (Ag oz.* $16)/$1000 = gold oz., (Cu lbs* $2.75)/$1000 = gold oz. It must be noted that the ounces gold equivalent does notrepresent actual ounces of gold in the mine plan, but rather their calculated equivalent value.


2011�PEA�Summary�(SRK�Consulting�Canada�Ltd.)

15

Current�Industry�Standards�for�Operating�CostsGold�Producers:�Total��Cash��Costs*

Ranking 2010E

Senior�Producer�Avg. $553�

Intermediate�Producer�Avg. $542�

Junior�Producer�Avg. $702�*Source:�BMO�Capital�Markets,�Bloomberg�– January�2011

Tepal�Project�Operating�Costs�Well�Below�Average2011�Base�Case�Average�Operating�Cost�on�a�Co�Product�BasisOPEX�per�Au�equivalent $/oz.�Eq.�Au�payable�(2.4�M�oz.) $478

2011�Base�Case�Average�Cash�Cost�on�a�By�Product�Basis

OPEX�Cash�Cost�Au/oz. $/oz.�Eq.�Au�payable�(977,000�oz.) � $303


Tepal�Project�– Low�Operating�Costs�(estimated)

Tepal Payable�Production�(&�Pro�forma) Timeline

16

Payb

ack


Mid�Tier�Payable�Production�� Mexico

17

Payb

ack


Imperial�Metals�vs Tepal Pro�Forma

18

Payb

ack


19

Metal�Price�Sensitivity

Tepal�PEA�($�Millions)

Base�Case$1,000�Au�$16�Ag$2.75�Cu

Mid�Range$1,200�Au�$19.50�Ag$3.00�Cu

Spot$1,770�Au$35�Ag$3.80�Cu

Project�NPV�(0%�Discount�Rate)Project�NPV�(5%�Discount�Rate)

$749�M$412�M

$1,072�M$625�M

$2,049�M$1,267�M

Project�IRR 22% 30% 48%

Discounted�$NPV�vs Fully�Diluted�SharesDiscounted�(5%)�$NPV�/�GIX�Shares�(FD) $2.83/share $4.30/share $8.73/share


Project�2011�NPV�&�Value

20


Mining�and�Pit�Cash�Flow�Sources

Period 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

ITEM UNIT 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030MATERIAL SCHEDULEOperating Days days 6,617 365 365 366 365 365 365 366 365 365 365 365 365 365 365 365 365 365 365 Waste Mt 165.3 1.91 2.53 9.54 9.36 11.82 16.26 12.90 16.00 14.00 14.61 15.94 4.92 14.30 6.83 4.89 3.39 3.66 2.50 Oxide Ore Mt 14.3 0.75 3.00 3.00 3.00 2.18 2.35 - - - - - - - - - - - - Sulphide Ore Mt 130.2 - 0.99 7.97 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00

Total Mining Mt 309.9 2.7 6.5 20.5 20.4 22.0 26.6 20.9 24.0 22.0 22.6 23.9 12.9 22.3 14.8 12.9 11.4 11.7 10.5 Strip Ratio t waste:t ore 1.14 2.5 0.6 0.9 0.9 1.2 1.6 1.6 2.0 1.8 1.8 2.0 0.6 1.8 0.9 0.6 0.4 0.5 0.3 Daily Production t/day 46,827 7,279 17,863 56,030 55,767 60,274 72,893 57,112 65,734 60,274 61,948 65,586 35,384 61,093 40,625 35,307 31,195 31,953 28,773 EBITDA

EBITDA M$ 749 0 ($134) ($149) $22 $153 $104 $78 $56 $59 $53 $54 $51 $53 $84 $54 $44 $41 $41 $42 $43

Tiz-OxN&S-Ox N&S-Ox N&S-Ox N&S-Ox N&S-Ox N&S-Ox Tiz-S Tiz-S Tiz-S Tiz-S Tiz-S Tiz-S

N&S S N&S S N&S S N&S S N&S S N&S S N&S S N&S S N&S S N&S S N&S S N&S S

PIT MINING

2011-2031Total

Y E A R

SRK CONSULTING APRIL 2011 TEPAL PA BASE CASE ($1000 Au, $2.75 Cu)

PAYBACK PERIOD

TEPAL�PROJECT�|�MICHOACÁN,�MEXICO

21


Long�Section:North�&�South�Zones

South�Zone�Higher�Grade�Open�at�Depth

Long�Section:Tizate�Zone

Remains�Open�in�multiple�directions

2012�Resource:�Measured,�Indicated�and�Inferred

TEPAL�PROJECT�|�MICHOACÁN,�MEXICOUpside�&�Ongoing�Exploration

22

Claim/Property�Map:�

172�sq.�km

160�sq.�km�remains�untested

Exploration:� Airborne

� Sampling

� Mapping

� Geochemistry

� Target�Delineation

� Drilling


TEPAL�PROJECT�|�MICHOACÁN,�MEXICO

23

Reduced�to�Pole�Magnetic�IntensityTEPAL�PROJECT�/�MICHOÁCAN,�MEXICO

2012�Geophysical�Results:�

• 7�new�targets�identified

• 3�priority�targets�with�coincidental�gold,�copper,�silver,�and�molybdenum�in�geochemical�or�drilling�results

• Multiple�anomalies�located�within�the�same�structural�corridor�as�the�North,�South,�and�Tizate�zones

• Follow�up�evaluation�being�conducted�over�several�targets�to�delineate�priorities�for�a�follow�up�drill�program

24


Time�Lines�&�Milestones

TEPAL�DEVELOPMENT 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Tepal�Exploration

Tepal�Prefeasibility

Tepal�Permitting

Tepal�Feasibility�&�Financing

Tepal�Construction

TEPAL�PRODUCTION

Tepal�Oxide�Heap�Leach

Tepal�Sulphide�

2011 PEAdual

productionimpactsIRR and capital

payback

2012 PFSguidanceindicates

extension of dual

production

25


Possible�Project�Financing

KEY�FACTORS�FOR�FAVOURABLE�POSSIBLE�PROJECT�FINANCING• Low�Capex $312M• Low�Opex $478/oz AuEq• High�IRR 22%• Fast�Payback 4.1�years

MULTIPLE�FINANCING�OPTIONS• Smelters�– Desirable�Blending�Concentrate• Metal�Traders – Off�take�Agreements• Banks�– Desirable�Metals,�Production�Levels,�&�Jurisdiction

26


Project�Strategy

Utilize�Management�Expertise�to�Advance�Project

Keep�the�Plan�Simple!• Pre�feasibility�Programs�– June�2012

• Complete�Sampling�of�7�New�Geophysical�Targets�– Spring�2012

• Drill�New�Geophysical�Targets�– Spring/Summer�2012

• Advance�BFS�Toward�Production�Target�� 2014

27

Research�Analyst�Coverage

Dunham�Craig�President�&�[email protected]

Jeffrey�R.�WilsonVP�Corporate�[email protected]�

GEOLOGIX�EXPLORATIONS�INC.595�Burrard�StreetPO�Box�49172Three�Bentall�CentreVancouver,�BC��Canada��V7X�1K8

Tel:�[email protected]

Advanced�Stage�Mineral�Assets�|�Mexico�Focus��Aggressive�Growth�Strategy�|�Proven�Management�Team�

Strong�Project�Fundamentals�

��

28

Closing

29

PEA�Base�CaseTepal�Mine�Plan

(NI�43�101)Tonnes

AverageGold�g/t Gold�Oz.

AverageCopper�% Copper�lbs.

Gold�Equivalent*�Oz

Sulphide�Ore�Mined�O/P 130,200,000 0.33 1,370,000 0.22 608,0�00,000 3,013,000

Oxide�Ore�Mined�O/P 14,300,000 0.40 182,000 0.22 69,000,000 374,000

Total�Ore�Mined 144,500,000 1,550,000 677,000,000 3,480,000

The PEA mine plan considers Indicated and Inferred resources and cannot be classified as “Reserves”.Further infill drilling will be conducted for the purpose of improving Inferred Resources to Measured or Indicated categories.

2011 PEA��Base�Case�Payable�Production�(23,000�Tonnes�per�day�plan)

Average�Mine�Production� Unit Average:�Years�1�9 Average:�Years�10�18.4 LOM: Total

Gold oz. 64,300 40,000 979,000

Copper lbs. 30,700,000 26,100,000 520,700,000

Silver oz. 6,300 171,000 1,767,000

Gold�Equivalent*� oz. 146,200 112,400 2,438,000


2011�PEA�Summary�(SRK�Consulting)

30


Tepal�PEA�Mine�Plan�Details�Mine�Type Open�Pits�(3)

Mine�Life� 18.1�years

Over�All�Strip�Ratio�(Waste�t/ore�t) 1.14:1

North�Pit�Strip�Ratio 0.81:1

South�Pit�Strip��Ratio 2.04:1

Tizate�Pit�Strip�Ratio 0.87:1

OXIDE

Oxide�tonnes�processed 14,300,000

Daily�Heap�Leach�Rate 6700�tpd

Oxide�Gold�Recovery 77.3%

Oxide�Copper�Recovery 13.4%

Oxide�Processing Crush�½”,�Heap�Leach

SULPHIDE

Sulphide�tonnes�processed 130,200,000

Sulphide�Mine�Plan�Throughput 23,000�tpd

Mine�Life�Averages

31

Tepal�PEA�Mine�Plan�Details�SUPHIDE�Cont….

Sulphide�Gold�Recovery 62.8%

Sulphide�Copper�Recovery 86.6%

Sulphide�Silver�Recovery 55.5%

Sulphide�Processing Grind/Standard�Flotation/Concentrate

Primary�Grind�Size ~140�micron

Concentrate�Grade 24.8%�Cu,�28�g/t�Au,�125�g/t�Ag

Smelter�Penalties None

ROYALTIES

NSR�Royalty 2.5%

PAYBACK�PERIOD

Base�Case�$1000�Au,�$2.75�Cu,�$16�Ag 4.1�years


Mine�Life�Averages�(cont’d)

Tepal�PEA�Mine�Plan�Details

OPERATING�COSTS

Mining�(Owner�Fleet) $/t�mined $1.36

Mining�(Owner�Fleet) $/t�processed $2.92

Sulphide�Ore $/t�milled $4.30

Oxide�Ore $/t�leached $4.31

G&A�and�Sustaining�Capital $/t�milled $0.68

Average�Operating�Cost $/t�ore $8.05

32


Mine�Life�Averages�(cont’d)

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