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Geovic Mining Corp., through its 60% owned subsidiary Geovic Cameroon PLC
(GeoCam), intends to develop cobalt-nickel-manganese deposits on a 1,250 sq
km Mine Permit in Cameroon, Africa. The cobalt ore is high-grade, near surface,
easily concentrated, and processed to deliver high-quality cobalt, nickel and
manganese products at low capital and operating costs. The company has US $70
million cash on hand as of January 1, 2008 and expects to commence production
by late 2010.
Cobalt uses are expanding
Cobalt has many industrial, military and consumer uses. It is a hard, durable
metal that works well at high temperatures and, accordingly, is used extensively
in the aerospace industry. Cobalt chemical compounds also have many diverse
applications, including use in billions of rechargeable batteries - this market has
grown 280% in the last three years. A new major application is in batteries for
hybrid cars (4-8 pounds-cobalt per car) - a fast growing market that is increasing
worldwide demand for cobalt. Hybrid car production is expected to grow from
25,000 units in 2002 to 8,000,000 units in 2015.*
*Source - HEV Manufacturer's Data (2002-06) as quoted by Credit Suisse.
Telephone: 970.256.9681 Fax: 970.256.9241 Web: www.geovic.ne
Geovicprepares for
cobalt
production
Geovic Mining Corpwww.geovic.net
The Cobalt Company
T S X : G M C
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Cobalt prices and demand are increasing
In January 2008, spot cobalt was trading near US $50 perpound, up from $15 in mid-2006. Although there is no mar-ket for cobalt like the LME or Comex, transparent pricing isprovided by such sources as Platt's Metal Bulletin and BHPBilliton's website. (http://cobalt.bhpbilliton.com/).
World cobalt supply and demand
World cobalt use in 2006 totaled 56,000 tonnes
0
3000
6000
9000
12000
15000
Chemicals Batteries Wear-ResistantAlloys
MagnetsCatalysts Superalloys
IRR 56% 3-year average metal prices
Payback 2.0 years 5,000 tpycobalt 1st full year
NPV 10% $577 million 60% debt and 40% equity
Capex $398 million to be optimized
Opex $3.12/lb cobalt net of nickel credits
Initial life 19 years 1st of 7 deposits
Large reserves and resources
GeoCam's Project may be the world's largest primary cobalt
resource. An independent estimate compliant with CanadianNational Instrument 43-101 has outlined proven and probablereserves of 54.7 million tonnes. This reserve yields 11 milliontonnes of concentrates that average 0.7% cobalt, 1% nickel,and 3% manganese from the Nkamouna deposit, the first ofseven to be developed. The Mada deposit, which is adjacentto the Nkamouna deposit, is currently estimated to containinferred resources of 145 million tonnes averaging 0.21%cobalt and 0.48% nickel. GeoCam plans to annually produce4,160 tonnes cobalt, 3,280 tonnes nickel, 45,000 tonnes man-ganese (in carbonate form) and 4,000 pounds of scandium.Drilling and test pitting resumed in 2008 with the aim of sig-nificantly increasing the resource base and converting theseresources to ore reserves.
Unique geology delivers extraordinaryproject economics
The Cameroon cobalt mineralization is higher grade and
coarser in size than all other laterite deposits. These unique
features allow the ore to be concentrated three-fold using
low-cost washing and sizing, which gives the project excep-
tional financial performance (see chart below). The deposit
occurs in a shallow blanket from 8-16 meters below surface
in weathered rock where no blasting is needed.
After-Tax Economics in 43-101 Technical Report
Geovic Mining Corp. owns 60% of GeoCam, the
Cameroonian corporation that holds exclusive rights to the
project. The National Investment Corporation of Cameroon
SNI, owns 20% and manages the interest of four
Cameroonian individuals who own 19.5%.
GeoCam development and construction schedule
Geovic Mining Corp. offers an excellent opportunity to investors seeking a primary playin a dynamic cobalt market.
Geovic Mining CorpCorporate Head Office: 743 Horizon Court, Suite 300A, Grand Junction, CO 81506, United States , Telephone: 970.256.9681, Fax: 970.256.9241, Web: www.geovic.net
Corporate Info: Exchange: Toronto Stock Exchange, Symbol: (TSX:GMC), Fiscal Year-End: December 31, CUSIP Number: 373686 10 4
Investor Relations: Vanguard Shareholder Solutions, Inc., 866-891-9756, [email protected]
Auditor: Ernst & Young LLP, 700 West Georgia, PO Box 10101, Vancouver, BC, Canada V7Y 1C7, Telephone: 604.891.8200, Fax: 604.643.5422, Toll Free: 1.888.283.9867
Transfer Agent: Pacific Corporate Trust Company, 2nd Floor, 510 Burrard Street, Vancouver, BC, Canada V6C 3B9, Telephone: 604.689.9853, Fax: 604.689.8144
0
20
40
60
80
100
120
Potential supply from Geovic and other new producers
Existing Production/Supply
Demand
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015
Actual
Develop Construction Productio
2008 2009 2010
Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Mada Test Pitting & Drilling
Reserve/Resource Updates
Enviro. &Social Assessment
Optimize FeasibilityStudy
Land Lease & Water Permit
Detail Engineering & Design
Debt Financing
Co-Ni Marketing and Sales
Infrastructure Installations
Mine Development
Tail Dam Production
Plant Construction
Concentrator Commission & Prod.
Process Plant Commission & Prod.
Approved
Stage:
Year:
Quarter:
Pincock Allen & Holt 20
Source: Actual supply and demand by USGS, The Cobalt Development Institute and other inde-pendent research groups. Projections after 2006 were developed by Geovic.
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