Novadx Provides Update on Rosa Mine Wash Plant
29 November 2011 - 2:30PM
Marketwired
Highlights
-- Newly commissioned wash plant improves recoverable coal yield to 90%, an
increase of over 50% compared to previous toll washing.
-- Sales and shipments of cleaned coal have commenced ($150 - $180 per
ton).
-- 30,000 tons of raw coal and 5,000 tons of washed clean coal in inventory
(market value approx. $4 million).
Novadx Ventures Corp. President & CEO, Neil MacDonald,
reports: Novadx Ventures Corp. ("Novadx" or the "Company") (TSX
VENTURE:NDX) is pleased to announce that the newly commissioned
Rosa Mine wash plant has increased recoverable coal yield to 90%,
an increase of over 50% compared to previous toll washing of Rosa
coal. Shipments of cleaned coal to customers in the coking coal and
activated carbon markets have commenced. The Company's 2012 cleaned
coal production is fully committed under existing coal sales
contracts at prices between $150 - $180 per ton.
Neil MacDonald, President and CEO, commented, "This considerable
improvement in yield means higher margins and stronger cash flow
from operations. As we gain more experience with the wash plant and
evaluate options to recover finer coal, we expect to further
improve the wash plant's yield of recovered coal. In addition to
5,000 tons of washed clean coal being shipped we have over 30,000
tons of run of mine coal in inventory, ready to be washed and we
continue to mine additional coal each day. This inventory has an
estimated market value of approximately $4 million based on our
current contract pricing and demonstrated recoverable coal
yields."
The wash plant produces three size fractions: a 2-inch plus, a
0.1875 inch (3/16) by 2 inch, and a 0.0059 inch (100 mesh) by
0.1875 inch (3/16) product, which are blended together to meet
product specifications on customers' orders. The aggregate recovery
of these fractions represents an average of 90% of the recoverable
raw coal down to a .0059 inch (100 mesh) particle size. The gross
coal recovery is influenced by the ash content of the raw coal
which can range from 25% to over 40% depending on mining conditions
but typically is between 30-35% resulting in a gross coal recovery
of 60-65%. The wash plant was designed with the capability of
adding additional circuits to recover coal below the .0059 inch
(100 mesh) particle size to further increase recovery rates. The
Company plans to evaluate the addition of these circuits, with a
view to increase the realized revenue from the raw coal beyond the
currently attained levels.
About Novadx: Novadx Ventures Corp. is a Vancouver based mining
investment Company. Through its wholly owned subsidiary, Novadx's
primary focus is to invest its capital to acquire and develop
companies with active or near production high quality coal reserves
in the US Appalachia coal region. Novadx intends to continue to
grow the value of its coal investments through expanding production
and reserves amongst its existing investments and by investing in
additional acquisitions. Novadx is actively evaluating a number of
high quality coal acquisition opportunities. For more information
please visit www.novadx.com.
About MCoal: MCoal Corporation is a wholly-owned subsidiary of
Novadx Ventures Corp. which operates the Rosa coal mine in Blount
County, Alabama and is developing the Rex No.1 coal mine in
Campbell County, Tennessee.
ON BEHALF OF THE BOARD
Neil MacDonald, President and CEO and Director
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the qualification
under the securities laws of such jurisdiction.
This release contains "forward-looking information" that
includes information relating to future events and future financial
and operating performance, including management's assessment of
Novadx's and MCoal's future outlook, potential financings,
potential acquisitions and production. Specifically, this release
contains forward-looking information related to increases in
production capacity as the results of additional capital
expenditures, future development of assets, reserves or properties.
Statements included in this announcement, including statements
concerning our plans, intentions and expectations, which are not
historical in nature are intended to be, and are hereby identified
as, "forward-looking statements" for purposes of the safe harbor
provided by Section 21E of the Securities Exchange Act of 1934, as
amended by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by words including
"anticipates", "believes", "intends", "estimates", "expects" and
similar expressions. Forward-looking information should not be read
as a guarantee of future performance or results and will not
necessarily be accurate indications of the times at, or by which,
that performance or those results will be achieved.
Forward-looking information is based on information available at
the time it is made and/or management's good faith belief as of
that time with respect to future events, and such information is
subject to risks and uncertainties that could cause actual
performance or results to differ materially from those expressed in
or suggested by the forward-looking information. Important factors
that could cause these differences include but are not limited to:
pricing and assumptions and projections concerning reserves and/ or
resources in our mining operations; changes in contracted sales,
the business of the Company may suffer as a result of uncertainty
surrounding the coal market; the Company may be adversely affected
by other economic, business, and/or competitive factors; the
worldwide demand for coal; the price of coal; the price of
alternative fuel sources; the supply of coal and other competitive
factors; the costs to mine and transport coal; the ability to
obtain new mining permits; the costs of reclamation of previously
mined properties; the risks of expanding coal production; the
ability to bring new mines on line on schedule; industry
competition; the Company's ability to continue to execute its
growth strategies; the Company's ability to secure additional
financing; the Company's ability to complete planned acquisitions;
and general economic conditions. You should not put undue reliance
on any forward-looking information. We assume no obligation to
update forward-looking information to reflect actual results,
changes in assumptions or changes in other factors affecting
forward looking information, except to the extent required by
applicable securities laws. If we do update one or more
forward-looking information, no inference should be drawn that we
will make additional updates with respect to those or other
forward-looking information. The company cautions readers that
forward-looking statements, including without limitation those
relating to the company's future operations and business prospects,
are subject to certain risks and uncertainties that could cause
actual results to differ materially from those indicated in the
forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. The TSX Venture Exchange has in no way
passed upon the merits of the proposed transaction and has neither
approved nor disapproved the contents of this press release.
Contacts: Kin Communications Inc. 604 684 6730 / 1 866 684
6730ir@kincommunications.com Novadx Ventures Corp. Neil MacDonald
604 633 2776 ext 23nmacdonald@novadx.comwww.novadx.com
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