RE: NovaDx to buy Tiacme for $5-million (U.S.)Technical data:
https://www.stockwatch.com/newsit/newsit_newsit.aspx?bid=Z-C:NDX-1734430&symbol=NDX&news_region=C
MCoal intends to initiate the necessarysteps to commence coal production at the Rex No. 1 Mine.
The Gress Report (1) provides a quantitative estimate of the Rex No. 1Mine coal resources contained in 14,430 acres controlled by Tiacme whichare summarized in the following table:xx
Seam Thickness Measured Indicated Total M&I Inferred
Interval (million tons) (million tons) (million tons) (million tons)
24"-30" 5.14 10.13 15.27 24.40
30"-36" 6.02 8.85 14.87 3.24
36"-42" 1.62 0.44 2.06
----- ----- ----- -----
Totals 12.78 19.42 32.20 27.64
Nowork has been done more recently to classify the above mentioned coalresource estimate as a current mineral resource as defined in section1.2 and section 1.3 of NI 43-101 and it is treated as an estimate onlyand therefore cannot be relied upon.
Based on historical and recent drill core assaying and wash testing, thequality of the Rex No. 1 Mine coal seam is summarized as follows:
As received Washed
(Dry Basis) (Dry Basis)
Ash % 4.88 1.90
Volatiles % 38.31 39.25
Fixed Carbon % 56.81 58.85
Sulphur % 0.92 0.77
BTU/lb 14,358 14,850
Iron Oxide % 0.55 0.24
Titanium Oxide % 0.046 0.007
The Rexseam has been mined in the area surrounding the Rex No. 1 Mine since theearly 1900's and has traditionally been sold as a metallurgical coal.Since 2004, the Rex coal has been sold primarily for the production ofsilicon metal due to its high quality and low iron and titanium content.
Neil MacDonald, President and CEO of Novadx and CEO of MCoal, commented"This is a unique opportunity for MCoal as it will allow the Company toenter the silicon metal coal market, complementing the metallurgical andactivated carbon markets we are currently servicing with the Rosa Mine.This acquisition will bring us another step closer to our goal ofbecoming a mid tier specialty coal company. In recent years, coals ofsuitable quality for this market have been in short supply and as aresult the price of these coals has risen to levels commensurate withhigh quality metallurgical coals, a trend we expect will continue." Mr.MacDonald further commented, "We are fortunate to be acquiring aproject that is fully permitted and bonded with mineable coal resources.Once we complete the acquisition of the Rex No.1 Mine we intend toimmediately start bringing the mine into production."
The Rex No. 1 Mine is located between Cumberland Mountain and PineMountain within the Cumberland Mountain section of the AppalachianPlateau on the Cumberland overthrust sheet (or block). The dominantstructural feature of the Cumberland Block within the vicinity of theproperty is the Middleboro syncline which hosts relatively flat lyingPennsylvanian-age coal bearing rocks. The Rex seam occurs within theCrooked Fork Group and is stratigraphically the lowest of all thecommercially important coals generally 40 to 100 feet above the top ofthe Rockcastle conglomerate, which is the top of the Crab OrchardMountains Group. Individual coal seams are flat lying withapproximately one degree dips, but the dips can increase to as much as10 degrees when approaching the edges of the syncline area.
The Rex No. 1 Mine is well serviced with the Norfolk and Southernrailroad and US highway 25, on the eastern edge of the property, andnumerous secondary and private haulage roads. On November 12, 2008,Tiacme posted a reclamation bond and was awarded SMCRA Permit No. 3216for the Rex No. 1 Mine by the United States Department of the Interior,Office of Surface Mining (OSM). On December 10, 2008, Tiacme wasawarded NPDES Permit No. TN0052027 by the State of Tennessee, Departmentof Environment and Conservation for the Rex No. 1 Mine. Detaileddescriptions of the property are given in Gress Report (1) for Tiacme inMay 2009.
Closing of the acquisition remains subject to certain conditionsincluding settlement of the terms and conditions of a definitiveagreement, MCoal demonstrating sufficient capital financing to commenceproduction, MCoal being satisfied with the results of its due diligencereview, and the approval of the TSX Venture Exchange, amongst otherconditions.
This news release has been prepared under the supervision of GeorgeSmith, P Eng., of Gress Engineering Corp. and author of the GressReport. Mr. Smith is a Qualified Person as defined by NationalInstrument 43-101 and is independent of Novadx and MCoal.
Note (1): All references to the Rex Coal resources contained in thispress release are reproduced from an independent report prepared byGress Engineering Corp (Bluefield, VA) for Tiamce LLC in May, 2009 whichby reference includes the content of an independent report prepared byInnovative Reclamation Technologies & Engineering CO., Inc.(Caryville, TN) for Tiacme in October 2007 in addition to a reportsprepared by Gaddy Engineering (Huntington, WV) in 1982, Kenwill, Inc.(Maryville, TN) in 1980, amongst others. Although the Gress Report wasprepared utilizing commonly accepted U.S. engineering principles andpractices, it has not been prepared in accordance with NationalInstrument NI 43-101 "Standard of Disclosure for Mineral Deposits". Inaddition MCoal:Has not done the work necessary to verify the classification of the coalresource outlined in this Gress Report;Is not treating the coal resource outlined in the Gress Report as a NI43-101 defined resource or reserve verified by a Qualified person, andThe coal resource outlined in the Gress Report should not be reliedupon.MCoal has engaged Gress Engineering Corp. to produce a technical reportthat defines the Rex No. 1 Mine resources in accordance with therequirements of NI 43-101. A copy of the current Gress Report isavailable for viewing in the Novadx Offices.About MCoal: MCoal Corporation is a wholly-owned subsidiary of NovadxVentures Corp. and operates the Rosa Coal Mine. The Rosa Mine is ametallurgical coal mine located in Northern Alabama, approximately 40miles north of the City of Birmingham. In addition to operating theRosa Mine, MCoal is actively evaluating a number of high quality coalacquisition opportunities in the Appalachian coal region to increase itsreserves and production.