Update
https://www.marketwire.com/press-release/novadx-provides-update-on-operations-tsx-venture-ndx-1579643.htm
October 31, 2011 09:00 ET
Novadx Provides Update on Operations
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 31, 2011) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Novadx Ventures Corp., President & CEO, Neil MacDonald, reports:
Novadx Ventures Corp. ("Novadx" or the "Company") (TSX VENTURE:NDX) is pleased to provide an update relating to its Rosa Mine in Alabama and Rex Mine in Tennessee. The development of both mines is proceeding on budget.
At the Rosa Mine, commissioning of the wash plant in now complete and the Company is now operating at a rate which the Company anticipates will produce approximately 10,000 tons per month of cleaned metallurgical coal. Production from the Company's auger is being supplemented with coal from the Company's inventory to maintain this production rate. The Company has an inventory of over 30,000 tons of mine run coal on hand. Initial production from the wash plant has been sold and shipped this past week. The yield and quality of coal being produced at the wash plant is meeting expectation.
This past week, a second auger was delivered and is currently being assembled at Rosa Mine. This auger will be commissioned and put into production during the month of November. With the addition of this second auger, the Company's production capacity at the Rosa Mine will increase to in excess of 10,000 tons per month of clean metallurgical coal on an ongoing basis. To support both augers operating, the Company purchased and is now commissioning a Lima 2400 dragline which the Company anticipates will reduce overall operating costs. Coal production at the Rosa Mine is fully contracted at prices between $150 and $180 per ton.
At the Rex No. 1 Mine, rehabilitation of the mine entry is complete and rehabilitation and development of the mine's mains is progressing well. The Company started producing a high quality coal from the Rex No. 1 Mine as a result of developing additional mains to support future large scale operations. The Company is stockpiling this initial production in anticipation of a permit amendment being granted for the construction and operation of a portable wash plant at the mine site. Review of the permit amendment application is at an advanced stage and is expected to be issued in the current quarter. The Company anticipates commercial production at the Rex No. 1 Mine to commence in the first calendar quarter of 2012. The Company intends to initially operate a single mining unit and add additional mining units as the market demand dictates and the mine is further developed. Each mining unit has the capability of producing 20,000 tons per month of clean coal, the majority of which will meet the specification for silicon metal, coking and activated carbon grade coals. The Company is also actively leasing additional mineral rights to increase coal reserves and resources at the Rex No. 1 Mine.
The Company remains focused on executing its plans to generate sustainable cash flow through completion of development and expansion of operations at the Rosa and Rex No. 1 Mines.
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