(via Thenewswire.ca)
VANCOUVER, BRITISH COLUMBIA / TheNewswire / September 23, 2015 - Nevada Clean Magnesium, Inc. (TSXV: NVM; Frankfurt-M1V; OTC Pink Sheets: MLYFF) ("NCM" or the "Company") is pleased to announce that Meloy Innovation and Technology Center AS ("MITC") under the supervision of ScanMag AS has begun the development work on the material testing program in Norway with the technical assistance from James Sever, P. Eng. and Alpha Omega Inc., of Spokane Washington, who is also the company president and director of NCM. Details of the Joint Venture between NCM and ScanMag through MITC were announced by the Company on June 22, 2015.
The development will begin with the purchase of the Thermo Gravimetric Analyzer ("TGA") unit by MITC. The unit is expected to arrive within 10 days. After some minor modifications to the unit, the first of a two phase program will commence. It will include confirmation testing of the dolomite from the intended ore body as well as assessment of potential reductants. There is particular interest is in the performance of one alternate material, which is being assessed as an alternative reductant to the more expensive ferro silicon.
The testing program is expected to be completed by the end of the year. If successful, the companies will proceed with designing and development of the pilot program. This will be comprised of the fabrication of multiple pilot furnaces and installation of the necessary supporting auxiliary equipment to operate at a small production level. The pilot facility will be designed to allow for the incremental installation of additional equipment to bring the plant to full scale production.
Lothar Maruhn, CEO of ScanMag AS reports "We had meetings in Oslo with Enova SF a governmental funding institution established in 2001. Its purpose is to drive forward the changeover in Norway to a more environmentally friendly use of energy in both its consumption and generation. Enova SF does not support companies in a normal investment manner, but supports companies through grants during R&D and the pilot phase. Enova SF pointed out that they can support ScanMag's Metal-project with up to 40 % of the investments and some of the operational cost if ScanMag divided their project into three phases: a R&D segment; a Pilot phase; and a main investment phase or "scaling up" phase."
Mr. Maruhn goes on to say "ScanMag will start the R&D phase, not directly but through MITC, with the testing of the alternate reductants as a suitable raw material replacing the more expensive FeSi 75 %. This phase will look to be finished by the end of 2015 in order for the board of directors of ScanMag can make the resolution to go to the Pilot phase."
He concludes "ScanMag is currently going through the project and dividing it into the two remaining phases; the pilot-phase and scaling-up phase complete with milestones. The Pilot-phase will be started if and when MITC receives positive results from the R&D-phase at the end of 2015. ScanMag and NCM are expecting positive things to come from the testing program and both are always looking to other alternatives and options when it comes to raw materials and equipment designs in order to achieve a profitable project."
Ed Lee, CEO for NCM explains, "We are obviously very pleased the development work has started and is definitely a positive for the shareholders of Nevada Clean Magnesium. The process that is being developed and installed at ScanMag will be directly utilized at the Tami Mosi project in Nevada. By having the comfortable and stable relationship with ScanMag, it offers us the chance to address and eliminate the technical process risks that are typically inherent with new operating projects.
The timing is right for magnesium metal production, especially if it can happen within the USA. The metal has a bright future with more opportunities than ever before. The material applications for magnesium metal is constantly evolving and expanding for three major industry sectors, including auto manufacturers needing to meet the CAFE standards for 2025 where the use of magnesium to lighten the weight is a natural fit; the aerospace industry with the recent acceptance of magnesium for use in passenger spaces in commercial airlines by the Federal Aviation Administration (FAA) and its European counterpart, the European Aviation Safety Agency (EASA); and the energy sector where there is a drive to replace the $10 billion lithium battery market with magnesium as a more efficient and environmentally friendly alternative for batteries for electric cars and dry cell applications."
About Nevada Clean Magnesium, Inc.
Nevada Clean Magnesium is focused on becoming a major U.S. producer and distributor of primary, high grade, low cost magnesium metal extracted from its 100% owned Tami-Mosi property located in North Central Nevada. Based on the Company's NI 43-101 Preliminary Economic Assessment Report published in September 2011 and amended in July 2014, the Tami-Mosi Project has an inferred resource of 412 million tonnes with an average grade of 12.3% Mg for a contained metal content of 111 billion pounds of magnesium using a 12% cut-off grade contained within a high purity dolomite block. For more information, please visit www.nevadacmi.com.
Qualified Person
James Sever, P. Eng. a qualified person recognized under NI 43-101, supervised the preparation and approved the scientific and technical content in the news release.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statement
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements in this news release include statements about purchase of equipment, commencement of testing phases, completion of R & D by the end of 2015 and testing within one year, development of a pilot program, that the plant will be able to be expanded to full production, that the R&D and testing phases will have positive results, that the project will be profitable, that the process developed will by used by NCM at Tami Mosi.
Actual results may differ materially from those currently anticipated due to a number of factors, including that we may not be able to may not be able to achieve the targeted results expected from the joint venture research, that ScanMag may not raise the necessary funds to carry out the R&D and testing, that the process developed may not be profitable, that there may be delays in phases of the project, and cost overruns, that the Company's dolomite reserves may not be mined because of technical, regulatory, financing or other obstacles, the market price for magnesium may make our resources uneconomic, and other risks associated with being a mineral exploration and development company. These forward-looking statements are made as of the date of this news release and, except as required by applicable laws, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements.
To Reach Nevada Clean Magnesium
Please Contact: Edward Lee, at 604-210-9862
For up to the minute news, industry analysis, and feedback follow us on
Facebook, Twitter, and LinkedIn
Copyright (c) 2015 TheNewswire - All rights reserved.