Novadx Ventures Provides Rosa Mine Project Update
Novadx Ventures Provides Rosa Mine Project Update
(Vancouver, BC, October 7, 2010) Novadx Ventures Corp (“Novadx” or the “Company”) – (TSX-V: NDX) and its wholly owned subsidiary, MCoal Corporation (“MCoal”) are pleased to report that production output at the Rosa Mine, located in Blount County, Alabama, continues to improve as the second shift becomes fully operational. Additionally, the Company recently completed the outright purchase of its first auger machine. The purchase has reduced the costs associated with the lease and contract operating fees which were being paid to the equipment manufacturer. Mining rates are also improving with the introduction of the second shift. Gross mine tonnage is also improving due to increased in thickness the Rosa coal seam presently being mined.
The Company is actively reviewing its options for the acquisition and implementation of an onsite wash plant at the Rosa Mine, and has filed a Revision Application to its existing mine permit in relation to the addition of the onsite wash plant. The addition of the wash plant will significantly increase recoveries of fine coal particles, reduce operating costs and improve the quality control. The Company also reports that the petitioners have appealed the June 25, 2010, Alabama Environmental Commission ("AEMC") decision in favour of the Alabama Department of Environmental Management’s (“ADEM”) issuance of National Pollutant Discharge Elimination System Permit No. AL0080080, which affirmed the proper issuance of ADEMs final permit to MCoal. In connection with this appeal, MCoal has filed a motion to intervene and intends to assist ADEM in its defence of the appeal.
Neil MacDonald, President and Chief Executive Officer of Novadx and CEO of MCoal, commented: "The original Order of the Court confirms that we have met or exceeded all legal and environmental requirements pertaining to issuance of the Permit and through proper reclamation work, we are also reducing uncontrolled surface discharges from the historical mine workings at the Rosa Mine site. Production and sales of coal from the Rosa Mine will not be interrupted by this appeal."
MCoal is also developing its plan to explore the Dade County, Georgia coal project that was announced on September 8, 2010. MCoal intends to develop and implement an exploration plan with the goal of bringing the historical estimates into an NI 43-101-compliant resource estimate.
The Company has also arranged a loan in the amount $400,000 from an arm's length parties. The loan, which bears interest at a rate of 1.5% per month, has a term of 6 months and will be secured against the assets of the Company. Proceeds of the loan will be utilized for working capital purposes.
About MCoal: MCoal Corporation is a wholly-owned subsidiary of Novadx Ventures Corp. and operates the Rosa Coal Mine. The Rosa Mine is a metallurgical coal mine located in Northern Alabama, approximately 40 miles north of the City of Birmingham. In addition to operating the Rosa Mine, MCoal is actively evaluating a number of high quality coal acquisition opportunities in the Appalachian coal region to increase its reserves and production.
About Novadx: Novadx is a Vancouver-based Investment Company whose primary focus is on providing merchant banking services to natural resource companies. Novadx structures and makes direct equity investments as a principal and provides management and other related services to companies in specific resource sectors, such as MCoal Corporation, a subsidiary company that has commenced production from the Rosa mine a metallurgical coal mine in the State of Alabama, USA. For more information please visit www.novadx.com.
ON BEHALF OF THE BOARD
Neil MacDonald
President and CEO and Director
For more information about Novadx Ventures Corp. please contact:
Neil MacDonald
(604) 633-2776 ext 23 This e-mail address is being protected from spambots. You need JavaScript enabled to view it
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. 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.
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. 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.