Novadx Ventures Corp.
TSX VENTURE : NDX
June 12, 2009 09:00 ET
NovaDX Ventures Corp.: MCoal Corporation Files Rosa Coal Mine Permit Application
VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 12, 2009) - NovaDX Ventures Corp.'s ("NovaDX") (TSX VENTURE:NDX) wholly-owned subsidiary, MCoal Corporation ("MCoal"), reports on its progress on the Rosa Coal Mine Project:
The Alabama Surface Mining Commission ("ASMC") has finished its completeness review and has accepted for filing MCoal's mine permit application for the first phase of auger mining at the company's Rosa Coal Project in Blount County, Alabama.
Neil MacDonald, CEO of NovaDX, commented that, "MCoal has met a significant milestone in the development of the Rosa Coal Project. Together with permit applications we have pending with the Alabama Department of Environmental Management and the Army Corps of Engineers, this milestone completes our permitting applications required for the Rosa Coal Project. We are now advertising our mine plans in the local community and over the next sixty days will be responding to the ASMC with respect to any public comment that may arise. We expect to receive all necessary permits by the end of August and begin mining operations in September."
MCoal has been actively acquiring surface and mineral interests that cover the Rosa coal deposit. The Rosa Coal Project is a metallurgical coal mine project located in Blount County in Northern Alabama, approximately 40 miles from the City of Birmingham. Historically, approximately 2 million tons of Rosa metallurgical coal was mined from the Rosa coal deposit from 1965 to 1978 by Calvert and Marsh, using bench strip-mining techniques. The coal was sold to two existing coking plants in nearby Birmingham who have advised MCoal of production volumes they would like to initially purchase. Previous mining occurred only on the fringes of the Rosa coal deposit. Strip mining the fringes left a high-wall ideally suited for auger mining, and a large underground reserve.
In January 2009 MCoal conducted a successful test mine of the Rosa deposit extracting 250 tons using a triple auger. The knowledge gained from the test mine has provided management with the insight to develop its detailed mine operating plans. The Rosa Coal Project can be operated 12 months per year and is located in a coal mining area, with well-developed infrastructure, services and skilled labour available in the area.
MCoal recently completed a detailed drilling and channel sampling program of its phase one permit area. 14 drill holes (672 meters) and 18 channel samples of the Rosa coal seam were taken at approximately 1,000 meter centers. This program was supervised by MCoal's qualified person, Sanford Hendon, P.Eng of McGehee Engineering Inc. who has been retained by MCoal to complete a National Instrument 43-101 report to confirm the reserves, resources and preliminary feasibility of the Rosa Coal Project.
Metallurgical coal, also known as coking coal, supplies the carbon used in the making of steel from iron ore. Rosa coal is a very high quality coking coal used primarily for blending with other metallurgical coal to improve their quality for making coke. Additional uses for Rosa coal include specialty industrial applications such as activated carbon for water filtration, carbon fiber and carbon lubricants. Similar grades of metallurgical coal to the Rosa coal currently sell in Alabama for between US$130 and US$140 per ton. Alabama is a major coal producing state, located on the southern-most portion of the Appalachian Coal belt. Alabama produced over 20 million tons of coal in 2008.
MCoal Corporation's long term plans are to develop several metallurgical coal mines in the Appalachian region.
About NovaDX: NovaDX is a Vancouver-based investment firm whose primary focus is on providing merchant banking and other business advisory services to micro-cap natural resource issuers, a largely overlooked but important sector of the equity markets. NovaDX's business plan involves seeking out investment opportunities in companies that have quality management and projects that demonstrate an above average opportunity for near term production or new resource discoveries. For more information please visit www.novadx.com.
ON BEHALF OF THE BOARD,
Neil MacDonald, President and CEO
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.
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