Novadx Ventures Corp.

Novadx Ventures Corp.

April 19, 2012 08:00 ET

Novadx Files Updated Technical Report and Confirms Economic Feasibility of Rex Coal Mine Project


-- Total Measured and Indicated Resources of 38.1M tons and Inferred Resource of 9.6M tons.

-- Demonstrated Proven and Probable Recoverable Reserves of 11.3M tons supporting a 23 year expected mine life.

-- Economic Assessment of Demonstrated Reserves shows after tax NPV of $71.8 million at a 15% discount rate.

-- Recommendation to expand reserves by acquiring adjacent properties and further exploration.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 19, 2012) - Novadx Ventures Corp. ("Novadx" or the "Company") (TSX VENTURE:NDX) is pleased to announce that it has filed on SEDAR an updated National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") report titled "Technical Report on the Rex Coal Mine Property, MCoal Corporation, Campbell County, Tennessee, USA", prepared for Novadx Ventures Corp. dated effective March 31, 2012 (the "2012 Technical Report) by Mr. John Feddock, P.E., Senior Vice President and qualified person (the "Qualified Person"), Paul Sainato, P.E., Senior Project Engineer and Hugo Fournier, P.E, Senior Mining Engineer of Marshall Miller & Associates, Inc. ("MM&A").

As previously announced on March 1, 2012 the report confirms the following Resource and Reserve estimates for the Company's Rex Coal Mine Property:

Rex Seam Resource Summary
Resource Category In Situ Tons (Thousands)
Measured 10,100
Indicated 28,000
Total Measured and Indicated 38,100
Inferred 9,600
Rex Seam Reserve Summary
Reserve Category Recoverable Tons (Thousands)
Proven 3,400
Probable 7,900
Total Proven and Probable 11,300

The Company controls approximately 27,000 contiguous and non-contiguous acres of mineral rights divided into the Rex Coal Mine Property (21,170 acres) and the North Campbell Property (5,840 acres). The 2012 Technical Report focused on the Rex Coal Mine Property and the stated resources and reserves were estimated for the Company's active Rex No. 1 Mine (1,615 acres) and the Proposed Rex No. 2 Mine (5,000 acres) within the Rex Coal Mine Property.

The 2012 Technical Report also includes a positive economic assessment of the Rex Coal Mine Project as currently planned. The highlights of which are as follows:

Highlight Amount
Total Recoverable Coal 11,263,000 Reserve Tons
Mine Life 23 years
Median Annual Marketable Production 592,000 Tons
Average Coal Price US$170 per Ton
Average Cash Mine Cost US$121 per Ton
Average Annual Capital Expenditures US$7,267,000
Average Annual Cash Flow US$12,424,000
Life of Mine Net Present Value @ 15% US$71,856,000

The economic assessment of the Rex Coal Mine Project was prepared using demonstrated reserves on an after U.S. tax basis assuming the project was developed by an independent third party, and therefore did not include allowances for the Company's Coal Production Payment Agreements with Sandstorm Metals & Energy Ltd. previously announced November 26, 2010.

The 2012 Technical Report also contains the recommendation that the Company continue to operate and develop the Rex Coal Mine Property, continue its efforts to acquire certain adjacent properties and conduct further exploration on property to potentially increase its reserves and provide synergies and reduced costs for future production.

Mr. MacDonald, President and CEO of Novadx, commented: "We are pleased with the results of this technical report and quality of work that MM&A has completed. The positive economic assessment greatly improves our confidence in the Rex Coal Mine Project and we remain firmly committed to seeing the project through to positive cash flow. We are also committed to potentially increasing our reserves through further exploration of our existing property, and acquisition of adjacent properties as recommended in the report."

MM&A is a diverse consulting and engineering firm headquartered in Bluefield, Virginia, U.S.A., has over a 35 year history as a leader in the mineral resource, environmental, and carbon management industries.

This 2012 Technical Report supersedes all earlier technical reports in respect of the Rex No. 1 Mine including the technical report dated July 21, 2010 prepared by Gress Engineering. The 2012 Technical Report can be found on SEDAR (

Mr. John Feddock, P.E., Senior Vice President of MM&A, a "Qualified Person" pursuant to the provisions of National Instrument 43-101, has reviewed and approved the scientific and technical information within this news release.

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

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.


Neil MacDonald, President and CEO and Director

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.

This release contains "forward-looking information" that includes information relating to future events and future financial and operating performance, including management's assessment of Novadx's and MCoal's future outlook, potential financings, potential acquisitions, properties and mining activities and production. Specifically, this release contains forward-looking information related to estimated coal reserves and resources, future development of assets, mining operations, reserves or properties. 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.

Forward-looking information should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by which, that performance or those results will be achieved. Forward-looking information is based on information available at the time it is made and/or management's good faith belief as of that time with respect to future events, and such information is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking information. Important factors that could cause these differences include but are not limited to: actual or expected sampling or production results, pricing and assumptions, projections concerning reserves and/or resources in our mining operations; changes in contracted sales, the business of the Company may suffer as a result of uncertainty surrounding the coal market; the Company may be adversely affected by other economic, business, and/or competitive factors; the worldwide demand for coal; the price of coal; the price of alternative fuel sources; the supply of coal and other competitive factors; the costs to mine and transport coal; the ability to maintain existing mining leases and rights and the ability obtain new mining leases, rights and permits; governmental and regulatory approvals, the costs of reclamation of previously mined properties; the risks of expanding coal mining activities and production; the ability to bring new mines on line on schedule; industry competition; the Company's ability to continue to execute its growth strategies; the Company's ability to secure additional financing; the Company's ability to complete planned acquisitions; and general economic conditions. You should not put undue reliance on any forward-looking information. We assume no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward looking information, except to the extent required by applicable securities laws. If we do update one or more forward-looking information, no inference should be drawn that we will make additional updates with respect to those or other forward-looking information. 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.

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.

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