Novadx Ventures Corp.

Novadx Ventures Corp.

October 03, 2011 09:00 ET

Novadx Provides Update on Operations

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 3, 2011) -


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 as anticipated.

At the Rosa Mine, construction of the wash plant was completed this past week and the wash plant is now in the commissioning phase. As previously announced the Company has been stock piling a portion of its coal production in anticipation of opening the wash plant and now has approximately 30,000 tons on hand to begin processing through the new facility. Auger mining operations are meeting production targets and a second auger is scheduled to be delivered in early November 2011. With the addition of this second auger, the Company anticipates production and sales of in excess of 10,000 tons per month of clean metallurgical coal by December, 2011. This production is fully contracted. Contracts entered into earlier in the year are at a selling price of $150 ton. The Company also recently entered into an additional contract at $180 per ton and expects to renew the earlier contracts at this price upon expiry of their term.

At the Rex Mine, rehabilitation and development of the mine entry and mains are well underway. Over the last week the Company started producing coal from the mine as a result of developing additional mains to support future operations. Coal seam thickness measurements in the mine are ranging between 36 and 42 inches, in line with nearby drill hole intercepts used in the calculation of the Rex Mine's reserves announced January 24, 2010. 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. The site for the Rex Mine's wash plant has been secured and readied for installation of the wash plant pending the permit amendment being granted. The Company anticipates completing its rehabilitation and development of the mine by the end of December, 2011 with commercial production commencing in January 2012. The Company intends to initially operate a single mining unit and add additional mining units as the mine is further developed. Each mining unit has the capability of producing in excess of 20,000 tons per month of clean coal, the majority of which will meet the specification for a silicon metal grade coal. Initial production currently being stock piled has been analyzed and the results are meeting anticipated customer specifications. Samples have been provided to customers for evaluation purposes and the Company anticipates entering into contracts for the 2012 calendar year. The Company is also actively reviewing a number of leasing opportunities to increase coal reserves and resources at the Rex 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 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

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

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.

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 and production. Specifically, this release contains forward-looking information related to increases in production capacity as the results of additional capital expenditures and permitted mines, additional reserves that have been leased or acquired, future development of reserves or properties, potential financings and potential acquisitions. 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: pricing and assumptions and 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 obtain new mining permits; the costs of reclamation of previously mined properties; the risks of expanding coal 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. These and other risks are more fully described in the Company's public filings with the Canadian Securities Administrators, available on SEDAR at 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.

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