Novadx Ventures Corp.
TSX VENTURE : NDX

Novadx Ventures Corp.

November 29, 2011 08:30 ET

Novadx Provides Update on Rosa Mine Wash Plant

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 29, 2011) -

Highlights

  • Newly commissioned wash plant improves recoverable coal yield to 90%, an increase of over 50% compared to previous toll washing.
  • Sales and shipments of cleaned coal have commenced ($150 - $180 per ton).
  • 30,000 tons of raw coal and 5,000 tons of washed clean coal in inventory (market value ~ $4 million).

Novadx Ventures Corp. President & CEO, Neil MacDonald, reports: Novadx Ventures Corp. ("Novadx" or the "Company") (TSX VENTURE:NDX) is pleased to announce that the newly commissioned Rosa Mine wash plant has increased recoverable coal yield to 90%, an increase of over 50% compared to previous toll washing of Rosa coal. Shipments of cleaned coal to customers in the coking coal and activated carbon markets have commenced. The Company's 2012 cleaned coal production is fully committed under existing coal sales contracts at prices between $150 - $180 per ton.

Neil MacDonald, President and CEO, commented, "This considerable improvement in yield means higher margins and stronger cash flow from operations. As we gain more experience with the wash plant and evaluate options to recover finer coal, we expect to further improve the wash plant's yield of recovered coal. In addition to 5,000 tons of washed clean coal being shipped we have over 30,000 tons of run of mine coal in inventory, ready to be washed and we continue to mine additional coal each day. This inventory has an estimated market value of approximately $4 million based on our current contract pricing and demonstrated recoverable coal yields."

The wash plant produces three size fractions: a 2-inch plus, a 0.1875 inch (3/16) by 2 inch, and a 0.0059 inch (100 mesh) by 0.1875 inch (3/16) product, which are blended together to meet product specifications on customers' orders. The aggregate recovery of these fractions represents an average of 90% of the recoverable raw coal down to a .0059 inch (100 mesh) particle size. The gross coal recovery is influenced by the ash content of the raw coal which can range from 25% to over 40% depending on mining conditions but typically is between 30-35% resulting in a gross coal recovery of 60-65%. The wash plant was designed with the capability of adding additional circuits to recover coal below the .0059 inch (100 mesh) particle size to further increase recovery rates. The Company plans to evaluate the addition of these circuits, with a view to increase the realized revenue from the raw coal beyond the currently attained levels.

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 www.novadx.com.

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.

ON BEHALF OF THE BOARD

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 and production. Specifically, this release contains forward-looking information related to increases in production capacity as the results of additional capital expenditures, future development of assets, 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: 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. 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.

Contact Information