Novadx Ventures Corp.

Novadx Ventures Corp.

March 01, 2012 08:00 ET

Novadx Updates Coal Resource Estimates at Rex No. 1 Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 1, 2012) - Novadx Ventures Corp. (TSX VENTURE:NDX) -


  • Total Measured and Indicated Resources of 38.1M tons.
  • Total Proven and Probable Recoverable Reserves of 11.3M tons.
  • New estimate improves confidence in mineable reserves and mine plan.
  • Expected mine life of over 20 years.

Novadx Ventures Corp. ("Novadx" or the "Company") announces the results of an independent data verification and evaluation of the resources and reserve potential of the Rex Coal seam at the Company's Rex No. 1 Mine located in Campbell County, Tennessee (the "Evaluation").

The Evaluation was conducted under the supervision of Mr. John Feddock, P.E., Senior Vice President of Marshall Miller & Associates, Inc. ("MM&A"), and followed guidelines established for coal properties in the United States and compliant with National Instrument 43-101. The purpose of the Evaluation was to verify previously reported resources and assist the Company in developing its longer term mine plans at the Rex No. 1 Mine. In support of this Evaluation, MM&A verified the data used in estimating the measured and indicated resources of the Rex coal seam and where appropriate directed additional drilling to verify certain historical drill holes and data interpretation. Data verification consisted of classifying all prior drill hole and exploration data into reliability categories based upon the source, history, and level of documentation, and applying those reliability categories to the prior resource estimates. In three instances where the Evaluation differed from prior interpretation of existing data, the Qualified Person conducting the verification directed additional drilling to successfully confirm the updated interpretation. Prior data determined to have lower reliability, was used only in support of verified data in the Evaluation.

On December 7, 2010, in connection with the pending completion of the acquisition of Tiacme, LLC and the Rex No. 1 Mine (which was completed and announced January 24, 2011), the Company filed on SEDAR ( a NI-43-101 technical report entitled "Independent Technical Report on the Rex No.1 Mine Property Located in Campbell County, Tennessee, USA, prepared by Gress Engineering, PC of Bluefield, Virginia (the "Gress Report"). The Gress Report was premised on the Rex No. 1 Mine property covering approximately 31,000 acres. Estimated resource and potential reserves reported in the Gress Report were based on approximately 14,000 acres of the controlled acres.

Following a comprehensive examination of the mining leases comprising the Rex property, it was determined that the Company currently controls mining rights covering approximately 27,000 acres. Based upon the adjusted controlled acreage, the Evaluation assessed the measured and indicated resource potential of approximately 1,400 acres in the area where the Company has established its existing underground mining activities at the Rex No. 1 Mine, and approximately 7,600 acres where it intends to conduct future underground mining. The data verification confirmed the existing grade and quality of the Rex seam. In assessing the resources, no known legal, political, environmental or other risks that could materially affect the development of the mineral resources were identified. The following tables set forth updated estimated resources and potential reserves as of January 31, 2012 provided in the Evaluation:

Estimated Resources:

Resource Category In Situ Tons (Thousands)
Measured 10,100
Indicated 28,000
Total Measured and Indicated 38,100
Inferred 9,600

Compared to the Gress Report, Measured and Indicated resources have increased by 18% to 38.1 million tons. Inferred resources decreased from 25.7 million tons to 9.6 million tons due to reclassification of approximately 6 million tons into the Measured and Indicated categories and the balance due to the reassessment and reduction of the acreage currently controlled by the Company.

Estimated Reserves, subject to completion of a NI 43-101 compliant technical report:

Reserve Category Recoverable Tons (Thousands)
Proven 3,400
Probable 7,900
Total Proven and Probable 11,300

Compared to the Gress Report, Proven and Probable Reserve estimates declined 25% to 11.3 million tons due in part to the Qualified Person utilizing higher minimum mineable seam height and a mining recovery and preparation plant yield consistent with the data verification analysis, and in part due to the reassessment of the acreage currently controlled by the Company.

Mr. MacDonald, President and CEO of Novadx, commented: "We are pleased with the results and quality of work that Marshall Miller has completed. We now have a much higher level of confidence in the current mineable reserves and mine plan at Rex. Overall the resource and reserve potential of the property we control has been confirmed. Based on our current plans, the current Proven and Probable Reserves estimates support over a 20 year expected mine life and we intend to continue to add to our reserves through further drilling and property acquisition."

As a result of the verified technical information contained in the Evaluation, the Company considers the entire Gress Report to be outdated and has engaged Marshall Miller & Associates to complete a further detailed study of the Company's Rex No. 1 Mine's coal resources and reserves, geology and mine plans, and to prepare an updated technical report in compliance with NI 43-101.

Mr. John Feddock, P.E., Senior Vice President of Marshall Miller & Associates, 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, 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; 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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