MCOAL CORPORATION COMMENCES PRODUCTION AT ROSA METALLURGICAL COAL MINE, ALABAMA Novadx Ventures Corp, President & CEO, Neil MacDonald, reports:
For Immediate Release
MCOAL CORPORATION COMMENCES PRODUCTION AT ROSA METALLURGICAL COAL MINE, ALABAMA
Novadx Ventures Corp, President & CEO, Neil MacDonald, reports:
(Vancouver, BC, April 19, 2010) Novadx Ventures Corp (TSX‐V: NDX) is pleased to announce that its wholly‐owned subsidiary MCoal Corporation (“MCoal”) has commenced coal mining operations at the Rosa Coal Mine, located in Blount County, Alabama
MCoal has commenced mining utilizing a contract triple head auger machine. Initial production has commenced on a single 10 hour shift per day 5 days per week. MCoal plans to implement a second 10 hour shift per day in the near future once it is satisfied with the performance of the auger machine. Utilizing the auger mining method at the Rosa mine site allows MCoal to extract the coal with minimal surface disturbance, limited environmental impact and maximum cost‐effectiveness. Upon implementation of the second shift per day, MCoal expects a single auger machine to produce over 160,000 gross tons per year at the mine site which after washing will yield approximately 135,000 cleaned saleable tons per year.
Once mined, MCoal’s metallurgical coal is being washed under contract at a nearby coal washing facility and initial production will be sold at a price of $150 per ton to a coking coal facility located approximately 43 miles from the Rosa Coal Mine in Birmingham, AL. This price is higher than the base price of $139/ton used in MCoal’s Phase 1 Rosa Mine economic analysis contained in a NI 43‐101 report dated March 18, 2010.
Neil MacDonald, CEO of MCoal and President and CEO of Novadx commented, “We are very pleased with our progress at the Rosa Coal Mine. It has taken us 18 months since initiating the project to assemble the land package, permit and develop the mine site and now to begin production is very rewarding. I want to express my sincere gratitude to all the members of our team in Alabama and Vancouver who have remained committed to accomplishing this goal. We continue to assess new acquisition opportunities for MCoal and having the Rosa Mine in production brings us a step closer to our plans to become a mid‐tier, high‐quality coal producer. ”
MCoal has assembled a coal mining team consisting of local experienced individuals to manage and operate the Rosa Coal Mine. MCoal’s mine plan and operations incorporate sediment control methods, mine safety procedures and ongoing environmental monitoring procedures that meet or exceed industry laws and regulations.
Sanford Hendon, P Eng., is MCoal’s Qualified Person, as defined by National Instrument 43‐101. Mr Hendon has completed numerous site visits since December 2009 and has reviewed the content of this news release.
About MCoal: MCoal Corporation is a wholly‐owned subsidiary of Novadx Ventures Corp. that operates the Rosa Coal Mine. The Rosa Mine is a metallurgical coal mine located in Northern Alabama, approximately 40 miles from the City of Birmingham.
About Novadx: Novadx is a Vancouver‐based Investment Company whose primary focus is on providing merchant banking services to natural resource companies. Novadx structures and makes direct equity investments as a principal and provides management and other related services to companies in specific resource sectors, such as MCoal Corporation. For more information please visit www.novadx.com.
ON BEHALF OF THE BOARD
Neil MacDonald
President and CEO
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. 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.
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.
For more information about Novadx Ventures Corp. please contact:
Neil MacDonald, President and CEO (604) 633-2776 [email protected]
Robin Bjorklund, or Griff Jones Investor Relations OceanPoint Advisors Inc.
(604) 682-7339 [email protected] [email protected]