Tickers: PINX:MLYFF, XTSX:NVM
Vancouver, British Columbia / TheNewswire / September 6, 2016 - Nevada Clean Magnesium, Inc. (TSXV: NVM; Frankfurt-M1V; OTC Pink Sheets: MLYFF) (The "Company") today announced the test program was completed last week at the University of Colorado to assess the effectiveness of an alternative reductant (other than ferrosilicon) to produce magnesium using dolomite from Granasen, Norway. As both companies have dolomite deposits, this work was done for the benefit of ScanMag AS and NCM, under the direct supervision of James Sever, P. Eng.
James Sever, P. Eng., COO and director stated, "This program supports the viability of the alternate reductant which should result in a significant impact on the production cost of magnesium produced via the silicothermic process. The identified alternate reductant may result in up to a 60% savings in cost per tonne of reductant as compared to the current ferrosilicon cost per tonne. A separate testing program is scheduled at the University of Colorado to replicate the key test runs and to test the Tami Mosi dolomite with both reductants for verification purposes."
The test program was performed under contract with Scan Mag AS as part of the July 19, 2016 announcement for an "Extension Agreement" of the original "R&D Agreement" with NCM and it was agreed that the joint venture operator under the R&D Agreement, Meloy Innovation and Technology Centre AS (MITC), would be responsible to pay for the new reductant testing program completed by the research lab at the University of Colorado, for the salary and travel costs of James Sever to directly oversee that testing, and contribute $20,000 CDN toward the fabrication of NVM's bench scale furnace. The "Extension Agreement" also allows ScanMag AS sufficient time to submit funding grant applications to Enova As (a development bank in Norway) for 400 million NOK (approx. $45 million USD) to construct full scale pilot furnaces to be operated and commercialized at ScanMag's facility in Norway, the parties have agreed to extend the time for the "R&D Agreement" and initial payment to NVM until December 18, 2016.
Edward Lee, CEO states "The test work completed at the University of Colorado for the alternate reductant now creates additional new opportunities for both companies to advance their projects toward producing magnesium metal within their respective countries. Both the alternate reductant and the base case ferro silicon will be tested during the operation of the bench scale pilot furnace to produce magnesium metal and secure "proof of concept".
About Nevada Clean Magnesium, Inc.
Nevada Clean Magnesium is focused on becoming a major U.S. producer and distributor of primary, high grade, low cost magnesium metal extracted from its 100% owned Tami-Mosi property located in North Central Nevada. Based on the Company's NI 43-101 Preliminary Economic Assessment Report published in September 2011 and amended in July 2014, the Tami-Mosi Project has an inferred resource of 412 million tonnes with an average grade of 12.3% Mg for a contained metal content of 111 billion pounds of magnesium using a 12% cut-off grade contained within a high purity dolomite block. For more information, please visit www.nevadacmi.com.
This press release was prepared under the supervision and review of James Sever, P. Eng., president and COO for Nevada Clean Magnesium. Mr. Sever is a non-independent qualified person within the meaning of National Instrument 43-101 standards.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statement
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate," "estimate" and other similar words, or statements that certain events or conditions "should", "may" or "will" occur. We may not receive additional subscriptions and we may determine that other needs must be paid rather than those we currently consider priorities. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Actual results may differ materially from those currently anticipated due to a number of factors, including the Company's dolomite reserves may not be mined because of technical, regulatory, financing or other obstacles, the market price for magnesium may make our resources uneconomic, and other risks associated with being a mineral exploration and development company. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. These forward-looking statements are made as of the date of this news release and, except as required by applicable laws, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements.
To Reach Nevada Clean Magnesium Please Contact:
Edward Lee, CEO at (604) 210-9862
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