Palladon Ventures Provides Update on Company Developments
September 15 2009 - 12:55PM
Marketwired
Palladon Ventures Ltd. ("Palladon" or the "Company") (TSX VENTURE:
PLL)(FRANKFURT: PV-1) is pleased to be in full compliance with the
British Columbia Security Commission and to have met TSX Venture
exchange requirements for the resumption of trading. On August 7,
2009 the Company, in conjunction with SRK Consulting (US), Inc.
("SRK"), announced its first National Instrument 43-101 ("NI
43-101") compliant resource estimate for the Comstock/Mountain Lion
("CML") deposit and stockpiles. The company is working with SRK and
is in the process of completing the Preliminary Economic Analysis
("PEA" or Scoping Study), which is expected to be released by
September 25, 2009. The resource estimate is a key component of the
forthcoming PEA, which will also assess the technical and economic
merits and development options of CML and the stockpiles only. The
PEA will not address the technical and economic merits of
Palladon's other significant resources at Iron Mountain.
Technical and economic details will be summarized in the
completed PEA, but in the interim interested parties are encouraged
to visit the Company's website at www.palladonventures.com to view
a PowerPoint presentation prepared by SRK. SRK's Group Chairman Dr.
Neal Rigby stated, "For a long dormant project, the infrastructure
in place at Iron Mountain is among the best of any mining project
anywhere...and given the planned exploration and likely scale of
operation, the project should not be resource constrained." Please
understand the power point has economic slides where the numbers
have been left blank. The numbers will be inserted into a revised
PowerPoint upon release of the PEA.
In addition the Company has been working with Hatch Management
Consulting ("Hatch"), a leading engineering and mining consulting
firm, to complete comprehensive market evaluations to assess
commercial opportunities for production of iron ore concentrate and
alternative iron units (including DRI, pig iron and iron nuggets,
collectively "AIU"). Based on these studies, the Company believes
solid demand exists for AIU products in North America and Asia, as
well as concentrate in Asia.
The company has also had discussions with Midrex Technologies,
Inc ("Midrex"), regarding the technical and economic aspects of the
MIDREX ® Direct Reduction Process as well as the new ITmk3 ® ("Iron
Making Technology Mark 3") Technology for iron nugget production.
Midrex is owned by Kobe Steel, Ltd., and is the world's leading
technology company for direct reduction of iron ore.
The company believes there are several secular trends that could
bolster the project:
- The growing production and market share of Electronic Arc
Furnace steel producers (mini mills), who require that AIU be added
to their charge mix along with scrap.
- The declining availability of quality scrap iron and the
well-known scrap shortage in Asia; and
- The strategy of numerous international and domestic steel
makers to secure iron ore resources and invest in iron ore
projects.
On the corporate front, the Company announces that its wholly
owned subsidiary Palladon Iron Corporation ("PIC") has notified
China Kingdom International (Australia) PTY Ltd., CKI Minerals
& Metals ("CKI") of the termination of the Sales Agreement for
the Purchase of Iron Ore dated March 31, 2008 between PIC as seller
and CKI as buyer, subject to the dispute resolution mechanisms as
set out in the agreement. When the Sales Agreement was negotiated
and entered into, it was assumed by both parties that the iron ore
would be delivered to CKI at the Port of Long Beach, and this
assumption was specifically made part of the agreement. However,
subsequent to the signing of the Sales Agreement, the Port of Long
Beach became unavailable, making performance of the agreement
commercially impracticable.
Palladon CEO John Cutler stated, "We are excited by the initial
assessment of the project and the market opportunity for AIU, and
we look forward to providing more specific details of the project
upon completion of the PEA. Management is working diligently with
recognized experts in the industry to advance this important
project for the benefit of all shareholders." The immediate focus
of the Company is raising a minimum of $5 million dollars by
October 15, 2009 as required by our recently executed extension
agreement.
On Behalf of the Board of Directors,
John W. Cutler, President and Chief Executive Officer
About Palladon
Palladon Ventures Ltd. is a junior resource company focused on
advancing the Iron Mountain Project, an iron ore mine located west
of Cedar City, Utah.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking
statements, which reflect the expectations of management regarding
the Company's: (1) belief and expectation that the Preliminary
Economic Analysis will be completed and released by September 25,
2009 and (2) expectation that demand exists for AIU products in
North America and Asia, as well as concentrate in Asia.
Forward-looking statements consist of statements that are not
purely historical, including any statements regarding beliefs,
plans, expectations or intentions regarding the future. Such
statements are subject to risks and uncertainties that may cause
actual results, performance or developments to differ materially
from those contained in the statements. No assurance can be given
that any of the events anticipated by the forward-looking
statements will occur or, if they do occur, what benefits the
Company will obtain from them. These forward-looking statements
reflect management's current views and are based on certain
expectations, estimates and assumptions which may prove to be
incorrect. A number of risks and uncertainties could cause our
actual results to differ materially from those expressed or implied
by the forward-looking statements, including: (1) a downturn in
general economic conditions in North America and internationally,
(2) the inherent uncertainties and speculative nature associated
with mineral exploration and production, (3) a decreased demand for
minerals, (4) any number of events or causes which may delay or
cease exploration and development of the Company's property
interests, such as environmental liabilities, weather, mechanical
failures, safety concerns and labour problems; (5) the risk that
the Company does not execute its business plan, (6) inability to
retain key employees, (7) inability to finance operations and
growth, (8) other factors beyond the Company's control; and (9) the
risk that the Company will not be able to raise funds due to Luxor
Capital Group. These forward-looking statements are made as of the
date of this news release and, except as required by law, 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.
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.
Contacts: Palladon Ventures Ltd. John W. Cutler President &
CEO 801.521.5252 801.521.5454 (FAX) info@palladonventures.com
www.palladonventures.com