Nevada Magnesium Project Review
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/21/12 -- Edward Lee, President of Nevada Clean Magnesium Inc. (TSX VENTURE: NVM)(PINKSHEETS: MLYFF)(FRANKFURT: M1V) ("NevadaCMI" or the "Company") is pleased to review the Tami-Mosi Magnesium project located in Nevada.
On May 20 - 22, 2012, Edward Lee accompanied by Robert Brown and James Sever attended the International Magnesium Association annual meeting held in San Francisco. In attendance were representatives from Die Casting and Foundry companies, metal trading and commodity firms, magnesium recycling companies as well as global primary magnesium metal producers. NevadaCMI was well accepted and meetings were held with RIMA, the oldest magnesium producing company located in Brazil for 36 years, where it was reconfirmed they operate at two cycles per day for their production.
Currently, Management is discussing the possibility of restating the current NI 43-101 Preliminary Economic Assessment Report to reflect 2 cycles per day to further demonstrate two things: the economic robustness of the project and the utilization of one of the eleven items identified in the White paper that looks to possibly reduce the operating cost and increase revenues.
Mr. Lee quotes, "The conscientious manner in which the project is being put together is to keep it conservative and realistic to better reflect operating and capital costs."
On April 16, 2012, the Company changed its name from Molycor Gold Corp. to Nevada Clean Magnesium Inc.
On November 28, 2011 Management created the Technical Advisory Committee consisting of internationally recognized experts in the field of light metals and magnesium production as well as power generation and ferro-silicon processing. (See website under Technical Advisory Committee at www.nevadacmi.com)
On November 18, 2011, the Company added two magnesium experts; one to the Board of Directors and one to the Chief Operating Officer position.
On November 15, 2011, a white paper was written by Alpha Omega titled "A Discussion Paper for potential Areas of Improvement within Molycor Gold Corp.'s (now NevadaCMI) Tami-Mosi Magnesium Project and possible Effects upon Projected Profitability" that identifies eleven items which could be confirmed and implemented aimed at significantly reducing the operating cost per pound. One of the operational items identified is the implementation of 2 cycles per day. The document also demonstrates all waste streams produced at the facility to be potential sellable co-products for added revenues.
On September 16, 2011, the Company announced a NI 43-101 Preliminary Economic Assessment by Tetra Tech stating a conservative project with positive economics based on one cycle per day to produce 30,000 tonnes of 99.9% pure magnesium ingot per year for 30 years utilizing just 8.8 million tonnes which only represents 2% of the 412 million tonne inferred resource.
On August 03, 2011, the Company received from Tetra Tech Wardrop (Tetra Tech) an updated NI 43-101 block modeling and resource analysis that resulted in an estimate increase of the original inferred resource model to 412 million tonnes of dolomite at an average grade of 12.3% magnesium (Mg) using a 12% Mg cut - off grade, for a contained metal content of 111 billion pounds of Mg.
Future Market Demands
The US domestic magnesium industry is seen as a "pull market", whereby if there is inexpensive supply the demand will grow. Alternatively, high cost magnesium will cause the end user to substitute aluminum alloy as an alternative product even though it is not ideal.
With the US federal government establishing new CAFE (Corporate Average Fuel Economy) standards, the automotive manufacturers are studying ways to remove weight from their vehicles (cars and light trucks). By 2025 the target will be 54.5 mpg and applies to the internal combustion vehicles. To achieve this, a current vehicle's weight must be reduced by 10 to 15%. Since the typical vehicle weighs 3,625 pounds, 360 to 540 pounds must be removed.
The added value of using magnesium in the automotive industry is it also absorbs vibrations adding to the noise suppression in the vehicle.
On March 2, 2012, China Business Wire announced that Chinese producers cost per pound FOB (Free on Board) was $1.399 USD per/lb. Mg and $1.19 USD per/lb. domestically less labor and taxes. The NI 43-101 Preliminary Economic Assessment base case for the Tami-Mosi Project demonstrates $1.28 per lb. Mg.
About Nevada Clean Magnesium Inc.:
NevadaCMI is a diversified precious, speciality and base metal exploration and development company focusing on magnesium, molybdenum and gold exploration and development in North America.
On Behalf of Management
Edward Lee, President
For all Nevada Clean Magnesium Inc. investor relations needs, investors are asked to visit the website at www.nevadacmi.com.
This news release may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX-Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.
The TSX-Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Nevada Clean Magnesium Inc.
Edward Lee
President
604-531-9639
604-531-9634 (FAX)
info@nevadacmi.com
www.nevadacmi.com