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Message: The boys are still trying
| December 31, 2008 |
| Palladon Ventures Announces Iron Mountain Project Update |
| SALT LAKE CITY, UTAH--(Marketwire - Dec. 31, 2008) - Palladon Ventures Ltd. (TSX VENTURE:PLL)(FRANKFURT:PV-1) - This year has been a roller coaster ride for the world and for Palladon Ventures. We have seen the collapse of the worlds basic economy and the strain in the commodity sectors. Palladon Iron Corporation also saw some major changes as a result of new shareholders who joined a private placement that bought 50 percent of Palladon Iron Corporation from our former partner, Luxor Capital Group. Once that was completed, we immediately went into production at the mine, building our facilities, and growing the stockpile. Then, just after we started production and held our AGM, the financial markets crashed and commodity prices plummeted. At a time when Palladon should have been shipping to China, multiple issues complicated our progress. - The storage barns at the west coast port, which were to be used for our product, were full of material that could not be sold. - Prices for iron ore were weak. - Businesses were cautious and hesitant to move forward. To remedy these situations, Palladon moved forward on other paths. The port facilities that were targeted continue to be filled with unsold product, so we set out to find an alternative. We have now identified a port as an alternative and are finalizing arrangements at this time. This port would allow us, at least for an interim period, to start shipping material until we are able to get approval and build a new barn in Southern California. At that time we could actually have two ports available that may allow us to ship two different products at some point. We are working closely with the Union Pacific Railroad (UP) and our partner China Kingdom International (CKI) to assure that the new port facility will allow for efficient transportation of the iron ore to the port and to the end user in China. Both the UP and CKI have done an excellent job of working as part of the team toward that end. Business relations with our Chinese partners remain positive, and they continue to express demand for our product. A major concern for 2009 is the upcoming payment to Luxor Capital Group due June 28th, 2009. We are working very hard to make sure that this does not become an issue and will keep the shareholders abreast of any progress. We certainly have not eliminated the plan to build the concentrator, but we will evaluate the starting date closely so that our timing will be in line with the markets resurgence. In the meantime, we will continue with the plan to sell run-of-mine ore until the market allows for the concentrator to be built and high-grade concentrate produced. The last six months have been difficult, as we have basically re-addressed all facets of our business due to the financial market collapse and the softening of commodity prices. It has also been a time that we could not release a lot of information due to the extreme competitiveness of the industry, sensitivities in trying to secure a new port facility while maintaining the relationship on the old one, and the need to work closely with CKI and our Chinese partners to develop new solutions. Mining operations continue to be strong and the stockpile is filled to maximum with 150,000 tons of product. The size of our resource is expanding based on the aeromagnetic survey that we are analyzing. Although there are still hurdles ahead of us, we are working with the intent to cost-effectively start shipping material as soon as possible. On Behalf of the Board of Directors, Donald G. Foot, Jr., President & Chief Executive Officer About Palladon Palladon Ventures Ltd. is a junior resource company focused on building production facilities at the Comstock/Mountain Lion iron mine in Iron County, Utah. Palladon also holds gold exploration projects in Nevada, Utah and Argentina. |
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