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Message: Concentrate Options
| March 31, 2009 |
| Palladon Ventures Ltd.: Concentrate Options |
| SALT LAKE CITY, UTAH--(Marketwire - March 31, 2009) - Palladon Ventures Ltd. ("Palladon" or the "Company") (TSX VENTURE:PLL)(FRANKFURT:PV-1) - As the Company stated in its March 27 press release, shipping run-of-mine ore in the current environment is uneconomic. However, the Company will continue to evaluate shipping options for run-of-mine ore should market pricing improve. As mentioned on the March 30 conference call, a mill in Mexico is available to process run-of-mine ore into concentrate. Dale Gilbert, recently appointed as Special Advisor to the Board of Directors, is working with his team at Gilbert Development, Palladon's mining contractor, to evaluate a possible near-term shipping opportunity for concentrate production in Mexico. Other concentrate shipping solutions would require construction of the Company's own concentrate plant at the mine site. Samuels Engineering is currently working with the Company to estimate those costs. Regarding the possible near-term concentrate shipping solution in Mexico, Palladon would use an idled concentrate plant owned by a major steel producer. The Company is evaluating a turnkey solution that would involve iron ore processing, loading, and shipping in vessels that are owned by the steel producer. Palladon ore samples are currently being processed to evaluate final specifications, which should be available in the next two weeks. Viability of this shipping solution will obviously depend upon Palladon's ability to earn an acceptable profit between pricing the iron ore concentrate and related input costs. Management wants to reiterate that it is evaluating all options in an effort to maximize the value of its mine and generate cash flow to help support its outstanding debt. The Company will continue to evaluate longer-term options including construction of a concentrate plant and production of higher order products, such as pig iron. SRK Consulting has been engaged to assist in the review of alternatives to maximize the value of the mine, as well as to evaluate the significance of the recent Aeromagnetic Survey results. SRK's initial assessment should be available in the next few weeks. Palladon's Phase 2 assessment of the Aeromagnetic survey results will also soon be available for inclusion in this analysis. Palladon will continue to update investors as information becomes available. On Behalf of the Board of Directors, John W. Cutler, President & Chief Executive Officer About Palladon Palladon Ventures Ltd. is a junior resource company focused on advancing 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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