Yesterdays News , About three years ago.
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Message: Yesterdays News , About three years ago.
| Tue May 26, 2009 Palladon Ventures Ltd. - Shareholder Update |
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Salt Lake City, Utah, May 26, 2009. Palladon Ventures Ltd. ("Palladon" or the "Company") (TSX.V: PLL) (Frankfurt: PV-1) is pleased to release the following updates to shareholders. Iron Mountain Project - SRK Update In April, Palladon retained SRK Consulting to prepare an Internal Preliminary Economic Assessment report on Palladon's Iron Mountain Project. SRK was asked to undertake a review of the historical drill data and related information, in order to access the merit of the deposits, to examine their economic potential, and subsequently to prepare a NI 43-101 compliant scoping study and a preliminary economic assessment of alternative development scenarios. Below is a brief summary of SRK's initial assessment and recommendations. Palladon holds claims on several substantial iron ore resource deposits in southern Utah. Iron ore was produced between 1923 and 1995, with annual production rates ranging from 217,000 to 3,000,000 tons per year. The project can therefore be considered a brownfield development project with existing permits in place. The project scope is likely to expand from what is presently permitted, which will require permit amendment. The Iron Mountain area is served by extensive existing infrastructure, with nearby highway access, a rail spur to the site that connects to the Union Pacific Railroad, electrical power and natural gas. Palladon also has rights to local water resources. Coal and limestone are readily available in the region. The high transportation cost of shipping iron ore from southern Utah to traditional Asian and European markets presents a compelling argument for upgrading the run of mine (ROM) iron ore to higher-value products on site. Considerable drilling and metallurgical test work has been undertaken on the deposits and ores during the project history. From a review of the data available and subject to confirmatory tests, design and evaluation work, SRK believes the iron ores are amenable to the production of concentrates and pig-iron-grade iron nuggets, a premium quality feedstock for Electric Arc Furnaces (EAF). SRK has undertaken preliminary resource estimates and has developed conceptual pit designs for the Comstock, Mountain Lion and Rex deposits. A process flow sheet being developed by SRK and Samuel Engineering will include iron ore crushing, grinding and concentrating, followed by the option of an iron nugget plant. ROM ore will feed a conventional concentrator to produce concentrate feed for the iron nugget plant. An initial 1Mtpa production rate for iron nuggets seeks to balance projected market demand with economies of scale. An iron concentrate only scenario is also being evaluated. Although the project designs are conceptual at this stage, the preliminary economics look encouraging and there appear to be no fatal flaws to development. Investigations are planned or on-going in the following areas:
Palladon continues to work diligently to satisfy requests from the BCSC regarding restatement of prior interim financial disclosures, which will lead to having the trading halt removed from the stock. As part of this effort, prior-year audit firm BDO Dunwoody LLC has been re-engaged as Palladon's outside auditor. BDO's in-depth knowledge of the company will be focused on reviewing Palladon's restatement of prior interim financial statements, in addition to conducting an audit of the fiscal year ended February 28, 2009. The general ledger has been reconstructed from February 28, 2008 which was the date of the last audited financials. Numerous corrections and clarifications in supporting documents are being made. A congruent three pronged effort is underway to rectify finance and accounting problems. Management's objective is to sturdy the accounting systems with new policies and procedures, to restate prior interim periods as requested by the BCSC, and to organize the books in support of the year-end audit. This effort is a top priority for management, to be accomplished as quickly as possible. Financing Update The company is in discussions with Luxor Capital with regard to extending the maturity of their notes. Palladon is also pursuing alternative financing options with other strategic and financial parties. Palladon looks forward to updating shareholders as these initiatives progress. On Behalf of the Board of Directors, John W. Cutler President & Chief Executive Officer |
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