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Borrowing this post from stockhouse.....follows....
Anyone have a new number? Its gotta be double at the new ore prices. Its time China paid $200 a ton...
Here's a good article from October:
Palladon Ventures Advances to $744M Net Present Value: PEA
By admin · October 6, 2009 · 2:54 pm · 1 Comment
By Doug Hadfield, Managing Editor, resourceINTELLIGENCE TV
I wrote about Palladon Ventures (TSX.V: PLL) a few weeks ago, prior to the release of the company’s Preliminary Economic Assessment. I said that I saw promise in the new management team, headed by a capable and thorough John Cutler as interim President and CEO. The PEA shows a clear way forward for a brownfield expansion company that has managed to pick itself up and dust itself off from an economic aneurysm that nearly stopped the global economy in its tracks.
The upshot of the PEA is that based on numerous variables the company’s Comstock Mountain Lion (CML) iron deposit is a clear winner: The project has a Net Present Value of US$766 million and an IRR of 24%. On one hand that’s very good; on the other it’s just the beginning for Palladon; the existing high-grade 40 million ton deposit represents just a fraction of the total resources that could be at Iron Mountain.
Then there are other factors: The market fundamentals for iron ore has taken a hit since its historic highs of 2008 (compare with the steel index below). Nevertheless, indications suggest that once the recession is behind us, domestic and international demand will pick up from where they left off.
The signals from the steel industry (steel is a combination of iron with a small amount of carbon) suggest that Chinese growth merely hiccuped during the global recession. As a result, analysts are now lining up to give a thumbs up to steel (and by extension, iron). Macquarie raised its global steel price outlook for 2009 and iron ore contract prices for next year, citing a strong recovery in China and ensuing tightening in global supply of the steelmaking ingredient.
Citigroup research has said these price escalations will provide record profits for mining groups. Brazilian giant Vale is expected to double earnings from iron ore by 2009.
BHP Billiton Ltd. and Rio Tinto Group, the biggest and third-largest mining companies globally, had their profit estimates raised by as much as 40 percent by JPMorgan Chase & Co. because of rising iron ore prices.
In the long-term BMI, which provides intelligence on global markets, has said it expects the steel and iron industries to expand, driven by the increasing demand on steel from growing economies of Asia’s developing countries.
Interestingly, some have noted that Chinese steel prices have fallen 20-25% since an August post-recovery peak, with the suggestion that this could be an early sign of a Chinese slow-down. I can’t think of anything more absurd. China is growing like gangbusters, and that’s not going to stop soon.
Mining Journal recently reported that China – the world’s biggest consumer of iron ore – may buy 20% more than forecast of the material next year because of its CNY 4 trillion stimulus package.
The Australian Bureau of Agricultural and Resource Economics said, “China is expected to continue to underpin demand for iron ore. Globally demand for steel, and therefore steelmaking raw materials is expected to increase in response to an assumed economic recovery beginning in the H2 of 2009.”
Whether you attribute this long-term demand to stimulus packages or the Chinese growth/real estate bubble, most economists believe China’s growth curve has a long way to go before it slows down. Corrections are expected along the way, but a Chinese slow-down is not likely. Heck there are still 100s of millions of countryfolk moving into the cities in a country with little a debt and a huge monetary reserve. This in itself will drive infrastructure projects for the next decade.
Palladon hasn’t yet decided if its market will be US or Asia (or both) although the numbers in the PEA were based on a domestic market. The company’s CEO John Cutler points out that Palladon is still considering its options, but doubts that a run-of-mine (ROM) operation would be economic at recent iron prices.
Now with a new plan in place to build a modern facility to upgrade the ore, Palladon is seeking to answer some key questions: What type of facility to build? What kind of iron product is most profitable, given the type of deposit and ore contained within it?
The company has some options. The simplest and most economical is to mill the ore and upgrade it to a 67% iron concentrate. The end product would be less valuable than a high grade product like Direct-reduced iron (DRI), but would also require lower capital expenditures.
DRI is another option – and the one that SRK explored in the Preliminary Economic Assessment.
DRI is a widely manufactured and traded commodity involving the reduction of iron ore with a reducing agent (coal or natural gas) without the formation of molten metal, hence its name.
Whereas DRI is typically 91% Fe, another option is the Midrex ITmk3® process, which produces a more valuable iron nugget with 98% Fe, and with a fraction of the carbon emissions, according to numerous industry articles. The Midrex ITmk3® process requires a newer, less widely used technology that is expected to see commercial production later in 2009. Palladon will have to continue with metallurgical and other studies to determine which method is best suited to its deposit.
Market studies conducted for Palladon by Hatch Management Consulting indicate that present US domestic mini-mill demand could support the sale of up to 1 mtpa of DRI or nuggets, also known as Alternative Iron Units (AIU). The scrap-short Asian market could also be a good source of demand for AIU.
Within 1,200 miles of Palladon’s project location there are eight end users who purchase roughly 1.1Mst of AIU per year. In North America, there are 29 end users that use over 4.8Mst of AIU per year. Currently, the majority of this AIU requirement is met with either DRI or imported pig iron.
In other words, there appears to be both a domestic market and an international market for the product that Palladon will produce.
The Deposit
The deposit at Comstock Mountain Lion is presently comprised of 40 million tons (mT) of ore grading an average of 45% Fe. Three million tonnes of iron (9 mT ore grading 34% Fe) are sitting on the surface in stockpiles. Consider that SRK Consulting, an independent consulting firm, in creating its 43-101 compliant Preliminary Economic Assessment for the CML Project used a price of $378/metric tonne. As such, the 9 mT of ore at surface is worth about a billion dollars, less costs, royalties, taxes, etc.
To better understand the value of this deposit, you’ll want to look at the resource calculations and data in the calculator here: http://shareknow.net/companies/1759. The project has a pre-cost value of $5.3 billion (the PEA makes it $5.4 billion). Now take off costs in the Operating Calculator and you’re left with about $2 billion or $14.02 per share. Those are good, solid numbers.
Take away a discount for the entire investment of 8%, as the consultants do in the economic assessment, and it still looks healthy, with a NPV of US$766 million and an IRR of 24%.
Of course there will be some future dilution due to fund raising for capex but $14.02/share is orders of magnitude from the company’s current
.10/share.
Next Steps
Clearly a processing plant isn’t going to be build here overnight (though there is an existing mine), but with the report from SRK, I think Palladon is armed with the weaponry it needs to make big strides forward. There is some decision-making do be done, and to get there Palladon has to raise $5 million by October 15 to meet its debt obligations with Luxor and to complete a Feasibility Study.
While all this is happening, the company’s share price will fluctuate. But for those investors who see the long term potential in Palladon Ventures, there is clear upside. The stock price hasn’t really budged on any of this news. The company flies under the radar still.
I’m sure some investors who bought into this one last year have grown impatient. They were expecting a current producer out of Palladon. It’s not a current producer, but the team is clearly laying a strong foundation, with 43-101 reports, independent consultants, twinning historic drill holes and proposed drilling. And that’s infinitely better than the shaky legs this project was walking on a year ago.
******
Iron Ore Could Prove Attractive to Investors.
March 9, 2010, 1:43 PM GMT
Iron ore titans BHP Billiton and Rio Tinto are pressing steelmakers for a 70% to 80% increase in iron-ore contracts this year, and investors can expect the higher prices to deliver bounties to more than just the big miners.
Small exploration companies hoping to develop deposits in Africa and Scandinavia may reap even bigger benefits.
Australian iron-ore hopeful Bellzone — with its 2.4 billion metric ton resource in Guinea — appears to have divined this with its announcement Monday that it plans to raise $100 million with an AIM listing.
At a time when the global economy is shuffling forward and forecasting commodity prices is difficult, an 80% increase in revenues is bound to draw investors to an unfamiliar commodity, even if it comes with high sovereign risk and uncertain economics. Australian investors have been faster than their London brethren to latch on to the iron ore story; about 35 Australian miners are trying to develop iron-ore mines compared to less than a handful in London, according to Ambrian Capital.
That gap is bound to narrow quickly. With some analysts predicting prices may rise another 40% in 2011 — and stay above that price in the future — high cost, low grade iron-ore projects in Africa, Scandinavia and Brazil look potentially profitable.
London Mining preceded Bellzone with its listing last November. Other iron-ore hopefuls are likely to quickly follow Bellzone in the months before and after the big iron-ore miners and steelmakers settle prices in a month and a half’s time, as expected.
There have long been rumors that Brazilian iron-ore miner Ferrous Resources is planning a London listing. A recent report said it was planning to raise £3.2 billion and that it has appointed JP Morgan Cazenove and Deutsche Bank.
Ambrian says it’s hoping to bring several iron-ore listed companies to London for a dual-listing this year.
For investors, the biggest upside for these stocks may be here and now. Iron ore prices are high and none of the miners has yet to finish feasibility studies, signed offtake agreements or begun building a mine: the messy realities when a miner can easily disappoint investors because costs overrun, timelines aren’t met and the quality of the asset fails to meet expectations -– and shares get bogged down.
http://blogs.wsj.com/source/2010/03/09/iron-ore-could-prove-attractive-to-investors/
Highest weekly volume in 3 months and it's only tuesday. I can't help but think we have an announcement coming.
Volume picking up the last few days. I'm thinking bottom is in or being put in here.
Rio, BHP to Push For 80 Pct Iron Ore Hike
By REUTERS
March 5, 2010 Filed at 4:29 a.m. ET
SYDNEY (Reuters) - Australia's Rio Tinto <RIO.AX> and BHP Billiton <BHP.AX><BLT.L> could hold out for -- and get -- an 80 percent increase in the price of iron ore, their second highest annual hike ever, to help fund expansion, if the mining giants should lose a battle to switch to spot pricing.
Analysts and fund managers told Reuters the world's second and third largest iron ore producers respectively were driving steel mills to accept increases of 80 percent as an alternative to adopting indexing for the 2010/11 shipping year.
Speaking on condition of anonymity because they did not want to appear to be siding with the mining houses amid price talks, the analysts said steel mills were warming to the idea of an 80 percent rise in contract prices next year.
"Given the way the spot price is running, 80 percent is starting to look cheap," an Australia-based mining analyst said. Spot iron ore on a landed China basis is trading around $133 a tonne <.IO62-CNI=SI>, double the 2009 free-on-board contract. An 80-percent boost would dramatically improve both firm's price to earnings ratios, boost credit ratings and ensure billions of dollars in added revenue to help pay for new mines planned in the Australian Pilbara iron belt.
"If the iron ore miners win only a 70 percent increase then, at its current share price, Rio Tinto would be trading on a P/E of only eight," a fund manager based in Singapore said.
Rio now trades at a forward PE of 13.8 and BHP trades at a PE of 18.1, Reuters data shows.
A Reuters poll this week showed analysts have increased expectations for annual prices to a median 40 percent versus 30 percent at the end of January.
But the poll includes several contributions that have not been updated or are under review. Excluding those numbers, the median forecast is for an increase of 65 percent.
ArcelorMittal <ISPA.AS>, the world's biggest steel maker, reportedly already is bracing for a hike of 70 to 80 percent for the shipping year starting April 1, a view increasingly in line with forecasts.
A Chinese media report this week that global miners are offering Chinese steel mills a 50 percent rise in iron ore prices has been dismissed by analysts as posturing.
Rio and BHP have become increasingly frustrated over an inability to persuade steel mills across Asia to drop the decades-old one-price-a-year system and agree to set prices quarterly, or even monthly or daily.
BHP Chief Executive Marius Kloppers has called for an end to annual pricing, saying the system is antiquated and out of touch with changing market conditions. Kloppers last month said the only number that should be followed was the spot price, which equated to a 90 percent hike at the time.
Rio and BHP are locked in negotiations with Chinese mills to reach some type of agreement for 2010/11. A 50 percent hike would send the price of iron ore fines to about $91.50 per tonne.
Investment bank Morgan Stanley has tipped iron ore prices to rise 60 percent. Japan's Nomura Holdings Inc says a 70 percent hike is likely.
But analysts remain divided over whether Rio and BHP will agree to price ore on an annual basis at all this year, given the run up in spot.
"This may be the year they draw a line in the sand and say, 'It's over, no more'," said James Wilson, a mining analyst for DJ Carmichael & Co.
Goldman Sachs JBWere analyst Neil Goodwill believes Rio, BHP and smaller rival Fortescue Metals Group <FMG.AX> may be missing out on a combined $20 billion in annual sales revenue by not selling iron ore at cash prices.
BHP has already earmarked investment of $1.93 billion (1.28 billion pounds) to spruce up rail and port facilities in the Pilbara, which will cover about half the cost of lifting annual output by 17 percent to 240 million tonnes.
Rio aims to boost production 6 percent to a record 230 million tonnes in 2010 and is considering a leap to 330 million within five years.
(Additional reporting by Bruce Hextall and Nicholas Trevethan)
(Editing by Clarence Fernandez).
http://www.nytimes.com/reuters/2010/03/05/business/business-uk-ironore.html
From the last press release, "I was encouraged on my recent trip to China, where I met with numerous parties to discuss off-take agreements for iron ore and concentrate, as well as funding and possible investment in Palladon." Dale Gilbert.
Hopefully an announcement is forthcoming.
http://www.marketwire.com/press-release/TSX-V-Denies-Palladon-Ventures-Letter-Agreement-With-Luxor-Capital-Partners-LP-Palladon-TSX-VENTURE-PLL-1126182.htm
Palladon Ventures Announces Board and Management Changes
.Press Release Source: Palladon Ventures Ltd. On Monday January 25, 2010, 6:32 pm EST
SALT LAKE CITY, UTAH--(Marketwire - 01/25/10) - Palladon Ventures Ltd. ("Palladon" or the "Company") (TSX-V:PLL - News)(Frankfurt: PV-1) announces the following changes to its corporate structure:
- Dale S. Gilbert has been appointed President and Chief Executive Officer, and has also been appointed to the board of directors.
- Steve L. Gilbert has been appointed to the board of directors.
- John W. Cutler has been appointed Chief Operating Officer.
- Leonard Sojka has resigned from the board of directors.
Steve Gilbert is the founder of Gilbert Development Corporation, a large regional construction company headquartered in Hurricane, Utah. Under Steve's leadership, Gilbert Development expanded into a variety of major construction activities, including housing subdivisions, dams, highways and open-pit mines.
Dale Gilbert worked his way up the family business, and is currently the President and Chief Executive Officer of Gilbert Development Corporation. He oversees all operations of the General Engineering/Mining parent company Gilbert Development Corporation, as well its manufacturing division Crusher Rental and Sales, which is a leading manufacturer of mining and construction equipment.
Dale and Steve have been involved with the Iron Mountain Project since Gilbert Development Corporation began mining operations there in the late 80's under US steel and later Geneva Steel. Since being awarded the current mining contract with Palladon Ventures, Dale's expertise has helped Palladon move the project forward on a number of levels.
COO John Cutler stated: "We are very pleased to have Steve and Dale formally join our company. They bring a wealth of knowledge about the project, and have already worked very hard to advance it. Dale's appointment as CEO of Palladon Ventures recognizes his interest in and value to the project. In addition to his industry contacts and broad industry experience, Dale brings an intimate knowledge of the Iron Mountain Project itself. We look forward to Dale and Steve making significant contributions on a number of corporate initiatives."
Palladon CEO Dale Gilbert stated: "I am extremely excited and optimistic about this opportunity to help advance the Iron Mountain Project. I appreciate the confidence placed in me by the Palladon Board and management team, and I look forward to working closely with them.
The Gilbert family has a long and well-established operating history with the Iron Mountain Project. We fully understand the mining and logistical aspects of the business, and will bring all of our resources to bear in an effort to resume shipment of iron ore as soon as possible. The market environment for iron ore has improved significantly. As such, we will pursue near term options to profitably ship run-of-mine ore. We will also continue to efforts develop the project for the eventual shipment of iron concentrate.
I understand the near-term challenges facing the company. However I have a vested interest in achieving a successful outcome and I am optimistic that we will quickly pursue the best path for the Company. We look forward to updating shareholders on a regular basis, as we pursue near-term shipping scenarios and as we evaluate options to refinance the outstanding debt."
On Behalf of the Board of Directors,
Dale S. Gilbert, 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. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future, which include the Company continuing to work on a plan to repay its Luxor debt and to finance current operations and further development of the Iron Mountain Project. 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 labor 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.
Contact:
Contacts:Palladon Ventures Ltd.Dale S. GilbertPresident & CEO801.521.5252801.521.5454 (FAX)info@palladonventures.comwww.palladonventures.com
http://finance.yahoo.com/news/Palladon-Ventures-Announces-iw-2967057066.html?x=0&.v=1
rapport reuter
PLL PALLADON VENTURES
(TSX VENTURE EXCHANGE)
Date: 21 August 2008 Sector: Basic Materials Industry: Non-Metallic Mining
Data Source: Reuters Fundamentals
Business Summary
Palladon Ventures Ltd. is a Canada-based company engaged in the business of acquiring, exploring
and developing mineral resource properties. The Company holds interests in a copper development
property in Beaver County, Utah, and the Iron Mountain project in southwestern Utah. The Companys
Great Basin gold exploration portfolio consists of four Nevada properties (Caldera, Green
Springs, Tobin, and Windermere), and two Utah properties (Kings Canyon and New Butte), covering
a total of 5,450 acres. The Companys Argentine interests include the La Sarita property, in Salta
and the Taca Taca Alto (Tacalto) property, also in Salta province. The Company also holds a 51%
interest in a portfolio of gold exploration properties in the Deseado Massif region of Patagonia,
southern Argentina. This portfolio comprises Laguna Guadalosa, Tres Hermanas, Gran Bajo and
Rio Deseado, all held in a joint venture with Deseado LLC.
Share Performance
Price (CAD): 0.58 52 Week High: 1.10 Currency: CAD
Volume (millions): 0.0 52 Week Low: 0.13
Financial
Valuation Ratios
Price/Book 7.94 $
source http://ca.finance.yahoo.com/q/rr?s=PLL.V
source
Strategic Investing
Valuation Ratios: Price/Book Value
BOOK VALUE is a company's assets minus its liabilities. It's accounting jargon for what would be left over for shareholders if the company were sold and its debt retired. The price/book ratio measures what the market is paying for those net assets (also known as shareholder equity). The lower the number, the better.
Price/book was a lot more popular in the age of smokestacks and steel. That's because it works best with a company that has a lot of hard assets like factories or ore reserves. It's also good at reflecting the value of banks and insurance companies that have a lot of financial assets.
But in today's economy many of the hottest companies rely heavily on intellectual assets, such as patents, trademarks — even their employees' collective brains — that don't appear on the balance sheet. That's why high-tech outfits like Cisco Systems have relatively low book values, which give them artificially high price/book ratios. The other drawback to book value is that it often reflects what an asset was worth when it was bought, not the current market value. So it is an imprecise measure even in the best case.
But the price/book ratio does have its strengths. First of all, like the P/E ratio it is simple to compute and easy to understand, making it a good way to compare stocks across a broad array of old-line industries. It also gives you a quick look at how the market is valuing assets vs. earnings. Finally, because assets are assets in any country, book-value comparisons work around the world. That's not true of a P/E ratio since earnings are strongly affected by different sets of accounting rules.
http://www.smartmoney.com/university/strategicinvesting/stockpicking/index.cfm?story=pricebook
BUY-IF GOOD NEW
Palladon Announces Annual General Meeting and Start-Up of Operations at Iron Mountain
9:06 PM ET, August 5, 2008
SALT LAKE CITY, UTAH, Aug 05, 2008 (MARKET WIRE via COMTEX) -- Palladon Ventures Ltd. ("Company") (PLL)(FRANKFURT: PV-1) is pleased to announce that it will hold its Annual General Meeting on Wednesday September 17th 2008, at 9:00 a.m. at the Company's corporate offices in Salt Lake City, Utah.
Palladon Iron Corporation ("Palladon Iron") has initiated operations at the Iron Mountain facility in Cedar City, Utah in anticipation of the first shipment of iron ore from the site during the third quarter of 2008. Palladon Iron's staff is now on-site at the Iron Bull Mining & Milling facility as work in all aspects of the operation moves forward.
Palladon's Iron's contract miner has installed the first crusher on-site which is in operation crushing ballast for the railroad refurbishment project. Not only was suitable ballast material found within the project area, eliminating the necessity of purchasing and delivering ballast from a third-party, it created a significant cost savings. An additional crusher, that will provide complete redundancy in crushing capability, will also be installed. Additionally, the stacker has been installed and is ready for connection to permanent power. With rock being crushed at the site, the substation gravel base is now complete and new roads are being graded and shaped with crushed fine material.
Palladon Iron Corporation (Iron Bull Mining & Milling) has received approval of the Amended Notice of Intention to Commence Large Mining Operations, from the Utah State Division of Oil, Gas and Mining, pending payment of a small additional reclamation bond. This approves the new dump designs and allows Palladon Iron to resume all mining activities.
Palladon Iron signed a contract with a rail contractor to replace 4,280 feet of 90-lb. rail with upgraded heavy duty 133-lb. rail and 5,400 ties on the existing 14.6 mile short-line from the mine load-out facility to the interchange tracks at Iron Springs. In this phase, about one-third of the ties will be replaced for added safety as loaded trains are moved down the two-percent grade track to the interchange. Two additional phases of refurbishment are planned that will replace 100% of the ties over the next two years.
Palladon Iron has formed Palladon Iron Corporation Railroad ("PICR") to act as the operating company over the shortline railroad. PICR is a wholly-owned subsidiary of Palladon Iron.
PICR and the Union Pacific Railroad ("UP") have signed a track lease contract for the "Comstock Subdivision" of the UP effective August 1, 2008. Through this agreement, PICR will be able to move all loaded and empty trains between the load-out facility at Iron Mountain, and the interchange tracks.
The Operating Agreement between the short-line operator and the PICR was signed August 1, 2008. This allows our shortline operator to move all rail cars on the tracks and to interface with the UP.
In order to keep our investors current with the rapid changes taking place at the Iron Mountain site, updates will be posted each Monday afternoon on www.ironbullmining.com. These will include pictures, progress reports and updated schedules.
"Things are moving ahead rapidly at the site as our mine office is fully functional and our contractors are diligently working to get the mine into operation and begin shipments," said Donald G. Foot Jr., President and CEO of Palladon Ventures, Ltd.
On Behalf of the Board of Directors,
Donald G. Foot, Jr., President and 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.
WARNING: This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of up-coming work programs, permitting processes, the first shipment of iron ore from the site, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Palladon Ventures Ltd. relies upon litigation protection for forward-looking statements.
The TSX Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of the contents hereof.
Salt Lake City, Utah, July 2, 2008. Palladon Ventures Ltd. (TSX.V: PLL) (Frankfurt: PV-1) provides an update on progress at the Iron Mountain facility near Cedar City, Utah in anticipation of the start-up in the third quarter of 2008. Final construction of facilities and pre-production activities at the site are currently underway. As announced on June 27, 2008, Palladon has now acquired 100% of the project and has closed on financing more than adequate to fund all capital and operating costs to commence production of run-of-mine ore to fulfill the contract with China Kingdom, International ("CKI").
Palladon Iron Corporation has signed a 5-year contract with Gilbert Development Corp. to be the Company's contract miner on the Iron Mountain project. Gilbert will perform all mining duties at the site with the major elements including drilling, blasting, crushing, screening, hauling, blending, conveying and stacking and railcar loading, based on the mine plan developed to meet the contract. Palladon personnel will oversee Gilbert's operations and will conduct all operations for the mix of ores to be hauled to the stockpile, survey primary elevations of the benches, toe and crest limits for the mining pit, and percentage grade on all roads, based on permitting requirements.
The site is being prepared for the installation of the crushers, load-out facility and the stacker. The new stacker, a 42-inch-by-170-foot swing-axel radial telestacker conveyor, was received at site and will be installed in the next two weeks. This rotary stacker is capable of blending and storage of approximately 130,000 tons of material prior to loading on the trains. The stacker is portable and can easily be relocated within the Iron Mountain property.
Palladon Iron has signed a contract with GSL Electric to provide secondary power at the site. The high-voltage power will be provided through the newly-erected 138kVA transmission distribution line and reduced to 4160 volts in the newly-constructed 13 MW substation. Power distribution will be to the crushers, radial stacker, conveyors, load-out, and office facilities through step-down transformers. All power poles, wire and switches for the 138kVA line are installed and ready for power. All power should be operational by August 1, 2008.
"This has been a very exciting last few months with the signing of the long-term contract with CKI and buying out Luxor Capital Group's stake in the iron mine. Palladon now controls the entire project, has sufficient working capital, and is at a tremendous pace to begin shipping by Q3 of this year," said Donald G. Foot Jr., President and CEO of Palladon Ventures, Ltd.
On Behalf of the Board of Directors,
Donald G. Foot, Jr.
President and 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.
For Further Information Please Contact
Donald G. Foot Jr.
President and CEO
Palladon Ventures Ltd.
554 South 300 East, Suite 250
Salt Lake City UT 84111
801-521-5252 Tel
801-521-5454 Fax
Email: info@palladonventures.com
Web: www.palladonventures.com
Web: www.ironbullmining.com
http://www.palladonmining.com/s/Home.asp
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Palladon Ventures Ltd. is a junior exploration and development company based in Salt Lake City, Utah. The Company is focused on redeveloping the Comstock/Mountain Lion iron mine at Iron Mountain in southwestern Utah, and has exposure to gold and precious metals through a portfolio of exploration-stage projects in Utah and Nevada. Palladon is a publicly traded company, listed on the Toronto Venture and Frankfurt Exchanges as (TSX-V: PLL and FSE: PV-1) and in the U.S. Pinksheets as PLLVF.
Home Page: http://www.palladonventures.com/s/Home.asp
Photo Gallery http://www.321gold.com/editorials/moriarty/moriarty103109/index.htm
Bob Moriarty's write up Late 2009 http://www.321gold.com/editorials/moriarty/moriarty103109.html
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