Nevada Clean Magnesium to Build a Bench Scale Pilot Furnace for Testing in North America

Nevada Clean Magnesium (TSXV:NVM) announced it has contracted Lindon Acres Enterprises Ltd., located in Fort St. John, B.C., to build a bench-scale pilot furnace with the technical assistance from James Sever, PEng, of Alpha Omega Inc. in Spokane, Wash., who is also the company’s president and a director of NCM. The fabrication of the bench pilot furnace will provide the opportunity to identify and correct potential design flaws when the commercial pilot furnaces are designed and constructed. It is expected that these units will initially be built for the Norwegian facility owned by ScanMag AS.
As quoted in the press release:

The bench scale pilot furnace is designed such that it can be configured not only for the basic process, as identified in the Company’s NI 43-101 Preliminary Economic Assessment Report, but also modified to continuous operation with steady in – flow of raw materials andout-flow of residue. It should also be possible to test 3 alternate condenser designs. The dolomite to be used in the test program was obtained from the retained samples of the Tami Mosi drill programs. In accordance with NCM’s revised NI 43-101 Preliminary Economic Assessment Study completed July 4, 2014, initial work will utilize ferrosilicon as reductant and produce 99.8 grade magnesium buttons. This is expected to provide the proof of concept that the basic concept to produce the Mg metal from the Tami Mosi dolomite in Nevada is viable. Alternate reductants will also be assessed.
Lindon Acres Enterprises Ltd. will be issued a total of 2 million shares of common stock of NCM as compensation for the services rendered and expenses incurred in the construction of the furnace. The shares will be issued as follows:a.500,000 at the time of completed procurement of materials.b.500,000 at the time of completed furnace shell fabricationc.1,000,000 at the time of total furnace construction with complete instrumentation.Construction of the furnace is expected to be completed mid December 2015 and the process testing program is to begin shortly thereafter. This is expected to coincide with the completion of the materials testing program currently taking place by Meloy Innovatation and Technology Center AS (MITC) in Norway. (Refer to the NCM news release dated Sept 23, 2015.) This transaction is subject to TSX Venture Exchange approval.

Nevada Clean Magnesium CEO, Ed Lee, stated:

We are very excited to be proceeding with the fabrication of this bench pilot furnace. It will allow us to finalize the design of the full scale pilot furnace and provide the opportunity for the testing of alternate reductants and condensers. This will also give us a better understanding of the efficiencies we are expecting to achieve.
The timing is right for primary magnesium metal production, especially, if it can happen within the USA. The metal has a bright future with more opportunities than ever before. The material applications for magnesium metal are constantly evolving and expanding for three major industry sectors: auto manufacturing to meet the CAFE standards for 2025 by using magnesium to lighten the vehicle weight; the aerospace industry due to the recent acceptance of magnesium for use in passenger spaces in commercial airlines by the Federal Aviation Administration (FAA) and its European counterpart, the European Aviation Safety Agency (EASA); and the energy sector where there is a drive to replace the lithium battery market with a magnesium battery which will be more efficient and environmentally friendly as a power supply for electric cars as well as conventional dry cell applications. For our company to potentially be in the position to help satisfy the upcoming demand and stimulate new applications within the USA is very unique.

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