The report was undertaken by Marshall Miller & Associates senior vice-president John Feddock.
Highlights of the technical study included defining a measured and indicated resource of 38.1 million tons for the mine in addition to a 9.6Mt inferred resource.
The study also demonstrated proven and probable recoverable reserves of 11.3Mt, supporting expectations for a 23-year mine life.
Included in the 2012 technical report was the recommendation the company continue to operate and develop the Rex coal mine property and continue its efforts to acquire certain adjacent properties to potentially increase the company’s reserves.
Novadx chief executive officer Neil MacDonald said he was pleased with the results of the technical report.
“The positive economic assessment greatly improves our confidence in the Rex coal mine project and we remain firmly committed to seeing the project through to positive cash flow,” he said.
“We are also committed to potentially increasing our reserves through further exploration of our existing property and acquisition of adjacent properties as recommended in the report.”
The Rex No. 1 mine has only been in production for a short time but the company believes the mine will position Novadx for significant revenue growth in the near term.