Novadx called for an independent data verification and evaluation of the resources and reserve potential of the Rex coal seam at its Rex No.1 mine in Campbell County, Tennessee.

The evaluation was conducted by Marshall Miller & Associates senior vice president John Feddock.

One thing Feddock discovered was that the acreage the company owned was actually less than factored in to a previous independent technical report on Rex No.1 by Gress Engineering.

That report, announced to the Toronto Stock Exchange on December 7, 2010, was premised on the Rex No.1 mine property covering about 31,000 acres.

Gress based its estimated resource and potential reserves calculations on mining about 14,000 of those acres.

It has since been found that Novadx only has mining rights for about 27,000 acres.

The downgraded reserves were also due to Feddock applying higher minimum mineable seam heights and applying a mining recovery and preparation plant yield in line with the data verification analysis.

However, the news was not all bad for Novadx.

Compared to the Gress report, Feddock found the measured and indicated Rex No.1 resources had increased by 18% to 38.1 million tons.

Feddock’s data verification work also confirmed the existing grade and quality of the Rex seam.

Novadx president and chief executive officer Neil MacDonald said Feddock’s work gave the company a much higher level of confidence in the mineable reserves and mine plan at Rex.

“Overall the resources and reserve potential of the property we control has been confirmed,” he said.

“Based on our current plans the current proven and probable reserves estimates support more than a 20-year mine life and we intend to continue to add to our reserves through further drilling and property acquisition.”

Novadx has hired Marshall Miller to complete a further detailed study of the Rex No.1 Mine coal resources and reserves, geology and mine plans and to prepare an updated technical report in compliance with NI 43-101.