Nevada Clean’s pilot furnace assembly 60% complete

Dec 2, 2015

BENCH-SCALE PILOT FURNACE FABRICATION UPDATE

Nevada Clean Magnesium Inc. has provided an update on the construction of the bench-scale pilot furnace being fabricated by Lindon Acres Enterprises Ltd. located in Fort St. John, B.C. (previously announced Oct. 6, 2015).

Under the technical guidance of James Sever, P. Eng., the materials procurement and furnace shell fabrication phases are now complete and the furnace assembly is 60% complete. It is expected that the pouring of the refractory linings will take place within 3 weeks followed by the installation of instrument and electrical components. The refractory lining will be subject to a baked-out period at operating temperature to remove moisture and to cure the lining.

Construction of the furnace is on track to be completed late December 2015. The testing program is expected to start early in the new year which will coincide with the completion of the materials testing program currently taking place by Meloy Innovation and Technology Center AS (MITC) in Norway. (Please refer to the NCM news release dated September 23, 2015.) To view photos of the furnace please visit the NCM website. http://nevadacmi.com/investors/photos

The furnace is designed to hold an approximate dolime/ferro-silicon charge of 10 lbs. and it is expected to return a magnesium crown of 1 lb. The dolomite portion of the charge will be taken from the retained reject samples from previous drill program of the Tami Mosi property. It is expected the operation of the bench scale pilot furnace will provide the opportunity to identify and correct potential design flaws prior to construction of the commercial scale pilot furnace. The testing will provide the proof of concept that Mg metal is obtainable from the Tami Mosi dolomite. The thermal reduction process being used was originally developed and operated in the 1930’s. It was the source of the magnesium alloy used to make the air cooled Volkswagen engine. Today, a thermal reduction facility is still successfully operating after 38 years in Brazil. Being both competitive and environmentally sound, it provides magnesium metal and alloys for its domestic demand in the auto and aluminum industries.

James Sever, president/COO for NCM explains, “This furnace is perfectly sized to allow for the examination of many of the potential cost saving innovations that will enable the new facility to be competitive on a world basis.”

http://www.nevadacmi.com/news/releases