Palladon Ventures buys Utah ore deposits

Palladon Ventures buys Utah ore deposits

Palladon Ventures Ltd. completed its purchase of the Comstock/Mountain Lion iron deposit in Iron County, Utah, on Apr. 13, 2005, financed with a $9.3 million secured interim loan from Luxor Capital Group. The company is contracting Dawson Metallurgical Laboratories of Salt Lake City, Utah, to perform magnetic separation tests on its new Mountain Lion project with the hopes of creating specifications for magnetically-enhanced raw iron. The results of the tests are expected in late May. Palladon estimates its new venture will generate $700 million in annual sales. The company also estimates the Comstock/Mountain Lion open pit will produce one million metric tons a year. Once a solid market has been established for its raw iron, Palladon plans to produce steel on-site and phase it into manufacturing and sales of steel products. Iron County has a long history of production dating back to the Mormon settlers sent there to mine by Brigham Young in 1851. Since then, Columbia Steel Corp., U.S Steel Corp., and Geneva Steel Mill have all mined the region and subsequently closed down their operations. Palladon appointed Donald G. Foot to head the project. Mr. Foot has also been named as vice president of Palladon Iron Corporation, a new subsidiary of Palladon.