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News Release
FOR IMMEDIATE RELEASE: December 21, 2005, 8:00 A.M. Eastern
Standard Time
CONTACT:
John T. Day, President/CEO
Dennis P. Gauger, CFO
Nevada Chemicals, Inc.
801-984-0228
Nevada Chemicals’
Joint Venture Company, Cyanco, Considers Calcium Cyanide Production
at Winnemucca, Nevada
SALT LAKE CITY—(BUSINESS WIRE)—December 21, 2005 –
According to John T. Day, President and Chief Executive Officer
of Nevada Chemicals, Inc. (NASDAQ/NMS:NCEM) in the December 19th
issue of the Chemical Market Reporter, a widely-read, weekly chemical
industry publication, the following was cited: “Cyanco is
exploring the viability of producing liquid calcium cyanide at its
facility near Winnemucca, Nevada, where it already produces liquid
sodium cyanide. Citing the abrupt and sustained increase in raw
materials, Cyanco said it is investigating possible ways to help
the local mining community control cost increases for the chemical.
For years, calcium cyanide has been used to leach gold in South
Africa, with gold recoveries essentially equivalent to sodium cyanide.
In addition, some within the gold mining community report that the
use of calcium cyanide as a lixiviant, rather than sodium cyanide,
reduces the cost of rinsing and decommissioning heap leach pads.”
Today the cost of caustic soda (sodium hydroxide), a principle
raw material in sodium cyanide, is four to six times more expensive
than lime used in calcium cyanide. The price of caustic soda is
highly dependent on the cost of energy and therefore reflects the
recent increases in electricity and natural gas. Day cautions that
Cyanco has not made a decision regarding production of calcium cyanide
but the on-going study looks promising.
Note: The foregoing contains “forward-looking”
statements that are pursuant to the safe harbor provisions of the
Private Securities Reform Act of 1995. Editors and investors are
cautioned that forward-looking statements involve risks and uncertainties
that may affect the Company’s business prospects and performance.
These include, but are not limited to, economic, competitive, governmental,
technological and other factors discussed in the Company’s
reports to shareholders and periodic filings with the Securities
and Exchange Commission.
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