North American Gem Inc. Receives Complete Approval to Mine at the North American Gem #2 Mine
July 27 2010 - 9:00AM
Marketwired
North American Gem Inc. (NAG) (TSX VENTURE: NAG) through its
subsidiary, North American Gem US, Inc. is pleased to announce that
the Kentucky Department of Natural Resources (KDNR) has fully
approved the mining application (Mine permit number #861-0513)
which allows for immediate production to begin at North American
Gem #2 Mine in Knox County, Kentucky.
North American Gem #2 Mine contains Blue Gem and Jellico coal
seams and will be North American Gem's first opportunity to produce
highly-valued Blue Gem Coal.
"Blue Gem Coal is a rare and increasingly valuable seam of coal
used in the production of silicon metals," explained Charles
Desjardins, President of North American Gem. "Producing Blue Gem
Coal has been our primary strategic business focus; this new mine
is a significant step forward for the company and we are aiming to
achieve our goal of becoming a long-term Blue Gem Coal
producer."
Blue Gem Coal commands a price as much as 200% higher than
high-quality steam coal and is typically the highest priced grade
of coal produced in the United States.
Kentucky Mine Partners LLC (KMP) has all of the equipment to
perform the mining operations prepared and staged at the North
American Gem #2 Mine. Initial production of the Blue Gem and
Jellico coal is planned for a combined production rate of
approximately 8,000 - 10,000 tons per month. The North American Gem
#2 Mine will be a surface mining and augering operation. NAG has a
buyer in place to purchase all of the coal produced from the North
American Gem #2 Mine.
All of NAG's potential mining operations will incorporate
sediment control methods that will keep ahead of the increased
regulations and restrictions. Furthermore, in anticipation of
increased regulations, NAG has, in all of its permitting
applications, begun the sampling of receiving streams and
groundwater wells utilizing the most stringent and extensive
sampling parameters. This will allow NAG to comply with the
regulatory requirements and will also result in a much shorter and
smoother permitting application process.
The North American Gem Processing Facility (Mine Permit
#861-8012) will serve as the central operation and distribution
point for coal produced by NAG's mining operations. The facility
has equipment in place that is capable of crushing, screening, and
washing coal. This gives North American Gem Inc. the added
dimension to service a variety of customers by preparing coal to
meet their specific requirements. North American Gem Inc. will also
have the ability to purchase outside coal to produce custom blended
products which will increase market potential. Specifically, plans
are to service the industrial stoker markets, silicon metal
producers, and electricity generators.
NAG has also completed production at the North American Gem Mine
#1 site in Whitley County, Kentucky. The Jellico coal which
averaged in quality less than 12% ash, less than 1.1% sulphur and
greater than 12,200 Btu was sold to four buyers over the course of
the mine's operations. Since North American Gem Mine #1 was opened
for the primary purpose of initiating and streamlining NAG's
Kentucky mining operations, the decision to conclude mining at the
North American Gem Mine #1 was based on profitability analysis of
the remaining coal at the mine and the need to dedicate assets to
more profitable mining operations.
Mr. Dean Schafer is acting as operations manager of all the
Company's Kentucky coal leases and is currently implementing an
overall mine plan.
Ms. Deborah Moses, PEng, PLS, REM, of Engineering Consulting
Services Inc. (ECSI) is the qualified person for the Company's coal
operations in Kentucky.
North American Gem Inc. (TSX VENTURE: NAG) is a junior resource
company in Western Canada. The company's major focus is expanding
its coal mining operations at its flagship properties in Kentucky.
In addition, the company has interests in coal, copper, molybdenum,
and other base metals in Canada.
On Behalf of the Board of Directors
NORTH AMERICAN GEM INC.
Charles Desjardins, President and Director
Cautionary note:
This report contains forward looking statements. Resource
estimates, unless specifically noted, are considered speculative.
Any and all other resource or reserve estimates are historical in
nature, and should not be relied upon. The production rate and
mine-life projections have been made without support of a
feasibility study, there is no certainty the proposed operations
will be economically viable. By their nature, forward looking
statements involve risk and uncertainties because they relate to
events and depend on factors that will or may occur in the future.
Actual results may vary depending upon exploration activities,
industry production, commodity demand and pricing, currency
exchange rates, and, but not limited to, general economic factors.
Cautionary Note to US investors: The U.S. Securities and Exchange
Commission specifically prohibits the use of certain terms, such as
"reserves" unless such figures are based upon actual production or
formation tests and can be shown to be economically and legally
producible under existing economic and operating conditions.
"Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release."
Contacts: North American Gem Inc. Charles Desjardins President
and Director 604-683-5445 604-687-9631 (FAX)
info@northamericangem.com www.northamericangem.com
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