North American Gem Inc. has Commenced Mining Blue Gem Coal at the North American Gem #2 Mine
August 04 2010 - 11:00AM
Marketwired
North American Gem Inc. (NAG) (TSX VENTURE: NAG) through its
subsidiary, North American Gem US, Inc. has commenced mining Blue
Gem and Thermal (Jellico seam) coal at the North American Gem #2
Mine (Mine permit number #861-0513) in Knox County, Kentucky. This
is NAG's first opportunity to mine the highly marketable Blue Gem
coal which commands a price as much as 200% higher than
high-quality Thermal coal and is typically the highest priced grade
of coal produced in the United States.
Kentucky Mine Partners LLC (KMP) is performing the mining
operations at the North American Gem #2 Mine. Initial production of
the Blue Gem and Thermal 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. Short term pricing of
Thermal coal is tied to the NYMEX index
(http://www.eia.doe.gov/cneaf/coal/page/nymex/nymex_chart.pdf)
which closed August 3rd 2010 at $68.85 per net ton loaded into a
barge on the Big Sandy River in Kentucky at a quality of greater
than 12,000 BTU, less than 1% sulfur, and less than 13% ash which
is the highest pricing for this quality of Thermal coal since
October 2008. To compare further, the price of similar grade
Central Appalachian coal was listed at $51.22 per net ton at the
close on January 4th 2010
(http://www.eia.doe.gov/cneaf/coal/page/nymex/nymex_report.html).
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.
Mr. Dean Schafer is acting as general 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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