North American Gem Inc. Nears Full Production at North American Gem #1 Mine in Whitley County, Kentucky
March 25 2010 - 8:00AM
Marketwired
North American Gem Inc. (NAG) (TSX VENTURE: NAG) is nearing full
production at North American Gem #1 Mine with shipments of coal
being sent to market daily. At the current rate of production NAG
is currently on pace to produce and sell approximately 8,000 tons
of coal per month with the ability to further increase production.
NAG has steadily increased its production over time as the weather
has slowly improved. Currently there are two augers producing and
the third auger is expected to be activated in approximately two
weeks time.
NAG would also like to announce that the permitting process
being managed by Ms. Deborah Moses of Engineering Consulting
Services Inc. and Mr. William Grable is proceeding well. One of the
previously announced mining permits is currently in the final stage
of the process and is expected to be approved in the near future.
Currently all future mining permits have been designated to be
highwall mining operations and it is expected that production will
be at least 25,000 tons per property per month.
The decision of North American Gem to acquire and develop this
permitted coal lease was made with consideration of the situation
regarding the "mountaintop removal" and "valley fill" issues under
scrutiny by the US Environmental Protection Agency. None of the
leases currently held or being considered by NAG will be affected
by this issue.
The method of mining to be used in the North American Gem Mine
#1 is known as contour mining. All of the mining permits currently
being pursued by NAG have been mined prior to the enactment of the
Surface Mine Control and Reclamation act of 1977. This law requires
that after any surface mining, the land must be restored to the
approximate original contour unless otherwise specified in the
permit application and approved by the Kentucky Department of
Natural Resources (KDNR). When "pre-law" mining was done, the
general practice was to mine along the contour of a slope to the
maximum profitable ratio and leave the resulting highwall and a
wide, flat bench where the material covering the coal was removed
and then graded somewhat flat as opposed to restoring the original
slope. NAG will at the very least return the mining permit
locations to their current state, and in some instances return the
mining permit location to a better environmental state due to the
Surface Mine Control and Reclamation act of 1977.
The North American Gem #1 Mine is permitted for the use of
augers to enter the coal seam from the exposed wall with minimal
additional excavation and maximum cost effectiveness. This type of
mining dramatically reduces the amount of surface disturbance and
allows for the recovery of any potential reserves that were
previously believed not to be economically viable.
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.
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 and West Virginia.
North American Gem Inc. (TSX VENTURE: NAG) is a Junior
Exploration Company based in Western Canada. The Company's primary
goal is to explore for Coal in North America, currently the focus
is in Kentucky, Saskatchewan, and West Virginia. In addition to
Coal exploration, the Company also has interests in Uranium,
Copper, Gold, 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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