North American Gem Inc. Acquires Additional Near Production Blue Gem Coal Leases in Kentucky
14 October 2009 - 7:58AM
Marketwired
North American Gem Inc. (TSX-V: NAG) (NAG) is pleased to announce
the acquisition of additional coal leases from Lonesome Pine
Leasing LLC, totalling over 4,700 acres located in Knox County,
Kentucky. There will be 2 mining permits immediately pursued within
this newly acquired land package, and they will be known as North
American Gem Mine Permit #3 and North American Gem Mine Permit #4.
Both Mine Permits have the potential to be ready for production by
the end of 2009. NAG is actively working on moving the permitting
process forward, through the services of Mr. Robert Taylor, P.Eng,
who is on retainer for the purpose of permitting and reserve
evaluation.
All of the Kentucky leases acquired by NAG and the Cobra
Tippling Production Plant are within a 20 mile radius of the area
being target for development by NAG. The Cobra Tippling Production
Plant, which will serve as the hub for coal processing, blending
and shipping of coal mined at NAG's current and planned mining
operations on the Kentucky properties.
Prospecting results for the Blue Gem seam from the newly
acquired leases showed analyses typical of the Blue Gem seam mined
extensively in the area. They typically averaged < 3% ash, <
0.75% sulfur and a btu content > 14,200. The Jellico seam
averages < 10% ash, approximately 1% sulfur and a btu content of
> 12,500. In addition to the Blue Gem seam, the leases also
contain the Moss, Dean, Jellico, and Fireclay seams, which are all
considered high quality steam coals from Kentucky.
Blue Gem Coal is a high carbon, low ash, low fusion and low
grind (very hard) coal that is found only in a small area along the
border of Tennessee and Kentucky in the Cumberland Mountains. The
coal seam runs in thickness from 48-71 cm.
Blue Gem Coal is one of three coal seams in the world that are
best suited for production of silicon metals. The other two are
found in West Virginia and Columbia, South America. Of the three,
the Blue Gem Coal seam is the most sought after. For this reason,
it is not only consumed in the U.S., but also exported extensively
to Canada, Norway, Iceland, India, France, South Africa and even
Egypt.
With the ever increasing demand for silicon metals and silicon
products, Blue Gem Coal mineable reserves are becoming increasingly
more valuable. Historically, Blue Gem Coal can bring an FOB mine
price that is as much as 100% higher than high quality steam coal
and is typically the highest priced of any grade of coal produced
in the U.S.
Production Expected in October 2009 on North American Gem #1
Mine
Production is expected to begin October 2009 (See NAG October
7th 2009 release) on the leases known as the North American Gem #1
Mine Permit located in Whitley County, Kentucky.
NAG plans to have the coal from the Jellico seam extracted from
the North American Gem #1 Mine, under Kentucky State Mining Permit
#918-0396, to be the first coal to run through the Cobra Tippling
Production Plant (See NAG September 15th 2009 release). 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.
Mr. Dean Schafer is acting as operations manager of all the
Company's Kentucky coal leases and is currently implementing an
overall mine plan.
Mike Magrum, PEng, a qualified person under National Instrument
43-101, has approved the technical content of this news
release.
North American Gem Inc. (TSX-V: 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"
Charles Desjardins
President and Director
"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."
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. 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.
Contact: 430 - 609 Granville Street Vancouver, BC, Canada V7Y
1G5 Phone 604-683-5445 Facsimile 604-687-9631
info@northamericangem.com www.northamericangem.com TSX-Venture:
NAG
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