North American Gem Inc. Submits Permit Application for North American Gem #3 Mine in Knox County, Kentucky
25 November 2009 - 3:56AM
Marketwired
North American Gem Inc. (NAG) (TSX-V: NAG) is pleased to announce
completion and submittal to the Kentucky Department of Natural
Resources of the permit application for the proposed North American
Gem #3 Mine in Knox County, Kentucky. The leases in the permit
application are located 6.5 km from the Company's North American
Tippling Production Plant. The coal seams being permitted for
mining are the Jellico and Blue Gem Seams. The Jellico seam is a
high quality steam coal and the Blue Gem is a specialty coal used
primarily in the production of Silicon Metal.
The North American Gem #3 Mine application is for the use of
augers, highwall miners, and limited application of conventional
surface mining methods for extracting the coal. This type of mining
will 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.
North American Gem Inc. plans to drill on the leases included in
the North American Gem #3 Mine application and prove the presence
of mineable coal seams that are known to exist below the Blue Gem
Seam. Durabo Drilling of Corbin, Kentucky has been contracted to do
the drilling during the month of December, 2009.
The drill core data collected will potentially allow NAG to
prepare a certified engineering report with an accurate calculation
of a mineable coal reserve of the Blue Gem coal and also the coal
seams known to exist below the Blue Gem seam. The specific seam
being drilled for has been encountered in the process of oil and
natural gas drilling in the area and has been measured in thickness
from 1.5-2 metres in thickness and is believed to be a low sulfur,
high Btu seam.
The drill program will provide the means to obtain a laboratory
analysis which will determine the actual quality and
characteristics of the coal seams. The analysis of the data will
also help NAG develop the most efficient mining plan for North
American Gem Mining Permit #3.
The method of mining to be used by in the North American Gem #1
Mine is known as contour mining. All of the mining permits
currently being pursued by North American Gem Inc. 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). During "pre-law"
mining, 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. North American Gem Inc. will return
the mining permit locations to their initial 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.
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, North American Gem Inc. 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.
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
Saskatchewan, West Virginia, and Kentucky. 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. 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.
North American Gem Inc. 604-683-5445
info@northamericangem.com
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