North American Gem Inc.Upgrades Operation of Coal Preparation and Rail Loading Facility in KnoxCounty, Kentucky
Press ReleaseSource: North American Gem Inc.On Monday March 29, 2010, 9:00 am
VANCOUVER, BRITISH COLUMBIA--(Marketwire -March 29, 2010) - North American Gem Inc. (NAG) (TSX VENTURE:NAG - News) is pleased toannounce the completion of several upgrades at the North American TippleFacility (the coal preparation and rail loading facility in KnoxCounty, Kentucky) which will increase the overall efficiency and coalcapacity. Major electrical upgrades, the addition of concrete loadingramps, and the addition of a stacking conveyor which will allow the coalcircuit to run longer without interruption are the most significantupgrades.
The North American Tipple Facility will serveas the central operation and distribution point for coal produced byNAG's mining operations. The facility has equipment in place that iscapable of crushing, screening, and washing coal. This gives NorthAmerican Gem Inc. the added dimension to service a variety of customersby preparing coal to meet their specific requirements. North AmericanGem Inc. will also have the ability to purchase outside coal to producecustom blended products which will increase market potential.Specifically, plans are to service the industrial stoker markets,silicon metal producers, and electricity generators.
OperationUpdates from Kentucky
Production continues at North American Gem#1 Mine with shipments of coal being sent to market daily. At thecurrent rate of production NAG is currently on pace to produce and sellapproximately 8,000 tons of coal per month with the ability to furtherincrease production. NAG has steadily increased its production over timeas the weather has slowly improved. Currently there are two augersproducing and the third auger is expected to be activated inapproximately two weeks time.
Management at NAG has decided toonly refer to its Kentucky claims by the actual lease name until theindividual leases have been deemed a successful mining permit, and thenat that point the lease will be named as a North American Gem Mine insequential order. This will avoid future confusion as certain permitsmaybe approved out of order or the possibility of a new leaseacquisition by NAG in an advanced stage of permitting.
NAG hascompleted the drilling previously announced on December 8th 2009 on itsWynn Hollow lease (formerly referred to as North American Gem #3 Mine)and is now currently waiting for assay results from the drilling andcontinuing the permitting process. The purpose of the drill program isto gain additional information on the Jellico and Blue Gem seams as wellas provide a 43-101 compliant report on all of the coal seams known toexist on the Wynn Hollow lease. The analysis of the data will also helpNAG develop the most efficient mining plan as additional coal seams havebeen encountered through historical drilling of natural gas and oilwells at the Wynn Hollow location. In particular one coal seam, belowthe Blue Gem seam, has been measured in thickness from 1.5-2 metres andis believed to be low sulfur, high btu seam.
NAG has now commenceddrilling on the Swan Pond lease (formerly referred to as North AmericanGem #2 Mine) and once complete will immediately mobilize the drillersto the recently acquired Granny Rose lease (Refer to NAG February 2nd2010 release). The Granny Rose lease contains the highly profitable BlueGem coal throughout the entire lease with an average seem thickness of 2feet. It has been estimated that approximately 250 acres of the plannedpermit will be mined using surface mining techniques with an additionalapproximate 100 acres that is to be mined by highwall and/or augermining methods.
The permitting process being managed by Ms.Deborah Moses of Engineering Consulting Services Inc. and Mr. WilliamGrable is proceeding well. One of the previously announced miningpermits is currently in the final stage of the process and is expectedto be approved in the near future. Currently all future mining permitshave been designated to be highwall mining operations and it is expectedthat production will be at least 25,000 tons per property per month.
Allof NAG's potential mining operations will incorporate sediment controlmethods that will keep ahead of the increased regulations andrestrictions. Furthermore, in anticipation of increased regulations, NAGhas, in all of its permitting applications, begun the sampling ofreceiving streams and groundwater wells utilizing the most stringent andextensive sampling parameters. This will allow NAG to comply with theregulatory requirements and will also result in a much shorter andsmoother permitting application process.
Mr. Dean Schafer isacting as operations manager of all the Company's Kentucky coal leasesand is currently implementing an overall mine plan.
Ms. DeborahMoses, PEng, PLS, REM, of Engineering Consulting Services Inc. (ECSI) isthe qualified person for the Company's coal operations in Kentucky andWest Virginia.
North American Gem Inc. (TSX VENTURE:NAG - News) is a JuniorExploration Company based in Western Canada. The Company's primary goalis to explore for Coal in North America, currently the focus is inKentucky, Saskatchewan, and West Virginia. In addition to Coalexploration, the Company also has interests in Uranium, Copper, Gold,Molybdenum and other base metals in Canada.
On Behalf of the Boardof Directors