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North American Gem's leases not affected by EPA issues
2009-10-02 18:52 ET -News Release
Shares issued 107,778,259
NAG Close 2009-10-02 C$0.08
Mr. Charles Desjardins reports
NORTH AMERICAN GEM INC. NOT AFFECTED BY RECENT ENVIRONMENTAL PROTECTION AGENCY (EPA) ANNOUNCEMENT
North American Gem Inc.would like to add clarification to the recent announcement made by theEnvironmental Protection Agency (EPA) on Sept. 30, 2009. The EPA'sannouncement targets the practice of "mountaintop removal" which is not thetype of permitting that North American Gem is seeking.
The decision of North American Gem to acquire and develop certain coalleases in Kentucky was made with consideration of the situation regardingthe mountaintop removal and "valley fill" issues under scrutiny by the U.S.Environmental Protection Agency. None of the leases currently held or beingconsidered by NAG will be affected by this issue.
The method of potential mining to be used by NAG is known as contourmining. This type of mining is done on properties that were previouslymined prior to the enactment of the Surface Mine Control and Reclamationand Control Act of 1977. This law requires that after any surface mining,the land must be restored to approximate original contour unless otherwisespecified in the permit application and approved by the Kentucky Departmentof Natural Resources (KDNR). When "prelaw" mining was done, the generalpractice was to mine along the contour of a slope to the maximum profitableratio and leave the resulting highwall and a wide, flat bench where thematerial covering the coal was removed and then graded somewhat flat asopposed to restoring the original slope.
NAG intends to use augers and highwall miners to enter the coal seam fromthe exposed wall with minimal additional excavation and maximum costeffectiveness. This type of mining dramatically reduces the amount ofsurface disturbance and allows for the recovery of any potential reservesthat were previously believed not to be economically viable.
All of NAG's potential mining operations will incorporate sediment controlmethods that will keep ahead of the increased regulations and restrictions.Furthermore, in anticipation of increased regulations, NAG has, in all ofits permitting applications, begun the sampling of receiving streams andgroundwater wells utilizing the most stringent and extensive samplingparameters. This will allow NAG to comply with the regulatory requirementsand will also result in a much shorter and smoother permitting applicationprocess.
Production expected in October, 2009, on North American Gem No. 1 mine
Production is expected to begin October, 2009, on the leases known as theNorth American Gem No. 1 mine permit located in Whitley county, Kentucky.
NAG plans to have the coal from the Jellico seam extracted from the NorthAmerican Gem No. 1 mine, of Kentucky state mining permit 918-0396, to be thefirst coal to run through the Cobra Tippling production plant (see NAGnews in Stockwatch, Sept. 15, 2009). The production rate and mine lifeprojections have been made without support of a feasibility study; there isno certainty the proposed operations will be economically viable.
Dean Schafer will be acting as operations manager of all the company'sKentucky coal leases and is currently implementing an overall mine plan.
Mike Magrum, PEng, a qualified person under National Instrument 43-101, hasapproved the technical content of this news release.
North American Gem's leases not affected by EPA issues
2009-10-02 18:52 ET -News Release
Shares issued 107,778,259
NAG Close 2009-10-02 C$0.08
Mr. Charles Desjardins reports
NORTH AMERICAN GEM INC. NOT AFFECTED BY RECENT ENVIRONMENTAL PROTECTION AGENCY (EPA) ANNOUNCEMENT
North American Gem Inc.would like to add clarification to the recent announcement made by theEnvironmental Protection Agency (EPA) on Sept. 30, 2009. The EPA'sannouncement targets the practice of "mountaintop removal" which is not thetype of permitting that North American Gem is seeking.
The decision of North American Gem to acquire and develop certain coalleases in Kentucky was made with consideration of the situation regardingthe mountaintop removal and "valley fill" issues under scrutiny by the U.S.Environmental Protection Agency. None of the leases currently held or beingconsidered by NAG will be affected by this issue.
The method of potential mining to be used by NAG is known as contourmining. This type of mining is done on properties that were previouslymined prior to the enactment of the Surface Mine Control and Reclamationand Control Act of 1977. This law requires that after any surface mining,the land must be restored to approximate original contour unless otherwisespecified in the permit application and approved by the Kentucky Departmentof Natural Resources (KDNR). When "prelaw" mining was done, the generalpractice was to mine along the contour of a slope to the maximum profitableratio and leave the resulting highwall and a wide, flat bench where thematerial covering the coal was removed and then graded somewhat flat asopposed to restoring the original slope.
NAG intends to use augers and highwall miners to enter the coal seam fromthe exposed wall with minimal additional excavation and maximum costeffectiveness. This type of mining dramatically reduces the amount ofsurface disturbance and allows for the recovery of any potential reservesthat were previously believed not to be economically viable.
All of NAG's potential mining operations will incorporate sediment controlmethods that will keep ahead of the increased regulations and restrictions.Furthermore, in anticipation of increased regulations, NAG has, in all ofits permitting applications, begun the sampling of receiving streams andgroundwater wells utilizing the most stringent and extensive samplingparameters. This will allow NAG to comply with the regulatory requirementsand will also result in a much shorter and smoother permitting applicationprocess.
Production expected in October, 2009, on North American Gem No. 1 mine
Production is expected to begin October, 2009, on the leases known as theNorth American Gem No. 1 mine permit located in Whitley county, Kentucky.
NAG plans to have the coal from the Jellico seam extracted from the NorthAmerican Gem No. 1 mine, of Kentucky state mining permit 918-0396, to be thefirst coal to run through the Cobra Tippling production plant (see NAGnews in Stockwatch, Sept. 15, 2009). The production rate and mine lifeprojections have been made without support of a feasibility study; there isno certainty the proposed operations will be economically viable.
Dean Schafer will be acting as operations manager of all the company'sKentucky coal leases and is currently implementing an overall mine plan.
Mike Magrum, PEng, a qualified person under National Instrument 43-101, hasapproved the technical content of this news release.