RE: RE: Coal Auger miningWallywill and Riddlethis, let's read NAG's NR once again. My impression is that NAG could not use very powerful auger as the average seam thickness is only 3 ft. I got the conclusion that in order to meet the suggested production rate, we need a lot of small or medium sized augers working simultaneously. Think about it, 3 ft is not that thick. If we use two augers, each auger has to dig 500 ton (coal+dirt). 500 ton is a mountain.
Have you also noticed that the mine can only last 12-18 months, after 12-18, all coal will be mined out.
I know Riddlethis is a pumper because we all remember it is riddle who treated sales revenue as net income, and pumped with his own creative accounting methods. The company actually is more honest that in the NR, it added a clause that: 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.
News release and my opinions.
North American Gem Inc. Announces LOI to Lease and Operate Coal Preparation and Rail Loading Facility in Knox County, Kentucky
9/15/2009 11:30:23 AM - Market Wire
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The North American Gem #1 Mine Permit is for the extraction of coal, using auger/highwall mining methods, in the Jellico coal seam which averages a thickness of 91cm (3ft). The permit is complete and ready for transfer pending the posting of a bond. Based on the thickness of the coal seam, auger mining can produce 4,000-6,000 net tons per month with an increase to +20,000 net tons per month if highwall mining techniques are commenced. Production from the North American Gem #1 Mine Permit is expected to last 12-18 months.
(omitted)
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.