News timelines?This will give a pretty good idea of timelines NAG has laid out.
Auger 1 is working
The second Auger at mine #1 should be working by Fri Dec 4th according to the contract.
Mine #2 is scheduled to be in production in early 2010. This is known as th Swan Pond and Possum Hollow)
NAG could still be waiting approval for the permits for mining as they were under DNR review in Sept.
Having Mine 1 producing allowed an expansion of mine 2.
The funds from #1 & 2 will fund mines 3 and 4.
The permits for mines# 3 and #4 are for the upcoming drill program for a resource est/mine plan. They will be also testing the other seams beneath the Blue Gem seam as well.
The mines 3&4 can't produce until that is completed. (fall 2010-11?)
Exerpts from the news:
(Sept23rd)
Mining permit application # 861-0502 is in review with the Department of Natural Resources (the "DNR") offices in Frankfort, Kentucky and is expected for approval within 75-90 days. It is a surface mining permit application for the mining of 220 acres of the Jellico coal seam. The coal leases also cover the Blue Gem coal seam which is in process of being permitted as well and is expected to be ready for mining early in 2010. The mining permit was submitted in the name of American Blue Gem and Steam Coal, LLC and will be known as the North American Gem Mine #2
(Nov 3rd)
The purpose of the program is to drill and prove the presence of mineable coal seams that are known to exist below the Blue Gem Seam. 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 both North American Gem Mining Permit #3 and North American Gem Mining Permit #4.
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
GLTA
We have a lttlile time yet.
Wallywill