RE: RE: RE: Thoughts on #1 (Bay's Hollow)(from the MD&A) RE:#2 Blue Gem
Analysis of the Blue Gem seam was very encouraging showing 3% ash, 0.65% sulfur and a range of 14,200
- 15,200 btu. The Jellico seam averages 6.5% ash, 1% sulfur and a range of 12,500 – 13,200 btu. The 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, throughout
the region, runs in thickness from 48-71 cm. The 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 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 Egypt.
With the ever increasing demand for silicon metals and silicon products, mineable Blue Gem coal resources
are becoming increasingly more valuable. Historically, the Blue Gem coal can bring an FOB (Freight On
Board) 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.
I guess that sums up the question I was postulating...
So #1 is pumping out HIGH Quality Steam Coal,
but the real MONEY is in #2...
And NAG figures #2 is BIGGER than #1, so, I guess the future is good for them...
assuming they can get comparable prices from the sub-contractors to MINE it... right?