PrecisionAlert NoticeI have been out of town for the last week, but did enjoy the .02 uptick. I believe we will be enjoying even more upticks in the near future as NAG becomes a thorough bred in the coming months.
GLTAL
Wortep
North American Gem Inc. Nears Full Production at North American Gem #1 Mine in Whitley County, Kentucky
VANCOUVER,BRITISH COLUMBIA--(Marketwire - March 25, 2010) - North American GemInc. (NAG) (TSX VENTURE:NAG) is nearing full production at NorthAmerican Gem #1 Mine with shipments of coal being sent to market daily.At the current rate of production NAG is currently on pace to produceand sell approximately 8,000 tons of coal per month with the ability tofurther increase production. NAG has steadily increased its productionover time as the weather has slowly improved. Currently there are twoaugers producing and the third auger is expected to be activated inapproximately two weeks time.
NAGwould also like to announce that the permitting process being managedby Ms. Deborah Moses of Engineering Consulting Services Inc. and Mr.William Grable is proceeding well. One of the previously announcedmining permits is currently in the final stage of the process and isexpected to be approved in the near future. Currently all future miningpermits have been designated to be highwall mining operations and it isexpected that production will be at least 25,000 tons per property permonth.
Thedecision of North American Gem to acquire and develop this permittedcoal lease was made with consideration of the situation regarding the"mountaintop removal" and "valley fill" issues under scrutiny by the USEnvironmental Protection Agency. None of the leases currently held orbeing considered by NAG will be affected by this issue.
Themethod of mining to be used in the North American Gem Mine #1 is knownas contour mining. All of the mining permits currently being pursued byNAG have been mined prior to the enactment of the Surface Mine Controland Reclamation act of 1977. This law requires that after any surfacemining, the land must be restored to the approximate original contourunless otherwise specified in the permit application and approved bythe Kentucky Department of Natural Resources (KDNR). When "pre-law"mining was done, the general practice was to mine along the contour ofa slope to the maximum profitable ratio and leave the resultinghighwall and a wide, flat bench where the material covering the coalwas removed and then graded somewhat flat as opposed to restoring theoriginal slope. NAG will at the very least return the mining permitlocations to their current state, and in some instances return themining permit location to a better environmental state due to theSurface Mine Control and Reclamation act of 1977.
TheNorth American Gem #1 Mine is permitted for the use of augers to enterthe coal seam from the exposed wall with minimal additional excavationand maximum cost effectiveness. This type of mining dramaticallyreduces the amount of surface disturbance and allows for the recoveryof any potential reserves that were previously believed not to beeconomically viable.
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,NAG has, in all of its permitting applications, begun the sampling ofreceiving streams and groundwater wells utilizing the most stringentand extensive sampling parameters. This will allow NAG to comply withthe regulatory requirements and will also result in a much shorter andsmoother permitting application process.
Mr.Dean Schafer is acting as operations manager of all the Company'sKentucky coal leases and is currently implementing an overall mine plan.
Ms.Deborah Moses, PEng, PLS, REM, of Engineering Consulting Services Inc.(ECSI) is the qualified person for the Company's coal operations inKentucky and West Virginia.
NorthAmerican Gem Inc. (TSX VENTURE:NAG) is a Junior Exploration Companybased in Western Canada. The Company's primary goal is to explore forCoal in North America, currently the focus is in Kentucky,Saskatchewan, and West Virginia. In addition to Coal exploration, theCompany also has interests in Uranium, Copper, Gold, Molybdenum andother base metals in Canada.
On Behalf of the Board of Directors
NORTH AMERICAN GEM INC.
Charles Desjardins, President and Director
Cautionary note:
Thisreport contains forward looking statements. Resource estimates, unlessspecifically noted, are considered speculative. Any and all otherresource or reserve estimates are historical in nature, and should notbe relied upon. The production rate and mine-life projections have beenmade without support of a feasibility study, there is no certainty theproposed operations will be economically viable. By their nature,forward looking statements involve risk and uncertainties because theyrelate to events and depend on factors that will or may occur in thefuture. Actual results may vary depending upon exploration activities,industry production, commodity demand and pricing, currency exchangerates, and, but not limited to, general economic factors. CautionaryNote to US investors: The U.S. Securities and Exchange Commissionspecifically prohibits the use of certain terms, such as "reserves"unless such figures are based upon actual production or formation testsand can be shown to be economically and legally producible underexisting economic and operating conditions.
"Neitherthe TSX Venture Exchange nor its Regulation Services Provider (as thatterm is defined in the policies of the TSX Venture Exchange) acceptsresponsibility for the adequacy or accuracy of this release."
Contacts:
North American Gem Inc.
Charles Desjardins
President and Director
604-683-5445
Source: North American Gem Inc.