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N.A. Gem completes purchase of Gilliam Hill lease
2010-04-14 15:19 ET - News Release
Mr. Charles Desjardins reports
NORTH AMERICAN GEM INC. FINALIZES THE ACQUISITION OF ITS LARGEST BLUE GEM COAL LEASE IN KNOX COUNTY, KENTUCKY
North American Gem Inc. (NAG) has finalized the acquisition of an additional 650-acre multiseam coal lease in Knox county, Kentucky, which will be known as the Gilliam Hill lease. This newly acquired lease is immediately adjacent to the North American Gem No. 2 mine and also contains the readily marketable Blue Gem coal throughout the entire lease area with an average seam thickness of two feet. In addition to the Blue Gem seam, the Jellico and Dean seams have been confirmed on the lease as well.
NAG has made plans to begin drilling on the newly acquired lease in the next 90 days and will verify the seam thickness and quality of the coal in all three known seams. Preparation for submittal of the mining permit application to the Kentucky Department of Natural Resources on the Gilliam Hill lease has already begun. As with the Granny Rose lease announced in Stockwatch on Feb. 2, 2010, mining costs are expected to be relatively low on this particular lease due to favourable strip ratios and mining conditions. Once successfully permitted, the Gilliam Hill lease will be mined using surface and auger mining techniques.
"The Gilliam Hill lease will be our largest lease acquired to date for total estimated tonnage as well as mining production potential," stated Charles Desjardins, president of NAG. "We are optimistic that the company will be able to expand this lease area by adding available contiguous parcels that are currently in negotiation."
Dean Schafer is acting as operations manager of all the company's Kentucky coal leases and is currently implementing an overall mine plan.
Deborah Moses, PEng, PLS, REM, of Engineering Consulting Services Inc. is the qualified person for the company's coal operations in Kentucky and West Virginia.
We seek Safe Harbor.
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