North American Gem Inc. Mobilizes Augers to the North American Gem Mine #1
North American Gem Inc. announce an agreement between Engle Hollow Mining LLC (as operator for NAG) and Kentucky Mine Power Inc. to provide mining and augering services for the North American Gem Mine #1 in Whitley County, Kentucky.
Kentucky Mine Power Inc. will immediately mobilize two augers to the North American Gem Mine #1 location. Mine development is on schedule to begin within the next 10 days with actual coal production beginning during the following week. The augers are capable of being fitted with various size boring heads to accommodate fluctuations in coal seam thickness and are capable of penetrating to a horizontal depth of more than 30 meters into the coal seam.
Both Engle Hollow Mining and Kentucky Mine Power have agreed to a fixed cost per ton of coal mined. This will allow North American Gem to control costs and more accurately project earnings. NAG expects to have a monthly coal production level of approximately 10,000 net tons, given each auger can produce 4,000-6,000 net tons per month. 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.
Mr. Dean Schafer is acting as operations manager of all the Company’s Kentucky coal leases and is currently implementing an overall mine plan.
