True North Gems Inc. [TGX-TSXV] reporte the start of open pit mining operations at the Aappaluttoq ruby and pink sapphire deposit in southwestern Greenland.
“On behalf of True North Gems Inc., True North Gems Greenland A/S and all our working partners it is my great pleasure to announce that we have broken ground at Aappaluttoq,” stated Nicholas Houghton, President and CEO. “During a very tough period for the mining industry with many financial challenges, it is deeply gratifying to see everyone’s hard work materialize and for True North’s shareholders to see mining start.”
LNS Greenland (LNSG), a joint venture partner in the Aappaluttoq Mine, has been contracted as the mine operator. Their Norwegian and Greenlandic based technical team have submitted mining extraction plans to the boards of True North and True North Gems Greenland A/S, and attained approval for pit operations to begin.
The process and gemstone recovery system is currently being shipped to Greenland and the planned Q4/2015-Q1/2016 extraction will create a sufficient ore stockpile to feed the plant once it has been commissioned. Planned waste rock removal work during the current extraction will pave the way for the 2016 mining season to commence as scheduled.
“This is a historic day for the revived mining industry in Greenland,” stated Bent Olsvig Jensen, Managing Director of True North Gems Greenland A/S. “Being one of the first companies to progress through the new permitting system and to reach a positive outcome is a testament to all involved. We now look forward to fully commissioning the newest mine in Greenland, which will be one of the most advanced coloured gemstone mines in the world.”
True North does not operate the Appaluttoq mine; instead LNS-Greenland is earning a 27% ownership of the project. They are a highly experienced Norway-based mining company and will be responsible for the production of rough gemstones at the mine facility. True North staff then upgrade these concentrates into clean and fully graded gemstone sales parcels using our extensive gemological experience.