True North Gems Inc.
TSX VENTURE : TGX

True North Gems Inc.

January 17, 2008 09:00 ET

True North Gems Announces Independent "Cut" Valuation Results for Ruby and Pink Sapphire From 2006 Greenland Bulk Sample

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 17, 2008) - True North Gems (TSX VENTURE:TGX) is pleased to announce independent wholesale market price valuation results for cut and polished stones from the Company's 30 tonne 2006 ruby and pink sapphire bulk sample. The valuations have been estimated for a statistically representative sample (a 1/8th split) of faceted and cabochon ruby and pink sapphire recovered from the 30 tonne Aappaluttoq bulk sample collected as part of the 2006 exploration program at the Company's 823 km2 Fiskenaesset Ruby Project located on the west coast of Greenland.

Highlights

- Independent cut stone "wholesale market price valuations" were completed on a representative split of faceted and cabochon rubies and pink sapphires from the 2006 Aappaluttoq bulk sample.

- A total value of US$123,266 has been assigned to the entire 5,224.10 carat parcel of ruby and pink sapphire (US$23.60 per carat) with a total value of US$26,188 assigned to 471.83 carats of faceted ruby and pink sapphire (US$55.5 per carat).

- Values for faceted rubies average US$73.60 per carat.

- Wholesale market price values range from US$15 per carat for lower quality ruby and pink sapphire to US$150 per carat for higher value pink sapphire and US$300 per carat for higher value ruby.

- Projected total wholesale market price value for the 30 tonne bulk sample is estimated to be US$986,131 if the entire recovered clean marketable concentrate for the 2006 Aappaluttoq bulk sample had been cut, polished, and valued.

Ruby and Pink Sapphire "cut" valuation results

The cut stone valuations are based on a second representative sample, different from the one used for the rough stone valuations (see press release January 16, 2008). This second sample originally consisted of a 16.2 kilogram parcel (a 1/8th split) of gem and near-gem ruby and pink sapphire recovered from the Aappaluttoq 2006 bulk sample. This sample was processed to remove any excess waste material to produce a 11.2 kilogram parcel of "clean marketable rough" ruby and pink sapphire.

The 11.2 kilogram sample was sent to a cutting facility in Sri Lanka for fashioning into faceted and cabochon rubies and pink sapphires which resulted in 5,224.10 total carats of faceted and cabochon gems (9.3 percent yield). No enhancements such as heat treatment or flux filling have been applied to either the clean marketable rough, or the final cabochon or faceted ruby and pink sapphire gems that were the subject of this valuation, and as such the cut sample represents a natural finished product. When cutting and polishing was complete, the finished material was sorted by size, colour, and clarity by gemmologists in True North's Vancouver office and then sent for independent valuation by a qualified gemmologist.



The table below summarizes the results

Weight Value for 1/8th Value per Carat
# of Stones (cts) Sample (US$) ($US)
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Ruby 5,606 275.83 $ 20,290 $73.56
Pink Sapphire 3,721 196 $ 5,897 $30.09
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Total Faceted 9,327 471.83 $ 26,188 $55.50
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Ruby Cabochons 10,560 2,922.45 $ 70,049 $23.97
Pink Sapphire
Cabochons 5,410 1,829.82 $ 27,030 $14.77
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Total Cabochons 15,970 4,752.27 $ 97,079 $20.43
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Grand Total 25,297 5,224.10 $123,266 $23.60


Independent valuation of the 5,224.10 carat faceted and cabochon cut stone parcel was completed by John Mattinson, B.Sc. G.G. Mattinson valued the entire parcel based on the Wholesale Market Prices for the goods. According to Mattinson, "Wholesale Market Prices are a reflection on what stone dealers would offer comparable goods for sale on the market. The prices are based on selling a few at a time. Volume buyers would demand a large discount depending on the quantity."

For confirmation purposes, a selected sub sample weighing a total of 609.57 carats was sent to two other independent gemmological appraisers for valuation based on similar valuation principles. Results from these appraisals supported the valuation results reported by Mattinson.

The wholesale market price valuation of this sample indicates a projected total wholesale market price value for the 30 tonne bulk sample of US$986,131, assuming the entire recovered clean marketable concentrate for the 2006 Aappaluttoq bulk sample had been cut, polished, and valued. This market price value is a preliminary indication and may not be representative of the ultimate "rock-value" for the Aappaluttoq prospect based on the more rigorous controls and added dilution used in collecting the 2007 bulk sample, and may vary significantly based on the variations in the wholesale market prices at the time of the valuation.

Preliminary Assessment

This cut stone wholesale market price valuation information will be available to accompany a Preliminary Economic Assessment Report of the Aappaluttoq ruby occurrence currently in development. The study is being authored by Wardrop Engineering and will comprise preliminary geological, geotechnical, and environmental information, an independent NI 43-101-compliant resource calculation and an initial assessment of the economic parameters of a potential mining operation.

The planning and execution of the ruby valuation program was under the supervision of Nick Houghton, A.G. (C.I.G.), True North Gems' VP Manufacturing and Marketing and Ms. Bonnie Weston, P. Geo., G.G., A.J.P. Ms. Weston is a Qualified Person as defined by National Instrument 43-101. Wardrop Engineering, an internationally recognized engineering firm, has been engaged as Independent Qualified Person and will provide site due diligence, quality assurance, and the preparation of the Preliminary Assessment of the Aappaluttoq ruby occurrence.

Information about True North Gems and the Fiskenaesset Ruby Project, including photos and videos, can be viewed at the Company's website www.truenorthgems.com or at www.sedar.com.

True North Gems Inc. is listed on the TSX Venture Exchange and is engaged in the exploration and development of North American and Greenlandic coloured gemstone prospects. In Greenland, the Company is currently engaged in exploration at the Fiskenaesset Ruby Project. The 2007 exploration program was implemented with the principal objective of delivering a Preliminary Assessment on the Aappaluttoq ruby occurrence.

The Company relies on litigation protection for "forward-looking" statements. Certain technical information contained within this press release is 43-101 non-compliant by virtue of the fact that National Instrument 43-101, which governs public disclosure of technical information for mineral exploration properties in Canada, is silent with respect to the exploration and technical disclosure of gemstone properties. The company employs high standards for the collection of geological information and exploration data, employs industry recognized professionals as qualified persons to provide oversight and management of the exploration programs and is committed to the implementation of QAQC protocols to monitor the integrity of the technical information.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the release.

Contact Information

  • True North Gems Inc.
    Nick Houghton, A.G. (C.I.G.)
    VP Manufacturing and Marketing
    (604) 687-8055 or 1-800-399-8055
    or
    True North Gems Inc.
    Ken Shortt
    Investor Relations
    (604) 687-8055 or 1-800-399-8055
    Email: ken@truenorthgems.com
    Website: www.truenorthgems.com