True North Gems Inc.
TSX VENTURE : TGX

True North Gems Inc.

January 16, 2008 09:00 ET

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

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 16, 2008) - True North Gems (TSX VENTURE:TGX) is pleased to announce the rough stone valuation results for the Company's 30 tonne 2006 ruby and pink sapphire bulk sample. The valuations have been developed for a statistically representative sample comprising a total of 8.1 kg of rough amenable to cutting and polishing that represented a "1/8th split" of the marketable ruby and pink sapphire concentrates 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 rough stone valuation completed on a representative 8.1 kg (1/8th split) of ruby and pink sapphire material from the 2006 Aappaluttoq bulk sample.

- A total value of US $4,167 has been assigned to the 8.1 kg (1/8th split) parcel.

- Values range from US $175 per kilogram for the lower quality material to US $2,875 per kilogram for the higher value rough categories.

- Projected total value for the 30 tonne 2006 bulk sample is US $33,336.

Ruby and Pink Sapphire "rough" valuation results

The representative 1/8th split originally consisted of a 16.4 kilogram parcel of untreated ruby and pink sapphire that was processed to remove waste and subsequently hand sorted into a 8.1 kg parcel of clean, marketable rough ruby and pink sapphire. The final parcel of marketable clean rough represents a natural product. No pre-forming or physical trimming or other value added processes or treatments such as heat treatment or flux filling have been applied to the sample. Therefore, this sample is representative of a clean marketable product that would be expected from any potential mining operation at the Aappaluttoq prospect.

The valuation process began by re-sorting in Thailand of the rough parcel into colour, clarity, and size categories, as well as reject categories due to poor colour or broken or uncuttable rough crystals, resulting in 8.1 kilograms of ruby and pink sapphire that was amenable to cutting and polishing.

Valuation of the 8.1 kilogram rough stone parcel was completed by an experienced coloured stone trader based in Sri Lanka who specializes in the purchase and sale, as well as the cutting and polishing of rough coloured gem material, especially ruby. This trader and stone dealer is independent of True North and has valued the parcel at US $4,167. Values per kilogram for rough material ranged from US $175 per kilogram for the lower quality material to US $2,875 per kilogram for the higher value rough categories. The weighted average value for this sample was US $514 per kilogram of marketable concentrate amenable to cutting and polishing.

The rough valuation of this sample indicates a projected total marketable rough value for the 30 tonne bulk sample of US $33,336. This 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. In addition, value-added cutting and polishing by True North of selected rough may enhance average values for the Aappaluttoq prospect.

Preliminary Assessment

This rough stone 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 potential mining operation.

The planning and execution of the ruby valuation program was under the supervision of Nick Houghton, 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
    VP Manufacturing and Marketing
    (604) 687-8055 or Toll Free: 1-800-399-8055
    or
    True North Gems Inc.
    Ken Shortt
    Investor Relations
    (604) 687-8055 or Toll Free: 1-800-399-8055
    Email: ken@truenorthgems.com
    Website: www.truenorthgems.com