True North Gems Inc.
TSX VENTURE : TGX

True North Gems Inc.

July 26, 2005 16:00 ET

True North Gems Announces Preliminary Valuations for Beluga Sapphires

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 26, 2005) - True North Gems Inc. (TSX VENTURE:TGX) is pleased to announce the preliminary independent wholesale valuations for the sapphires recovered and processed to date from sampling at the Company's Beluga property located on Baffin Island, Canada.

Included in the Emerald Valuation Report for Tsa da Glisza filed on SEDAR June 21, 2005 are the preliminary independent valuations for material recovered from partial processing of the 4.29 tonne Baffin Sapphire Project's 2004 mini-bulk sample, and from approximately 25 kilograms of samples previously collected at the Beluga site, as determined by Warren Boyd of R.T. Boyd Limited.

In his report Mr. Boyd comments that the Beluga Sapphire Property is of strong interest due the naturally coloured sapphires that have been recovered through mini-bulk sampling. Boyd valued a small sample of the polished sapphires (sapphire, yellow sapphire, and colourless sapphire) which were produced from approximately 240 grams of material representing 5.6% of the total sample collected from the Beluga locality to date.

Based on the values Mr. Boyd has assigned to the natural blue sapphires recovered from the partial processing the bulk sample, US$570.85 per tonne has been contributed to the overall value of the bulk sample from this portion alone. The value per tonne of the mini-bulk sample is expected to increase as more sapphires are processed and retail valuations are established.



Wholesale and Bulk Sample Valuation
(From partial processing of the approximately 4.3 tonne sample
collected to date)

---------------------------------------------------------------------
Wholesale Valuation - Sample
Loose Polished Valuation
---------------------------------------------------------------------
Range Average
$US/carat $US/carat $US/tonne
---------------------------------------------------------------------
---------------------------------------------------------------------
Natural Blue Sapphires 30 to 400 58 569.52
---------------------------------------------------------------------
Natural Yellow Sapphires 50 to 275 165 184.45
---------------------------------------------------------------------
Natural Colourless Sapphires 25 to 50 35 43.95
---------------------------------------------------------------------


It is important to note that, in his report, Mr. Boyd states that, "The quality and spectral intensity of the Blue Sapphires ... from the Beluga Property was of world class caliber and comparable to some of the better quality sapphires produced from deposits in Sri Lanka, Thailand, Cambodia, Africa, Australia and China." In commenting on the potential premium that could be applied to natural blue Baffin Sapphires above the wholesale values quoted above, Mr. Boyd observed that, "The natural and untreated Blue Sapphires may be marketed at substantial premiums in pricing. For instance the natural coloured deeply saturated blue sapphires from the Yogo Sapphire Deposit in Montana command up to 300% premiums over similar looking enhanced sapphires from other sources."

A total of 213 sapphires were valued by Boyd from the Beluga mini-bulk sample. Of these sapphires the smallest stone valued was 0.12 carats and the largest stone valued was 1.17 carats. The Wholesale Market Prices varied from US$30 per carat to as high as US$400 per carat. The finest stone that was valued from the Beluga Property was a 1.17 carat colour zoned fine sapphire of US$400 per carat. Overall a total of 213 stones were valued by Boyd with a total weight of 41.74 carats with a value of US$2448.95. This averages out to a value of US$58.67 per carat.

A small assortment of 25 polished Yellow Sapphires from Beluga were also valued by Boyd and described as clean and very attractive and marketable. The stones ranged in size from as small as approximately 0.10 carats to as large as 1.47 carats and in value from as little as US$50 per carat to as high as $US 275 per carat. The total weight of all the Yellow Sapphires was 4.78 carat with a total value of US$ 793.15 and an average value of US$165.93 per carat. The best stones valued were a 1.09 carat cushion cut Yellow Sapphire at US$ 250 per carat and 1.47 carat oval Yellow Sapphire at US$ 275 per carat.

In addition to the Sapphires and Yellow Sapphires there was also an assortment of 40 sapphires of a very pale blue, very pale yellow or Colourless Sapphire that was valued by Boyd. The stone sizes ranged from as small as approximately 0.07 carats to as large as 0.63 carats. Valuations were from as low as US$25 per carat to as high as $50 per carat for a 0.63 carat cushion cut Colourless Sapphire. The total weight of all the Colourless Sapphires was exactly 5.47 carats with a total value for the sapphires of US$189. This means that the average value per carat for the Colourless Sapphires is US$35 per carat.

William Rohtert, True North's Chief Operating Officer and qualified person as defined by National Instrument 43-101. Mr. Rohtert directly controls the gemological grading and manufacturing experiments. The independent valuation of the Beluga sapphire is provided by Mr. Warren Boyd of Toronto, Ontario who is also a qualified person as defined by National Instrument 43-101. Mr. Boyd is a geologist and gemologist who is currently engaged in the valuation of diamond rough from operating diamond mines in the Northwest Territory.

Additional information on the Baffin Sapphires, including technical reports is available from the Company's website at www.truenorthgems.com or at www.sedar.com.

True North Gems is a public company listed on the TSX Venture exchange and is engaged in the exploration and development of North American coloured gemstone deposits. The company is a pioneer in Canadian coloured gemstone exploration and owns a 100% interest in the Yukon-based Tsa da Glisza emerald property and the rights to earn 100% interest in the Beluga sapphire property located on Baffin Island and the Fiskenaesset ruby property in Greenland.

The Company relies on litigation protection for "forward-looking" statements.

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.
    William Rohtert
    Chief of Operations
    (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
    ken@truenorthgems.com
    www.truenorthgems.com