The company recently filed the coal exploration permits for the North American Gem No. 2 and No. 3 mines as well as the Swan Pond (NAG No. 3), Gilliam Hill South and Arkle Hollow leases with the Kentucky Department of Natural Resources.

The permits will allow NAG to disturb the surfaces of the properties and also sample and analyze coal via drilling and extraction.

“The exploration permit on the North American Gem No. 2 mine will allow for enhanced efficiency of operations currently underway at the site, as well as the evaluation of the surrounding area for possible expansion,” the company said.

“The exploration permit for North American Gem No. 3 mine is for the purpose of evaluating adjacent properties being considered for expanded or additional mining permits.”

The Gilliam Hill South lease is located just south of NAG No. 2 and encompasses 500 acres. So far, it is known to contain Blue Gem, Jellico, Dean and Moss coal seams, with Dean and Moss historically proven to be low sulfur and high quality for ideal utility market use.

Arkle Hollow, meanwhile, is less than 1 kilometer south of Gilliam Hill South and covers about 562 acres. It is known to contain the same coal seams as its northern neighbor, and both properties are situated within 3km of the North American Gem processing facility.

“The longer term goal is to secure leases on parcels of land that will physically tie together the Gilliam Hill South and Arkle Hollow leases,” the company said.

North American Gem announced in late August it had commenced sales and shipping of coal from the No. 2 surface and auger operation in Knox County.

Kentucky Mine Partners is extracting from the Blue Gem and Jellico seams at the No. 2 mine.

Initial estimates from the Blue Gem and Jellico seams total 8,000-10,000 tons per month combined.

In addition to coal production, NAG also has interests in molybdenum and other base metals in Canada.

It is currently seeking to sell or establish a joint venture for its Louise Lake copper property.