Name and Location
Aappaluttoq ruby and pink sapphire project, Greenland.

Client
True North owns the Aappaluttoq mine in a joint venture with LNS Greenland, which is the mine operator and which has a 27% stake in the mine.

Project Description
The project envisages the development of an openpit mine to extract the probable mineral resources using conventional mining equipment.The project has an indicated mineral resource of 189 150 t grading 313.33 g/t and an inferred mineral resource of 77 160 t grading 283.46 g/t.

The mined ore will be transported to an adjacent process facility where it will be concentrated using an iterative crushing, dense-media separation and an optical sorting circuit to extract a rough corundum concentrate.

The initial rough concentrate will be shipped to a secondary processing facility for the removal of any remaining rock matrix prior to ruby and pink sapphire grading.

A lower cutoff size in the design has been established at 1.7 mm, which is nominally larger than the minimum size of gemstone rough supplied for commercial polishing.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a discount rate of 8%, of $281-million and a post-tax True North Gems internal rate of return of 485%.

Value
The primary capital development cost of the project, including initial and sustaining capital, has been estimated at $25-million, which includes construction of the project port, roads, helipads, the mine camp, security, the processing facility and the workshop.

Duration
Not stated.

Latest Developments
True North Gems has started mining operations at the Aappaluttoq ruby and pink sapphire deposit, in Greenland.

The process and gemstone recovery system is being shipped to Greenland and the planned extraction will create a sufficient ore stockpile to feed the plant once it is commissioned.

Planned waste rock removal work during the current extraction will pave the way for the 2016 mining season to start as scheduled.

Key Contracts and Suppliers
LNS Greenland (all mining and service equipment for the mining project, including three haul trucks, three excavators, three front-end loaders and various service and small vehicles that will be leased over the current life-of-mine).

On Budget and on Time?
Not stated.

Contact Details for Project Information
True North Gems, tel +1 604 687 8055, fax +1 604 899 1240 or email info@truenorthgems.com.