| For many people, the words ‘Big Red’ | | | | In the wake of tough new sanctions on |
| conjure up fresh breath, but to True North | | | | Burma– the supplier of 90% of the |
| Gems’ (TSX.V:TGX) investors, the phrase | | | | world’s rubies– along with boycotts of |
| itself is a breath of fresh air. The company’s | | | | Burmese rubies by gemstone manufacturers and |
| bold flavour is finding favour among investors with | | | | prominent jewellery retailers such as |
| its focus on ruby and sapphire exploration and | | | | Tiffany’s– demand for ethical sources of |
| development in Greenland. As per its December 4 | | | | coloured gemstones has skyrocketed. Nowadays, |
| news release, the company has wrapped up its | | | | consumers are willing to pay top-dollar for |
| 2007 drilling program with the completion of the | | | | high-quality, ethically sourced gemstones– as |
| final four drill holes on the Sarfaq and Ridgetop | | | | has been proven with the marketing success |
| ruby prospects at its Fiskenaesset Ruby Project. | | | | enjoyed by Canadian ‘Polar Diamonds’. |
| Sarfaq and Ridgetop are on trend from the | | | | True North plans to apply that same logic to the |
| Aappaluttoq (‘Big Red’) occurrence. | | | | coloured gem business. |
| The Fiskenaesset Ruby Project consists of | | | | The company has a major advantage in that |
| 110km2 of land on the southwest coast of | | | | demand for rubies has been steadily rising while |
| Greenland, about 160km south of the capital Nuuk. | | | | demand for diamonds has been decreasing. |
| True North has an option to own a 100% interest | | | | According to the company’s Ruby-Diamond |
| on the claims. The company has actively explored | | | | fact sheet, in 1988 a top quality ruby weighing |
| the property since acquiring it in 2004. A mini-bulk | | | | 15.97 ct fetched $3.65 million ($228,252 per ct) at |
| sample at the Siggartartulik occurrence taken in | | | | auction, while a similarly classed diamond weighing |
| 2004 returned 9.73 kg/t total corundum (rubies | | | | 52.59 ct sold for $7,479,981 ($142,232 per ct). In |
| and sapphires are varieties of corundum), with | | | | 2006, however, a ruby weighing 8.62 ct went for |
| 1.5% gem and 33.5% near-gem. The gem-grade is | | | | $3.6 million ($425,000 per ct)– while a 33.04 ct |
| 143.76 g/t (718.8 rough ct/t). The company’s | | | | diamond sold for $1.8 million ($ 54,000 per ct). |
| final hand and machine sorting of the material | | | | Keep in mind that the diamonds were on average |
| from the sample have recently increased the | | | | 3-4 times larger than the rubies in this comparison. |
| overall grade. A 30-tonne sample contained | | | | As gem-quality stones get larger, their price per |
| concentrations of gem-grade ruby and pink | | | | carat rises exponentially– even more so in the |
| sapphire averaging 1,937 g/t (9,685 ct/t). | | | | case of top-quality rubies. |
| The objective of the 2007 drilling program, | | | | In early November, the company reached an |
| comprising 50 holes on three ruby prospects with | | | | important milestone when it opened its facility in |
| a total length of more than 5,000 m, was to | | | | Bangkok where rough gems from the |
| deliver a preliminary assessment on the | | | | Fiskenaesset will be sort and graded. Bangkok is |
| Aappaluttoq ruby and pink sapphire occurrence. | | | | one of the coloured gemstone industry’s |
| One of the positive outcomes of the program | | | | major centres. “With its proximity to the |
| was that the company was able to confirm both | | | | established markets of Europe and the Arab |
| extensions to the favourable Aappaluttoq Host | | | | countries, and the new growth areas of China and |
| Zone geology, as well as additional ruby | | | | India, Bangkok is the international marketplace for |
| mineralization on surface. Three drill holes at | | | | purchasers of rough as well as polished |
| Sarfaq have confirmed distinctive | | | | gems,” noted Nick Houghton, Director and VP |
| sapphirine-gedrite-phlogopite-pargasite alteration, | | | | Product Development and Marketing in the |
| similar to the Host Zone of the Aappaluttoq | | | | company’s November 6 news release. |
| occurrence– which is known to contain rubies | | | | “An office in Bangkok allows True North to |
| and pink sapphires. | | | | access the knowledge and opportunities that exist |
| Independent valuations have priced a 0.69 ct ruby | | | | there.” |
| from Aappaluttoq at $3,220/ct, and a 0.96 ct pink | | | | True North also has the technological |
| sapphire at $460/ct. The best sample contained a | | | | advantage– given recent developments in |
| large ruby crystal weighing 88g (440 ct), which | | | | exploration methods and in optic sorting |
| was carved into the Kitaa Ruby, weighing 302 ct | | | | technology. It used to be that the economics of |
| and displaying intricate scenes of Norse oceanic | | | | processing favoured hand-sorting of coloured |
| legends. | | | | gems in low-wage countries, but these new |
| The company’s 43-101 report suggests that | | | | developments make it possible for the |
| this is just a taste of things to come. It states, | | | | company’s operation to be both ethical and |
| “Given the fact that 18 ruby and pink sapphire | | | | profitable. |
| occurrences are known in the district after only | | | | These latest developments at Fiskenaesset should |
| two seasons of reinvigorated exploration, and that | | | | give the company’s investors something to |
| the Company has obtained excellent sampling | | | | chew on in the coming months. To take a line |
| results from three of the six occurrences tested | | | | from the ‘Big Red’ jingle– this is |
| by mini-bulk sample thus far, it is incumbent upon | | | | definitely one stock to “hold tight a little |
| True North to continue the exploration of the | | | | longer”. |
| Fiskenaesset district”. | | | | This article is intended for information purposes |
| This report was released last year and, since | | | | only, and is not a recommendation to buy or sell |
| then, nine more ruby occurrences have been | | | | the equities of any company mentioned herein. It |
| found at Fiskenaesset, for a total of 29. Over the | | | | is based on sources believed to be reliable, but no |
| past three years, 78 tonnes of material have | | | | warranty as to accuracy is expressed or implied. |
| been removed for processing, with 48 tonnes | | | | The opinions expressed in the article are those of |
| processed to date. Over 65,000 grams of gem | | | | the author except where statements are |
| and over 129,700 grams of near-gem ruby and | | | | attributed to individuals other than the author, in |
| pink sapphire have been recovered from the | | | | which case the opinions are those of the individual |
| property. | | | | to whom they are attributed. |