North American Gem Announces Faster Than Expected Diamond Drilling Progression
VANCOUVER, BRITISH COLUMBIA -- North American Gem Inc. (TSX VENTURE: NAG) is pleased to announce that the winter, 2007 diamond drilling program, with two drills targeting the “Main Zone” on the Louise Lake copper-molybdenum-gold-silver project, is progressing faster than expected. The road-accessible property is located 35 kilometres west of Smithers, British Columbia, Canada, a full-service community with excellent access to highway, rail and electrical power infrastructure.
The Main Zone hosts an unusual mineral assemblage, with copper occurring as an equal mixture of enargite and chalcopyrite. The 2004 through 2006 programs extended the known dimensions of the east-west striking, moderately north-dipping tabular Main Zone both to the west and east, as well as down-dip to the north. By 2006, the Main Zone was known to be at least 970 metres long, up to 170 metres wide, and known to extend to a depth of 250 - 270 metres, where it is abruptly truncated by the flat-lying “Terminator” fault.
In 2006 SRK Consulting (Canada) Inc. completed the first NI 43-101-verifiable resource estimate on the Main Zone, with the following results:
Table 1: - SRK classified mineral resources for the Louise Lake deposit.
CuEq(ii) Au Ag
Mineral Resources(i) Tonnes (%) Cu(%) Mo(%) (g/t) (g/t)
Indicated 6,000,000 0.369 0.214 0.006 0.20 0.98
Inferred 141,000,000 0.426 0.234 0.009 0.23 0.94
(i) All resources quoted at 0.25% CuEq cut-off
(ii) CuEq calculated using the following metal prices: Cu US$1.20/lb,
Mo US$8/lb, Au US$450/oz, Ag US$7/oz
SRK Consulting also interpreted the known Main Zone as hosted by a block truncated and horizontally displaced to the west-southwest along the flat-lying “Terminator” fault. The underlying portion is interpreted to occur some distance to the east-northeast. North American Gem geologists suggest this may occur in an area having a strong “Induced Polarization” geophysical response near the west end of Louise Lake.
2007 Program to date
A total of 11 NQ-sized diamond drill holes have been completed as of March 11. These have targeted further eastern and western strike extensions of the Main Zone, as well as its southern margin and also its “down-dip” potential at depth to the north. Several holes have also targeted interior portions of the Main Zone deposit, to progress towards upgrading of the deposit to the “indicated” resource category. No results have been received to date; thus no estimates of grade are being attempted until results have been adequately compiled.
Detailed core logging of Hole LL-07-01, collared roughly 80 metres east of Hole LL-06-11, formerly the easternmost hole, revealed an interval of mineralization similar in appearance to that of the Main Zone, potentially extending known dimensions of the deposit to the east. Holes LL-06-02 and Ll-06-03 intersected intervals of typical Main Zone mineralization along the southern margin, potentially increasing the southern extent of the deposit.
The remaining holes have undergone visual inspection but have not been logged in detail. Hole LL-07-06, collared about 90 metres north of any previous holes in the northwestern area, targeted both the northern down-dip extension and a potentially separate overlying mineralized unit identified during the resource evaluation by SRK Consulting. This hole intersected a narrow mineralized zone corresponding to the overlying unit, as well as a wider intercept of Main Zone-style mineralization truncated by the “Terminator” fault. A second hole was drilled at the same location and azimuth but at a steeper dip; this also intersected both zones, potentially extending known dimensions of the Main Zone considerably to the north.
In other areas, Hole LL-07-07, targeting the northern down-dip extension of the deposit in the northeastern area, also intersected Main Zone-style mineralization, improving deposit delineation in this area. Hole LL-07-05, collared about 100 metres southwest of Hole LL-06-12, formerly the westernmost hole within the Main Zone, intersected some copper mineralization and trace molybdenum.
Holes LL-07-04, LL-07-08 and LL-07-09 targeted interior portions of the deposit; all have intersected sizable intercepts of Main Zone mineralization.
The balance of the program will consist of a step-out hole to the north of Hole LL-07-06, to test the further northward extent of the Main Zone. Also, a single hole will be drilled about 550 metres east of Hole LL-07-01, in the area having a strong “Induced Polarization” geophysical signature near Louise Lake, to test for the underlying portion of the Main Zone beneath the “Terminator” fault. Further drilling to test interior areas of the Main Zone, as well as its down-dip potential to the north, will also occur.
This News Release was reviewed and approved by Carl Schulze, BSc, PGeo, Qualified Person for the project, in accordance with regulations under National Instrument 43-101. All sample analysis was done by ALS Chemex of North Vancouver, British Columbia, Canada.
The Company would also like to announce that pursuant to its stock option plan, the Company has granted incentive stock options to its directors, officers, consultants, and employees to purchase in the total of 250,000 common shares in the capital stock of the company, subject to regulatory approval, exercisable for a period of two years, at a price of $0.18 cents per share. These options are subject to a four-month hold period.
About North American Gem Inc. North American Gem Inc. (TSX VENTURE: NAG) is a junior exploration Company based in Western Canada. The Company’s primary goal is to explore for Uranium, Molybdenum, Gold, Copper and other base metals. The Company is actively pursuing several opportunities, including the Louise Lake copper-gold-molybdenum-silver deposit located in British Columbia, Canada. The Company is also pursuing its uranium projects, consisting of the Whiskey Gap, Del Bonita, Western Basin, and Bonny Fault projects, all located in Alberta, Canada. In addition the Company is also pursuing its Mosquito Gulch uranium property located in the North West Territories.
On Behalf of the Board of Directors
NORTH AMERICAN GEM INC.
Charles Desjardins, President and Director
Statements in this press release other than purely historical information, historical estimates should not be relied upon, including statements relating to the Company’s future plans and objectives or expected results, are forward-looking statements. News release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company’s business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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