May 3, 2006: North American Gem Inc. (TSX-V symbol: NAG) (the “Company”) is pleased to report it has entered into an option agreement to acquire a 100 per cent undivided interest in the Mt. Ogden Molybdenum deposit, located in northwestern British Columbia. The Mt. Ogden property is located in the Atlin Mining District, about 60 km east of Juneau, Alaska, and 130 km south of Atlin , B.C along the Alaska-British Columbia Border.
In 1978 Omni Resources carried out preliminary sampling of a number of Molybdenum showings near Mt. Ogden. The known mineralization is associated with an “Alaskite” stock exposed in at least nine separate locations across an area measuring 1,800 metres north-south by 1,500 metres east-west. Results of trench or continuous surface chip sampling from some of the mineralized zones include:
Also, in Zone “Z”, 10 samples taken along 300m averaged 0.24% MoS2 (Source, 1979 Assessment Report, Omni Resources Inc.).
In 1979, Omni Resources carried out underground development and drilling at the “N” and “Z” showings, including about 159 metres of drifting and 589 metres of underground drilling (Elliott and Clouthier, 1981). A small high-grade vein, termed the ‘Serious Vein’ was encountered; a preliminary estimate of 30,000 tons of 1.85% MoS2 was provided, based on drilling and underground exploration results. This estimate was produced prior to implementation of modern resource standards contained within National Instrument 43-101, does not distinguish between resource categories, and should not be relied on to necessarily represent accurate estimates under modern standards. No subsequent resource estimates have been made. North American Gem is not treating this estimate as an NI 43-101 defined resource verified by a Qualified Person and has not done the work necessary to verify the classification of the resource.
To purchase the Mt. Ogden deposit, the Company must make an initial cash payment of CDN$25,000 and issue 150,000 shares. The Company must make future cash payments totaling $100,000 and issue an additional 450,000 shares over a three year period. The vendor will maintain a 2% NSR, of which 1% may be repurchased for $1 million.
A finders fee of 75,000 shares is payable to Stan Wolarek.
This news was prepared on behalf of the company by Carl Schulze, P.Geo., of All-Terrane Mineral Exploration Services. Mr. Schulze is the qualified person responsible for the exploration of Mt. Ogden Property. The company considers the historic resource estimates contained herein to be relevant, but currently unreliable, as insufficient information is available to confirm them.
North American Gem Inc. (NAG:TSX-v) 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 company's Louise Lake Property and the Mt. Ogden Property located in British Columbia, Canada and its Uranium and Multi-mineral deposit Properties which are the Del Bonita, the Western Basin, the Bonny Fault, and the Whiskey Gap, all located in Alberta, Canada.
On Behalf of the Board of Directors
NORTH AMERICAN GEM INC.
Charles Desjardins
President and Director
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. 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. 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.
