North American Gem Inc. Acquires 100% Interest in the Mount Ogden Molybdenum Property, British Columbia
July 4, 2006: North American Gem Inc. (TSX-V symbol: NAG) (the “Company”) has finalized the property option acquisition agreement (news release May 3, 2006), pursuant to which the company may acquire a 100-per-cent interest in the Mount Ogden molybdenum property located in the Atlin mining district, British Columbia and Alaska. In consideration, the Company must make 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.
In 1978, Omni Resources Inc. carried out preliminary sampling of a number of molybdenum showings near Mount 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 the following.
Zone M: 0.31 per cent MoS2 from 24 samples across 43 metres
Zone N: 0.32 per cent MoS2 from 26 samples across 26 metres
Also, in zone Z, 10 samples taken along 300 metres averaged 0.24 per cent MoS2 (source, 1979 assessment report, Omni Resources).
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 per cent 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 and 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.
Carl Schulze, BSc, PGeo, is the qualified person for this project, in accordance with regulations under National Instrument 43-101. The company considers the historic resource estimates contained herein to be relevant, but currently unreliable, as insufficient information is available to confirm them.
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 1,200,000 common shares in the capital stock of the company, subject to regulatory approval, exercisable for a period of two years, at a price of $0.15 cents per share. These options are subject to a four-month hold period.
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.
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