North American Gem signs Letter of Intent to acquire Louise Lake Copper/Gold/Molybdenum/Silver Project
December 13, 2004: North American Gem Inc. (The Company) is pleased to announce that it has signed a Letter of
Intent with Firestone Ventures (TSX.V – FV) wherein North American Gem can acquire an interest in the Louise
Lake Project.
The agreement consists of a five year term where North American Gem can earn up to a 75% interest in the Louise
Lake Project by committing to work expenditures, issuing common shares and paying cash to the property vendor,
and issuing common shares to Firestone Ventures. North American Gem will be the operator for the project.
About Louise Lake Project
The “Main Zone” of the Louise Lake project is located 35 km west of Smithers, British Columbia, Canada, with
excellent road access to major rail, highway and electrical infrastructure and services based at Smithers. First
discovered in 1968, the Main Zone underwent several phases of diamond drilling and surface exploration
culminating in 1992 with a geological resource estimate by Equity Silver Mines Ltd. of 50 million tonnes grading
0.3% copper, 0.3 g/t gold and 0.02% molybdenum (established prior to National Instrument 43-101). The
Metallurgy Department of Equity Silver reported copper and gold recoveries of 95% and 90% respectively.
Early in 2004, Firestone Ventures Inc. entered into an option agreement to earn a 100% interest in the property over
four years. Firestone then conducted a six-hole, 1,675m diamond drilling program focusing on expansion of the
Main Zone along strike to the east, west and down-dip to the north, and on infill drilling. All six holes returned long
intercepts of high copper-gold +/- molybdenum values, increasing the known extent of the zone, and indicating the
system remains open in all directions. The best intercepts include: 0.337% copper, 0.0181% molybdenum and 0.344
g/t gold across 150m from DDH LL-04-02, a northern down-dip step-out hole; and 0.366% copper, 0.0118%
molybdenum and 0.354 g/t gold across 204 metres, open at depth, from infill drilling in DDH LL-04-03. Metal
values per tonne compare with those of many current advanced projects and some producing mines within British
Columbia.
The Main Zone, located along the north limb of the regional-scale east-northeast trending Coal Creek Lineament,
hosts a highly unusual mineralogical setting. Copper mineralization occurs almost exclusively as tetrahedritetennantite,
indicating formation towards the top of a porphyry system. This system displays many characteristics of
epithermal as well as porphyry deposits, suggesting known mineralization may represent a comparatively small
portion of a much larger porphyry system at depth. Induced polarization surveying conducted in 1969 revealed a
high chargeability anomaly coincident with the Main Zone. A second anomaly having a similar signature occurs
under Louise Lake along the south limb of the Coal Creek lineament, suggesting a potential fault -offset portion with
a 1.0-km displacement of the Main Zone. This provides an additional exploration target for bulk tonnage porphyry
and/or epithermal mineralization.
The following table summarizes the terms:
Year 1 - 150,000 shares to property vendor, 125,000 shares to firestone,
$300,000.00 work expenditures.
Year 2 - 150,000 shares to property vendor, 125,000 shares to firestone,
$300,000.00 work expenditures.
Year 3 - $80,000.00 cash to property vendor, 150,000 shares to firestone,
$400,000.00 work expenditures, interest earned 60%
Year 4 - 250,000 shares to firestone,
$500,000.00 work expenditures.
Year 5 - 250,000 shares to firestone,
$500,000.00 work expenditures interest earned 75%.
The terms of the agreement also call for the Company to pay both the original vendor and Firestone Ventures
100,000 common shares each upon approval of a formal agreement.
A finder’s fee of 100,000 common shares of the Company will be payable in accordance with TSX Venture
Exchange policies. The agreement is subject to TSX Venture approval.
Carl Schulze, P. Geol., will be the Qualified Person on the Project.
About North American Gem Inc. North American Gem is a junior exploration company based in Western Canada.
The Company’s primary goal is to explore for Gold and Platinum Group metals. The Company is actively pursuing
several opportunities, including the Bonaparte Mine Property and Louise Lake Project.
For additional information you can contact North American Gem Inc.
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, 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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