Jul 4 2008, 9:43am
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NAG 0.365 -0.015
Jul 4 2008, 9:43am
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News ReleaseNorth American Gem Inc. Updates Resource Estimate on "Main Zone" Louise Lake ProjectOctober 9, 2007: North American Gem Inc. (TSX-V symbol: NAG) ) is pleased to announce the updated resource estimate for the "Main Zone" at the Louise Lake copper-molybdenum-gold-silver project near Smithers, British Columbia, Canada. This resource estimate was provided by SRK Consulting (Canada) Inc. of Vancouver, British Columbia, Canada, and incorporated results from the 2007 diamond drilling program. The road-accessible property is located 35 kilometers west of Smithers, a full-service community with excellent access to highway, rail and electrical power infrastructure.
The 2007 program consisted of 6,227.6 meters of "NQ"-sized core in 21 holes, focusing on identifying extensions of the Main Zone, a tabular, east-west striking, moderately north dipping porphyry-style copper-molybdenum-gold-silver deposit. The program also included seven "interior" holes, focusing on upgrading portions of the resource to the "Indicated" category. 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 meters long, up to 170 meters wide, and extending to a depth of 250 - 270 meters, where it is abruptly truncated by the flat-lying "Terminator" fault. Table 1 lists the updated resource estimates per category: Table 1: 2007 updated SRK classified mineral resources, Main Zone, Louise Lake Project
The 2007 estimate uses an actual copper cut-off value of 0.15%, rather than the "copper equivalent" (CuEq) cutoff value of 0.25% used in the 2006 estimate. Comparison of the two estimates using the 0.25% CuEq cutoff instead, with identical metal prices, indicates that the 2007 estimated tonnage has been increased by 8%, with very similar metal grades. Grades of the Indicated Resource category, which has been increased to 26,000,000 tonnes from 6,000,000 tonnes, are also substantially increased from 2006 values. Table 2 lists the 2007 mineral inventory of the Main Zone at a CuEq cutoff of 0.25%. Table 2: 2007 Mineral Inventory of the Main Zone, Louise Lake Project
** CuEq values calculated using the following metal prices: Cu US$1.20/lb, Mo US$8/lb, Au US$450/oz, Ag US$7/oz ***The CuEq calculation does not take into account recoveries of individual metals Table 3 lists the 2006 classified mineral resource; both were calculated by SRK Consulting (Canada) Inc. Table 3: 2006 Classified Mineral Resources of the Main Zone, Louise Lake Project
** CuEq values calculated using the following metal prices: Cu US$1.20/lb, Mo US$8/lb, Au US$450/oz, Ag US$7/oz ***The CuEq calculation does not take into account recoveries of individual metals Upgrading of resource from the inferred to the indicated category is accomplished through increased density of drilling, as well as more exact surveying of drill collars, involvement of specific gravity samples, and improved quality assurance/ quality control (QA/QC) procedures, all implemented in the 2004 through 2007 programs. North American Gem is confident that further involvement of these parameters, as well as further infill drilling, will result in eventual upgrading of most of this deposit to the "Indicated and Measured" resource categories. Table 4 lists contained metal values for the resource categories Table 4: Contained Metal within Resource Categories, 2007 Estimate
Although the deposit has been largely defined along strike to the east and west, 2007 drilling has determined that potential exists to extend the deposit "down-dip" to the north, where higher grade gold mineralization was intersected in north-central areas. Strongly anomalous though sub-economic mineralization having the same metal signature as the Main Zone was intersected below the "Terminator" in DDH LL-07-15, targeting the down-dip extension in northwestern areas; this was the first hole to do so. SRK Consulting (Canada) Inc. has commenced on the first internal scoping study to be conducted on the Louise Lake property, to determine a preliminary assessment of economic viability, possible future infrastructure developments and environmental considerations. North American Gem is also expecting results shortly from a separate metallurgical study, to determine environmentally sound treatment methods of Main Zone mineralization. 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 diamond drilling program was conducted by Britton Brothers Diamond Drilling of Smithers, British Columbia. About North American Gem Inc. North American Gem Inc. (TSX-V symbol: 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 in Canada. The Company is actively pursuing several opportunities, including the Louise Lake copper-gold-molybdenum-silver project located in British Columbia. 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. In addition the Company is also pursuing its Mosquito Gulch uranium property located in the North West Territories and the Ranger Lake Uranium property located in Ontario. On Behalf of the Board of Directors NORTH AMERICAN GEM INC. "Charles Desjardins" 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. 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.
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