VANCOUVER, May 16 /PRNewswire-FirstCall/ -- North American Gem Inc. (TSX-V symbol: NAG) is pleased to announce initial results of the preliminary analysis by Mr. Jeremy S. Brett, M.Sc. P.Geo., Senior Geophysical Consultant for MPH Consulting of Toronto. Mr. Brett continues to compile a detailed interpretation of the new airborne geophysical data and historical showings.
To date 275 uranium anomalies have been identified of various quality, and associations with both foliation-parallel and major cross-cutting structures/faults. Approximately the top 10% will be categorized as very high priority targets, characterized by the highest uranium responses. These targets will include 10 targets which are located on or near the Bonny Fault or sub-parallel faults, which are major NW trending faults that cross-cut the local foliated rocks and may have been conduits for uranium-bearing fluids from the now eroded Athabasca sandstones which once overlay the area.
This uranium/gold property covers approximately 160,000 acres of mineral permits and is located within the Precambrian Shield of northeastern Alberta within the Churchill structural province. It is situated in the Taltson magmatic zone, which to the south, constitutes the basement of the western Athabasca Basin. Local geology within the property consists of a wide range of massive to foliated granitoids, metasedimentarys and metavolcanic rocks. Several major faults affect most of the rock units; these faults include the northwesterly-trending Bonny Fault, and several subsidiary faults that complicate the structural setting. Faults in this region are expressed as early shear zones that are characterized by mylonites, as well as by later more shallowly seated ductile-brittle and brittle fault zones. Retrograde greenschist facies minerals indicate a Palo-Proterozoic to possibly Meso-Proterozoic age for this large scale faulting, which has been favourable for other economic uranium deposits within the Precambrian Shield in the Uranium City area of north-central Saskatchewan.
Mineralization in this area was first mentioned by Godfrey (1958) but never received much attention during the several phases of exploration linked to the increased interest in uranium in the early and late 1970s. Godfrey (1958) reported high assays from three grab samples taken over the radioactive zone, this zone is now known to be the West Arm of Andrew Lake: these assays are listed below:
Sample # U(3)O(8) % Mo %
JG-58-44-1A 1.03 0.69
JG-58-44-1B 3.93 1.03
JG-58-44-1C 3.29 1.40
(x) Figures in this chart were produced prior to NI 43-101.
In the past, the Bonny Fault and surrounding area were only moderately explored, based on the available assessment records, for vein-style uranium between the mid-1950s to mid-1970s. During that time numerous uranium and radioactive occurrences were found, but for a variety of reasons only marginal follow-up exploration appears to have been performed. An example of this follow-up exploration was carried out by Rapid River Resourses Ltd. in 1968. Rapid River reported 300 scattered radiometric "spot highs" of uranium in the order of 5 to 10 times background aligned along two north trending zones, approximately 1,800m long buy 300m wide. The western zone relates to the mineralized area discovered by Godfrey (1958).
The property was strategically staked to encompass eight main uranium and/or precious metal showings along with the extensions of geological structures that appear to have a direct influence over placement of the showings, which had previously been documented and reported on by the Alberta Geological Survey (e.g., AGS Open File Report 1993-08) in the early 1990's.
Examples of the geochemical results for some of these mineral showings (as reported in AGS Open File Report 1993-08) are listed below:
West Arm Andrew Lake: 3.93% U(3)O(8), 1.4% molybdenum (Mo); 0.26%
U(3)O(8) over 1m (in a prior drill hole);
29.2% Fe and 381 ppm V with associated anomalous
radioactivity
Pythagoras Lake: 0.603 grams gold (Au)/tonne; 0.39 per cent (%)
nickel (Ni); 10.0 grams silver (Ag)/tonne
North Cherry Lake: 0.79% U(3)O(8) over 1.2m (in a prior drill
hole)
North Hutton Lake: 25.1% iron (Fe) and 274 parts per million
vanadium (ppm V) with associated anomalous
radioactivity
In recent years a better understanding of these styles of uranium occurrences, along with a comparison of these occurrences to other parts of the world such as that of the Olympic Dam type in Australia, and rising uranium prices, has elevated the Bonny Fault showings to under-evaluated, hence attractive exploration target status.
Three unique styles of mineralization have been identified on the Bonny Fault property based on a direct result of ground-based investigations and interpretations of historic data in various AGS publications.
During 2007, exploration will be focused on these three mineralization styles within the Bonny Fault property:
- Uranium - Molybdenum zones associated with shearing at granite-
metasediment contacts. (AGS OFR 1993-08)
- Gold, silver and nickel zones along metasediment/metavolcanic shear
contacts. (AGS OFR 1993-08)
- Massive hematite breccia-hosted uranium, gold, iron and REEs, in a
setting that may be analogous to the Australian Olympic Dam style of
mineralization. (Metallogenic Evaluation of Alberta, Olson et al.,
1994, AGS OFR 1994-08)
"We are very pleased with the progress of the Louise Lake Project, and we will continue to aggressively move it forward," says Charles Desjardins, President of North American Gem Inc. "However, we are very excited about recent discoveries being made on our prospective Uranium claims. It is very important that our shareholders know that we will be exploring our Uranium claims aggressively in the very near future."
North American Gem 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 700,000 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.
The project is under the direction of Glenn S. Hartley P. Geol., who is the qualified person for the project in accordance with the regulations of National Instrument 43-101.
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. 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"
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.
CONTACT: North American Gem Inc., 1788 - 650 West Georgia Street, Vancouver, BC, Canada, V6B 2N8, Phone (604) 683-5445, Facsimile (604) 687-9631,
