News: 1/18 "North American Gem"I think the 147k shares are coming as a result of the following transaction;
read todays NR.
Also, note "The Company is presently formulating a work program
including diamond drilling which it anticipates will begin in February."
good tradin'
-oldtimer
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North American Gem Completes Formal Agreement
1/18/05
To Acquire Louise Lake Copper/Molybdenum/Gold/Silver Project North
American Gem Inc. (The Company) is pleased to announce the completion of
a Formal Agreement with Firestone Ventures to 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
tetrahedrite-tennantite, 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 Property Vendor Firestone Work Expenditures Interest Earned
1 150,000 shares 125,000 shares $300,000.00
2 150,000 shares 125,000 shares $300,000.00
3 $80,000 cash 150,000 shares $400,000.00 60%
4 250,000 shares $500,000.00
5 250,000 shares $500,000.00 75%
The terms of the agreement also call for the Company to pay Firestone
Ventures 200,000 common shares 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.
The Company is presently formulating a work program including diamond
drilling which it anticipates will begin in February.
Carl Schulze, P. Geol., will be the Qualified Person on the Project.
In addition, the Company announces that it has granted, subject to regulatory
approval Director /Officer/ Consultant/ Employee incentive stock options of the
company to purchase in the aggregate 400,000 common shares in the capital
stock of the Company per the Company's Stock Option Plan.
The options are exercisable on or before January 18, 2007 at price of $0.10
per common share.
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"
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.
Capitalization Report for Firestone Ventures Inc
Shares Issued: 16925961
Shares Escrow: 0
TSX Venture closing price for Firestone Venture
Date: 2005/01/17
Closing Price: 0.120
CONTACT: TEL: (604) 683-5445 North American Gem Inc.
TEL: 1-866-683-5445
FAX: (604) 687-9631
Internet: www.northamericangem.com
E-mail: info@northamericangem.com