Got this message from NAG's IR team I assume... Never heard of KBC before!
Presidents Message to North American Gem Inc. Shareholders
Introducing Consolidated Beacon Ltd. (TSX-V:KBC)
We are currently managing three Junior Exploration Companies at this time, soon to be expanding to
four. This is beneficial to all of our Companies as it allows our operational costs, per Company, to be
lowered. Cost for accounting, administration, legal counsel, Investor relations etc. are streamlined and
cost effective. This system will benefit our operations now more than ever through the current market
uncertainty.
North American Gem Inc. (TSXV: NAG) is progressing as approved Saskatchewan Coal Permits continue
to come into the office bringing our current total to 223 Coal Prospecting Permits covering an area of
422,135 acres (200,832 hectares). North American Gem and other companies see the potential of this
region north of Hudson Bay which was discovered by Goldsource Mines Inc. and successfully expanded
by a drill program. As stated in the October 3, 2008 release from Goldsource Mines Inc. “A total of 11
core holes (including two twin holes) have been drilled on the Border property with thick coal intercepts
encountered in seven of the holes. The holes that intercepted coal are widely spaced and the coal seam
is open to extension in all lateral directions”.
North American Gem Inc. intends to be the major land holder in this region of Saskatchewan as an
additional 895 confirmed coal prospecting permit applications of first priority status are yet to be
approved.
North American Gem Inc. has also recently acquired Appalachia Coal Corp. (ACC) and now controls
approximately 20,000 acres of coal leases in West Virginia that are in various stages of permitting.
Several different coal seams run on ACC’s properties including the well known Kittanning seam currently
being mined at Cleveland-Cliff's White Tail mine 6 miles from ACC's project. . Initial strip mining is
anticipated to commence in early 2009, and North American Gem also intends to commence a drill
program in the near future.
Under the current market conditions North American Gem Inc. has chosen to hold off on further
exploration on the Louise Lake project after its successful summer long ground exploration program.
The Louise Lake project is currently under ownership of North American Gem until 2015, the company
also has money banked on this project which can be filed at any time to extend the ownership of this
project beyond 2015.
Growing Market Interest
It is important to note that despite the current market conditions, North American Gem Inc. continues
to be introduced to new investors and will continue with its goal of providing value to its shareholders.
Since May 7-Oct. 21 of 2008 the Company has traded over 438 million shares in volume valued at over
$126 million dollars. Respectively; in 2007, 38 million shares were traded with the value of just over $6
million dollars and in 2006, 28.5 million at $5.6 and lastly in 2005 at 24 million shares traded valued at
$3 million dollars.
Our Management group would like to introduce Consolidated Beacon Resources Ltd. (“Beacon” or “the
company”) (TSXV: KBC). This is an oil and gas exploration Company with plans to drill 4 wells in the next
10 days in the San Joaquin Basin, California. Drill locations were selected after the processing and
interpretation of the recently acquired 3-D Seismic data perform by the Major in the joint venture
partnership arrangement, which spent 3.5 million dollars to earn into the project. The locations for
these four wells are currently being prepared for drilling.
San Joaquin Overview
Since March 2006, Beacon has been engaged in the business of acquiring medium and heavy oil
prospects in the San Joaquin Basin, California in the San Joaquin East Side Project Joint Venture, (the
“San Joaquin JV”) on and around the Bakersfield Arch.
The San Joaquin Joint Venture has focused its initial efforts on a 10-mile wide north-south exploration
fairway between the Round Mountain and Mount Poso oilfields to the east, the Kern Front and Poso
Creek oilfields to the west, and the Kern River oilfield to the south.
Beacon’s current interest in the project is small, but the Company is attempting to negotiate a larger
interest in the Joint Venture before the start of drilling in the next 10 days.
The San Joaquin Basin of South Central California is targeted for oil exploration for several reasons which
are:
1. The East Slopes of the San Joaquin Basin are a very prolific oil-prone area, with approximately
13,000 historic wells.
2. The basin is very close to major markets, and has infrastructure and services in place
approximately 21 miles to three oil refineries, capacity 116,000 BOPD.
3. USGS recently (2007) estimated remaining undiscovered resources in the San Joaquin Basin:
? 393 million barrels undiscovered oil
? 1.7 Tcf undiscovered natural gas
? 59 million barrels undiscovered natural gas liquids