1788-650 West Georgia Street
Vancouver, B.C. V6B 4N8
Telephone: (604)683-5445
Toll Free: 1-866-683-5445
Facsimile: (604) 687-9631
www.northamericangem.com
info@northamericangem.com
North American Gem Inc. hires SRK Consulting to prepare Resource Evaluation
on the Main Zone, Louise Lake Property; Potential New Zone Intersected at Depth
February 28, 2006: North American Gem Inc. (TSX-v: NAG) (The Company) is pleased to
announce that the firm of SRK Consulting (Canada) Inc. has been awarded the contract to
perform a resource evaluation on the “Main Zone” of porphyry-style copper-gold-molybdenumsilver mineralization on the Louise Lake property. The road-accessible property is located 35
kilometres west of Smithers, British Columbia, Canada, a full-service community with excellent
access to highway, rail and electrical power infrastructure.
The resource evaluation, to begin immediately, will provide a resource estimate for the Main
Zone compatible with regulations under National Instrument 43-101. Project deliverables by
SRK Consulting will include: a geological model, a preliminary resource statement for the Main
Zone compliant with CIM 2004 standards; a report on geological modeling, data analysis, and
resource estimates according to Form 43-101F1 for technical reports, and recommendations for
advancing the project towards pre-feasibility.
The evaluation will incorporate results from the ongoing 2006 drilling program, as well as results
from the 2005 drilling program by North American Gem, the 2004 drilling program by previous
operator Firestone Ventures Inc, and three other drilling programs from 1970 to 1992. The 1992
program was conducted by former operator Equity Silver Mines Ltd. which released a geological
resource estimate for the Main Zone of 50 Million tonnes grading 0.3% copper and 0.3 g/t gold.
The 1992 estimate by Equity Silver Mines Ltd. was produced prior to implementation of modern
resource standards contained within National Instrument 43-101, does not distinguish between
resource categories, and should not be relied on to necessarily represent accurate estimates under
modern standards. No subsequent resource estimates have been made. North American Gem is
not treating this estimate as an NI 43-101 defined resource verified by a Qualified Person and has
not done the work necessary to verify the classification of the resource.
The Main Zone hosts an unusual mineral assemblage, with copper occurring almost exclusively
as “tennantite”, suggesting top levels of porphyry systems. The 2004 and 2005 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. The Main Zone has a minimum
strike length of 750 meters, is up to 170 meters thick, and extends to a depth of 250 – 270
meters, where it is abruptly truncated by the flat-lying “Terminator” fault.
The 2006 program will focus on potential further extensions of the Main Zone to the east and
west, and will also focus on delineation of the southern “footwall” margin. The program will
also test potential down-dip extension of an overlying mineralized zone in northeastern areas.
Some infill drilling will also be done.
As of Feb 28, six holes have been completed, three targeting the southern footwall contact, two
testing potential southwestern extensions, and one testing the overlying zone and down-dip
extension of the Main Zone in the northeastern area. The ongoing seventh hole, DDH LL-06-07,
was collared at the same site as DDH LL-05-01 (abandoned due to bad ground conditions, see
News Release dated April 20, 2005), and drilled at an azimuth of 180o and dip of -75o. Hole LL06-07 intersected roughly 72 meters of low-grade tennantite and minor molybdenite directly
overlying the “Terminator” at a depth of 300 meters. Importantly, this hole also intersected a
second strongly altered zone hosting tennantite with minor molybdenite extending from roughly
316 meters to its current depth of 395 meters. This is the first sizable intercept below the
“Terminator” and may represent upper levels of the interpreted underlying “offset” portion.
Results are pending.
The current drilling program will be completed in mid-March, 2006, with the updated resource
estimate expected in spring 2006.
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 is being done by ALS Chemex of North Vancouver, British Columbia, Canada.
Whiskey Gap Update
The Company is pleased to announce that the Phase Two Drill program consisting of 40 holes
has commenced and is currently drilling the third hole. This program has been designed to follow
up on significant results that were encountered during drilling on the Whiskey Gap
Uranium Project in late 2005. All samples will be sent to the Saskatchewan Research Council
(SRC) for assay.
The Phase One Drill Program of 1200 meters was completed, to evaluate anomalous Radon gas
values in ground water, which exceeded 5000 picocuries per liter.
Anomalous radioactivity, up to a maximum thickness of 5 meters, was encountered in seven drill
holes over a wide area within carbonaceous mudstones, in association with a thick sandstone
channel sequence.
Assay results from the SRC indicate that the radioactive zones are enriched with Uranium. The
source of the Radon anomaly was not located, however a substantial enrichment of heavy metals
is present, this heavy metal enrichment halo is typical of sandstone uranium deposits.
The project is under the direction of Glenn .S. Hartley P. Geol. in accordance with the
regulations of National Instrument 43-101.
In other news, the Company announces that the letter of intent signed with Strathmore Minerals
Corp. on August 18, 2005 did not proceed.
About North American Gem Inc North American Gem Inc. (NAG:TSX-v) 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 company's Louise Lake Property located in British Columbia, Canada and its
Uranium and Multi-mineral deposit Properties which are the Del Bonita, the Western Basin, the Bonny
Fault, and the Whiskey Gap, all located in Alberta, Canada.
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. 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.