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 Increases Main Zone at the Louise Lake Project
April 06, 2006: North American Gem Inc. (TSX-V symbol: NAG) (the "Company") is pleased to
announce encouraging results from the next two holes targeting the “Main Zone” on the Louise
Lake Project, 35 kilometers west of Smithers, British Columbia, Canada. Smithers is a fullservice community with excellent access to highway, rail and electrical power infrastructure.
Hole LL-06-03, targeting the southern “footwall” contact of the Main Zone roughly 100 meters
southwest of Hole LL-06-01 (see News Release dated March 7, 2006) returned a 151.6-meter
intersection from 15.8m (casing) to 167.4m, grading 0.177% copper (Cu), 42 ppm molybdenum
(Mo), 0.126 ppm gold (Au) and 1.6 ppm silver (Ag). This includes a 58.3-meter intersection
from 15.7 – 74.1 meters grading 0.243% Cu, 51 ppm Mo, 0.164 ppm Au and 2.9 ppm Ag. These
results indicate that the southern margin extends somewhat further south than expected,
increasing the known width of the Main Zone.
Hole LL-06-04, collared about 15 meters north of Hole LL-05-05 and drilled at a dip of -80o,
targeted the northern, down-dip extension of the Main Zone intersected in Hole LL-05-05 (see
News Release dated April 20, 2005). Hole LL-06-04 returned a 60.0-meter intercept from 244.2
– 304.2m grading 0.286% Cu, 80 ppm Mo, 0.326 ppm Au and 1.3 ppm Ag. This includes a
46.0-meter intercept from 258.2 – 304.2m grading 0.331% Cu, 78 ppm Mo, 0.372 ppm Au and
1.5 ppm Ag. Importantly, this represents a northward extension of the Main Zone of slightly
more than 100 meters from the intercept in Hole LL-05-05. Most of the overlying portion of this
hole also intersected lower grade though still strongly anomalous metal values, specifically
returning a 196.3-meter intercept grading 0.095% Cu, 39 ppm Mo, 0.127 ppm Au and 0.3 ppm
Ag.
In April 2005 North American Gem completed a 2512.3-meter diamond drilling program in
seven holes, successfully identifying extension of the Main Zone both to the west and east, to a
minimum strike length of 750 meters, still open in both directions. Compilation of results also
indicated this zone consistently extends to a depth of 250 to 270 meters, where it is truncated by
a flat-lying fault. Six of seven holes returned long mineralized intercepts, including: a 101.9meter intercept grading 0.382% copper, 0.030% molybdenum, 0.372 g/t gold and 1.2 g/t silver in
DDH LL-05-02; and a 192.1-meter intercept grading 0.271% copper, 0.011% molybdenum,
0.255 g/t gold and 1.0 g/t silver in DDH LL-05-04 (see NAG News Releases dated April 20 and
May 2, 2005).
The Main Zone hosts an unusual mineral assemblage, with copper occurring almost exclusively
as “tennantite”, suggesting top levels of a porphyry system. 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 following table lists significant intercepts from Holes LL-06-03 and LL-06-04:
Hole
Interval (meters)
Length
(m)
LL06-03
15.8 – 167.4m
151.6m
0.177
15.8 –
74.1m
and
138.2 –
167.4m
47.9 – 244.2m
58.3m
Includes
LL06-04
244.2 – 304.2m
Includes
258.2 –
304.2m
Copper Molybdenum
(%)
ppm
Gold
(g/t)*
Silver
(g/t)*
42
0.126
1.6
Copper
Equiv
(%)
0.31
0.243
51
0.164
2.9
0.42
29.2m
0.229
79
0.172
1.2
0.44
196.3m
0.095
39
0.127
0.3
0.21
60.0m
46.0m
0.286
0.331
80
78
0.326
0.372
1.3
1.5
0.57
0.63
* 1 ppm = 1 g/t
* Assumes prices of $1.30/lb Cu, $20.00/lb Mo, $400/0z Au and $7.00/oz Ag (US dollars)
The just completed 2006 program targeted potential eastward and westward extensions of the
Main Zone, as well as the southern “footwall” contact and northward “down-dip” extensions in
western and east-central areas. The program also included one in-fill hole in an under-explored
area. The program was designed to test peripheral areas to determine preliminary zone
dimensions, to be incorporated into the resource evaluation study currently being informed by
SRK Consulting of Vancouver, British Columbia. Project deliverables by SRK Consulting
include: a geological model, a preliminary resource statement for the Main Zone compliant with
modern CIM standards, data analysis, a resource estimates according to Form 43-101 F1 for
technical reports, and recommendations for advancement of the project towards pre-feasibility.
A site visit has been completed, and the resource estimate is proceeding without complications.
In 1992, former operator Equity Silver Mines Ltd. 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.
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.
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.