Coal

[Tackler]

North American Gem applies for more coal permits

2008-05-08 11:36 MT - News Release

Mr. Charles Desjardins reports

NORTH AMERICAN GEM INC. COMPANY APPLIES FOR ADDITIONAL COAL PERMITTING NORTH OF HUDSON BAY, SASKATCHEWAN

North American Gem Inc. has submitted coal permit applications for another 118,733 acres, in addition to the previous acreage as stated in yesterday's release in Stockwatch. This now brings the current total land staking to approximately 252,901 acres, the company continues to add to its potential land position in proximity to the recent Goldsource Mines Inc. discovery, in east-central Saskatchewan.

North American Gem has been contacted by another diamond exploration company that has also drilled into a coal seam, in what it believes could be part of the same Cretaceous-aged coal system. Part of that core is presently being assayed.

"It is our immediate goal to become a major landholder in this region of Saskatchewan through successful permitting," said Charles Desjardins, president of North American Gem. "This acquired additional technical information could support the early theory of the presence of a much larger coal system."

The company will confirm permit grants as documentation is received regarding these coal permits that have been forwarded to the government of Saskatchewan's permitting office. The time frame will be determined by the permitting office. North American Gem has submitted money in trust to the Saskatchewan permitting office.

North American Gem has made a commitment to be active in Saskatchewan for the exploration of coal, whether it be through successful staking by the company or through joint-venture opportunities. The recent coal discovery by Goldsource Mines of bituminous coal in two drill holes 1,600 metres apart, suggests the potential for a much larger coal system. Goldsource believes the coal it encountered is from the Mannville/Swan River Group of Cretaceous age (see Goldsource Mines news in Stockwatch of May 5, 2008). Coal structures of the Cretaceous age are generally very large and can encompass several thousand square kilometres.