N.A. Gem acquires prospective uranium lands in Alberta
Noooooooooooo I say! NIMBY!!! Just kidding, I have no idea if what they're talking about here is a bunch of BS or not. Kind of makes you wonder about all that shallow gas they pull out of Milk River though.
2005-03-16 16:26 MT - News Release
Mr. Charles Desjardins reports
NORTH AMERICAN GEM INS. ACQUIRES OVER 200,000 ACRES OF URANIUM PROPERTY IN SOUTHERN ALBERTA.
North American Gem Inc. has signed a letter of agreement for the acquisition of four major formations comprising more than 200,000 acres of prospective uranium land in Southern Alberta. The four target formations are known as Willow Creek, Milk River, St. Mary River and Ravenscrag.
Upon signing of a formal agreement and subject to due diligence, North American Gem is to pay the vendor $10,000 and 100,000 shares for 1-per-cent interest in the property, subject to a 2-per-cent net smelter royalty (NSR). North American Gem will have the option to purchase 1 per cent of the NSR from the vendor under the following conditions:
the payment of $25,000 if purchased within two years of signing the final agreement;
the payment of $200,000 if purchased within two to five years after signing the final agreement; and
$1-million if purchased after the fifth year.
The claims were acquired on the basis of favourable geology and structure within tertiary fluvial sandstones of the Willow Creek formation known to contain uranium values greater than 2,000 parts per million from rock samples with associated vanadium and molybdenum, (Alberta Geological Survey, open file report 1994 to 1998).
There is easy access across the Southern Alberta rangeland, which consists of upper-Cretaceous to lower-Tertiary sandstones and silty limestones that occurs near surface. Roll-front uranium has been observed in the Willow Creek formation along drainages that contain naturally high concentrations of uranium. Reconnaissance sampling programs carried out in 1981 and 1982, including samples taken from a roll front exposed in a river bank, returned up to 2,000 parts per million uranium (0.2 per cent U3O8). The technique used to analyze the reconnaissance samples had an upper detection limit of 2,000 parts per million uranium. Normally, samples running at upper detection limits are reanalyzed with different laboratory techniques, but in this case there is no record of such overlimit analyses having been performed. The area is easily accessible far resampling.
This roll-front uranium found in the Willow Creek, Milk River, St. Mary River and Ravenscrag formations is similar to the deposits in Wyoming, South Dakota, Colorado, Utah and New Mexico. The major uranium deposits of Wyoming have produced over 200 million pounds of uranium.
In the event that an economic deposit is developed, the Southern Alberta roll-front uranium appears to occur in a form that can be processed by in situ leaching (ISL). That is, the uranium can be solution-mined using injection and production wells rather than being excavated with open pits or underground mining. The ISL process is simple, it uses local groundwater that is naturally enriched in uranium and returns purified, less radioactive water to the environment. There is virtually no land disturbance and the process does not require waste or tailings facilities.
"We are excited about this first uranium project," said Charles Desjardins, president of North American Gem "The company is also in talks with several other uranium vendors and potential partners, with the goal being to secure a portfolio of uranium prospects."
Glenn Hartley, PGeo, is the qualified person for the property, in accordance with regulations under National Instrument 43-101. It should be noted that North American Gem is commencing due diligence work and has not verified any of the results reported at this news release.
The diamond drilling program on Louise Lake is progressing well, the company has now begun its second of six drill holes in phase 1.
Carl Schulze, BSc, PGeo, is the qualified person for the Louise Lake project, in accordance with regulations under National Instrument 43-101.
K.D.
