Replies to post #7435 on The Trading Floor

[Arctec]

2005-01-20 15:56 ET - News Release
Shares issued 22,003,827
NAG Close 2005-01-19 C$ 0.11

Mr. Charles Desjardins reports

NORTH AMERICAN GEM FILES NI 43-101 ON LOUISE LAKE COPPER/MOLYBDENUM/GOLD /SILVER PROPERTY

North American Gem Inc. has received and filed an independent technical report on the company's Louise Lake property, located 35 kilometres west of Smithers, B.C.

The company commissioned and received the independent technical report on the Louise Lake property in accordance with National Instrument 43-101 standards of disclosure for mineral projects. The Jan. 12, 2005, report was prepared by independent consulting geologist Carl Schulze, Bsc, PGeo. To view this document in its entirety please visit http://www.sedar.com/csfsprod/data52/filings/00730535/00000002/C%3A%5CFILING..

The work program, which is anticipated to begin in February, will include a two-phase diamond drilling program to test potential strike extension to the west and east of the 2004 drill sites. Phase 1 will consist of 2,240 metres in six NQ-sized holes and phase 2 will consist of 3,200 metres in nine NQ-sized holes. The Main zone likely represents the centre of the Louise Lake porphyry system, possibly overlying a larger "typical" porphyry deposit.

About Louise Lake project

The Main zone of the Louise Lake project is located 35 kilometres west of Smithers, B.C., with excellent road access to major rail, highway and electrical infrastructure and services based at Smithers. First discovered in 1968, the Main zone underwent several phases of diamond drilling and surface exploration culminating in 1992 with a geological resource estimate by Equity Silver Mines Ltd. of 50 million tonnes grading 0.3 per cent copper, 0.3 gram per tonne (g/t) gold and 0.02 per cent molybdenum (established prior to National Instrument 43-101). The Metallurgy Department of Equity Silver reported copper and gold recoveries of 95 per cent and 90 per cent, respectively.

Early in 2004, Firestone Ventures Inc. entered into an option agreement to earn a 100-per-cent interest in the property over four years. Firestone then conducted a six-hole, 1,675-metre diamond drilling program focusing on expansion of the Main zone along strike to the east, west and down-dip to the north, and on infill drilling. All six holes returned long intercepts of high copper-gold plus or minus molybdenum values, increasing the known extent of the zone, and indicating the system remains open in all directions. The best intercepts include: 0.337 per cent copper, 0.0181 per cent molybdenum and 0.344 g/t gold across 150 metres from DDH LL-04-02, a northern down-dip step-out hole; and 0.366 per cent copper, 0.0118 per cent molybdenum and 0.354 g/t gold across 204 metres, open at depth, from infill drilling in DDH LL-04-03. Metal values per tonne compare with those of many current advanced projects and some producing mines within British Columbia.

The Main zone, located along the north limb of the regional-scale east-northeast-trending Coal Creek lineament, hosts a highly unusual mineralogical setting. Copper mineralization occurs almost exclusively as tetrahedrite-tennantite, indicating formation toward the top of a porphyry system. This system displays many characteristics of epithermal as well as porphyry deposits, suggesting known mineralization may represent a comparatively small portion of a much larger porphyry system at depth. Induced polarization surveying conducted in 1969 revealed a high chargeability anomaly coincident with the Main zone. A second anomaly having a similar signature occurs under Louise Lake along the south limb of the Coal Creek lineament, suggesting a potential fault offset portion with a one-kilometre displacement of the Main zone. This provides an additional exploration target for bulk tonnage porphyry and/or epithermal mineralization.

Carl Schulze, PGeol, will be the qualified person on the project.