Still Waiting on Approximately 1,000,000 Acres in Coal Permit
VANCOUVER, June 9 /CNW/ - North American Gem Inc. (TSX-V symbol: NAG) has
received a "Comfort letter" from Saskatchewan Energy and Resources stating
that of the coal permit applications processed to date, on behalf of North
American Gem Inc., 415,434 acres of issued Coal Prospecting Permits (CPP) will
be given priority sequence in our area of interest west, northwest and
east-northeast of Hudson Bay. The Company has filed and fully paid for 786
Coal Disposition applications to date. The comfort letter received lists all
applications made on behalf of the Company during the period of May 6-9th,
2008 and details the land description, acres, priority sequence and the
allocated coal prospecting permit (CPP) numbers. All of the ground that has
been applied for has been done so in accordance will all the rules and
regulations set forth by the government of Saskatchewan's permitting office.
As with all other companies applying for Coal Dispositions in
Saskatchewan, North American Gem Ltd., has its applications and Coal
Prospecting Permits subject to the Saskatchewan government's approval process.
The standard issue Comfort letter states "the extent to which the land
described in these applications can be issued has not been investigated, and
therefore this letter should not be construed as an indication that any land
will be issued, as a full review is still to be completed."
North American Gem Inc. has submitted 786 coal permit applications for
1,491,010.56 acres; this will be the first of a few letters of comfort that
the Company will receive from the government of Saskatchewan's permitting
office, as the Company continued to apply for permits until June 6th, 2008.
The criteria for targeting the coal permit applications were: initial
proximity to the recent coal discovery made by Goldsource, and strategically
accumulating favourable cretaceous age coal hosting geological stratigraphy
identified by Goldsource, and aggressively applying for ground that covered
favourable cretaceous age coal hosting geological stratigraphy identified with
the Adamas Coal Discovery west of the Goldsource discovery; this area being
known only to North American Gem Inc. and subsequently returned an analysis
from Loring Laboratories of Sub-bituminous A grade coal from drill core that
sat unprotected, subjected to the elements for 14 months.
Charles Desjardins, President of North American Gem Inc. said, "This
entire process from permit application to the granting of the actual permits
will take time, but we are confident that North American Gem Inc. will be a
major land holder in this newly discovered region once all of the permits have
been granted. Once the coal prospecting permits have been granted, North
American Gem Inc. will aggressively explore the region."
North American Gem Inc. anticipates being a major land holder in this new
coal region of Saskatchewan. The Company will commit to aggressive exploration
and is currently assembling an outstanding Board of Advisors with expertise in
the area of coal exploration. The Company plans to first twin the Adamas
discovery hole to get a true grade of the quality of the coal at that
location, and further exploration holes in the area of the discovery. Also the
Company is planning extensive airborne geophysics over its area of influence,
of which is yet to be determined.
In 2007, Adamas was exploring a magnetic anomaly thought to be a
kimberlite target in proximity to the most recent discovery by Goldsource
Mines Inc. (TSX-V symbol: GXS) (Goldsource), in western Saskatchewan. During
this exploration program Adamas discovered a coal seam in the Cretaceous rock
(Mannville Group Rocks) sequence containing coal similar to Goldsource,
confirming the regional potential for coal deposits.
Adamas has collected proprietary aeromagnetics data for the area of
interest that has been made available to North American Gem Inc. to be used to
further evaluate the area for coal deposits and other minerals that may be
found therein. Historical data and reports suggest that coal is present to the
north edge of the Cretaceous rock sequence along the shores of Wapawekka Lake
to the north of the Adamas discovery. These reports further suggest that the
Wapawekka out crop is likely associated with a larger deposit to the south.
The Adamas intercept is directly south of Wapawekka Lake along the low lying
basin adjacent to the south east of the Narrow Hills Uplands.
Goldsource also made a significant coal discovery while drilling for
kimberlites in a low lying basin south east of the adjacent uplands at Pasquia
Hills to the south east of the Narrow Hills intercept. The occurrence at
Pasquia is roughly 80-100 km south east of the Narrow Hills and both have
similar topographical features and are in the same Cretaceous rock sequence.
Airborne Electromagnetic surveys are well suited for regional exploration of
this nature, and given the known location of the Adamas Coal intercept, it is
likely to provide a fast track to defining regional drill targets.
The Company will announce any confirmation of the Coal Prospecting
Permits that become validated through the government of Saskatchewan's
permitting office process. The process time frame is determined by the
permitting office and all companies in the process are dealt with similarly
and given the same assurances and guarantees by the Government of
Saskatchewan. North American Gem Inc. has submitted money with all the 786
applications made 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 permitting by the
Company or through joint venture opportunities. The recent coal discovery by
Goldsource Mines Inc. of bituminous coal in two drill holes 1600 meters apart,
suggests the potential for a much larger coal system. Goldsource believes the
coal it encountered is from the Mannville/Swan River Group of Creataceous age
(Goldsource Mines Inc., Release May 5, 2008). Coal structures of the
Creataceous age are generally stratigraphic and can encompass several thousand
Mike Magrum, PEng, a qualified person under National Instrument 43-101,
has approved the technical content of this news release.
About North American Gem Inc.
North American Gem Inc. (TSX-V symbol: NAG) 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 in Canada. The
Company is actively pursuing several opportunities, including the Louise Lake
copper-gold-molybdenum-silver project located in British Columbia. The Company
is also pursuing its uranium projects, consisting of the Whiskey Gap, Del
Bonita, Western Basin, and Bonny Fault projects, all located in Alberta. In
addition the Company is also pursuing its Mosquito Gulch uranium property
located in the North West Territories and the Ranger Lake Uranium property
located in Ontario.
On Behalf of the Board of Directors
NORTH AMERICAN GEM INC.
President and Director
THE TSX VENTURE EXCHANGE HAS NOT YET REVIEWED AND DOES NOT TAKE
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS
This report contains forward looking statements, particularly those
regarding cash flow, capital expenditures, and investment plans. Resource
estimates, unless specifically noted, are considered speculative. The company
has filed a National Instrument 43-101 resource estimate on the Louise Lake
property. Any and all other resource or reserve estimates are historical in
nature, and should not be relied upon. By their nature, forward looking
statements involve risk and uncertainties because they relate to events and
depend on factors that will or may occur in the future. Actual results may
vary depending upon exploration activities, industry production, commodity
demand and pricing, currency exchange rates, and, but not limited to, general
Cautionary Note to US investors: The U.S. Securities and Exchange
Commission specifically prohibits the use of certain terms, such as "reserves"
unless such figures are based upon actual production or formation tests and
can be shown to be economically and legally producible under existing economic
and operating conditions.
For further information:
For further information: 430 - 609 Granville Street, Vancouver, BC,
Canada, V7Y 1G5, Phone (604) 683-5445, Facsimile (604) 687-9631,