North American Gem Inc. Updates Resource Estimate on "Main Zone" Louise Lake Project



    VANCOUVER, Oct. 9 /CNW/ - North American Gem Inc. (TSX-V symbol: NAG) is
pleased to announce the updated resource estimate for the "Main Zone" at the
Louise Lake copper-molybdenum-gold-silver project near Smithers, British
Columbia, Canada. This resource estimate was provided by SRK Consulting
(Canada) Inc. of Vancouver, British Columbia, Canada, and incorporated results
from the 2007 diamond drilling program. The road-accessible property is
located 35 kilometers west of Smithers, a full-service community with
excellent access to highway, rail and electrical power infrastructure.
    The 2007 program consisted of 6,227.6 meters of "NQ"-sized core in
21 holes, focusing on identifying extensions of the Main Zone, a tabular,
east-west striking, moderately north dipping porphyry-style
copper-molybdenum-gold-silver deposit. The program also included seven
"interior" holes, focusing on upgrading portions of the resource to the
"Indicated" category.
    The Main Zone hosts an unusual mineral assemblage, with copper occurring
as an equal mixture of enargite and chalcopyrite. The 2004 through 2006
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. By 2006, the Main Zone was known to be at least 970 meters long,
up to 170 meters wide, and extending to a depth of 250 - 270 meters, where it
is abruptly truncated by the flat-lying "Terminator" fault.

    Table 1 lists the updated resource estimates per category:

    
    Table 1: 2007 updated SRK classified mineral resources, Main Zone,
    Louise Lake Project
    -------------------------------------------------------------------------
    Mineral
    Resources(*)      Tonnes      Cu (%)     Mo (%)     Au (g/t)     Ag (g/t)
    -------------------------------------------------------------------------
    Indicated       26,000,000    0.231      0.008         0.22         1.01
    -------------------------------------------------------------------------
    Inferred       125,000,000    0.239      0.009         0.23         0.99
    -------------------------------------------------------------------------
    (*) All resources quoted at 0.15% copper cut-off

    -------------------------------------------------------------------------
    

    The 2007 estimate uses an actual copper cut-off value of 0.15%, rather
than the "copper equivalent" (CuEq) cutoff value of 0.25% used in the 2006
estimate. Comparison of the two estimates using the 0.25% CuEq cutoff instead,
with identical metal prices, indicates that the 2007 estimated tonnage has
been increased by 8%, with very similar metal grades. Grades of the Indicated
Resource category, which has been increased to 26,000,000 tonnes from
6,000,000 tonnes, are also substantially increased from 2006 values.

    Table 2 lists the 2007 mineral inventory of the Main Zone at a CuEq
cutoff of 0.25%.

    
    Table 2: 2007 Mineral Inventory of the Main Zone, Louise Lake Project
    -------------------------------------------------------------------------
    Mineral
    Resources(*)    Tonnes    CuEq(xx)(%)  Cu (%)  Mo (%)  Au (g/t)  Ag (g/t)
    -------------------------------------------------------------------------
    Indicated     28,000,000     0.405     0.225   0.008     0.22      0.97
    -------------------------------------------------------------------------
    Inferred     132,000,000     0.427     0.234   0.009     0.23      1.00
    -------------------------------------------------------------------------
    (*)   All resources quoted at a 0.25% CuEq cutoff
    (xx)  CuEq values calculated using the following metal prices:
          Cu US$1.20/lb, Mo US$8/lb, Au US$450/oz, Ag US$7/oz
    (xxx) The CuEq calculation does not take into account recoveries of
          individual metals


    Table 3 lists the 2006 classified mineral resource; both were calculated
by SRK Consulting (Canada) Inc.

    Table 3: 2006 Classified Mineral Resources of the Main Zone, Louise Lake
    Project
    -------------------------------------------------------------------------
    Mineral
    Resources(*)    Tonnes    CuEq(xx)(%)  Cu (%)  Mo (%)  Au (g/t)  Ag (g/t)
    -------------------------------------------------------------------------
    Indicated      6,000,000     0.369     0.214   0.006     0.20      0.98
    -------------------------------------------------------------------------
    Inferred     141,000,000     0.426     0.234   0.009     0.23      0.94
    -------------------------------------------------------------------------
    (*)   All resources quoted at a 0.25% CuEq cutoff
    (xx)  CuEq values calculated using the following metal prices:
          Cu US$1.20/lb, Mo US$8/lb, Au US$450/oz, Ag US$7/oz
    (xxx) The CuEq calculation does not take into account recoveries of
          individual metals
    

    Upgrading of resource from the inferred to the indicated category is
accomplished through increased density of drilling, as well as more exact
surveying of drill collars, involvement of specific gravity samples, and
improved quality assurance/ quality control (QA/QC) procedures, all
implemented in the 2004 through 2007 programs. North American Gem is confident
that further involvement of these parameters, as well as further infill
drilling, will result in eventual upgrading of most of this deposit to the
"Indicated and Measured" resource categories.

    Table 4 lists contained metal values for the resource categories

    
    Table 4: Contained Metal within Resource Categories, 2007 Estimate
    -------------------------------------------------------------------------
    Mineral
    Resources(*)     Tonnes     Cu (M lbs)  Mo (M lbs)   Au (oz)     Ag (oz)
    -------------------------------------------------------------------------
    Indicated      26,000,000       132        4.64      184,000     840,000
    -------------------------------------------------------------------------
    Inferred      125,000,000       659       24.51      942,000   3,960,000
    -------------------------------------------------------------------------
    

    Although the deposit has been largely defined along strike to the east
and west, 2007 drilling has determined that potential exists to extend the
deposit "down-dip" to the north, where higher grade gold mineralization was
intersected in north-central areas. Strongly anomalous though sub-economic
mineralization having the same metal signature as the Main Zone was
intersected below the "Terminator" in DDH LL-07-15, targeting the down-dip
extension in northwestern areas; this was the first hole to do so.
    SRK Consulting (Canada) Inc. has commenced on the first internal scoping
study to be conducted on the Louise Lake property, to determine a preliminary
assessment of economic viability, possible future infrastructure developments
and environmental considerations. North American Gem is also expecting results
shortly from a separate metallurgical study, to determine environmentally
sound treatment methods of Main Zone mineralization.

    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 was done by ALS Chemex of
North Vancouver, British Columbia, Canada. The diamond drilling program was
conducted by Britton Brothers Diamond Drilling of Smithers, British Columbia.

    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.

    "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. News release contains certain "Forward-Looking Statements" within
the meaning of Section 21E of the United States Securities Exchange Act of
1934, as amended. 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.





For further information:

For further information: 430 - 609 Granville Street, Vancouver, BC,
Canada, V7Y 1G5, Phone (604) 683-5445, Facsimile (604) 687-9631,
info@northamericangem.com, www.northamericangem.com

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