North American Gem Inc. Plans Aggressive Exploration on its Uranium and Molybdenum Properties through remainder of 2007

    VANCOUVER, March 23 /CNW/ - North American Gem Inc. (TSX-V symbol: NAG)
is very pleased with the current expansion of the 'Main" Zone at the Louise
Lake Property near Smithers, B.C., which remains a strong focus of the
Company. However, the Company would also like to update shareholders on its
exploration plans for its 100% owned Uranium and Molybdenum Properties, in
particular the Bonny Fault, Western Basin and Mosquito Gulch projects.

    Bonny Fault
    Terraquest Surveys was contracted to fly approximately 2,700 line
kilometers of geophysical survey over the Bonny Fault Property, 100 km
southeast of Fort Smith. This data is being analyzed by MPH Consulting,
experts in the interpretation of the new and historical magnetic and
radiometric survey data.
    Mr. Jeremy Brett Msc. P.Geo, senior Geophysical consultant for MPH
Consulting of Toronto, continues to prioritize targets which will be followed
up with a ground program in late spring/early summer.
    Mineralization in this area was first mentioned by Godfrey (1958) but the
significance of the mineralization was not recognized until very recently.
Godfrey reported high assays from three grab samples taken from a radioactive
zone on the West Arm of Andrew Lake. These assays are listed below:

    Sample No.                U(3)O(8) %             Mo %
    JG-58-44-1A                 1.03                 0.69
    JG-58-44-1B                 3.93                 1.03
    JG-58-44-1C                 3.29                 1.40
    (*)Figures in this chart were produced prior to NI 43-101.

    The Bonny Fault and surrounding area were only moderately explored for
vein-style uranium between the mid-1950s and the mid-1970s. During that time
numerous uranium and radioactive occurrences were found, but for a variety of
reasons only cursory follow-up exploration appears to have been performed. As
an example, Rapid River Resources Ltd. reported 300 scattered "spot highs" of
radioactivity in the order of 5 to 10 times background aligned along two north
trending zones, approximately 1,800m long buy 300m wide. The western zone
relates to the mineralized area discovered by Godfrey (1958).
    The property was strategically staked to encompass eight significant
uranium, molybdenum and/or precious metal showings along with the extensions
of geological structures that appear to be related to and possibly provide the
controls for the emplacement of the showings (previously documented and
reported on by the Alberta Geological Survey (e.g., AGS Open File Report
1993-08) in the early 1990's).

    Results of the geochemical sampling completed in 1993 (as reported in AGS
Open File Report 1993-08) are listed below:

    West Arm Andrew Lake:   3.93% U(3)O(8), 1.4% molybdenum (Mo); 0.26%
    U(3)O(8) over 1m (in a prior drill hole); 29.2% Fe and 381 ppm V with
    associated anomalous radioactivity

    Pythagoras Lake:        0.603 grams gold (Au)/tonne; 0.39 per cent (%)
    nickel(Ni); 10.0 grams silver (Ag)/tonne

    North Cherry Lake:      0.79% U(3)O(8) over 1.2 m (in a prior drill hole)

    North Hutton Lake:      25.1% iron (Fe) and 274 parts per million
    vanadium (ppm V) with associated anomalous radioactivity

    This project is under the direction of Glenn .S. Hartley P. Geol. in
accordance with the regulations of National Instrument 43-101.

    Western Basin
    Mr. Jeremy Brett Msc. P.Geo, senior Geophysical consultant for MPH
Consulting of Toronto, is analyzing the survey data for the Western Basin
Property. Terraquest Surveys of Markham, Ontario was contracted to fly this
    The Western Basin property, in northeastern Alberta, consists of four
mineral permits, totaling 92,000 acres which encompasses 25 sq. km of mapped
"Athabasca Basin Geology" and confirmed outliers of the Athabasca Group
Sandstones. Similar geology hosts many of the high-grade uranium deposits
found in the Athabasca Basin uranium mining camp, such as Cigar Lake, Rabbit
Lake, Key Lake and Maurice Bay.
    The Company has learned that Cameco will be drilling the Maurice Bay
uranium deposit in the coming weeks. The Maurice Bay deposit host uranium
mineralization in Athabasca sandstone, at the unconformity and within basement
rocks. The Maurice Bay uranium deposit is located within the northwest margin
of the Athabasca Basin, approximately 5 km from the Western Basin property. It
has 600 tonnes contained uranium at a grade of 0.5% U(3)O8. The Maurice Bay
deposit includes structurally controlled mineralization within altered
basement rocks and Athabasca unconformity-style uranium mineralization.
    Alberta Geological Survey Bulletin No. 55, details the presence and
alterations of a saprolite rock unit on the North American Gem Inc. property.
This saprolite unit is preserved immediately beneath the unconformity by the
overlying Athabasca Sandstone Group. Two extensive fault systems cross cut the
property in a west-northwest/east-southeast direction. These faults run
directly under portions of the property's Athabasca Group Sandstones and
appear to continue past the Saskatchewan border to the Maurice Bay Deposit
area. Similar fault systems are perceived to play a role in uranium
mineralization in other parts of the basin including Maurice Bay.
    Historically, uranium exploration programs in the Athabasca Basin have
been hampered by the high cost associated with deep (+300m) drilling programs
needed to reach and test the targeted Athabasca unconformity. Alberta
Geological Survey Bulletin No. 55, documents several holes, which map the
Athabasca Unconformity on the Western Basin property between 10 m and 95 m
from surface.
    The Company will complete a ground program on the Western Basin Property
in late spring/early summer, which may include gravity. This ground program
will be followed by a drill program with a focus on the area which holds over
25 sq. km of mapped "Athabasca Basin Geology" and confirmed outliers of the
Athabasca Group Sandstones.
    This project is under the direction of Glenn .S. Hartley P. Geol. in
accordance with the regulations of National Instrument 43-101.

    Mosquito Gulch
    The Mosquito Gulch property in the Northwest Territories, has a showing
which is at the head of a high grade radioactive boulder train. The showing
extends more than 500 meters with varying widths of 20 to 50 meters and was
outlined to a depth of 200 meters. The property has undergone drilling and
trenching in the late 1970's and early 1980's by Uranerz Exploration and
Mining Limited. This work included the following encouraging results:

    Boulder Train Samples
    Up to 0.886% U(3)O(8)

    Trenching Results
    0.017% U(3)O(8) over 9.7 meters
    0.04% U(3)O(8) over 3 meters

    Partial Drilling Results
    0.54% U(3)O(8) over 2.3 meters
    0.356% U(3)O(8) over 7.3 meters
    0.1% U(3)O(8) over 27 meters

    (This data was released prior to establishment of current standards under
    National Instrument 43-101, has not been substantiated by North American
    Gem Inc, and should not be relied upon.)

    Uranium-bearing minerals associated with the Mosquito Gulch showing
include pitchblende and allanite. The uranium is found as pitchblende in
narrow fracture fillings and small veinlets in quartz stockworks. The
mineralization is confined to a zone of cataclasite and mylonite basement
    In 1980, Uranerz completed metallurgical tests on rock samples collected
at the Mosquito Gulch. Studies included mineralogy, petrography and
geochronology were undertaken and bulk samples were shown to be amenable to
radiometric ore sorting.
    The Mosquito Gulch uranium property is situated within Nonacho Group
rocks, a conformable sequence of continental sediments consisting of
conglomerates, lithic-sandstones and shale, which have been deposited in an
intracratonic, fault-controlled basin. Basement rocks are mainly early
Aphebian to Archean granites and gneisses including numerous mylonite or
cataclasite zones.
    The Company intends to carry out work to locate the source of the
high-grade uranium mineralization found in the radioactive boulder train. The
objective is to bring the property to the drill ready stage as soon as
    This project is under the direction of Mike Magrum, P.Eng. in accordance
with the regulations of National Instrument 43-101.
    North American Gem Inc. has arranged a non-brokered private placement of
up to 7,000,000 units at a price of $0.18 per unit for total proceeds of up to
$1,260,000 subject to the approval of the TSX Venture Exchange.
    Up to 2,000,000 units will be issued as non flow-through units consisting
of one common share and one full warrant. One full warrant will entitle the
holder to purchase one additional common share of the Company at a price of
$0.20 per share for the first year, and $0.25 per share in the second year.
    Up to 5,000,000 units will be issued as flow-through units consisting of
one common share and one half (1/2) share purchase warrant, one full warrant
will entitle the holder to purchase one additional common share of the Company
at a price of $0.20 per share in the first year and $0.25 per share in the
second year.
    The proceeds of the private placement will be used for exploration work
on the Company's mineral properties and general working capital.

    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. The Company is
actively pursuing several opportunities, including the Louise Lake
copper-gold-molybdenum-silver deposit located in British Columbia, Canada. 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,
Canada. In addition the Company is also pursuing its Mosquito Gulch uranium
property located in the North West Territories.

    On Behalf of the Board of Directors
    "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: Phone (604) 683-5445, Facsimile (604) 687-9631,,

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