North American Gem Inc. Receives Drill Approval on 5 Locations South of the Goldsource Discovery
VANCOUVER, BC - (August 11, 2009) - North American Gem Inc. (TSX-V: NAG) (the "Company") is pleased to announce that it has received notice from its land manager that the first 5 drill locations to the south of the Goldsource Mines "Border Property" have now been approved by Saskatchewan Environment and private landowners. The final approval through the Saskatchewan Energy and Mines is to be received within a week of submitting an exact drilling date.
Fugro Airborne Surveys of Ottawa, Ontario has completed the airborne geophysical survey on three selected "Survey Blocks" around the Tobin Lake area for a total of 1,453 line kilometres with traverse line spacing of 600 meters. This survey covered a total of 66,347 hectares and is currently being analyzed for potential targets to submit for additional drill permitting. The Company has been granted a total of 757 Coal Prospecting Permits covering an area of 1,436,500 acres (581,376 hectares) that have been approved by the Saskatchewan Ministry of Energy and Resources.
The Company prioritized this particular region surrounding Tobin Lake based on historic coal occurrences within oil exploration wells. The interpreted shallow depth to coal of less than 100 metres from the surface was a key point in this decision. As with the majority of the Company's land holdings, this region is within the prolific "Durango Trend" as defined by Goldsource Mines Inc.; which comprises several coal occurrences between Wapawekka Lake and Goldsource's "Border Property" northeast of Hudson Bay. The surveyed region will also provide year round drilling access to potential targets, and a straightforward approval process through private land holders and the Saskatchewan Ministry of Energy and Resources and Ministry of Environment.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the company by Jody Dahrouge, P.Geol., of Dahrouge Geological Consulting Ltd., a qualified person.
Private Placement
The Company has arranged a non-brokered private placement of up to 10,000,000 units at a price of $0.05 per unit for total proceeds of up to $500,000 subject to the approval of the TSX Venture Exchange.
Up to 6,000,000 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 $0.08 per share for the first year, $0.10 per share in the second year, and $0.12 per share in the third year.
Up to 4,000,000 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 $0.08 per share for the first year, $0.10 per share in the second year, and $0.12 per share in the third year.
The proceeds of the private placement will be used for exploration work on the Company's mineral properties and general working capital.
Investors are invited to visit the NAG IR Hub at http://www.agoracom.com/IR/NorthAmericanGem where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to NAG@agoracom.com where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.
North American Gem Inc. (TSX-V: NAG) is a Junior Exploration Company based in Western Canada. The Company's primary goal is to explore for Coal in North America, currently the focus is in Saskatchewan and West Virginia. In addition to Coal exploration, the Company also has interests in Uranium, Copper, Gold, Molybdenum and other base metals in Canada. The Company has advanced the Louise Lake Copper-Gold-Molybdenum-Silver project, located in British Columbia and has produced a NI 43-101 compliant resource estimate (included in its NI 43-101 Technical Report dated July 14, 2006 and updated February 6, 2009, as filed on SEDAR). The Uranium projects include the Whiskey Gap, the Western Basin in Alberta, and the Ranger Lake Uranium property in Ontario.
On Behalf of the Board of Directors
NORTH AMERICAN GEM INC.
"Charles Desjardins"
Charles Desjardins
President and Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary note:
This report contains forward-looking statements. Resource estimates, unless specifically noted, are considered speculative. 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 economic factors. 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.
