North American Gem Inc. and International Ranger Corp. Enter into a Joint Venture on the Whiskey Gap Project; Applies for Drill Permits
VANCOUVER, BRITISH COLUMBIA, Oct 5, 2005 (CCNMatthews via COMTEX) -- North American Gem (TSX VENTURE:NAG) (the "Company") announces that a joint venture agreement has been entered into with International Ranger Corp. (PINK SHEETS:IRNG) on its 44,400 acre Whiskey Gap uranium property located in southern Alberta along the Canada/U.S.A border. Preliminary sampling of domestic water sources by International Ranger has defined several very strong radon and uranium anomalies in the water, that compare favorably with published radon studies conducted in proximity to sandstone hosted uranium ore bodies in south Texas. The text of the International Ranger geological report on the Whiskey Gap property by G.S. Hartley may be viewed at www.internationalranger.com/Prospect.pdf.
The Whiskey Gap property is contiguous with North American Gems 200,000 acre Del Bonita property and underlain by a series of fluvial sandstones of Cretaceous age, thought to be analogous to sandstones in parts of Wyoming that host significant roll front uranium deposits.
"We were extremely excited when we first saw the International Ranger water sampling results. The high levels of radon and uranium in the samples validate the interest for ourselves, International Ranger, and other companies have taken in southern Alberta, as a potential source of rollfront uranium," says Charles Dejardins, North American Gem Inc.'s President. "The next step of course is to drill test these prospective anomalies, which we are intending to do immediately upon approval of recently applied for permits for the Whiskey Gap property."
Approximately 2 million acres of ground prospective for rollfront uranium has been staked from the Canada/U.S.A border up to Calgary, Alberta, since March 1st, 2005.
North American Gem Inc. and International Ranger Corp. have entered into a binding agreement, until such time as a formal joint venture agreement can be written. Terms of the agreement are as follows:
$15,000.00 cash on signing and 100,000 shares (on TSX-v approval)
$250,000 firm work commitment first year to earn 50%
$400,000 work commitment second year and 100,000 shares to earn 60%
$600,000 work commitment third year and 100,000 shares to earn 70%
NAG can earn an additional 10% by taking Whiskey Gap to feasibility, thereby potentially earning an 80% interest.
Upon signing Ranger will have a 20% working interest in the Del Bonita property held by the Company. After the Company meets its three year work commitment International Ranger will be responsible for 20% of expenses incurred on the Del Bonita property or be diluted down to a 10% carried interest.
This Exploration project is being conducted under the direction of Glenn .S. Hartley P. Geol. in accordance with the regulations of National Instrument 43-101.
About North American Gem Inc. North American Gem Inc. (TSX VENTURE: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 company's Louise Lake Property located in British Columbia, Canada and its Uranium and Multi-mineral deposit Properties which are the Del Bonita, the Western Basin, the Bonny Fault, and the Whiskey Gap, all located in Alberta, Canada.
On Behalf of the Board of Directors
NORTH AMERICAN GEM INC.
Charles Desjardins, President and Director
Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, are forward-looking statements. 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.
SOURCE: North American Gem Inc.
CONTACT: North American Gem Inc. Charles Desjardins President and Director (604) 683-5445 or Toll Free: 1-866-683-5445 (604) 687-9631 (FAX) info*northamericangem.com www.northamericangem.com