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Finding Hidden Gems in the
Ore with North American Gem, Inc. (TSX-Venture:
NAG)
by Greg Moses - AllPennyStocks.com News Reporter Oct
30, 2006 (AllPennyStocks.com Media, Inc.) - Mining for
Uranium, Molybdenum and other core metals including Copper and
Gold are noble endeavors for the junior exploration company,
North American Gem, Inc.
(TSX-Venture: NAG). With market capitalization of 10.1
Million and Outstanding shares of 46 Million, the Vancouver BC
based company has extensive operations in Alberta and British
Columbia that span six Mining Projects.
A unique aspect of the Company is that North American Gem
Inc. is active in the exploration of Molybdenum. "Moly" as it
is fondly called, is used primarily as a high strength
alloying agent for steel and cast iron. The metal is
especially useful in oil pipelines, aircraft, and missile
parts. The product is also valuable as a catalyst in the
petroleum industry. Here the product aids in removing organic
sulfurs from petroleum products.
Key for the Company is the fact that few of Molybdenum's
uses have acceptable substitutions, plus much of the world's
supply of Molybdenum is resident in North America.
Molybdenum does not occur in a pure form in nature, but
generally is obtained from ore containing Molybdente,
Wulfenite, and Powellite. In addition, Molybdenum is often a
by- product of copper and tungsten mining.
The value of Molybdenum has skyrocketed in recent years due
to increased industrial uses and remains at a very steady
plateau. The stability of the metal in the metals markets
compared to gold, for example; is partly a result of "Moly"
being a rather thinly traded metal. The metal has risen from
$2.00 per pound in the year 2000 to approximately $27.00 per
pound by the third quarter of 2006.
The Company operates a portfolio of six high potential
Uranium, Molybdenum, Gold, Copper, and Silver properties
located in Western Canada. High profile properties include
Louise Lake, Bonny Fault, Mt. Ogden, Western Basin and Whiskey
Gap.
At Louise Lake, located in British Columbia and first
discovered in 1968; the metallurgical studies on the property
have been very encouraging. While NAG has a 100% interest in
this property, a resource estimate by SRK Consulting reflected
6 million tonnes of indicated mineral resources and 141
million tonnes of inferred mineral resources. Given today's
pricing levels, the in the ground value of the Louise Lake
Property is valued at upwards of four billion dollars.
The vast Bonny Fault Property consists of five mineral
claims comprising 117,000 contiguous acres (468 sq.km.). The
Company recently released results of its high resolution
airborne magnetic and radiometric survey of the Property
conducted by Terraquest Surveys. The results were very
encouraging and reflected a strong total count and Uranium
channel response.
One section of the Bonny Fault Property had an intense
magnetic response consistent with the presence and potential
of significant IOCG (iron oxide copper-gold) deposits. IOCG
districts, worldwide, share the presence of two distinct
fluids; magnetite and hematite.
In addition and to confirm the survey, the Company has
recently launched a field ground crew effort at Bonny Fault.
The purpose was to perform reconnaissance sampling. Initial
results from the on-site crew are showing a massive magnetite
float. These promising results to date, have led to the
scheduling of a follow up field program for early 2007.
Earlier this year, NAG entered into an option agreement to
acquire a 100% undivided interest in the Mt. Ogden Molybdenum
Property. The property is located in northwest British
Columbia near the Alaska border. The property is 60 km east of
Juneau, Alaska.
Earlier preliminary sampling showed known mineralization in
at least nine separate locations in an area 1800 meters by
1500 meters. Some earlier initial drilling, completed by
another exploration firm, located a small high grade vein.
At the Western Basin Property in Northern Alberta, with its
four mineral permits spanning 92,000 acres; NAG has begun a
new airborne survey of the property. The known geology of the
area to date, defined as "Athabasca Basin Geology", has been
consistent with and similar to other high grade uranium
deposit sites.
The Western Basin Property contains a fault system, as seen
in other productive belt areas, which is perceived to play a
role in uranium mineralization. The Athabasca area on the
Western Basin Property is unusually near the surface making
for potentially easier mining opportunities. The target area
is estimated to be from 10 meters to 95 meters deep from the
surface.
The Whiskey Gap Project is a joint venture with the
International Ranger Corp. on its 44,000 acre Whiskey Gap
Uranium Project located in southern Alberta along the US
border. The Company is encouraged by preliminary water
sampling on the property which reflects strong radon and
uranium anomalies. Similar radon water concentrations with
other successful sites, have suggested uranium located in the
sandstone.
Setting the Company apart from other junior firms, is
definitely its high target potential, multi property
exploration approach.
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