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| | Tue Dec 14, 2004
Firestone Ventures Signs Letter of Intent with North American Gem on Louise Lake Copper-Gold-Molybdenum Project, B.C.
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| | EDMONTON, ALBERTA - Dec. 14, 2004 - Firestone Ventures Inc. (TSX VENTURE:FV) is pleased to announce that Firestone and North American Gem Inc. (TSX VENTURE:NAG) have signed a letter of intent whereby North American Gem may earn up to a 75% interest in Firestone's Louise Lake copper-gold-molybdenum project, located 35 km west of Smithers, British Columbia, Canada. The 30 claim, 750 hectare property has excellent road access and is well-situated in terms of infrastructure (see previous news releases and drill plan at www.firestoneventures.com).
First discovered in 1968, the Main Zone of copper and gold mineralization at Louise Lake has undergone several phases of diamond drilling and surface exploration. This work culminated in 1992 with a geological resource estimate by Equity Silver Mines Ltd. of 50 million tonnes grading 0.3% copper, 0.3 g/t gold and 0.02% molybdenum. This historical resource estimate was established prior to National Instrument 43-101 and is quoted from a 1992 Assessment Report by Equity Silver Mines.
Firestone Ventures Inc. entered into an option agreement in early 2004 to earn 100% interest in the property over four years. A six-hole, 1,675 m diamond drilling program focused on infill drilling and expansion of the Main Zone. All six holes returned long intercepts of copper and gold, increasing the known extent of the Main Zone and indicating the mineralized system is open in all directions. The best intercepts include: 0.337% copper, 0.344 g/t gold and 0.0181% molybdenum across 150m from DDH LL-04-02, a northern down-dip step-out hole; and 0.366% copper, 0.354 g/t gold and 0.0118% molybdenum across 204m, open at depth, from infill drilling in DDH LL-04-03.
"We are very pleased to aggressively advance the drilling at Louise Lake by partnering with North American Gem," says Lori Walton, VP Exploration for Firestone. "With upcoming drill programs planned for both Louise Lake and our Torlon high-grade zinc prospect in Guatemala, Firestone is well-positioned to take advantage of future base metal markets. In addition, we look forward to conducting exploration work next summer on our gold properties in western Canada."
The letter of intent calls for North American Gem to earn up to a 75% interest over five years by issuing common shares and cash to the underlying property vendors, incurring $2 million in work expenditures and issuing a total of one million common shares to Firestone, according to the following table:
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Work Interest
Year Property Vendors Firestone Expenditures Earned
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1 150,000 shares 125,000 shares $300,000
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2 150,000 shares 125,000 shares $300,000
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3 $80,000 cash 150,000 shares $400,000 60%
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4 250,000 shares $500,000
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5 250,000 shares $500,000 75%
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The terms of the agreement also call for North American Gem to pay both the original vendors and Firestone Ventures 100,000 common shares each upon approval of a formal agreement. The final property agreement will be subject to regulatory approval. North American Gem will be the operator of the project. C. Schulze, P. Geol., has reviewed and approved the contents of this press release and will continue to act as Qualified Person on the project.
Firestone Ventures Inc. is a public company listed on the TSX-Venture Exchange. The company's mandate is the acquisition and exploration of a diverse portfolio of high quality precious metal, base metal and gemstone properties.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Firestone Ventures Inc.
Lori Walton
V.P. Exploration and Business Development
(780) 428-3465 or Toll Free: 1-888-221-5588
(780) 428-3476 (FAX)
Email: info@firestoneventures.com
Website: www.firestoneventures.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |
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