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| | Tue Jan 18, 2005
Firestone Ventures signs Agreement with North American Gem on Louise Lake Copper-Gold-Molybdenum Project, B.C.
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| | (Jan. 18, 2005) - Firestone Ventures Inc. (FV: TSX-V) is pleased to announce that Firestone and North American Gem Inc. (NAG: TSX-V) have signed a formal option agreement 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 is road accessible and well situated with respect to infrastructure required for mining projects such as roads, rail lines and port facilities.
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 is non-compliant with National Instrument 43-101.
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. Metal values per tonne compare with those of many current advanced projects and some producing mines within British Columbia.
The agreement 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:
Year Property Vendors Firestone Work Interest
Expenditures Earned
1 150,000 shares 125,000 shares $300,000
2 150,000 shares 125,000 shares $300,000
3 $80,000 cash 150,000 shares $400,000 60%
4 250,000 shares $500,000
5 250,000 shares $500,000 75%
North American Gem will issue 200,000 common shares to Firestone upon approval of the formal agreement by the TSX-V. C. Schulze, P. Geol., is the Qualified Person on the Project.
In other news, Firestone wishes to announce that it has relinquished its option on the Bradshaw Hill property in Southern British Columbia.
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.
For further information, please contact:
Lori Walton, President
Toll Free: 1-888-221-5588; Fax: 1-780-428-3476 info@firestoneventures.com 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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