True North Gems Inc.

True North Gems Inc.

December 07, 2006 09:00 ET

True North Gems Earns 100% Interest in Baffin Island Sapphire Properties

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 7, 2006) - True North Gems (TSX VENTURE:TGX) is pleased to announce that it has earned a 100% interest in its Baffin Island sapphire properties located near Kimmirut, along the south coast of Baffin Island, Nunavut, Canada. Final payments were made at the end of November and the two properties are now wholly owned by True North Gems.

True North Gems entered into two Option Agreements with local prospectors Seemeega Aqpik, Nowdla Aqpik and Chris Lloyd in November 2003 requiring True North to pay a total, under both agreements, of $140,000 and 100,000 treasury shares, and complete work expenditures of $250,000, over three years. All payments have now been made, all shares delivered and all work expenditures completed. The vendors retain a gross overriding royalty of 2% on all gemstones extracted from the claims, after achieving commercial production. True North may purchase half (i.e. 1%) of the gross overriding royalty under each option agreement for $125,000 and may purchase the remaining half (i.e. 1%) of the royalty for $500,000.

True North Gems recently completed a 40 hole drill program on the Beluga sapphire properties, as well as a series of dedicated small bulk samples (see press release of October 31, 2006), results of which are forthcoming.

The planning and execution of the Beluga sapphire exploration program are under the supervision of Greg Davison, P.Geo., Vice President Exploration, who is a qualified person as defined by National Instrument 43-101.

True North Gems is a public company listed on the TSX Venture exchange and is engaged primarily in the exploration and development of coloured gemstone deposits in North America and Greenland.

The Company relies on litigation protection for "forward-looking" statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the release.

Contact Information

  • True North Gems Inc.
    Greg Davison, P. Geo.
    Vice President Exploration
    (604) 687-8055 or 1-800-399-8055
    True North Gems Inc.
    Greg Fekete
    (604) 687-8055 or 1-800-399-8055