August 26, 2008
J.A.G. Mines Ltd.: Petroleum and Natural Gas Update
J.A.G. Mines Ltd. - ('JAG' - the 'Company') (TSX VENTURE: JML) announces the filing on SEDAR of a 51-101 report on J.A.G. Mines Ltd.'s Quebec petroleum and natural gas properties. The report has received the approval of the TSX- Venture Exchange.
The report was prepared by Mr. Paul Laroche, P. eng., geologist and petroleum geophysicist, with the assistance of Marc Richer-LaFleche, Ph.D., P. Geo. and Genevieve Camire, Ph. D., P. Geo. It presents a summary of the exploration data collected by JAG since the start of exploration in 2006 as well as a compilation of the historical work done on these oil and gas properties and in the neighboring areas. The report proposes future exploration programs together with timelines for current work programs.
Since its acquisition JAG has completed, on this 193,587 hectares property, DGPS-positioned MAG and EM reconnaissance surveys along more than 800 line-kilometers, covering in excess of 2/3 of the property along lumber trails and on agricultural land. A complete geological report was filed with the Ministere des Ressources Naturelles et de la Faune du Quebec (MNRF-Q).
Certain property sectors (Cabano, Packington, Lac Squatec and the Rimouski game reserve) present a high number of interesting magnetic anomalies. Certain anomalies might be associated with the presence of magnetite found in alteration halos created by hydrocarbon micro-seeps percolating to the surface in forest or agricultural soil. This interpretation must be field-validated by the multidisciplined geochemical soil survey, presently conducted by JAG, that should help determine the presence of soil-gas (C1-C4 natural gas component analysis) and directly measure soil magnetic susceptibility.
Sedimentary rock samples were collected during the execution of previous surveys and are to be assayed for organic matter thermal maturation and total organic carbon tests (ROCK EVAL analaysis) to establish organic matter levels in order to determine the petroleum-generative potential of the property's sedimentary rocks.
During the summer of 2008, JAG completed in five separate sections a multidisciplined geochemical soil survey including:
- a soil gas survey (C1-C4 natural gas component analysis)(1)
- U, Th and K radiation detection;
- electrical conductivity and soil pH measurements;
- soil magnetic susceptibility measurement;
- soil trace metal analysis.
In the Lac St-Jean area, JAG acquired oil and gas exploration claims covering 99,945 hectares mainly covered by Ordovician sedimentary rock units. It is believed that the sedimentary sequences could be part of the St. Lawrence Lowlands basin. Prior to the erosion of the sediments, the carbonate platform covered the majority of the area between Ontario and Anticosti. To date, little oil and gas exploration has been done in the area.
In March and July 2007, DGPS-positioned MAG lake surface survey was completed along more than 720 line-kilometers covering around 70% of the property. The lines were orientated at N330 degrees with secondary lines at N060 degrees. The results were superimposed over satellite-imaging. Magnetic maps show the presence of several magnetic anomalies some of which are linear. High frequency magnetic anomalies were also recorded on the lake bottom. A complete geological report was filed with the MNRF-Q in August 2007.
According to one of the exploration model followed by JAG some of the anomalies could be associated with hydrocarbon micro-seep zones found in recent lake bottom sediments. The execution of a methane-dissolved-in-water survey will help identifying the presence of micro-seeps in the magnetic anomaly areas.
JAG is currently active in the Lac St-Jean area completing a soil gas survey (including C1-C4 natural gas component analysis) and a U, Th and K radiation detection survey on nearly 350 ground-surface sampling locations.
JAG plans in executing a seismic reflection survey on surface, which could generate high value information regarding the recent sediment and contiguous shallow substrata stratigraphy. The proposed equipment offers vertical readings to a depth of 500m below the water-sediment interface. The survey also permits to identify the discontinuity of the structures and the surface stratigraphy.
In the Charlevoix area JAG staked an area of 39,258 hectares, located in the Ordivician sedimentary units of the Du Gouffre and Malbaie River Grabens, which to date have not been explored for hydrocarbons. JAG is searching for potential oil and gas-bearing formations preserved within sedimentary sequences similar to those found elsewhere in the St-Lawrence Lowlands.
The model being followed suggests that the gas might have been trapped in the Quaternary sediments left over after erosion that overlay the Ordivician rocks similar to those found elsewhere in the St. Lawrence Valley at Pointe-au-Lac, Quebec, where gas was discovered and produced.
A lithogeochemical reconnaissance survey was completed on the Ordovician limestone and siliciclastic sedimentary rock outcrops found in the Du Gouffre and Malbaie rivers Grabens. Fifty outcrop samples taken along regional roads were sent for ROCK-EVAL analysis and chemical testing and NIRS measurements. A complete geological report was filed with MNRF-Q in August 2007.
DGPS positioned MAG and EM induction surveys were executed in the spring of 2008 on permit #2006PG845 located in the du Gouffre River Graben. The survey might assist to identify magnetic anomalies that could be caused by secondary alteration halos resulting from hydrocarbon micro-seepage. The survey is useful in locating faults and determining their dip.
During the geophysical surveys the exploration staff identified numerous limestone outcrops along hills in the Northeast sector and many shale outcrops were observed at low tide south of Baie St-Paul. JAG plans on getting additional data from these sectors and in any other areas, where Ordivician sedimentary rock outcrops are located, through rock sampling and ROCK EVAL analysis.
To date JAG has invested in excess of $580,000 on exploration on its various oil and gas properties. The proposed future exploration programs and budgets will be outlined in future press releases.
This press release was prepared by JAG's management and reviewed by Genevieve Camire, P. Geo. and Qualified Person under National Instrument 43-101.
(1) C1 : methane; C2 : ethane; C3 : propane; C4 : butane.
The TSX Venture Exchange does not accept responsibility for adequacy or accuracy of this release.
Contacts: J.A.G. Mines Ltd. Pierre Gevry President 514-849-7336 514-849-9260 (FAX) [email protected]www.minesjag.com
SOURCE: J.A.G. MINES LTD.