Forest Gate Acquires Pershing Gold Property in Val D'Or, Quebec

Montreal, Québec, September 2, 2010 - Forest Gate Energy Inc. reports that it has entered into a Purchase Agreement to acquire the Pershing gold property located near Val D'Or, Quebec from two private gold exploration companies called Montigua Resources Inc. and Bermont Resources Inc. Pershing is a gold exploration property consisting of 252 contiguous, unpatented mining claims. Following the closing of the purchase, Forest Gate will have a 100 percent interest in the Pershing property.

In consideration for the 100% interest in the claims, Forest Gate will issue to Montigua and Bermont 3,000,000 Forest Gate common shares. In addition, Montigua and Bermont will hold a 2% net smelter return royalty on the Pershing gold property. One percent (1%) of the royalty can be purchased by Forest Gate at any time following the completion of a pre-feasibility study on the property. Forest Gate also holds a right of first refusal on the sale or reassignment of the remaining 1% royalty. The transaction is subject, among other conditions, to the approval of the Board of each party to the transaction and TSX Venture Exchange approval. Closing of the transaction is scheduled to take place on or before September 10, 2010. A finder's fee of 150,000 Forest Gate common shares will be paid to a consultant upon closing.

"Two types of mineralization were recognized on the Pershing property. The first type is related to the banded iron formation in the south-western part of the property, east of the Matchi-Manitou Lake. The other type of mineralization known on the property is a mesothermal type quartz-tourmaline vein containing gold." (source: InnovExplo Inc., Val D'Or, 2006)

In 1996 a private company drilled the Pershing gold property and intersected 15.54 grams of gold per ton over 1.50 metres, 11.59 grams of gold per ton over 1.66 metres, and 19.23 grams of gold per ton over 1.33 metres in the banded iron formation. (source: MRB & Assoc., Val D'Or, 2003)

In the 2000-2003 period Montigua and Bermont "partially mapped a hydrothermal alteration zone…at the margins of these alteration zones were quartz-tourmaline veins carrying gold, the highest value noted 49.04 grams gold per ton. These veins are dilatants, flat-lying and contain structural attributes that resemble the flat veins at Sigma (Century) Mine. (source: MRB)

The former-producing Chimo mine, operated by Cambior Inc., located approximately 12 kilometres west of the Pershing gold property is an example of an adjacent area where a significant portion of gold was produced from mineralized and sheared banded iron formation. (source: InnovExplo Inc.) From 1989 to 1996, Cambior mined 1.6 million tonnes at a grade of 3.8 grams of gold per tonne.

The technical content of this news release has been approved by Alain Carrier, P. Geo, OCG, InnovExplo Inc., a Qualified Person as defined in National Instrument 43-101 – Standard of Disclosure for Mineral Projects.

 

About Forest Gate Energy
Forest Gate Energy Inc. is a publicly listed oil and gas exploration and production, and non-energy resource company trading on the TSX Venture Exchange under the symbol FGE. The Company is seeking to increase shareholder value through participation and development of energy and other resources in Canada and internationally.

For more information please contact:

Robert Kramberger,
V-P, Investor Relations
1-866-666-3040
rkramberger@forestgate.ca
www.forestgate.ca

 

FORWARD-LOOKING STATEMENTS

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