Forest Gate Intersects Significant Gold at Pershing - More than 44.6 grams of gold per ton over 0.3 metres

CALGARY, Alberta, August 11, 2011 /CNW Telbec/ - Forest Gate Energy Inc. (TSXV: FGE) reports that its mineral exploration group intersected high-grade gold in addition to iron during a five-hole drill program at its 100%-owned Pershing gold property located near Val D’Or, Quebec.

Drill hole FG11-05 intersected gold mineralization that assayed 145 grams of per ton in the first screen analysis. The second screen analysis on a second sample of the same mineralized intersection assayed 44.6 grams of gold per ton suggesting the presence of free gold. The first screen analysis is discounted due to the nugget effect.

Drill hole FG11-05 was drilled in a new, unexplored area of the Pershing property known as the Marquis Block. The Marquis Block is located 1.7 kilometres north of the Simon Block which is where most of the historical work was concentrated and where all of the early gold showings were found.

“This fifth hole was targeting a fault zone which it found and it also intersected an alteration zone and quartz veins in which the high-grade gold was discovered,” said Michael Judson, President and CEO.

Hole FG11-04 was also drilled in the Marquis Block and returned values of 18.3 grams of gold per ton over 0.10 metres and 10.5 grams of gold per ton over 0.20 metres.

Holes FG11-04 and FG11-05 were spotted and located for the spring drill program using a groundbased magnetic survey completed during 2000-2002 season. This survey was never fully completed over the entire area of the Marquis Block.

The results from the holes on the Marquis Block are extremely promising especially in light of the limited geophysical data on which they were based. Forest Gate says it believes that the positive results open a completely new area in which to explore for gold mineralization on the Pershing property.

The results from drill holes FG11-04 and FG11-05 warrant a more detailed geophysical survey. This survey is now being planned for this autumn. The survey will be followed with a comprehensive drilling program.

“We very much need some fresh geophysics on this property,” said Judson. “We need to better understand the fault structure in both the northern and southern parts of the property to further delineate both gold and iron mineralization.”

Forest Gate was targeting high-tonnage, low-grade gold mineralization with its 2011 spring program. The discovery of alternation zones and silicification by the most recent drilling suggests that there is still the potential for the discovery of this kind of mineralization.

Holes FG11-01, FG11-02 and FG11-03 contained immaterial amounts of gold. As previously reported, FG11-03 contained high-grade iron. Forest Gate is planning to more detailed petrographic analysis of core from holes FG11-01, FG11-02, FG11-03 and core from adjacent historical drill holes.

Drill holes FG11-02 and FG 11-03 contain visual petrographic and vein characteristics which are comparable to descriptions of gold mineralization described by previous explorers.

In the case, of FG11-01 only a small number of samples were initially submitted for analysis. The company may decide to submit new samples from the first three drill holes for additional assaying.

Follow-up petrographic studies, re-sampling and analytical work will commence in September.

Table 2: Key Assay Values - Spring 2011 Preliminary Drill Program
Hole Number	Sample	From	To	Interval
				meters
FG11-04	K496043	97.90	98.05	0.15
FG11-04	K496046	109.85	110.05	0.20
FG11-05	K496036	190.35	190.65	0.30
PS - Primary Sample

 

Table 2: Key Assay Values - Spring 2011 Preliminary Drill Program
Hole Number	PS-Au-AA25	PS-Au-GRA21	PS-Au-GRA21	RS-Au-AA25	RS-Au-AA25	RS-Au-GRA21	Accepted Value
	gpt	gpt	Duplicate gpt	gpt	Duplicate gpt	gpt	gpt
FG11-04	>10.0	18.500		18.2	17.25	18.3	18.30
FG11-04	9.700			10.35	10.75	10.50	10.50
FG11-05	>10.0	133.000	146.000	33.90	26.70	44.60	44.60
RS - Resubmitted Reject Sample			Duplicate - Laboratory Duplicate Analysis on same pulp sample

Forest Gate selected one hundred eight samples selected from 5 drill holes for gold fire assay, trace and major element analysis. Assaying was conducted at the ALS Global/ALS Canada Ltd. located Val d’Or, Quebec. An additional 7 samples using the initial rejected portions of the samples were re-submitted for metallic sieve fire assay with AA finish to confirm initial results.

Technical information in this news release was prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101 and has been reviewed by Edward Procyshyn, Geo, who is the qualified person as defined by NI 43-101. Assay samples are taken from NQ-size drill core sawn in half; one half is shipped to ALS Minerals in Val d’Or, PQ, and the other half of the core sample is kept for future reference. The submitted samples are crushed such that 75% of the crushed material passes -10 mesh (2mm) screen. The crushed material is split until a 300 gram samples is obtained. This sample is pulverized so that plus 90% of the sample passes 200 mesh (0.75mm)(now called pulp) from which a 30 gram sample is taken for standard fire Au-assay and AA finish to determine amount of gold in the sample. Blank samples and standard samples are inserted by Forest Gate Energy into the sampling stream such that ~1 out of 15 samples is either a blank or standard reference sample. Samples returning more than 1 gpt Au are resubmitted for gravimetric metallic screen and fire assay-AA finish analysis. The pulp and the split reject are returned and securely stored with the core. When warranted, another 30g of the pulp sample is also geochemically analyzed for multi-elements using 4-acid digestion followed by ICP analysis with OES Finish (Inductively couple plasma optical emission spectroscopy). The ALS laboratory also will occasionally complete check duplicate analysis on samples submitted and analyze blank and standard samples they select and insert into the sample stream. Since the orientation and attitude of the gold bearing and iron bearing mineralized units are not yet known, the core intervals samples do not represent the true width of the mineralized zone.

 

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

Certain statements regarding Forest Gate, including management's assessments of future plans and operations and Forest Gate's anticipated financial performance, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Forest Gate's control. These risks may cause actual financial and operating results, performance, levels of activity and achievements to differ materially from those expressed in, or implied by, such forward-looking statements.

Such factors include, but are not limited to: the impact of general economic conditions in Canada and the United States; industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced; competition; the lack of availability of qualified personnel; fluctuations in commodity prices; the results of exploration and development drilling and related activities; imprecision in reserve estimates; the production and growth potential of Forest Gate's various assets; fluctuations in foreign exchange or interest rates; the ability to access sufficient capital from internal and external sources; and obtaining required approvals of regulatory authorities.

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