Forest Gate Discovers Significant Iron Grades in the Banded Iron Formation at its Pershing Gold Property

CALGARY, Alberta, August 11, 2011 /CNW Telbec/ - Forest Gate Energy Inc. (TSXV: FGE) reports that its mineral exploration group has intersected significant iron grades in the banded iron formation at its 100%-owned Pershing gold property located near Val D’Or, Quebec.

Forest Gate sampled magnetite-rich intervals within a banded iron formation (BIF) unit that was intersected with drill hole FG11-03. These magnetite intervals on average were found to contain 29.3% iron.

The company considers these average grades to be high.

Forest Gate says it believes that the discovery is of such importance that it decided to release the news in advance of releasing the results of its gold assays. The company says its expects to have a news release relating to the gold assays to the market within the next 24 hours.

The same banded iron formation unit found in drill hole FG11-03 was also intersected in drill holes FG11-01 and FG11-02. In these holes, the banded iron formation unit has a core interval of approximately 100 metres. It is estimated that the magnetite (iron) rich bands form approximately 40 % of these banded iron formation units. The magnetite rich intervals contain up to 85% magnetite content and occur as bands ranging from 0.3 metres to 15 metres.

The nature of the banded iron formation unit in these holes is very similar both in magnetite content and thickness to the banded iron formation units observed in historical drill log reports found elsewhere on the property.

"Finding all this iron at a known gold occurrence is a pleasant surprise," said Michael Judson, President and CEO of Forest Gate. "During our visual analysis of the core we saw an awful lot of magnetite and decided to assay some of it. It is all very early stage but the results are very interesting."

While the iron results came from one drill hole only, the banded iron formation at Pershing had already been partially mapped as part of a previous gold exploration program conducted by a private company. The mapping was based on a compilation of historical magnetic data and old drilling assays. The mapping was done only on the southern half of the Pershing property.

The BIF unit is known to occur over surface outcrop length in excess of 15 kilometres. The BIF unit is complexly folded and refolded. These complex structural patterns are similar to those found in iron formations that are currently being mined. These structures enhance the structural thickness of the iron formation and transform them to economic mineable iron deposits.

The table shown below summarizes the weighted average values of key elements found within the magnetite rich iron formation in hole FG11-03 and compared them to those from selected iron deposits that are currently being developed for production.

The iron content and key oxides found at the Pershing property compare favourably with the grade found in other iron deposits currently being developed elsewhere in Canada and Africa. Canadian explorer, Alderon Resources is developing the Kami iron ore project in Quebec-Labrador, Canada. The UK-based Bellzone Mining Co is developing the Kalia iron ore project in the Republic of Guinea. Below is a comparison of grade.

Table 1: Comparative Compositions of Banded Iron Formations

Pershing Banded Iron Formation (BIF) Analytical Data
Pershing BIF Interval		Fe  %	SiO2 %	Al2O3 %	S  %	P  %	Mn %
Range of Values*		13.06-4.56	38.40-54.96	2.12 – 8.67	.24 - 1.64	.03- .18	.03-.10
Weighted Average Value**		29.30	47.22	4.45	0.69	0.11	0.06
Bellzone Mining PLC – Kalia Iron Project
http://www.bellzone.com.au/Kalia/Geology/MagnetitesofKalia/tabid/83/Default.aspx
BIF			29.80	45.20	2.10	0.81	0.07
Schist			8.90	47.00	7.70	0.13	0.04
Alderon Resource Corp’s  Kami  Iron Ore Project (source: NI43-101Technical Report May 20, 2011, p.120)
BIF		31.00	43.00	0.11	0.01	0.01	1.25

"Comparing drill hole results to deposit grades is not meant to imply that further exploration would result in the development of a deposit with such
an average grade." * - see table 2 for actual data ** - grand weighted averages of selected intervals shown in table 2

Thirty-five samples were selected from hole FG11-03 and submitted for major element oxide analysis with the objective of sampling two iron-rich intervals over of a core-interval of 29 metres and 25 metres respectively.

Next Steps:
A more comprehensive review of the historical drill data is currently being undertaken and will be compiled into a GIS data base. This will help with the development of a regional drill program planned for this fall.

Forest Gate is planning to execute a geophysical survey before it completes any more drilling at Pershing. The company says it is also planning to undertake a preliminary petrographic analysis of mineral content and composition.

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.

Table 2:  Reported Analysis from ALS Minerals Laboratory (ALSGlobal) Val d'Or, PQ
(For laboratory analytical accuracy and precison go to:    www.alsglobal.com )
Type of Analysis			ME-XRF06	ME-XRF06	ME-XRF06	ME-ICP61	ME-XRF06	ME-XRF06
From	To	Interval	Fe2O3	SiO2	Al2O3	S	P2O5	MnO
			%	%	%	%	%	%
8.70	9.50	0.80	46.21	46.99	2.85		0.21	0.06
9.50	10.45	0.95	missing analysis
10.45	11.50	1.05	47.09	45.02	3.21		0.24	0.07
11.50	12.50	1.00	26.43	54.96	8.56		0.12	0.05
12.50	13.50	1.00	39.12	53.38	3.59		0.26	0.04
13.50	14.50	1.00	33.51	50.88	7.11		0.15	0.05
14.50	15.50	1.00	47.56	44.22	3.00		0.24	0.06
15.50	16.50	1.00	37.34	51.07	4.77		0.28	0.05
16.50	17.00	0.50	18.67	56.49	12.50		0.17	0.06
17.00	18.00	1.00	44.84	46.52	4.10		0.24	0.06
18.00	19.00	1.00	44.95	44.43	3.84		0.25	0.07
19.00	20.00	1.00	43.31	45.56	4.27		0.24	0.06
20.00	21.00	1.00	27.32	54.51	8.74		0.18	0.06
21.00	22.00	1.00	49.26	43.45	2.82		0.22	0.06
22.00	23.00	1.00	48.67	42.84	2.92		0.26	0.09
23.00	24.00	1.00	43.73	45.37	4.64	0.75	0.22	0.11
24.00	25.00	1.00	44.70	45.99	3.70	0.85	0.24	0.08
25.00	26.00	1.00	43.55	46.27	5.05	0.24	0.24	0.08
26.00	26.45	0.45	37.22	46.58	6.60	0.29	0.22	0.09
26.45	27.60	1.15	42.70	42.97	4.88		0.21	0.13
27.60	28.40	0.80	37.46	38.40	8.67		0.08	0.21
28.40	28.75	0.35	39.57	44.99	4.46		0.24	0.12
28.75	29.90	1.15	37.98	55.91	2.24		0.21	0.07
29.90	31.00	1.10	40.57	48.64	5.19	1.15	0.23	0.09
31.00	32.00	1.00	42.34	46.96	4.61	0.18	0.20	0.09
32.00	33.00	1.00	40.14	47.89	5.14	0.94	0.21	0.07
33.00	34.00	1.00	39.78	48.07	5.24	0.56	0.22	0.06
34.00	35.00	1.00	46.03	43.91	3.54	0.96	0.28	0.13
35.00	36.15	1.15	41.14	46.89	5.08	1.64	0.24	0.11
Weighted Average Value			40.39	47.47	4.86		0.22	0.06
Weighted Average Value as metal			28.6			0.8	0.1	0.05
132.00	133.00	1.00	46.20	44.83	4.33	0.38	0.30	0.06
137.00	138.50	1.50	47.30	47.14	2.12	0.49	0.34	0.07
138.50	139.90	1.40	44.75	46.96	2.85	0.25	0.41	0.07
143.70	144.70	1.00	43.74	48.86	2.43	0.40	0.30	0.05
157.60	158.60	1.00	45.94	44.80	2.93		0.31	0.06
158.60	159.60	1.00	45.80	44.22	2.93		0.30	0.06
Weighted Average Value			45.69	46.26	2.87	0.27	0.33	0.06
Weighted Average Value as metal			31.06				0.15	0.05
Grand Wted Oxide Average			41.88	47.22	4.45	0.69	0.24	0.08
Grand Wted Metal Average			29.3				0.11	0.06

 

 

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

 

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