Forest Gate To Drill For More Iron-Gold at Pershing

CALGARY, Alberta, September 13, 2011 /CNW Telbec/ - Forest Gate Energy Inc. (TSXV: FGE) reports that its mineral exploration group is in the midst of planning its fall exploration program at its 100 percent-owned Pershing iron and gold property located near Val d'Or, Quebec.

The company says that it is planning to drill between 20 and 25 diamond drill holes this fall to evaluate the quality of a known iron occurrence and to extend the gold mineralization recently intersected at its Pershing property. The drilling will be preceded by a heliborne magnetic and electromagnetic TDEM survey that will be flown over the total aerial extent of the property.

"The drilling will have two phases: the first five drill holes will target the re-folded anticlinal noses of the iron formation," said Michael Judson, president of Forest Gate. "This will give us a better idea of what widths and extended depths the iron rich may have in the folded nose portion of the iron formation. It is from these axial regions that greatest tonnages should ultimately come."

"We are also drilling five holes to extend the spatial extent of the gold veins intersected during the spring drill campaign at the northern portion of the Pershing property,” continued Judson. "The remaining holes will be drilled in a follow-up phase to infill and detail the extent and quality of mineralization both at the Marquis, the F and the Simon blocks."

Forest Gate reported on August 11, 2011 that it had intersected high-grade iron in the banded iron formation mineralization at its Pershing property. Drill hole FG11-03 contained magnetite intervals grading 29.3% iron. As previously reported, the banded iron formation unit containing the iron rich bands had a core interval of approximately 100 metres.

It is estimated that the magnetite (iron) rich bands form approximately 40 % of these banded iron formation 100-metre units. The magnetite rich intervals contain up to 85% magnetite content and occur as bands ranging from 0.3 metres to 15 metres.

Magnetic geophysical data indicate that the banded iron formation unit found in drill hole FG11-03 is the same unit that was also intersected in drill holes FG11-01 and FG11-02. A banded iron formation unit containing magnetite rich bands was also intersected by holes FG11-04 and FG11- 05 located on the northern part of the known as the Marquis block (zone).

Further retrospective analysis reveals that at least a dozen holes drilled by a private company in the early 2000s on the southern portion of the property all intersected magnetite-bearing units of the same banded iron formation sampled in hole FG11-03.

The banded iron formation unit at Pershing is known to occur over surface outcrop length in excess of 15 kilometres. The banded iron formation unit is complexly folded and refolded. These complex structural patterns are consistent with other iron deposits being mined around the world.

"This iron ore exploration program is at an early stage but if the tonnage and grades prove up, this iron showing has several attributes working in its favour. The iron mineralization is partially exposed at surface and the rest of it occurs close to surface, which makes it potentially amenable to open pit mining. This iron occurrence is also close to a rail-line, electricity, natural gas pipe line and roads. This will significantly affect capital costs in developing the property," said Judson.

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.

 

 

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.

Neither TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this release.