Forest Gate Discovers New Magnetic Anomaly On Diamond Property

MONTREAL, QC, MAY 12, 2003 - Forest Gate Resources Inc. (FGT-V) reports it has discovered an additional magnetic anomaly, possibly indicative of a kimberlite body on its East diamond property at Fort a la Corne in central Saskatchewan.

The new anomaly was discovered in a recent ground magnetic survey. The purpose of the survey had been to better delineate an anomaly that had been discovered in an airborne survey of several years ago. That anomaly was positively identified in the current survey but the survey also uncovered an additional anomaly nearby. The anomaly is known as a “negative” anomaly or more precisely a weakly magnetic anomaly.

Magnetism is one characteristic of kimberlite, the host rock of diamonds. Most diamond exploration in Canada to date has been based on identifying magnetic anomalies some of which have turned out to be diamondiferous kimberlite pipes.

“Our consultants tell us that the most economic diamondiferous kimberlite pipes discovered so far in Canada have been those which are less magnetic,” says Forest Gate President, Michael Judson “Essentially we have a new and highly prospective target to drill. It’s very positive news.”

Newson Management & Consulting Ltd., Saskatoon, Saskatchewan conducted the survey and the company says it believes it is possible the anomalies are caused by kimberlites and recommends drilling them.

Forest Gate is currently receiving and reviewing bids from drilling companies and other suppliers as well applying for various required permits. It expects to begin drilling at the end of May or early June.

Forest Gate is also preparing exploration program for its California Lake Silver property in the world-class Bathurst mining camp. California Lake is situated approximately 35 kilometres from Noranda’s #12 silver-zinc-lead mine, one of the largest of its type in the world.