Forest Gate Energy Inc. (TSXV:FGE)
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CALGARY, Aug. 11, 2011 /CNW/ --
SYMBOL & EXCHANGE: FGE-V
CALGARY, Aug. 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.
"This analytical data is comes from one drill hole only which happens to
be located on the southern part of the property," said Judson. "In
addition, the old magnetic data suggest that significant new iron
targets also occur on the northern part of the 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 Fe % SiO2 % Al2O3 % S % P % Mn %
BIF
Interval
Range of
Values* 13.06-34.56 38.40-54.96 2.12-8.67 .24-1.64 03-.18 03-.10
Weighted 29.30 47.22 4.45 0.69 0.11 0.06
Average
Value**
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 ME-XRF06 ME-XRF06 ME-XRF06 ME-ICP61 ME-XRF06 ME-XRF06
Analysis
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 28.6 0.8 0.1 0.05
as
metal
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 31.06 0.15 0.05
as metal
Grand Wted Oxide 41.88 47.22 4.45 0.69 0.24 0.08
Average
Grand Wted Metal 29.3 0.11 0.06
Average
About Forest Gate
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.
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.
To view this news release in HTML formatting, please use the following URL: http://www.cnw.ca/en/releases/archive/August2011/11/c3058.html
p align="justify" ROBERT KRAMBERGER, V-P, INVESTOR RELATIONSbr/ 1-866-666-3040br/ a href="mailto:rkramberger@forestgate.ca" cr="true"RKRAMBERGER@FORESTGATE.CA/abr/ a href="http://www.forestgate.ca" cr="true"WWW.FORESTGATE.CA/a /p