Forest Gate Acquires Pershing Gold Property in Val D'Or, Quebec
September 02 2010 - 8:30AM
PR Newswire (Canada)
MONTREAL, Sept. 2 /CNW/ -- Symbol & exchange: FGE-V MONTREAL,
Sept. 2 /CNW Telbec/ - Forest Gate Energy Inc. reports that it has
entered into a Purchase Agreement to acquire the Pershing gold
property located near Val D'Or, Quebec from two private gold
exploration companies called Montigua Resources Inc. and Bermont
Resources Inc. Pershing is a gold exploration property consisting
of 252 contiguous, unpatented mining claims. Following the closing
of the purchase, Forest Gate will have a 100 percent interest in
the Pershing property. In consideration for the 100% interest in
the claims, Forest Gate will issue to Montigua and Bermont
3,000,000 Forest Gate common shares. In addition, Montigua and
Bermont will hold a 2% net smelter return royalty on the Pershing
gold property. One percent (1%) of the royalty can be purchased by
Forest Gate at any time following the completion of a
pre-feasibility study on the property. Forest Gate also holds a
right of first refusal on the sale or reassignment of the remaining
1% royalty. The transaction is subject, among other conditions, to
the approval of the Board of each party to the transaction and TSX
Venture Exchange approval. Closing of the transaction is scheduled
to take place on or before September 10, 2010. A finder's fee of
150,000 Forest Gate common shares will be paid to a consultant upon
closing. "Two types of mineralization were recognized on the
Pershing property. The first type is related to the banded iron
formation in the south-western part of the property, east of the
Matchi-Manitou Lake. The other type of mineralization known on the
property is a mesothermal type quartz-tourmaline vein containing
gold." (source: InnovExplo Inc., Val D'Or, 2006) In
1996 a private company drilled the Pershing gold property and
intersected 15.54 grams of gold per ton over 1.50 metres, 11.59
grams of gold per ton over 1.66 metres, and 19.23 grams of
gold per ton over 1.33 metres in the banded iron formation.
(source: MRB & Assoc., Val D'Or, 2003) In the 2000-2003 period
Montigua and Bermont "partially mapped a hydrothermal alteration
zone…at the margins of these alteration zones were
quartz-tourmaline veins carrying gold, the highest value noted
49.04 grams gold per ton. These veins are dilatants, flat-lying and
contain structural attributes that resemble the flat veins at Sigma
(Century) Mine. (source: MRB) The former-producing Chimo mine,
operated by Cambior Inc., located approximately 12 kilometres west
of the Pershing gold property is an example of an adjacent area
where a significant portion of gold was produced from mineralized
and sheared banded iron formation. (source: InnovExplo Inc.) From
1989 to 1996, Cambior mined 1.6 million tonnes at a grade of 3.8
grams of gold per tonne. The technical content of this news release
has been approved by Alain Carrier, P. Geo, OCG, InnovExplo Inc., a
Qualified Person as defined in National Instrument 43-101 -
Standard of Disclosure for Mineral Projects. 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. 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. p align="left"Robert Kramberger, V-P,
Investor Relationsbr/1-866-666-3040br/a
href="mailto:rkramberger@forestgate.ca"rkramberger@forestgate.cabr//aa
href="http://www.forestgate.ca/"www.forestgate.ca/a/p
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