Forest Gate Readies Pershing Gold Plan
November 17 2010 - 8:30AM
PR Newswire (Canada)
MONTREAL, Nov. 17 /CNW/ -- This news release is not for
distribution to United States newswire services or for
dissemination in the United States. SYMBOL & EXCHANGE: FGE-V
MONTREAL, Nov. 17 /CNW Telbec/ - Forest Gate Energy Inc. reports it
is currently in the midst of preparing its 2010-2011 exploration
program for its 100% owned Pershing gold property located near Val
d'Or, Quebec. As previously disclosed (news release September
2, 2010), the Pershing Gold Property was drilled in 1996,
intersecting 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). Forest Gate has begun compiling more
than ten years of exploration data from the property. This
data includes geophysical survey data, drill hole location, core
assay results and analytical data from all drill campaigns and
mapping data. Data compilation is expected to be completed before
Christmas. Following that, the company will mobilize a drilling rig
to carry-out a planned ten-hole diamond drilling program. Drilling
is expected to commence mid-winter 2011. The project is fully
funded. "We have three drilling targets on the Pershing property.
On the southwest part of the property in the area known as the
Simon Block basal units of the banded iron formation are
hydrothermally altered and host low grade gold mineralization, 1 to
6 grams per tonne, over two to three metre thickness,"
said Ed Procyshyn, Exploration Manager, Minerals. "This
mineralization has been traced in drill holes spaced 50 metres
apart for 250 metres along strike. We now know that
gold-bearing areas within Pershing are associated with
significantly intense hydrothermal activity. What we now have
to establish is the possibility that bulk tonnage of economic grade
exists in the area," said Procyshyn. The next phase of drilling on
the Simon Block will require deeper holes to explore the more
intensely altered centres. The mineralized intervals in drill
core within the more intensely altered rocks below the iron
formations are narrow and discontinuous. "What we see is similar to
what is reported in the less mineralized sections of Osisko's
Canadian Malartic deposit. The quartz-tourmaline veins at Pershing
are usually later than the stockwork veining and usually contain
higher gold values (up to 49 grams of gold per ton over .4
metres).than the veinlets," said Procyshyn. A magnetometer
survey conducted south west from the Simon Block has more recently
outlined what can be interpreted to be a major shear zone.
The shear zone trends east-west. It cuts the highly magnetic
band underlain by iron formation and dismembers it to produce
several narrow strongly magnetic bands separated by weakly magnetic
bands across a zone approximately 150-200 meters wide. The
individual bands in the iron formation range from 10 - 50 meters in
thickness. It is possible that the more strongly magnetic
bands may be slivers of less altered iron formation separated by
faults and shear zones that have been invaded by quartz
veins. Hydrothermal activity associated with this injection
replaces the magnetic units by siliceous and sulfide bearing
minerals to from weakly magnetic bands. The magnetic signature of
this second drill target closely resembles what has been found at
the Lupin Mine, the Musselwhite Mine and more recently at
Agnico-Eagle's Meliadine gold deposit in Nunavut. No previous
work has been done in this second target area. "The third target is
also associated with shear zones that appear to cut the iron
formations. They occur east-northeast from the Simon Block,"
continued Procyshyn. "At least one zone in this setting was
previously drilled. The core contains iron formation partially
replaced along shear zones by pyrrhotite and narrow siliceous bands
ranging from 0.7 to 3.1 metre in thickness. These pyrrhotite rich
siliceous bands contained between 1 and 4 grams gold per tonne,"
"On the more westerly extension of this zone, there occurs a
strongly silicified zone within a metawacke unit and this unit
overlies the iron formation. This siliceous interval contained
15,5 grams of gold per ton over 1.5 metres," said Procyshyn It is
also possible that the northern third of the Pershing property on a
more regional scale contains many lithotectonic features that are
present in the vicinity of Agnico-Eagle's Lappa mine. A more
detailed aeromagnetic-VTEM survey will required to better define
these targets. "If a mineral resource can be developed at Pershing
it probably will more likely resemble the gold mineralization at
Osisko's Canadian Malarctic mine, the numerous mines like the Lupin
and Agnico-Eagle's Medialine Mines which are associated with iron
formation within metasedimentary terranes or as gold deposits
located at the sheared margins of ultramfic bodies adjacent to
metasedimentary units as occurs at the Lupin mine," said Procyshyn.
The Company is aiming to discover sub-parallel zones associated
with shearing, and emplacement of gold bearing quartz veins that at
their margins alter and replace the iron formation. In other news,
Forest Gate has issued a total of 2,700,000 incentive stock options
to its officers, directors and consultants. These incentive stock
options are exercisable at $0.10 with an expiry date of November
11, 2015. There is an eighteen-month vesting period, which
includes a four-month hold period expiring on March 12, 2011. The
options granted are subject to TSX Venture approval. The technical
content of this news release has been approved by Edward Procyshyn
P.Geo, Mineral Geologist, Forest Gate Energy Inc., who is 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 Corporation
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. This news release does not constitute an offer to sell
or a solicitation of an offer to buy any of the securities in the
United States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act"), or any state securities laws
and may not be offered or sold within the United States or to
United States Persons unless registered under the U.S. Securities
Act and applicable state securities laws or an exemption from such
registration is available. 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. pROBERT KRAMBERGER,
V-P, INVESTOR RELATIONSbr/ 1-866-666-3040br/ a
href="mailto:rkramberger@forestgate.ca"uRKRAMBERGER@FORESTGATE.CA/u/abr/
a href="http://www.forestgate.ca"uWWW.FORESTGATE.CA/u/a/p
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