FGE Forest Gate Energy Inc.

CALGARY, June 2, 2011 /CNW/ -- SYMBOL & EXCHANGE: FGE-V CALGARY, June 2, 2011 /CNW Telbec/ - Forest Gate Energy Inc.'s (TSXV: FGE) mineral exploration group reports that it has completed visual examination of drill core recovered from its Phase 1 diamond drilling program completed in March on its Pershing gold property located near Val d'Or, Quebec. Five holes were drilled for a total of 1,592 meters. Logging of all drill holes has now been completed. Selected samples of core have been submitted to ALS-Chemex Analytical Laboratory in Val d'Or for assaying and geochemical analysis. Key preliminary geological findings include: -- Three of five drill holes (FG11-01, FG11-02 ,FG11-03) intersected a significant hydrothermal alteration zone identical to the zone found on the central-west area of the property known as the Simon Block. This drilling has extended the gold mineralizing trend 500 metres to the south west. The drilling intersected basal sub-units of the banded iron formation (BIF) unit overlying the hydrothermally altered zone. The strongly altered rock units associated with mineralization within the Simon Block have now been traced over an area more than 1 kilometre in diameter. -- Hole FG11-04 was drilled to test a magnetic low anomaly on the northern part of the property 2.25 kilometres north of the Simon Block. The hole intersected hydrothermally altered metasediments and banded iron formation units. The alteration closely resembles the alteration found in hole FG11-01. This now constitutes a new exploration target. -- A significant fault zone associated with widespread hydrothermal alteration (potassic feldspar and sericite alteration) was intersected by drill hole FG11-01. This hole tested a strong, linear magnetic-low anomaly that penetrates the magnetic-high anomaly. The magnetic high anomaly is spatially associated with the distribution of the BIF unit in this area. -- Hole FG11-05 was drilled on the northwest portion of the property to test a magnetically high anomaly and confirmed the presence of a north-south trending fault zone. The fault post-dates incipient metasomatic alteration found in the metasedimentary units. In general, the recent drilling program has established that magmatic activity and associated hydrothermal alteration may be related to potassic intrusions and magmatic activity that is not part of the Pershing batholith. This potassic related hydrothermal and plutonic activity is now know to be present in at least two separate localities on the property. Discussion of visible logging results: Three holes FG11-01 (357 m), FG11-02 (353 m) and FG11-03 (282 m)) were completed on the southwestern extension of the area known as the Simon Block located at the west central portion of the property. Drill holes FG11-01, FG11-02 and FG11-03, all intersected the basal banded iron formation (BIF) that is metasomatically altered to a skarn like interval and which on average contains 2 % pyrrhotite over core intervals 10 meters. To date, in comparison to all similar intersection elsewhere within the Simon Block, the skarn-like, metasomatic replacement of the iron formation unit is now found to be most intensely developed in hole FG11-01. In this hole the metawacke intervals which separate the magnetite- rich intervals have been largely replaced. The amount of sulfide replacement in hole FG11-01 is not as strongly developed as it is in holes FG11-02 and FG11-03. Hole FG11-03 is the most pyrrhotite-rich hole noted within the Simon Block. Within the skarn like zones, the more magnetite-rich portions of BIF, pyrrhotite occurs as finely disseminated blebs or massive stringers up to 5 centimeters thick, and is more or less continuously distributed within bands 2 to 10 meter-thick. In these intervals, pyrrhotite locally forms 2% to 7% of the magnetite-rich bands over intervals .5 metres to 1 metre thick. The sulfide-rich magnetite bands are separated by less sulfide-rich intervals containing trace to 1 % sulfide of similar thickness. The mineralized band has been traced over an interval of 40 meters. . Drilling in hole FG11-01 intersected at depth a well-defined fault zone containing breccia and mylonite-like zones and sub-parallel quartz veins, and quartz monzonite - aplite and syenite(?) dykes. This hole, however, was prematurely terminated due to technical difficulties. "As we had suspected, it would appear that the magnetic signature of the BIF unit in this area is being obliterated by hydrothermal alteration and injection of vein and dikes occurring within and adjacent to a regional fault zone. It is unfortunate that we could not extend the hole as planned," said Edward Procyshyn, Forest Gate's Manager, Mineral Exploration. "We had planned to drill 3 holes on the ice to extend this target, but the late ice formation on the lake, and the late start for the drill program were against us. This drilling will have to be completed next winter," said Procyshyn. Hole FG11-04 was drilled to test a well-defined magnetic-low anomaly measuring 200 metres in diameter punching through a magnetic high regional anomaly on the north central portion of the property. At the top of the hole, dark brown metawacke containing narrow intervals of banded iron formation units were intersected. Alteration became progressively more intense with depth and at its base, contained many of the alteration characteristic seen in the Simon Block below the "skarnified" basal iron formation unit. Hole FG11-05 as noted earlier, intersected a metawacke-BIF metasedimentary interval that may be correlated with the stratigraphic sequence that occurs in the southwestern part of the property. The metasedimentary units in this hole contain little or no hydrothermal/metasomatic alteration. Rare quartz veins, up to 1.5cm containing trace tourmaline have been noted in the hole. Detailed assay results for selected samples in individual holes are expected within the next several weeks. Qualified Person: Edward Procyshyn, Geo, a qualified person in accordance with National Instrument 43-101, supervised the drill program and has reviewed and approved the technical information contained in this news release. (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.) (This news release is not for distribution to United States newswire services or for dissemination in the United States.) (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/June2011/02/c2002.html p align="justify" ROBERT KRAMBERGER, V-P, INVESTOR RELATIONSbr/ 1-866-666-3040br/ a href="RKRAMBERGER@FORESTGATE.CA"RKRAMBERGER@FORESTGATE.CA/abr/ a cr="true" href="http://WWW.FORESTGATE.CA"WWW.FORESTGATE.CA/a /p

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