Forest Gate Readies Pershing Gold Plan

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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.

For further information:

ROBERT KRAMBERGER, V-P, INVESTOR RELATIONS
1-866-666-3040
[email protected]
WWW.FORESTGATE.CA