Owner
Post by Franko10 ™ on Oct 13, 2005 10:34:44 GMT -5
Forest Gate acquires key diamond property in Fort a la Corne (cnw)
MONTREAL, Oct. 13 /CNW/ - Forest Gate Resources Inc. is pleased to announce that subject to certain conditions, it has acquired 100% ownership of a diamond property on the central-western border of the main cluster of kimberlites in the Fort a la Corne forest near Prince Albert, Saskatchewan.
The property now known as the "West Side property" is along the western flank of the diamondiferous 122 kimberlite owned by the De Beers-Kensington joint venture. The property was acquired from a group of owners including Shane Resources Inc, Saskatoon, and other parties. The property is approximately 768 hectares in size.
The West Side property was acquired for 1.7 million shares and 1.5 million share purchase warrants of Forest Gate. The warrants are exercisable at $0.65 at any time for the next three years.
This transaction is subject to the obtaining of corporate and regulatory approvals and other contractual conditions. Forest Gate considers that it will be able to close this transaction by October 28, 2005.
"This is an important acquisition for Forest Gate and we are very proud of having executed it," said Michael Judson, President & CEO of Forest Gate Resources. "Forest Gate's strategic land holdings in the area have been advanced considerably by this move."
"In 1998 we acquired property strategically located on the east side of the main cluster of kimberlites and now we have acquired property strategically located on the west side.
The fact these properties are alongside diamondiferous De Beers-Kensington kimberlites also makes them highly attractive."
The 122 kimberlite body is attracting increasing interest since the De Beers-Kensington joint venture reported recovering in July this year "a total of 248 macrodiamonds weighing 28.81 carats, including 23 stones larger than 0.25 carats recovered from three 36-inch diameter drill holes." The joint venture went on to report that "the recovery of many stones larger than 0.25 carats and two larger than one carat supports our (the De Beers-Kensington) model of a larger stone population in Kimberlite 122."
The Fort a la Corne kimberlite field is the largest of its kind in the world and is the subject of several advanced exploration programs and a pre-feasibility scoping study for possible diamond mine development.
Forest Gate Resources recently completed its 2005 exploration drill program on its 100% owned East Side diamond property. In total, over 3500 metres of HQ size core was drilled on three different kimberlite bodies on East Side. Samples from the 121, Duke and Dizzy kimberlite bodies were sampled for microdiamond analysis for which results are pending.
To view an updated property map please visit our website at www.forestgate.ca
Ralph Newson, P.Eng., P.Geo and Qualified Person has edited and reviewed the technical information contained in this press release.
Forest Gate is a publicly traded mineral exploration company with diamond properties in Saskatchewan and Quebec. The company's shares trade under the symbols FGT on the TSX Venture Exchange.
Forward-Looking Statements
This news release contains discussion of items that may constitute forward-looking statements within the meaning of securities laws that involve risks and uncertainties. Although the company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Factors that could cause actual results to differ materially from expectations include the effects of general economic conditions, actions by government authorities, uncertainties associated with contract negotiations, additional financing requirements, market acceptance of the Company's products and competitive pressures. These factors and others are more fully discussed in Company filings with Canadian securities regulatory authorities.
The TSX Venture Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this news release.
For further information: ROBERT KRAMBERGER, V-P, SHAREHOLDER RELATIONS & CORPORATE MARKETING, FOREST GATE RESOURCES INC., 866-666-3040, RKRAMBERGER@FORESTGATE.CA, WWW.FORESTGATE.CA OR TREVOR BURNS, PRESIDENT, TIGER CAPITAL CORPORATION, TORONTO, ONTARIO, (416) 252-3663, INVESTOR@TIGERCAPITAL.COM
MONTREAL, Oct. 13 /CNW/ - Forest Gate Resources Inc. is pleased to announce that subject to certain conditions, it has acquired 100% ownership of a diamond property on the central-western border of the main cluster of kimberlites in the Fort a la Corne forest near Prince Albert, Saskatchewan.
The property now known as the "West Side property" is along the western flank of the diamondiferous 122 kimberlite owned by the De Beers-Kensington joint venture. The property was acquired from a group of owners including Shane Resources Inc, Saskatoon, and other parties. The property is approximately 768 hectares in size.
The West Side property was acquired for 1.7 million shares and 1.5 million share purchase warrants of Forest Gate. The warrants are exercisable at $0.65 at any time for the next three years.
This transaction is subject to the obtaining of corporate and regulatory approvals and other contractual conditions. Forest Gate considers that it will be able to close this transaction by October 28, 2005.
"This is an important acquisition for Forest Gate and we are very proud of having executed it," said Michael Judson, President & CEO of Forest Gate Resources. "Forest Gate's strategic land holdings in the area have been advanced considerably by this move."
"In 1998 we acquired property strategically located on the east side of the main cluster of kimberlites and now we have acquired property strategically located on the west side.
The fact these properties are alongside diamondiferous De Beers-Kensington kimberlites also makes them highly attractive."
The 122 kimberlite body is attracting increasing interest since the De Beers-Kensington joint venture reported recovering in July this year "a total of 248 macrodiamonds weighing 28.81 carats, including 23 stones larger than 0.25 carats recovered from three 36-inch diameter drill holes." The joint venture went on to report that "the recovery of many stones larger than 0.25 carats and two larger than one carat supports our (the De Beers-Kensington) model of a larger stone population in Kimberlite 122."
The Fort a la Corne kimberlite field is the largest of its kind in the world and is the subject of several advanced exploration programs and a pre-feasibility scoping study for possible diamond mine development.
Forest Gate Resources recently completed its 2005 exploration drill program on its 100% owned East Side diamond property. In total, over 3500 metres of HQ size core was drilled on three different kimberlite bodies on East Side. Samples from the 121, Duke and Dizzy kimberlite bodies were sampled for microdiamond analysis for which results are pending.
To view an updated property map please visit our website at www.forestgate.ca
Ralph Newson, P.Eng., P.Geo and Qualified Person has edited and reviewed the technical information contained in this press release.
Forest Gate is a publicly traded mineral exploration company with diamond properties in Saskatchewan and Quebec. The company's shares trade under the symbols FGT on the TSX Venture Exchange.
Forward-Looking Statements
This news release contains discussion of items that may constitute forward-looking statements within the meaning of securities laws that involve risks and uncertainties. Although the company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Factors that could cause actual results to differ materially from expectations include the effects of general economic conditions, actions by government authorities, uncertainties associated with contract negotiations, additional financing requirements, market acceptance of the Company's products and competitive pressures. These factors and others are more fully discussed in Company filings with Canadian securities regulatory authorities.
The TSX Venture Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this news release.
For further information: ROBERT KRAMBERGER, V-P, SHAREHOLDER RELATIONS & CORPORATE MARKETING, FOREST GATE RESOURCES INC., 866-666-3040, RKRAMBERGER@FORESTGATE.CA, WWW.FORESTGATE.CA OR TREVOR BURNS, PRESIDENT, TIGER CAPITAL CORPORATION, TORONTO, ONTARIO, (416) 252-3663, INVESTOR@TIGERCAPITAL.COM
