Forest Gate shares jump on discovery of kimberlite extension

News that Forest Gate Resources (FGT-V) intersected kimberlite at its West Side property near Prince Albert, Saskatchewan sent the Montreal-based company’s shares soaring.

In Toronto on Aug. 3, Forest Gate shares were up over 26% or roughly 5 to 24 on roughly 1.6 million shares traded.

The intersect came from a drill-hole targeting the western extension of the 122 Kimberlite, whose western edge crosses on to Forest Gate’s 100%-owned property.

In a press release the company says the 122 Kimberlite spills westward across a shared boundary with the Shore Gold (SGF-T) and De Beers joint venture.

The vertical 85 mm drill-hole, FG06-32, intersected approximately 11.8 metres of kimberlite from 154.8 metres to 166.6 metres down-hole. Forest Gate says the drill core is being geologically logged and will be sampled for diamonds.

In the release Forest Gate’s vice president of exploration Steve Roebuck describes the hole as a “good first hole on a new project.”

The company acquired the West Side property last year after previous operators had drilled three holes looking for the western extension of the 122 Kimberlite but came up empty.

“I feel our experience in the Fort a la Corne camp was the big difference between discovering kimberlite where others had missed,” Roebuck says.

The 122 Kimberlite attracted interest after the Shore Gold and De Beers joint venture recovered 248 macrodiamonds weighing 28.81 carats back in July 2005.

Forest Gate says it has spotted its second drill-hole 100 metres north of FG06-32 and will start drilling shortly.

The Fort a la Corne area is host to the world’s largest diamondiferous kimberlite pipes. Forest Gate has properties on the eastern and western flanks of the area.