Forte Energy NL
LSE : FTE

December 23, 2010 02:00 ET

A238 Assay results and Exploration Update, Mauritania

FORTE ENERGY NL
ACN 009 087 852
ASX/AIM CODE: FTE 
Telephone: +618 9322 4071, Fax: +618 9322 4073

ASX, AIM and Media Release
23 December 2010

A238 Assay results and Exploration Update, Mauritania 

--  7,000m of RC drilling now complete with 1,500m diamond drilling program
    underway 
--  Initial assay results received from 10 holes at A238 confirm
    mineralisation extends along strike north of the core of the main
    southern zone 
--  Drilling suggests two distinct mineralised bodies, a large southern body
    roughly 1,800m in length, and a shorter and thinner northern body
    approximately 800m in length 
--  Further assay results are expected to form the basis of a JORC compliant
    resource targeted for release during H1 2011. 

International uranium company (ASX/AIM: FTE; "Forte Energy" or "the Company") is pleased to announce initial assay results from drilling at its A238 uranium anomaly in the north of the Company's leases in Mauritania, as well as an exploration update from work on regional prospects.

The Company has completed a 7,000m RC drilling program at A238 and a 1,500m diamond drilling program is currently underway with completion expected next month. Results from the diamond drilling should allow the calculation of an initial JORC compliant resource at A238 in H1 2011. 

As announced on 8 October 2010, the Company originally planned 5,000m of RC drilling at A238, however, positive results from the latter stages of this campaign required the program to be expanded; a total of 120 holes have been drilled.

As has also been announced previously, the Company has instituted a new assay system to improve what was previously an unacceptably slow assay turnaround timetable. Sample pre-preparation is now undertaken at a local facility in Mauritania, with samples then subsequently sent to Omac Laboratories in Ireland. Today's receipt of the assay results demonstrates this process has worked largely as planned and provides comfort that previous delays should not be repeated. 

Forte Energy Managing Director Mark Reilly commented, "I am pleased to report the completion of the RC drilling at our A238 uranium prospect in Mauritania. These initial results are from the first pass shallow drilling along strike, and confirm the presence of mineralisation outside the core of the main southern zone. These results are encouraging both from the point of view of demonstrating that an extensive body of uranium mineralisation exists at A238, but also in demonstrating our accelerated assay process. We look forward to receiving further assay results from A238 which should form the basis for a maiden JORC resource in H1 2011."

The status of drill samples is as follows:


--  Assays from the first batch of 10 holes, of a total 120 drilled, have
    been received and processed (see table 1) 
--  Assays from an additional 7 holes have been received and will be
    processed by Forte shortly 
--  A second sample batch is currently being assayed with results expected
    shortly 
--  The remaining samples are currently being pre-processed and made ready
    for shipment out of Mauritania. 


Assay results 

The 7,000m RC program was designed to allow a preliminary JORC compliant resource to be calculated for A238, down to a nominal depth of roughly 100m. As a result, the intial phases of the drilling campaign were focussed on defining the strike and width of the surface portion of the mineralised zone, so that later drilling could be more efficiently focussed on targeting the thick, higher grade zone first defined early in 2010.

A total strike length of 3,500m was drilled, with two distinct mineralised bodies delineated, a large southern body roughly 1,800m in length, and a shorter and thinner northern body some 800m in length (see Figure 1.) This geological interpretation is based upon visual observation and hand held scintillometer readings and remains to be confirmed by geochemical assay.

To view Figure 1. Preliminary Interpretation of A238 (on a 200m x 200m north-south and east-west grid), please open the following link in a new window: http://media3.marketwire.com/docs/fte1223fig1.pdf.

Assay results from the first 10 holes are provided in table 1.

Table 1. Assay results, A238


------------------------------------------------------------------------------------------------------------------------
                                                                                                                 Est ppm
Hole          UTM Easting UTM Northing       AZIM         DIP        From          To      metres       ppm U     U3O8(i)
------------------------------------------------------------------------------------------------------------------------
238RC36           284362     2771473          55         -50          30          76          46         179         211
------------------------------------------------------------------------------------------------------------------------
238RC37           284337     2771456          55         -50          11          18           7         251         296
------------------------------------------------------------------------------------------------------------------------
                                                                      21          24           3         243         287
------------------------------------------------------------------------------------------------------------------------
                                                                      42          48           6         181         213
------------------------------------------------------------------------------------------------------------------------
                                                                      51          52           1         154         182
------------------------------------------------------------------------------------------------------------------------
238RC38           284313     2771438          55         -50          55          79          24         354         417
------------------------------------------------------------------------------------------------------------------------
                                                                      81          82           1         180         212
------------------------------------------------------------------------------------------------------------------------
238RC39           284473     2771307          55         -50          20          23           3         144         170
------------------------------------------------------------------------------------------------------------------------
238RC40           284641     2771180          55         -50           5           8           3         140         165
------------------------------------------------------------------------------------------------------------------------
238RC41           284617     2771163          55         -50          41          47           6         323         381
------------------------------------------------------------------------------------------------------------------------
                                                                      49          52           3         102         120
------------------------------------------------------------------------------------------------------------------------
238RC43           284756     2771016          55         -50          10          15           5         118         139
------------------------------------------------------------------------------------------------------------------------
                                                                                                                        
------------------------------------------------------------------------------------------------------------------------
238RC44           284731     2770999          55         -50          46          58          12         183         216
------------------------------------------------------------------------------------------------------------------------
238RC45           283904     2772187          55         -50           9          23          14         193         228
------------------------------------------------------------------------------------------------------------------------
238RC46           283879     2772170          55         -50          49          57           8         241         284
------------------------------------------------------------------------------------------------------------------------
                                                                      58          60           2         146         172
------------------------------------------------------------------------------------------------------------------------
                                                                      65          67           1         117         138
------------------------------------------------------------------------------------------------------------------------


(i) As per industry standard, assay results are reported in parts per million (ppm) of Uranium (U) while resources are reported in ppm of U3O8. The U content of U3O8 is roughly 84.8%. 

As previously discussed, these initial results are from the first pass shallow drilling along strike, and not from the core of the main southern zone. These results are encouraging both from the point of view of demonstrating that an extensive body of uranium mineralisation exists at A238, but also in demonstrating the workability of the new assay process. 

The outlines of the two mineralised zones as shown in Figure 1, are based upon visual examination of drill chips and measurements of radioactivity using a hand held scintillometer. Such instruments are not sufficiently accurate to be used for quantitative grade estimation, but with some assay confirmation can be used as a rough first pass guide to assess the level of mineralisation. On this basis, later deep holes into A238 have shown significantly wider intersections of more highly radioactive material at depth within the core of the A238 mineralised zone. These assays are in the processing pipeline now and are expected early in 2011 (Figures 2, 3, 4, 5 and 6).

To view Figure 2, Section 52 hand held scintillometer readings (CPS), please open the following link in a new window: http://media3.marketwire.com/docs/fte1223fig2.pdf.

To view Figure 3 Section 54, hand held scintillometer readings (CPS), please open the following link in a new window: http://media3.marketwire.com/docs/fte1223fig3.pdf.

To view Figure 4- Section 56, hand held scintillometer readings (CPS), please open the following link in a new window: http://media3.marketwire.com/docs/fte1223fig4.pdf.

To view Figure 5, Section 58, hand held scintillometer readings (CPS), please open the following link in a new window: http://media3.marketwire.com/docs/fte1223fig5.pdf.

To view Figure 6 Section 62, hand held scintillometer readings (CPS), please open the following link in a new window: http://media3.marketwire.com/docs/fte1223fig6.pdf.

Regional Work
In addition to drilling on the A238 target, an extensive program of regional exploration is being carried out on the Company's leases in Northern Mauritania. 

The lease package held by Forte Energy in Mauritania is designed to cover two major tectonic shear zones. These two, the Zednes structure (western limb) and Tenebdar structure (eastern limb) are major shear zones trending in roughly a northwest direction - the total strike length of these two shears held by Forte Energy is over 300km (Figure 7). Mineralisation is widespread along these shears, and occurs as cataclastic and mylonitic zones within local granites accompanied by albite alteration, interpreted to have been precipitated under hydrothermal conditions in the late stages of granite cooling. 

To view Figure 7, Regional Anomalies, please open the following link in a new window: http://media3.marketwire.com/docs/fte1223fig7.pdf.

During this field season, an extensive program of surface exploration has been carried out on the northern sections of both shears. Work has included surface mapping, surface radiometrics, sampling and trenching. The first reportable results from this work are assays from 18 rock chip samples taken across various anomalies (table 2).

Table 2, Regional rock chip samples


------------------------------------------------------------
prospect               Easting       Northing           Uppm
------------------------------------------------------------
A4                      345689        2747372            276
------------------------------------------------------------
A11                     347730        2753960            249
------------------------------------------------------------
A12                     328120        2758570            808
------------------------------------------------------------
A29                     299335        2749543            170
------------------------------------------------------------
A29                     298830        2749589            291
------------------------------------------------------------
A29                     298249        2751023           1645
------------------------------------------------------------
A29                     298878        2749503           2127
------------------------------------------------------------
A29                     298376        2751141            509
------------------------------------------------------------
A29                     298155        2751309           2738
------------------------------------------------------------
A29                     299100        2751200             46
------------------------------------------------------------
A142                    360057        2735405            551
------------------------------------------------------------
A118                    374212        2728067            795
------------------------------------------------------------
A178                    331776        2768576            213
------------------------------------------------------------
M22                     391001        2698377           2012
------------------------------------------------------------
M24                     383979        2704824            383
------------------------------------------------------------
M27                     395483        2697247            915
------------------------------------------------------------
M77                     355615        2739941           1421
------------------------------------------------------------
M87                     375822        2725699            289
------------------------------------------------------------


The field program has focussed predominantly on the previously unexplored eastern Tenebdar structure, and while preliminary only, these results provide great encouragement that uranium mineralisation is widespread along this structure. Extensive trenching operations have been carried out and assays are expected in January.

In addition, a trenching program has been carried out on the western Zednes structure at anomaly A29, some 20km south along strike from A238. Mineralisation at A29 appears similar in style to that at A238.

Samples from all trenching operations have been submitted into the assay process, with results expected in Q1 2011. Should these results prove as positive as initial chip samples, the Company plans to move the most prospective of these anomalies forward into drill target status to be drilled in the second half of the field season in Q2 2011.

Mark Reilly
Managing Director

For further information contact:

Mark Reilly, Managing Director
Forte Energy NL Tel: +44 (0) 203 300 0187

Alastair Stratton
Matrix Corporate Capital LLP Tel: +44 (0) 203 206 7000

Jos Simson/Emily Fenton 
Conduit PR Tel: +44 (0) 207 429 6603

Nicholas Read/Paul Armstrong
Read Corporate Tel: +61 (0) 8 9388 1474

Stuart Laing
RFC Corporate Finance Ltd Tel: +61 (0) 8 9480 2506
(AIM Nominated Adviser to the Company) 

Note:

The information in this report that relates to Exploration Results is based on information compiled by Mr. Bosse Gustafsson, who is a Member of the European Federation of Geologists, a 'Recognised Overseas Professional Organisation' ('ROPO') included in a list promulgated by the ASX from time to time. Mr Gustafsson is a full time Technical Director of Forte Energy NL and is responsible for exploration activities in Mauritania and Guinea. Mr. Gustafsson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Gustafsson consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. 

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