First Gold Exploration Inc.
TSX VENTURE : EFG
FRANKFURT : F12
OTCQX : FGEXF

First Gold Exploration Inc.

December 14, 2010 10:17 ET

First Gold Exploration Inc./Indicated Resources at the Rose Deposit: 11,436,000 Tonnes, 1.34% Li2O, 165 ppm Ta2O5, 2,668 ppm Rb, 377 ppm BeO and 71 ppm Ga

LAVAL, QUEBEC--(Marketwire - Dec. 14, 2010) - First Gold Exploration Inc. (TSX VENTURE:EFG)(FRANKFURT:F12)(OTCQX:FGEXF) is pleased to report the results of an independent resource estimate for its Rose deposit at Lac Pivert/Rose project, James Bay, Quebec.

The Rose deposit contains 11,436,000 tonnes of indicated resources containing 1.34% Li2O (337,133,280 pounds of Li2O), 165 ppm of Ta2O5 (4,156,255 pounds of Ta2O5), 377 ppm of BeO (9,496,414 pounds of BeO) and 2,170,000 tonnes of inferred resources containing 1.27% Li2O (60,629,800 pounds of Li2O), 138 ppm Ta2O5 (659,604 pounds of Ta2O5), 311 ppm BeO (1,486,498 pounds of BeO). The Resources were compiled using a cut-off grade of 0.75% Li2O based on the current estimation of the resource and market conditions. The 43-101 technical report will be available on Sedar within the next 45 calendar days.

This first resource estimate was performed taking into account the lithium content exclusively. It has now become evident that the presence of other elements, particularly tantalum, warrants a re- evaluation of the resources, given that sections of the pegmatites estimated as well as other zones with lower lithium but higher tantalum have been identified and were left out of the present estimate.

The current resource estimate already demonstrates that the Rose deposit is a large well defined lithium, tantalum and beryllium-bearing structure despite the limited drilling completed so far. The resources are contained in five subhorizontal pegmatites, at and near surface. The thickness of the pegmatites varies from 2m to 15m. There is an excellent potential to increase considerably and quickly the size of the deposit at Rose itself and at the nearby additional showings on the Lac Pivert/Rose property.

"This is the first step in becoming a major player in the critical elements industries." stated Jean-Sébastien Lavallée, President of First Gold Exploration.

Highlights of the 43-101 property report, prepared by InnovExplo Inc., independent consulting firm.

MINERAL RESOURCE ESTIMATE – DECEMBER 14, 2010
First Gold Exploration Inc. – Rose Project

  Tonnes    Li2O Ta2O5 Rb Cs BeO      Ga
  (x 1,000) (%) (ppm) (ppm) (ppm) (ppm)  (ppm)
Indicated              
Peg-1 10,089 1.37 165 2,690 103 380 71
Peg-2 575 1.14 200 2,702 137 347 81
Peg-3 109 1.19 223 3,524 167 314 68
Peg-4 135 1.02 154 2,953 129 350 68
Peg-5 528 1.15 128 1,963 101 405 72
Total Indicated 11,436 1.34 165 2,668 106 377 71
               
Inferred              
Peg-1 1,662 1.31 140 1,528 97 322 68
Peg-2 186 1.20 177 981 149 266 82
Peg-3 - - - - - - -
Peg-4 154 0.95 104 2,653 116 264 70
Peg-5 168 1.21 104 1,113 67 286 74
Total Inferred 2,170 1.27 138 1,529 100 311 70

 

  1. The Qualified People for the Mineral Resource Estimates as defined by National Instrument 43-101 were Pierre-Luc Richard, B.Sc., P.Geo. and Carl Pelletier, B.Sc., P.Geo. (InnovExplo Inc.), and the effective date of the estimate is December 6, 2010. National Regulation 43-101 and CIM definitions were followed.

  2. Mineral Resources are not Mineral Reserves having demonstrated economic viability.

  3. Results are presented undiluted and in situ, and some resource blocks may be locked in pillars. The estimate includes five (5) zones (Peg-1, Peg-2, Peg-3, Peg-4 and Peg-5) and covers the Rose drilled area. Totals may not sum correctly due to rounding.

  4. The resource modeling used data from surface NQ core drilling samples collected by First Gold Exploration in 2009 (10 DDH) and 2010 (129 DDH) totalling 3,083 assay intervals from 16,322 metres of drilling. A fixed density of 2.72 g/cm³ was used based on the average density measured in mineralized lithologies. A minimum width of 2.0 m was applied, using the grade of the adjacent material when assayed or value of zero when not assayed. Based on appropriate statistics, a capping of 15,000 was fixed for lithium, 1,000 for tantalum, 10,000 for rubidium, 850 for cesium, 600 for beryllium, and 150 for gallium. Raw assays were composited (after being capped) using 1.00 m drill hole intervals.

  5. The Resources were compiled using a cut-off grade of 0.75% Li2O based on the current estimation of the resource and market conditions. This cut-off must be re-evaluated in light of the present market conditions: lithium price, exchange rate and mining cost as well as possible recovery of other elements.

  6. No Measured Resources were estimated. Indicated and Inferred Resources were evaluated from drill holes results using a block model approach (inverse distance squared interpolation) with 5m blocks within GEMS software (version 6.2.4). The interpolation was constrained within five (5) individual 3D solids (Peg-1, Peg-2, Peg-3, Peg-4 and Peg-5).

  7. Calculations used metric units (meters, tonnes and ppm). Results were rounded to reflect their estimate nature. Tonnes are rounded to 1,000. Grades reported in percent were rounded to two decimals while grades reported in part per million (ppm) were rounded to the closest integer.

EXTRACTS FROM THE NI 43-101 COMPLIANT REPORT:

"The mineralized pegmatitic dykes are oriented N296 and show a shallow dip to the northwest averaging 15 degrees (locally from 5 to 20 degrees). The main zone (Peg-1) was identified over a strike of 1,100 metres and remains open along strike at depth."

"The interpretation of the mineralized envelope was solely based on lithium grades and did not take into account other elements (Ta, Rb, Cs, Ga, Be). However, the other elements were interpolated within the lithium-mineralized envelopes. On several occasions, the pegmatitic dykes showed significant grades in one or more of the other elements but below cut-off lithium grades. These dikes extensions were excluded from the resource estimation. The authors believe that a re-evaluation of the deposit should be conducted in order to take into account tantalum-rich zones where lithium is absent. "

"Based on lithium grades, Peg-1 is, so far, only limited by topography. It is open along strike to the southeast and to the northwest as well as at depth. Peg-2 is open at depth and along strike to the northwest while the southeast strike needs more drilling to explore its potential. Peg-3 is constrained by topography and by negative drill holes in all other directions. Peg-4 is open along strike to the southeast and at depth. Peg-5 is open along strike to the northwest and at depth"

"The block model indicates that the entire reported resource extends to a depth of 210 metres, which limit is controlled by the existing drilling."

"There is considerable potential to increase tonnage with additional drilling of the known pegmatitic dykes at depth and along strike. In addition, the current geological setting suggests that there is reasonable potential to identify new zones in the immediate environment."

Different cut-offs were calculated. While the 0.75% Li2O cut-off is the official cut-off of this resource estimate, other cut-offs are presented here:

Indicated Resources

Cut-off  Tonnes Li Li2O   Ta2O5 Rb Cs BeO Ga
(% Li2O)     (x 1,000)  (ppm)  (%)   (ppm) (ppm) (ppm) (ppm)   (ppm)
>0.25% 12,783 5,881 1.27%   164 2,610 107 369 70
>0.50% 12,426 5,992 1.29%   165 2,631 107 372 71
>0.75% 11,453 6,251 1.34%   165 2,668 106 377 71
>0.80% 11,133 6,327 1.36%   166 2,681 106 377 71
>1.00% 10,023 6,561 1.41%   167 2,690 104 380 72
>1.25% 7,264 7,041 1.52%   166 2,660 99 377 73
>1.50% 3,302 7,795 1.68%   162 2,567 90 383 74
>1.75% 894 8,802 1.90%   159 2,281 77 361 76
>2.00% 155 9,835 2.12%   160 1,924 64 386 78

Inferred Resources

Cut-off  Tonnes Li Li2O   Ta2O5 Rb Cs BeO Ga
(% Li2O)   (x 1,000)  (ppm)  (%)   (ppm) (ppm) (ppm) (ppm)   (ppm)
>0.25% 2,801 5,070 1.09%                    136 1,453 98 298 69
>0.50% 2,411 5,589 1.20%                    140 1,484 100 302 70
>0.75% 2,170 5,878 1.27%                    138 1,529 100 311 70
>0.80% 2,049 6,013 1.29%                    139 1,567 101 311 70
>1.00% 1,614 6,511 1.40%                    143 1,498 97 308 72
>1.25% 1,232 6,890 1.48%                    143 1,498 96 302 73
>1.50% 587 7,282 1.57%                    140 1,451 89 278 72
>1.75% 3 8,634 1.86%                    153 302 111 67 80
>2.00% 0 0 0.00%   0   0 0 0 0

Jean-Sebastien Lavallee (OGQ #773), geologist, shareholder and president and chief executive officer by interim of the Company and a Qualified Person under NI 43-101, has reviewed and approved the technical content of this release.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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