Forge Resources Encounters Coal Seam During Decline Development at La Estrella, Extraction for Analysis Is Underway
Rhea-AI Summary
Forge Resources Corp. (OTCQB: FRGGF) has encountered a significant coal seam during underground decline development at its La Estrella coal project in Colombia. The discovered seam measures 0.5 to 1.0 meters in thickness and is currently being extracted for laboratory analysis to determine if it represents a new unidentified seam or is part of known deposits.
The Company is conducting channel sampling and bulk sample collection to assess the coal's quality and market suitability. This development aligns with Forge's previously announced bulk sampling campaign and demonstrates progress in their mining operations. The discovery comes amid a broader resurgence in the coal sector, marked by strong performance in the VanEck Coal ETF and robust demand from Asian and European markets.
[ "Discovery of new coal seam measuring 0.5-1.0 meters in thickness", "Project benefits from favorable coal market conditions with strong global demand", "Fully permitted project with existing infrastructure in place", "Strategic location with potential for low-cost logistics" ]Positive
- None.
Negative
- Coal seam analysis results still pending to confirm quality and market suitability
- Relatively thin seam thickness compared to some commercial operations
News Market Reaction – FRGGF
On the day this news was published, FRGGF gained 16.91%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Vancouver, British Columbia--(Newsfile Corp. - July 24, 2025) - Forge Resources Corp. (CSE: FRG) (OTCQB: FRGGF) (FSE: 5YZ) ("FRG" or the "Company) is pleased to announce that it has encountered a coal seam while advancing the underground decline at its fully permitted flagship La Estrella coal project in Colombia. The seam observed within the primary tunnel development (Figure 1) is being selectively extracted for lab analysis.
Figure 1. Coal seam exposed in development face
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The coal seam measures approximately 0.5 to 1.0 meters in thickness (Figure 2). The exposed seam is being safely extracted and separated (Figure 3 and 4), with channel samples being taken for lab analysis. The results from these bulk samples will help the Company better determine if this is a new unidentified seam, or part of the already known seams at the La Estrella coal project. This initial data is highly valuable and allows Forge to confidently move forward with its bulk sampling campaign, as previously announced and planned. Laboratory testing will also assess the coal's quality and market suitability. Forge is encouraged by this development and the ongoing advancement of its decline. The Company will provide further updates as results become available.
PJ Murphy, CEO states: "This coal seam exposure highlights the near-term potential of our deposit and underscores the efficiency of our decline strategy. Our team moved quickly to safely extract material while maintaining momentum on decline development. We look forward to conducting further sampling and characterization of the coal."
Figure 2. Exposed coal seam within decline tunnel, outlined and measured
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Figure 3. Coal being extracted for analysis
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Figure 4. A portion of extracted coal sample from encountered seam on surface
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Coal Resource Sector
In recent months, the coal sector has experienced a notable resurgence, reflected in the strong performance of the VanEck Coal ETF, which has seen a marked increase amid rising global demand and tightening supply. Driven by sustained industrial activity in Asia, energy security concerns in Europe, and resilient thermal coal pricing, investor sentiment toward coal equities has improved significantly. At the same time, metallurgical coal markets remain robust, buoyed by ongoing steel production and infrastructure investment. This trend highlights a broader recovery in the coal resource market, with capital increasingly flowing into high-quality, strategically located coal projects, particularly those offering near-term production potential and low-cost logistics.
Figure 5. Aerial image of surface infrastructure
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Qualified Person
Lorne Warner, President and P. Geo, is a qualified person as defined by National Instrument 43-101 and has reviewed and approved the scientific and technical disclosure in this news release.
About Forge Resources Corp.
Forge Resources Corp. is a Canadian-listed junior exploration company. The Company holds an
On behalf of the Board of Directors
"PJ Murphy", CEO Forge Resources Corp.
info@forgeresources.com
Forward-Looking Statements
Certain of the statements made and information contained herein may contain forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information includes, but is not limited to, information concerning the Aion Acquisition. Forward-looking information is based on the views, opinions, intentions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated or projected in the forward-looking information (including the actions of other parties who have agreed to do certain things and the approval of certain regulatory bodies). Many of these assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. In particular, there can be no assurance that the Proposed Transaction will be completed as described or at all. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by applicable securities laws, or to comment on analyses, expectations or statements made by third parties in respect of the Company, its financial or operating results or its securities. The reader is cautioned not to place undue reliance on forward-looking information. We seek safe harbor.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/259915
FAQ
What did Forge Resources (FRGGF) discover at its La Estrella project in Colombia?
How thick is the newly discovered coal seam at Forge Resources' La Estrella project?
What is the current status of the coal market according to Forge Resources' announcement?
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Who is the qualified person reviewing Forge Resources' La Estrella project results?
