Skye Resources Inc.
TSX VENTURE : SKR
TSX : SKR

Skye Resources Inc.

March 30, 2006 13:50 ET

Skye Completes Atmospheric Leaching Pilot Plant Program

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 30, 2006) - Skye Resources Inc. ("Skye") today announced the successful completion of the pilot plant testing of its proprietary Sulphation Atmospheric Leach ("SAL") process for the recovery of nickel and cobalt from nickel laterites.

"Given the positive results from the pilot plant program, Skye has initiated a preliminary assessment to determine the approximate capital and operating costs of a proposed 50 million pound per year expansion of the Fenix project" said Ian Austin President and CEO of Skye Resources.

Both the assessment and the current feasibility study on the Fenix project are being prepared primarily by Hatch Ltd. and will be completed in the third quarter of 2006. The Preliminary Assessment initially will compare the SAL Process to the High Pressure Acid Leach (HPAL) Process, and one of these options will be selected for detailed cost estimation. Either option would allow exploitation of the limonite resources associated with the Fenix project.

The testing was carried out by SGS Minerals Services in Lakefield, Ontario, Canada. Ten continuous test campaigns were completed between February and December 2005 using bulk samples of nickel and cobalt bearing laterites taken from Skye's Fenix project in Guatemala. The final 10-day campaign achieved overall recoveries of 85.4 % for nickel and 84.8 % for cobalt from ore through production of a mixed hydroxide intermediate product.

The SGS Minerals Services Final Report, which was received in March 2006, said that, "Based on the smooth operation of the last 5 days of the final integrated campaign and the virtually zero downtime of all unit processes, the SAL process flow sheet appears to be fundamentally sound."

More detailed information concerning the pilot plant program is available on the company's website www.skyeresources.com

About Skye

Skye is an international mining company focused on becoming a new mid- tier nickel producer. The Company acquired the rights to its Guatemalan lateritic nickel project (the Fenix project) in December 2004 and is currently undertaking a feasibility study for a 50 million pound per year ferro-nickel operation using proven conventional smelting technology.

Cautionary Notices:

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, capital and other costs and credits, timing for and results of feasibility study and other programs, receipt of property titles, potential mineral recovery processes, and other related matters. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The Fenix Project is at an early stage and all estimates and projections are based on limited, and possibly incomplete, data. More work is required before the mineralization and the Project's economic aspects can be confidently modeled. Actual results may differ materially from those currently anticipated in this news release. No representation or prediction is intended as to the results of future work, nor can there be any promise that the estimates and projections herein will be sustained in future work or that the Project will otherwise prove to be economic.

Inco Limited, the former 70% owner of the facilities and mineral rights that comprise the Fenix project, takes no responsibility for nor makes any representation or warranty of any kind relating to any information contained in this news release.

All subsequent written and oral forward looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this notice.

Contact Information

  • Skye Resources Inc.
    David Neudorf
    VP, Technology and Development
    (604) 602-9500
    Website: www.skyeresources.com