Skye Resources Inc.
TSX VENTURE : SKR
TSX : SKR

Skye Resources Inc.

November 30, 2005 12:26 ET

Skye Provides Additional Drill Results From Fenix

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 30, 2005) - Skye Resources Inc. (TSX VENTURE:SKR) today provided further assay results from the drilling program underway at its Fenix ferro-nickel project in eastern Guatemala. Six diamond drilling rigs are currently working on three separate deposits that are expected to be part of the mine plan in the feasibility study due for completion in mid - 2006. Infill drilling on these deposits, known as Area 251, Area 217 and Area 215, is being done on a 50 x 50 m grid pattern.

Highlights of the initial results include:



Area 251:
- Hole 33365 26.8 m grading 2.24 %Ni
- Hole 33304 13.8 m grading 2.25% Ni
- Hole 33066 11.8 m grading 2.38% Ni
- Hole 33124 10.8 m grading 2.45% Ni
- Hole 33038 10.5 m grading 2.56% Ni
- Hole 33153 10.4 m grading 2.47% Ni
- Hole 33451 8.1 m grading 2.41% Ni
- Hole 33340 6.4 m grading 2.31% Ni

Area 217:
- Hole 30174 7.1 m grading 2.62% Ni
- Hole 30203 8.6 m grading 2.12% Ni
- Hole 30218 13.8 m grading 1.94% Ni


Today's results were from the first 150 of a planned total of 650 infill holes from Area 251, and the first 41 of a planned total of about 300 infill holes from Area 217. Of these, 71 in Area 251 had intercepts for zones 2 m or wider at a nominal cut-off grade of 1.5% Ni, a further 26 holes had intercepts 2 m or wider in excess of 1% Ni and 53 holes had no significant results. In Area 217, 27 holes had intercepts 2 m or wider above 1.5% Ni, 9 had intercepts 2 m or wider in excess of 1% Ni and 5 had no significant results. The composited mineralized intercepts comprise saprolite and transitional saprolite and exclude high iron limonite zones. The assay intercepts above 1.5% Ni are summarized in Table 1. Results from 3 twin holes; one in area 213 and two from area 217, which have not been previously released, are also included.

"The results continue to demonstrate the consistently good overall grades present at Fenix," said Colin McKenzie, VP Exploration, Skye Resources. "Preliminary interpretation of the holes which were not mineralized indicates that many are located on the margins of the deposits where the historic drilling indicated the laterite profile is either poorly developed or has not been preserved."

The company will continue to release results from all three deposits as assays become available.

Dr. Paul Golightly, P.Geo is the independent QP, as defined under NI43-101, responsible for the quality control and verification of the data contained in this release. Details of the procedures for logging, sampling, assaying and quality control measures are given on the company's website: www.skyeresources.com.

Mineralized intercepts are herein reported using a 1.5% Ni cut-off for minimum vertical widths of 2 meters. The intercepts are averages weighted by sample length and a calculated density. New resource and reserve cut-off grades will be determined by Skye Resources during the course of its feasibility study of the Fénix Project (see February 28, 2005 news release: Feasibility Study to Commence Immediately; 45,000 Meter Drill Program Commences).

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 Fénix 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 presentation. 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 Fénix 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.



Table 1.

------------------------------------------------------------------
Area Hole From To Intercept %Ni
(m) (m) (m)
------------------------------------------------------------------
213 32009 0.8 8.6 7.8 1.84
------------------------------------------------------------------
217 30094 18.3 30.7 12.4 2.36
-----------------------------------------------------
30095 23.4 41.2 17.8 2.12
------------------------------------------------------------------
251 33008 6.6 13.5 6.9 1.85
-----------------------------------------------------
33014 11 19.9 8.9 2.19
-----------------------------------------------------
33016 14.3 19 4.7 2.43
-----------------------------------------------------
33017 9 11.1 2.1 1.70
-----------------------------------------------------
33025 20.8 23.6 2.8 2.17
-----------------------------------------------------
33034 10.6 14.3 3.7 1.51
-----------------------------------------------------
33035 14.4 19.7 5.3 2.08
-----------------------------------------------------
33036 12.1 15.1 3.0 1.84
-----------------------------------------------------
33037 25.4 28 2.6 1.72
-----------------------------------------------------
33038 7.6 18.1 10.5 2.56
-----------------------------------------------------
33039 10.1 12.5 2.4 1.57
-----------------------------------------------------
33040 10 16 6.0 1.85
-----------------------------------------------------
33041 1.45 4.7 3.3 1.90
-----------------------------------------------------
33042 7.7 14 6.3 1.53
-----------------------------------------------------
33054 8.6 22.6 14.0 2.06
-----------------------------------------------------
33055 7.5 13.8 6.3 1.74
-----------------------------------------------------
33058 7.2 12.5 5.3 1.87
-----------------------------------------------------
33066 4.2 16 11.8 2.38
-----------------------------------------------------
33068 11.6 16.9 5.3 1.56
-----------------------------------------------------
33069 6 10.5 4.5 1.54
-----------------------------------------------------
33077 5.5 7.7 2.2 1.51
-----------------------------------------------------
33085 10.6 21.2 10.6 1.62
-----------------------------------------------------
33087 15.4 18.2 2.8 2.08
-----------------------------------------------------
33095 12 13.7 1.7 2.03
-----------------------------------------------------
33096 11.5 16 4.5 2.01
-----------------------------------------------------
33097 8.4 20.9 12.5 1.76
-----------------------------------------------------
33099 14.6 30.5 15.9 1.96
-----------------------------------------------------
33100 27.1 44.6 17.5 1.80
-----------------------------------------------------
33123 18.6 23.7 5.1 1.88
-----------------------------------------------------
33124 11 21.8 10.8 2.45
-----------------------------------------------------
33125 23.8 29.5 5.7 2.10
-----------------------------------------------------
33126 15.3 17.6 2.3 1.58
-----------------------------------------------------
33128 8.1 11.2 3.1 1.56
-----------------------------------------------------
33153 8.6 19 10.4 2.47
-----------------------------------------------------
33154 10.6 20.6 9.8 1.94
-----------------------------------------------------
33155 13.6 21.3 7.7 1.72
-----------------------------------------------------
33158 19.3 33.5 14.2 1.98
-----------------------------------------------------
33168 14.6 17 2.4 1.84
-----------------------------------------------------
33195 16.5 25.1 8.6 1.53
-----------------------------------------------------
33198 8.1 13 4.9 1.82
-----------------------------------------------------
33221 8.5 13.1 4.6 1.60
-----------------------------------------------------
33222 10.4 16.1 5.7 2.01
-----------------------------------------------------
33223 14 16.2 2.2 1.61
-----------------------------------------------------
33224 2.4 5.1 2.7 2.43
-----------------------------------------------------
33230 19.1 21.8 2.7 1.56
-----------------------------------------------------
33231 27 29.6 2.6 2.04
-----------------------------------------------------
33232 19.1 22 2.9 1.90
-----------------------------------------------------
33233 6.7 11.4 4.7 1.75
-----------------------------------------------------
and 14.4 16.4 2.0 1.97
-----------------------------------------------------
33244 9.2 13 3.8 1.74
-----------------------------------------------------
33261 13.5 19.1 5.6 2.04
-----------------------------------------------------
33264 9.9 16.9 7.0 1.99
-----------------------------------------------------
33266 17 22.9 5.9 2.13
-----------------------------------------------------
33294 7.2 19.1 11.9 2.06
-----------------------------------------------------
33296 16.1 22.4 6.3 2.22
-----------------------------------------------------
33304 4.7 18.5 13.8 2.25
-----------------------------------------------------
33308 16.6 20.9 4.3 2.01
-----------------------------------------------------
33334 14.2 17.4 3.2 1.91
-----------------------------------------------------
33335 12 17.7 5.7 1.52
-----------------------------------------------------
33339 7.1 20.8 13.7 1.73
-----------------------------------------------------
33340 11 17.4 6.4 2.31
-----------------------------------------------------
33363 3.9 8.1 4.2 1.51
-----------------------------------------------------
33365 1.2 28 26.8 2.24
-----------------------------------------------------
33381 7.2 9.6 2.4 2.06
-----------------------------------------------------
33383 9.1 12.1 3.0 1.78
-----------------------------------------------------
33420 10.1 17.1 7.0 1.67
-----------------------------------------------------
33421 12.6 15.6 3.0 1.52
-----------------------------------------------------
33451 2.6 10.7 8.1 2.41
-----------------------------------------------------
33453 15.5 28.4 12.9 1.92
-----------------------------------------------------
33468 15.3 24.7 9.4 2.06
-----------------------------------------------------
33504 10.6 14.2 3.6 1.89
-----------------------------------------------------
33535 11.5 20.3 8.8 1.83
------------------------------------------------------------------
217 30110 18.5 21.3 2.8 1.63
-----------------------------------------------------
30115 12.8 26.3 13.5 1.58
-----------------------------------------------------
30117 16 25.7 9.7 1.81
-----------------------------------------------------
30124 22.2 25.3 3.1 2.26
-----------------------------------------------------
30127 25.8 33.4 7.6 1.60
-----------------------------------------------------
30128 20.2 22.5 2.3 1.72
-----------------------------------------------------
30129 19.9 22.9 3.0 1.67
-----------------------------------------------------
30139 16.2 18.8 2.6 1.56
-----------------------------------------------------
30140 21 22.9 1.9 1.61
-----------------------------------------------------
30143 11.6 15.4 3.8 1.83
-----------------------------------------------------
30148 17.7 21.7 4.0 1.64
-----------------------------------------------------
30150 11.4 15.4 4.0 1.72
-----------------------------------------------------
30155 6.9 11.6 4.7 1.73
-----------------------------------------------------
30158 7.1 16.0 8.9 1.91
-----------------------------------------------------
30165 8 12.2 4.2 2.16
-----------------------------------------------------
30174 23.3 30.4 7.1 2.62
-----------------------------------------------------
30175 13.75 29.3 15.6 1.90
-----------------------------------------------------
30179 5.5 16.2 10.7 1.93
-----------------------------------------------------
30187 21.4 28.6 7.2 1.76
-----------------------------------------------------
30198 22.9 27.0 9.6 1.58
-----------------------------------------------------
30199 11.7 13.5 1.8 1.83
-----------------------------------------------------
30201 16.9 25.3 8.4 1.70
-----------------------------------------------------
30203 30 38.6 8.6 2.12
-----------------------------------------------------
30205 16.2 19.3 3.1 1.71
-----------------------------------------------------
30211 2.5 9.6 7.1 1.95
-----------------------------------------------------
30218 11.5 25.3 13.8 1.94
-----------------------------------------------------
30229 2.7 6.7 4.0 1.60
------------------------------------------------------------------

Contact Information

  • Skye Resources Inc.
    Colin McKenzie
    Vice President, Exploration
    (604) 602-9500

    or

    The Equicom Group
    David Feick
    Investor Relations

    or

    The Equicom Group
    Martti Kangas
    Investor Relations
    (416) 815-0700