Skye Resources Inc.
TSX VENTURE : SKR
TSX : SKR

Skye Resources Inc.

March 06, 2006 15:57 ET

Skye Provides Update of Assay Results From Fenix Nickel Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 6, 2006) - Skye Resources Inc. ("Skye") today reported that it has received further assay results from the feasibility drilling program on its Fenix ferro-nickel project in eastern Guatemala. Assays from 10 additional twin holes drilled in Areas 212 and 213 for further density investigations and geological information are reported as well as results for 50 x 50 m grid drilling on Area 251, Area 217 and Area 215. The feasibility drilling was completed on January 31 and all samples have now been submitted for preparation and assay. Final assays for the program are expected in mid-March.



Highlights of current results:

Area 212:
- Hole 30297 17.5 m grading 2.47% Ni
- Hole 30299 17.7 m grading 2.97% Ni

Area 213:
- Hole 32012 16.2 m grading 3.02% Ni

Area 215:
- Hole 30610 8.9 m grading 2.17% Ni
- Hole 30684 15.6 m grading 1.89% Ni
- Hole 30754 14.4 m grading 2.01% Ni
- Hole 30755 10.1 m grading 2.05% Ni

Area 217:
- Hole 30910 13.9 m grading 1.82% Ni
- Hole 30921 12.4 m grading 2.03% Ni
- Hole 30924 9.3 m grading 2.11% Ni
- Hole 30949 10.5 m grading 1.93% Ni

Area 251:
- Hole 33646 7.9 m grading 1.98% Ni
- Hole 33662 7.3 m grading 2.04% Ni


This release reports the results of a further 68 of the total of 310 infill holes completed in Area 215, 39 holes of the 368 infill holes from Area 217 and an additional 9 of 700 infill holes from Area 251. The total is 126 new holes, including the 10 twin holes.

In Area 215, 61 holes have intercepts 2m or wider above a nominal cut-off of 1.5% Ni. Of the holes reported with no significant results, all 7 have intercepts above 1.5% Ni but less than 2 m in width and therefore do not meet the reporting criteria. In Area 217, 33 holes have intercepts meeting both reporting criteria. The other 6, with intercepts above 1.5% Ni but less than 2 m width, are reported as no significant results. For Area 251, 7 holes have intercepts for zones 2 m or wider above the nominal cut-off grade of 1.5% Ni, and 2 contain an intercept above 1.5% Ni but less than 2 m width.

The composited mineralized intercepts comprise saprolite and transitional saprolite but exclude high iron limonite zones. The composited assays for nickel are summarized in Table 1.

A third phase of drilling was initiated on the Fenix project February 1, 2006 with 3 drills. The machines will initially work in the 217-1 and 2 deposits in drilling holes central to each 50 X 50 m square. Following a geostatistical evaluation by Snowden Ltd., resource and mining consultants to the project, it was determined that this drill spacing will permit upgrading of indicated resources to measured. Additional drilling is also planned for the 215-2 area where the historic inferred resource will be drilled at 50 X 50 m spacing in order to upgrade the resource to the indicated category. This phase is expected to be completed by mid-year.

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. The Fenix Project diamond drill core is logged and marked for sampling by company geologists. Sample lengths are 0.3 to 1.3 metres. All boreholes (HQ size) are cut in half either by knife or diamond saw depending on sample hardness, with one half bagged and tagged for shipment to the sample preparation laboratory. The remaining half of the split core is returned to the core box for storage and future reference. Sample rejects are returned to the project after 15 days for long term storage; sample pulps are presently stored at the sample preparation lab.

Samples are shipped from the Fenix Project site to BSI Inspectorate in Guatemala City for sample preparation. Samples are dried at 105 degrees C for 12 hours, crushed to 90% less than 10 mesh, riffle split and pulverized to 95% less than 150 mesh. The prepared samples (150g to 200g of pulverized laterite) are air freighted to SGS Lakefield, Canada for assay by lithium borate fusion, XRF. SGS Lakefield has ISO/IEC 17025 accreditation for its mineral analytical services.

Twelve major element oxides, Loss on Ignition plus Ni and Co are analyzed. Detection limits are 0.05% for Ni and 0.01% for Co. Field duplicates (1:20) and standards or blanks (1:20) are inserted at the project site to monitor lab procedures and assay quality. All batches of analysis are subjected to statistical tests to ensure they meet established quality control criteria. Procedures for check assaying at a secondary lab are in place to further verify assay quality.

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 Fenix Project (see February 28, 2005 news release: Feasibility Study to Commence Immediately; 45,000 Meter Drill Program Commences).

A general description of the regional geological environment can be found in the August 5, 2005 Golightly Report posted on the Company's website at www.skyeresources.com.

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.



Table 1.

-----------------------------------------------------------------
From Intercept
Area Hole (m) To (m) (m) % Ni
----------------------------------------------------------
212 30292 13.8 32.7 18.9 2.37
----------------------------------------------------------
30293 19.8 28.5 8.7 1.67
----------------------------------------------------------
30294 1.2 11.1 9.9 2.46
----------------------------------------------------------
30295 14.8 31.6 16.8 2.20
----------------------------------------------------------
30296 16.3 29.5 13.2 2.18
----------------------------------------------------------
30297 22.0 39.5 17.5 2.47
----------------------------------------------------------
30298 10.5 24.3 13.8 1.98
----------------------------------------------------------
30299 1.9 19.6 17.7 2.87
-----------------------------------------------------------------
213 32012 0.0 16.2 16.2 3.02
----------------------------------------------------------
32013 0.0 21.2 21.2 2.84
-----------------------------------------------------------------
215 30546 6.0 8.8 2.8 1.99
----------------------------------------------------------
30584 7.9 10.3 2.4 1.61
----------------------------------------------------------
30585 22.0 26.7 4.7 1.54
----------------------------------------------------------
30586 18.4 20.4 2.0 1.62
----------------------------------------------------------
30593 18.6 21.2 2.6 1.97
----------------------------------------------------------
30604 20.0 22.5 2.5 1.83
----------------------------------------------------------
30608 no significant results
----------------------------------------------------------
30609 3.7 5.8 2.1 1.54
----------------------------------------------------------
30610 7.0 15.9 8.9 2.17
----------------------------------------------------------
30614 14.9 26.0 11.1 1.61
----------------------------------------------------------
30615 14.6 16.6 2.0 2.25
----------------------------------------------------------
30619 17.0 21.1 4.1 1.98
----------------------------------------------------------
30620 17.5 20.2 2.7 1.74
----------------------------------------------------------
30623 no significant results
----------------------------------------------------------
30624 19.4 25.6 6.2 2.04
----------------------------------------------------------
30625 21.5 31.3 9.8 1.86
----------------------------------------------------------
30632 25.4 32.7 7.3 1.97
----------------------------------------------------------
30633 23.3 25.3 2.0 1.85
----------------------------------------------------------
30648 17.3 20.6 3.3 1.66
----------------------------------------------------------
30652 14.2 24.8 10.6 1.80
----------------------------------------------------------
30658 39.5 44.2 4.7 1.84
-----------------------------------------------------------------
30661 21.6 33.7 12.1 2.20
----------------------------------------------------------
30663 21.0 27.0 6.0 2.13
----------------------------------------------------------
30666 20.9 28.8 7.9 1.75
----------------------------------------------------------
30668 31.2 37.2 6.0 1.51
----------------------------------------------------------
30672 3.3 6.3 3.0 1.90
----------------------------------------------------------
30674 14.5 24.3 9.8 1.77
----------------------------------------------------------
30675 18.4 25.4 7.0 2.01
----------------------------------------------------------
30676 no significant results
----------------------------------------------------------
30677 11.9 22.4 10.5 1.90
----------------------------------------------------------
30682 1.2 3.8 2.6 1.87
----------------------------------------------------------
30683 12.4 21.3 8.9 1.64
-----------------------------------------------------------------
215 30684 8.5 24.1 15.6 1.89
----------------------------------------------------------
30685 10.6 19.2 8.6 2.28
----------------------------------------------------------
30686 15.5 19.6 4.1 2.03
----------------------------------------------------------
30687 15.5 24.5 9.0 2.04
----------------------------------------------------------
30688 no significant results
----------------------------------------------------------
30689 21.8 24.2 2.4 1.87
----------------------------------------------------------
30690 16.4 19.6 3.2 1.55
----------------------------------------------------------
30693 no significant results
----------------------------------------------------------
30695 14.3 17.0 2.7 1.78
----------------------------------------------------------
30698 19.2 27.5 8.3 1.90
----------------------------------------------------------
30699 no significant results
----------------------------------------------------------
30701 16.6 19.3 2.7 1.56
----------------------------------------------------------
30706 9.7 15.5 5.8 1.60
----------------------------------------------------------
30707 11.0 14.6 3.6 1.81
----------------------------------------------------------
30708 15.6 20.3 4.7 1.97
----------------------------------------------------------
30710 22.1 30.1 8.0 2.14
----------------------------------------------------------
30711 14.0 21.6 7.6 1.87
----------------------------------------------------------
30712 17.8 20.6 2.8 2.24
----------------------------------------------------------
30717 1.8 5.6 3.8 1.85
----------------------------------------------------------
30718 11.9 14.2 2.3 1.79
----------------------------------------------------------
30719 18.5 26.0 7.5 2.00
----------------------------------------------------------
30720 14.2 20.2 6.0 2.03
----------------------------------------------------------
30721 16.5 20.5 4.0 2.10
----------------------------------------------------------
30730 6.4 9.6 3.3 2.49
----------------------------------------------------------
30731 13.2 17.1 3.9 1.93
----------------------------------------------------------
30736 9.8 12.9 3.2 1.62
----------------------------------------------------------
30737 14.3 19.6 5.3 2.81
----------------------------------------------------------
30741 5.9 8.0 2.1 2.18
----------------------------------------------------------
30742 11.4 14.0 2.6 2.21
----------------------------------------------------------
30743 11.9 21.4 9.5 1.83
----------------------------------------------------------
30753 3.8 5.8 2.0 1.99
----------------------------------------------------------
30754 7.4 21.8 14.4 2.01
----------------------------------------------------------
30755 11.5 21.6 10.1 2.05
----------------------------------------------------------
30765 no significant results
----------------------------------------------------------
30766 10.0 22.2 12.2 1.94
----------------------------------------------------------
30767 11.0 13.0 2.0 1.65
-----------------------------------------------------------------
217 30865 15.6 17.0 1.4 2.35
----------------------------------------------------------
30872 29.2 32.5 3.3 2.12
----------------------------------------------------------
30877 no significant results
----------------------------------------------------------
30881 no significant results
----------------------------------------------------------
30883 25.0 27.8 2.8 2.40
----------------------------------------------------------
30891 2.8 6.1 3.3 2.22
----------------------------------------------------------
30892 9.1 11.5 2.4 2.07
-----------------------------------------------------------------
217 30894 1.7 10.5 8.8 1.64
----------------------------------------------------------
30895 18.3 20.9 2.6 1.59
----------------------------------------------------------
30895 22.1 24.9 2.8 1.55
----------------------------------------------------------
30897 no significant results
----------------------------------------------------------
30899 no significant results
----------------------------------------------------------
30901 11.4 22.1 10.8 1.73
----------------------------------------------------------
30902 17.0 25.4 8.4 1.82
----------------------------------------------------------
30903 21.9 24.9 3.0 1.90
----------------------------------------------------------
30904 no significant results
----------------------------------------------------------
30905 16.6 18.6 2.0 1.54
----------------------------------------------------------
30907 7.5 12.0 4.5 2.20
----------------------------------------------------------
30908 22.0 24.5 2.5 1.90
----------------------------------------------------------
30910 20.3 34.2 13.9 1.82
----------------------------------------------------------
30911 15.6 22.8 7.2 1.95
----------------------------------------------------------
30912 17.4 21.3 3.9 1.70
----------------------------------------------------------
30920 24.4 27.1 2.8 1.75
----------------------------------------------------------
30921 25.4 37.8 12.4 2.03
----------------------------------------------------------
30922 25.4 27.9 2.5 2.05
----------------------------------------------------------
30923 17.5 24.6 7.1 1.69
----------------------------------------------------------
30924 25.5 34.8 9.3 2.11
----------------------------------------------------------
30925 24.0 26.4 2.4 1.66
----------------------------------------------------------
30926 20.4 25.5 5.1 2.22
----------------------------------------------------------
30927 16.5 18.8 2.3 2.05
----------------------------------------------------------
30946 20.9 25.2 4.3 1.79
----------------------------------------------------------
30947 15.5 18.7 3.2 1.66
----------------------------------------------------------
30949 14.0 24.5 10.5 1.93
----------------------------------------------------------
30949 14.0 30.5 16.5 1.74
----------------------------------------------------------
30950 25.0 28.4 3.4 1.99
----------------------------------------------------------
30952 26.2 31.4 5.2 1.94
----------------------------------------------------------
30954 24.5 29.0 4.5 1.68
----------------------------------------------------------
30958 10.8 15.7 5.0 1.75
----------------------------------------------------------
30962 no significant results
-----------------------------------------------------------------
251 33348 2.8 5.3 2.5 1.52
----------------------------------------------------------
33508 10.8 19.1 8.4 1.87
----------------------------------------------------------
33545 9.3 11.8 2.5 1.64
----------------------------------------------------------
33585 no significant results
----------------------------------------------------------
33614 no significant results
----------------------------------------------------------
33646 6.2 14.1 7.9 1.98
----------------------------------------------------------
33662 10.6 17.9 7.3 2.04
----------------------------------------------------------
33664 8.8 27.1 18.3 1.51
----------------------------------------------------------
33666 18.7 40.7 22.1 1.79
----------------------------------------------------------

Contact Information

  • Skye Resources Inc.
    Colin McKenzie
    Vice President, Exploration
    (604) 602-9500
    Website: www.skyeresources.com