Skye Resources Inc.
TSX : SKR

Skye Resources Inc.

May 10, 2006 16:16 ET

Skye Reports Further Assay Results From Areas 215 and 251

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 10, 2006) - Skye Resources Inc. (TSX:SKR) today announced recent assay results from the completed feasibility study drilling program on its Fenix ferronickel laterite project in eastern Guatemala. All assay results have now been received from this program and are being processed and verified before transmission to Snowden Mining Consultants Inc. for estimation of resources in deposit Areas 212, 213, 215, 217 and 251.

The results tabulated herein are from Areas 215 and 251. Area 215 is located 3 km north of the Fenix plant site at elevations between 750 and 800 m. The 310 hole program tested part of the deposit over an area of 3 by 0.5 km. Area 251 is a large laterite landform about 20 km west of the plant site. In the current program 703 holes were completed on a 50 x 50 m grid pattern over an area 3.5 km long with an average width of 1 km.

The final release of holes from the feasibility phase of drilling will be issued in the near future.



Highlights of current results:

Area 215:

- Hole 30589 15.8 m grading 2.08 % Ni
- Hole 30591 10.8 m grading 2.20 % Ni
- Hole 30603 10.5 m grading 2.50 % Ni
- Hole 30607 13.7 m grading 2.08 % Ni
- Hole 30968 8.8 m grading 2.53 % Ni
- Hole 30974 7.3 m grading 3.77 % Ni

Area 251:

- Hole 33448 13.3 m grading 2.37 % Ni
- Hole 33456 22.3 m grading 2.45 % Ni
- Hole 33567 16.7 m grading 2.03 % Ni
- Hole 33591 18.5 m grading 2.00 % Ni
- Hole 33645 20.6 m grading 1.98 % Ni
- Hole 33839 14.1 m grading 2.37 % Ni
- Hole 33888 13.6 m grading 2.41 % Ni


In this release, 76 holes for Area 215 and 184 holes for Area 251 have been evaluated. For Area 215, 58 composites are reported and the remaining 18 are reported as, "No significant results" (Table 1). However, 2 holes contained mineralized intercepts exceeding the nominal 1.5% Ni cut-off but over zones less than 2 m wide. In the results for Area 251 (Table 2), 9 holes did not meet the minimum width criteria but had intercepts for zones less than 2 m wide but at grades exceeding the nominal cut-off of 1.5% Ni. Another 4 holes reported as "No significant results" actually contain intercepts exceeding the grade and minimum width criteria but which are chemically classed as limonite rather than saprolite.

To view a map of this area please visit our website at www.skyeresources.com.

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. The forward-looking statements included in this news release represent Skye's views as of the date of this news release. While Skye anticipates that subsequent events and developments may cause its views to change, it specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing its views as of any date subsequent to the date of 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.

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.



Table 1.


From To Intercept
Area Hole (m) (m) (m) % Ni

215 30508 18.0 20.0 2.0 1.76
30515 No significant results
30544 No significant results
30547 13.7 18.3 4.6 1.63
30548 17.7 23.3 5.6 1.59
30549 No significant results
30573 21.5 26.0 4.5 1.68
30575 10.7 17.7 7.0 2.23
30589 1.2 17.0 15.8 2.08
30590 2.7 6.1 3.4 1.85
30591 15.3 26.1 10.8 2.20
30592 9.6 21.3 11.7 1.67
30597 17.6 20.8 3.2 1.83
30598 10.5 19.5 9.0 2.34
30599 10.4 22.6 12.2 2.07
30601 4.7 7.1 2.4 2.03
30602 10.8 16.6 5.8 1.90
30603 10.9 21.4 10.5 2.50
30605 No significant results
30606 4.8 9.5 4.7 1.92
30607 4.8 18.5 13.7 2.08
30611 6.4 13.9 7.5 1.82
30612 12.5 14.8 2.3 1.76
30613 10.6 13.6 3.0 1.94
30616 11.0 17.7 6.7 1.52
30617 13.6 16.2 2.6 1.85
30618 13.0 15.0 2.0 2.12
30631 18.8 30.6 11.8 1.78
30635 10.8 13.8 3.0 2.04
30659 8.7 21.6 12.9 1.72
30667 No significant results
30680 No significant results
30694 12.0 21.4 9.4 1.78
30696 14.3 24.9 10.6 1.97
30697 9.8 18.5 8.7 2.15
30700 4.4 9.5 5.1 1.60
30702 No significant results
30705 No significant results
30709 No significant results
30729 No significant results
30779 9.4 18.1 8.7 2.15
30782 14.5 18.6 4.1 1.71
30790 No significant results
30791 5.4 13.2 7.8 2.30
30794 15.3 18.3 3.0 1.68
30796 4.0 6.5 2.5 2.06
30800 20.0 24.1 4.1 1.54
30801 No significant results
30813 7.7 25.0 17.3 1.61
30814 13.8 16.6 2.8 1.81
30815 No significant results
30816 20.1 24.1 4.0 1.70
30817 No significant results
30819 20.2 28.6 8.4 1.53
30820 18.4 22.3 3.9 1.72
30822 10.6 26.7 16.1 1.66
30830 15.0 18.6 3.6 1.93
30831 14.5 19.2 4.7 1.83
30833 No significant results
30842 No significant results
30844 10.1 19.3 9.2 2.42
30846 13.6 19.8 6.2 2.71
30963 5.8 12.6 6.8 2.43
30964 6.1 9.0 2.9 1.95
30966 7.6 17.1 9.5 2.11
30967 No significant results
30968 5.8 14.6 8.8 2.53
30969 14.3 19.7 5.4 3.26
30972 12.2 14.7 2.5 2.19
30974 14.8 22.1 7.3 3.77
30975 15.1 18.0 2.9 1.72
30976 19.1 22.7 3.6 1.65
30977 21.7 26.8 5.1 2.17
30978 No significant results
30981 8.3 11.0 2.7 1.78
30982 7.3 14.5 7.2 2.12

Table 2.

From To Intercept
Area Hole (m) (m) (m) % Ni

251 33183 8.7 16.8 8.1 1.93
33184 3.8 12.7 8.9 1.96
33185 5.0 8.3 3.3 2.24
33213 2.3 8.6 6.3 1.89
33217 17.0 26.6 9.6 1.49
33256 10.3 18.8 8.5 1.94
33257 6.5 14.6 8.1 1.95
33269 14.6 20.4 5.8 1.65
33285 No significant results
33287 3.5 6.6 3.1 2.16
33287 3.5 6.6 3.1 2.16
33332 12.2 24.5 12.3 1.75
33333 8.6 12.2 3.6 1.61
33345 0.7 5.3 4.6 1.97
33346 10.4 14.0 3.6 2.05
33347 15.0 23.8 8.8 1.59
33356 3.8 7.5 3.7 1.65
33358 6.0 13.0 7.0 2.52
33361 9.5 15.9 6.4 1.73
33362 3.0 9.2 6.2 1.67
33392 7.6 20.6 13.0 1.67
33399 0.0 7.1 7.1 1.99
33400 9.1 14.2 5.1 2.25
33401 6.9 16.4 9.5 2.18
33402 8.4 12.5 4.1 1.77
33403 5.7 7.7 2.0 1.97
33403 5.7 8.8 3.1 1.53
33424 12.0 20.4 8.4 1.68
33429 9.0 11.6 2.6 1.62
33434 No significant results
33435 6.9 9.9 3.0 1.80
33436 No significant results
33437 12.2 25.3 13.1 2.14
33437 12.2 26.6 14.4 2.10
33446 4.9 8.7 3.8 2.01
33447 1.6 9.5 7.9 2.34
33448 5.2 18.5 13.3 2.37
33450 7.2 17.8 10.6 2.22
33456 2.5 24.8 22.3 2.45
33483 10.0 26.2 16.2 1.88
33484 11.6 14.8 3.2 2.20
33487 7.5 16.7 9.2 2.61
33489 22.8 29.3 6.5 2.18
33494 10.6 16.8 6.2 1.53
33507 13.1 15.7 2.6 1.52
33514 10.7 15.5 4.8 2.25
33515 13.0 19.0 6.0 2.08
33517 16.8 23.0 6.2 1.89
33518 4.5 10.3 5.8 1.72
33523 6.9 16.0 9.1 1.89
33524 5.3 12.0 6.7 1.90
33536 No significant results
33546 16.0 24.2 8.2 1.98
33547 13.6 16.2 2.6 1.72
33550 10.1 12.4 2.3 2.10
33560 No significant results
33561 4.3 13.9 9.6 1.95
33562 8.2 22.6 14.4 1.62
33564 5.3 7.8 2.5 1.88
33567 4.5 21.1 16.6 2.03
33568 7.5 12.5 5.0 2.26
33569 6.5 12.5 6.0 2.21
33570 9.3 13.1 3.8 1.59
33571 4.6 8.8 4.2 1.67
33572 11.0 19.0 8.0 1.70
33573 5.8 15.0 9.2 1.82
33574 No significant results
33581 9.9 14.8 4.9 1.80
33582 7.5 19.8 12.3 1.97
33583 No significant results
33586 11.5 14.9 3.4 2.22
33590 10.5 17.4 6.9 1.78
33591 6.0 24.5 18.5 2.00
33592 6.3 13.1 6.8 2.01
33592 6.3 20.4 14.1 1.59
33593 3.4 12.5 9.1 2.29
33596 8.0 21.8 13.8 2.13
33598 1.2 4.3 3.1 2.04
33603 6.5 8.9 2.4 1.70
33604 10.1 15 4.9 1.85
33608 15.0 24.2 9.2 2.26
33609 12.8 31.9 19.1 1.78
33610 11.7 15.3 3.6 2.04
33611 11.8 16.3 4.5 2.04
33617 14.0 18.8 4.8 1.61
33618 No significant results
33621 9.1 16.0 6.9 1.89
33625 4.5 11.0 6.5 1.96
33627 8.1 17.2 9.1 2.01
33628 1.2 9.1 7.9 1.72
33629 1.1 4.2 3.1 1.83
33631 8.8 13.2 4.4 1.96
33634 4.7 10.9 6.2 1.95
33635 4.5 6.5 2.0 1.94
33642 5.8 11.5 5.7 2.06
33643 1.0 6.1 5.1 1.75
33644 10.8 13.9 3.1 1.77
33645 16.0 36.6 20.6 1.98
33668 8.5 15.9 7.4 2.42
33669 13.5 21.3 7.8 2.22
33674 2.4 13.8 11.4 1.95
33675 1.6 8.5 6.9 1.98
33676 0.6 2.6 2.0 1.80
33677 3.0 6.0 3.0 1.76
33679 8.1 12.8 4.7 1.80
33682 7.6 10.4 2.8 2.02
33687 11.5 14.2 2.7 1.79
33688 9.1 14.4 5.3 1.53
33689 9.5 20.1 10.6 1.57
33690 9.4 12.6 3.2 1.64
33695 14.9 24.0 9.1 1.69
33696 6.2 14.1 7.9 2.02
33703 11.1 13.2 2.1 1.75
33706 10.4 15.3 4.9 1.89
33713 3.8 8.8 5.0 1.70
33719 3.7 14.6 10.9 2.14
33726 13.8 23.2 9.4 2.56
33728 13.9 19.7 5.8 2.04
33729 No significant results
33730 9.3 11.7 2.4 1.51
33734 8.0 10.0 2.0 2.00
33741 12.3 20.5 8.2 1.71
33743 11.8 19.5 7.7 2.51
33744 9.0 14.0 5.0 1.58
33745 No significant results
33746 No significant results
33757 9.0 17.9 8.9 2.04
33758 10.0 14.3 4.3 2.24
33759 No significant results
33762 12.7 17.0 4.3 2.37
33770 7.9 20.5 12.6 2.22
33772 7.9 10.8 2.9 1.85
33779 6.6 16.2 9.6 2.20
33781 2.4 4.4 2.0 1.57
33801 11.9 14.6 2.7 1.86
33803 16.0 22.8 6.8 1.76
33805 15.3 22.9 7.6 2.04
33806 14.6 21.5 6.9 1.74
33807 15.5 18.1 2.6 1.63
33810 17.9 23.6 5.7 1.80
33812 16.7 19.0 2.3 1.88
33814 10.0 14.0 4.0 1.76
33816 18.9 24.2 5.3 1.83
33817 13.8 18.5 4.7 2.33
33819 24.7 30.7 6.0 1.95
33820 18.5 29.9 11.4 2.08
33821 23.0 27.9 4.9 1.66
33822 23.0 25.0 2.0 1.78
33825 15.5 19.5 4.0 2.20
33827 14.8 19.1 4.3 1.61
33828 14.7 17.7 3.0 1.64
33829 11.5 17.9 6.4 1.72
33830 19.9 31.7 11.8 2.27
33831 22.9 46.6 23.7 1.76
33832 21.4 34.7 13.3 1.74
33834 16.0 27.5 11.5 2.49
33835 12.0 14.7 2.7 1.71
33836 18.6 22.2 3.6 1.97
33837 6.3 13.0 6.7 1.80
33838 11.8 16.8 5.0 1.98
33839 2.8 16.9 14.1 2.37
33840 14.2 17.1 2.9 1.79
33842 15.3 26.8 11.5 2.00
33843 4.6 8.3 3.7 1.88
33844 10.3 19.3 9.0 1.95
33845 3.8 7.0 3.2 1.54
33850 17.05 19.0 2.0 2.21
33851 14.0 16.9 2.9 2.01
33852 12.7 16.0 3.3 2.02
33853 No significant results
33858 21.0 28.1 7.1 2.10
33860 8.0 15.3 7.3 2.09
33862 1.8 8.8 7.0 1.90
33864 6.0 13.3 7.3 2.28
33865 5.2 13.0 7.8 1.87
33869 3.6 10.4 6.8 2.48
33871 1.0 8.2 7.2 1.97
33872 13.7 19.2 5.5 1.84
33873 11.9 15.9 4.0 1.96
33874 0.3 14.4 14.1 1.95
33876 8.2 19.8 11.6 2.16
33877 10.6 16.2 5.6 2.15
33879 8.0 14.2 6.2 1.94
33888 12.1 25.7 13.6 2.41
33912 1.9 4.6 2.7 1.94

Contact Information

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