Skye Resources Inc.
TSX VENTURE : SKR
TSX : SKR

Skye Resources Inc.

January 11, 2006 15:28 ET

Skye Reports Further Assay Results From Fenix Nickel Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 11, 2006) - Skye Resources Inc. ("Skye") today reported that it has received further assay results from the drilling program underway for its Fenix ferro-nickel project in eastern Guatemala. Infill drilling on three deposits, known as Area 251, Area 217 and Area 215, has been carried out on a 50 x 50 m grid pattern in support of the feasibility study currently in progress.

The following represents the highlights of these latest results:



Area 217:
- Hole 30273 12.1 m grading 2.13% Ni
- Hole 30276 7.1 m grading 2.14% Ni
- Hole 30419 9.1 m grading 2.03% Ni
- Hole 30868 15.1 m grading 1.92% Ni

Area 215:
- Hole 30510 5.9 m grading 2.25% Ni
- Hole 30533 7.9 m grading 1.98% Ni
- Hole 30554 3.2 m grading 2.28% Ni
- Hole 30565 11.1 m grading 1.85% Ni

Area 251:
- Hole 33139 4.3 m grading 2.18% Ni
- Hole 33214 8.2 m grading 2.18% Ni
- Hole 33488 6.0 m grading 1.97% Ni


This release reports the results of a further 33 of a planned total of 365 infill holes from Area 217, the first 41 holes of a planned total of 310 infill holes in Area 215 and an additional 16 of a planned total of 679 infill holes from Area 251.

In Area 217, 21 holes have intercepts 2m or wider above a nominal cut-off of 1.5% Ni. Of the holes reported with no significant results, holes 30283 and 30440 have intercepts above 1.5% Ni but less than 2 m width and the other 10 holes meet neither reporting criteria.

In Area 215, 27 holes have intercepts meeting both reporting criteria, holes 30541, 30555 and 30578 have intercepts above 1.5% Ni but less than 2 m width and 11 holes have results which meet neither criteria. For Area 251, 12 holes had intercepts for zones 2 m or wider at a nominal cut-off grade of 1.5% Ni, hole 33191 contained an intercept above 1.5% Ni but less than 2 m width and a further 3 holes had no significant results.

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

The 104 previously reported twin holes in Areas 212, 213 and 217 successfully met the following objectives:

- confirmed the historic interpretation of deposit geology

- confirmed the general thickness and grade of the component units of the laterite profile

- evaluated the mechanical bias associated with the historic auger drilling

- provided multi-element data to permit the calculation of magnesium and silicon as a function of iron in the historic data

- investigated areas of deep saprolite development where high nickel grades at the bottom of historic holes implied the presence of mineralized material below the known mineralization

Last month, an additional 10 twin holes were drilled in Areas 212 and 213 to collect further core for density tests in order to supplement the existing density database. The goal of this work is to reliably relate the density to the iron content of each sample.

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 being put 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 To Intercept
Area Hole (m) (m) (m) %Ni
-------------------------------------------------------
217 30206 20.3 28.0 7.7 1.90
-------------------------------------------------------
30233 8.1 15.2 7.1 1.94
-------------------------------------------------------
30234 7.0 12.5 5.5 1.81
-------------------------------------------------------
30254 14.5 16.5 2.0 1.57
-------------------------------------------------------
30269 16.0 22.0 6.0 1.83
-------------------------------------------------------
30270 No signif. results
-------------------------------------------------------
30273 17.5 29.6 12.1 2.13
-------------------------------------------------------
30276 3.9 11.0 7.1 2.14
-------------------------------------------------------
30283 No signif. results
-------------------------------------------------------
30284 6.5 11.5 5.0 1.92
-------------------------------------------------------
30286 No signif. results
-------------------------------------------------------
30382 No signif. results
-------------------------------------------------------
30388 13.4 17.2 3.8 1.56
-------------------------------------------------------
30389 14.0 29.0 15.0 1.77
-------------------------------------------------------
30394 No signif. results
-------------------------------------------------------
30397 No signif. results
-------------------------------------------------------
30400 42.8 45.5 2.7 1.83
-------------------------------------------------------
30401 No signif. results
-------------------------------------------------------
30402 No signif. results
-------------------------------------------------------
30414 9.2 14.0 4.8 1.77
-------------------------------------------------------
30418 20.5 27.2 6.7 1.64
-------------------------------------------------------
30419 14.1 23.2 9.1 2.03
-------------------------------------------------------
30420 0.5 4.9 4.4 1.74
-------------------------------------------------------
30421 No signif. results
-------------------------------------------------------
30427 16.8 20.1 3.3 1.61
-------------------------------------------------------
30433 8.6 24.3 15.7 1.86
-------------------------------------------------------
30437 10.0 19.9 9.9 1.82
-------------------------------------------------------
30438 4.6 12.1 7.5 1.73
-------------------------------------------------------
30440 No signif. results
-------------------------------------------------------
30441 0.6 5.5 4.9 1.59
-------------------------------------------------------
30442 No signif. results
-------------------------------------------------------
30868 21.4 36.5 15.1 1.92
-------------------------------------------------------
30879 No signif. results
-------------------------------------------------------
215 30504 No signif. results
-------------------------------------------------------
30505 No signif. results
-------------------------------------------------------
30506 7.2 9.8 2.6 1.66
-------------------------------------------------------
30507 No signif. results
-------------------------------------------------------
30510 8.4 14.3 5.9 2.25
-------------------------------------------------------
30521 No signif. results
-------------------------------------------------------
30526 3.7 8.0 4.3 1.71
-------------------------------------------------------
30528 No signif. results
-------------------------------------------------------
30529 14.3 16.9 2.6 1.64
-------------------------------------------------------
30530 No signif. results
-------------------------------------------------------
30532 No signif. results
-------------------------------------------------------
30533 7.1 15.0 7.9 1.98
-------------------------------------------------------
30534 13.0 15.3 2.3 2.03
-------------------------------------------------------
30535 4.0 6.5 2.5 1.61
-------------------------------------------------------
30536 8.1 13.6 5.5 1.56
-------------------------------------------------------
30536 14.6 17.0 2.4 1.53
-------------------------------------------------------
30537 8.5 16.8 8.3 1.83
-------------------------------------------------------
30540 No signif. results
-------------------------------------------------------
30541 No signif. results
-------------------------------------------------------
30542 20.8 24.4 3.6 1.50
-------------------------------------------------------
30550 No signif. results
-------------------------------------------------------
30551 14.1 18.0 3.9 1.75
-------------------------------------------------------
30552 13.9 16.7 2.8 1.68
-------------------------------------------------------
30554 15.0 18.2 3.2 2.28
-------------------------------------------------------
30555 12.5 19.2 6.7 1.72
-------------------------------------------------------
30558 10.2 12.4 2.2 1.53
-------------------------------------------------------
30560 17.4 20.3 2.9 1.82
-------------------------------------------------------
30564 10.8 12.8 2.0 1.78
-------------------------------------------------------
30564 17.5 20.0 2.5 2.05
-------------------------------------------------------
30565 15.4 26.5 11.1 1.85
-------------------------------------------------------
30566 25.0 31.7 6.7 1.70
-------------------------------------------------------
30568 13.2 20.4 7.2 1.60
-------------------------------------------------------
30572 11.0 15.0 4.0 1.59
-------------------------------------------------------
30574 12.7 16.5 3.8 1.59
-------------------------------------------------------
30577 15.3 18.4 3.1 1.56
-------------------------------------------------------
30578 No signif. results
-------------------------------------------------------
30579 No signif. results
-------------------------------------------------------
30580 No signif. results
-------------------------------------------------------
30581 15.1 17.1 2.0 1.55
-------------------------------------------------------
30582 13.2 17.9 4.7 1.52
-------------------------------------------------------
30583 No signif. results
-------------------------------------------------------
251 33067 No signif. results
-------------------------------------------------------
33139 10.0 14.3 4.3 2.18
-------------------------------------------------------
33143 4.6 8.0 3.4 1.73
-------------------------------------------------------
33145 8.9 14.1 5.2 1.87
-------------------------------------------------------
33150 15.0 18.1 3.1 1.95
-------------------------------------------------------
33167 11.8 13.8 2.0 1.62
-------------------------------------------------------
33191 No signif. results
-------------------------------------------------------
33214 6.7 14.9 8.2 2.18
-------------------------------------------------------
33215 17.1 20.1 3.0 1.97
-------------------------------------------------------
33259 19.7 22.3 2.6 1.68
-------------------------------------------------------
33284 1.3 8.4 7.1 1.80
-------------------------------------------------------
33290 18.4 20.4 2.0 1.52
-------------------------------------------------------
33293 No signif. results
-------------------------------------------------------
33360 10.2 19.9 9.7 1.76
-------------------------------------------------------
33410 4.7 7.4 2.7 2.08
-------------------------------------------------------
33462 No signif. results
-------------------------------------------------------
33488 27.0 33.0 6.0 1.97
-------------------------------------------------------

Contact Information

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