Skye Resources Inc.
TSX VENTURE : SKR
TSX : SKR

Skye Resources Inc.

December 19, 2005 17:00 ET

Skye Reports Further Strong Results From Fenix

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 19, 2005) - Skye Resources Inc. (TSX VENTURE:SKR) today provided further assay results from the drilling program underway on its Fenix ferro- nickel project in eastern Guatemala. Six diamond drilling rigs are currently working on three separate deposits which 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. Drilling will be suspended next week for the Christmas break and resume the first week of January.

Highlights of current results:



Area 217:
- Hole 30154 14.0 m grading 2.18% Ni
- Hole 30191 21.2 m grading 2.17% Ni
- Hole 30220 13.5 m grading 2.47% Ni
- Hole 30264 9.7 m grading 2.04% Ni

Area 251:
- Hole 33080 7.7 m grading 2.04 %Ni
- Hole 33209 25.3 m grading 1.96% Ni
- Hole 33216 8.9 m grading 2.38% Ni
- Hole 33329 9.3 m grading 1.93% Ni


Today's results were from a further 59 of a planned total of 365 infill holes from Area 217 and an additional 21 of a planned total of 679 infill holes from Area 251. Both planned totals have been revised since the last release following a review of the results to date.

In Area 217, 44 holes had intercepts 2m or wider above a nominal cut-off of 1.5% Ni, 3 holes had intercepts above 1.5% Ni but less than 2 m width and 12 had no significant results. In Area 251, 18 holes had intercepts for zones 2 m or wider at a nominal cut-off grade of 1.5% Ni. A further 3 holes 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.

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 Fenix 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 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 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 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.

------------------------------------------------------------------------
Area Hole From To Intercept %Ni
(m) (m) (m)
------------------------------------------------------------------------
217 30109 no significant intercept
------------------------------------------------------------------
30110 18.5 21.3 2.8 1.63
------------------------------------------------------------------
30119 no significant intercept
------------------------------------------------------------------
30122 no significant intercept
------------------------------------------------------------------
30123 no significant intercept
------------------------------------------------------------------
30126 no significant intercept
------------------------------------------------------------------
30127 24.8 33.4 8.6 1.60
------------------------------------------------------------------
30128 16.8 22.5 5.7 1.51
------------------------------------------------------------------
30129 19.9 22.9 3.0 1.67
------------------------------------------------------------------
30132 no significant intercept
------------------------------------------------------------------
30133 8.5 11.8 3.3 1.69
------------------------------------------------------------------
30145 16.6 21.4 4.8 2.06
------------------------------------------------------------------
30154 16.8 30.8 14.0 2.18
------------------------------------------------------------------
30157 7.8 10.5 2.7 1.54
------------------------------------------------------------------
30159 10.1 13.8 3.7 1.68
------------------------------------------------------------------
30161 no significant intercept
------------------------------------------------------------------
30162 23.6 32.9 9.3 1.72
------------------------------------------------------------------
30163 no significant intercept
------------------------------------------------------------------
30164 25.1 33.1 8.0 2.03
------------------------------------------------------------------
30166 21.7 28.7 7.0 1.67
------------------------------------------------------------------
30167 3.6 8.8 5.2 2.13
------------------------------------------------------------------
30172 10.4 14.6 4.2 2.08
------------------------------------------------------------------
30173 no significant intercept
------------------------------------------------------------------
30176 13.4 18.0 4.6 1.77
------------------------------------------------------------------
30178 12.5 17.6 5.1 1.59
------------------------------------------------------------------
30181 5.0 8.9 3.9 1.68
------------------------------------------------------------------
30185 no significant intercept
------------------------------------------------------------------
30186 10.8 25.6 14.8 1.81
------------------------------------------------------------------
30189 14.5 35.2 20.7 1.59
includes 14.5 22.8 8.3 1.93
------------------------------------------------------------------
30191 15.6 36.8 21.2 2.17
------------------------------------------------------------------
30192 24.2 28.5 4.3 2.06
------------------------------------------------------------------
30197 2.9 11.5 8.6 1.75
------------------------------------------------------------------
30200 17.6 31.9 14.3 1.86
------------------------------------------------------------------
30208 19.2 26.6 7.4 2.01
------------------------------------------------------------------
30209 19.9 25.1 5.2 1.85
------------------------------------------------------------------
30210 8.2 15.3 7.1 2.20
------------------------------------------------------------------
30212 8.4 19.3 10.9 1.70
------------------------------------------------------------------
30217 9.7 18.3 8.6 1.97
------------------------------------------------------------------
30219 8.9 11.8 2.9 1.81
------------------------------------------------------------------
30220 19.6 33.1 13.5 2.47
------------------------------------------------------------------
30221 21.0 24.6 3.6 1.67
------------------------------------------------------------------
30222 23.4 27.5 4.1 1.92
------------------------------------------------------------------
30223 1.8 15.0 13.2 1.78
------------------------------------------------------------------
30240 21.5 35.0 13.5 1.69
------------------------------------------------------------------
30264 1.3 11.0 9.7 2.04
------------------------------------------------------------------
30271 no significant intercept
------------------------------------------------------------------
30274 no significant intercept
------------------------------------------------------------------
30508 18.0 20.0 2.0 1.74
------------------------------------------------------------------
30511 13.8 20.5 6.7 1.83
------------------------------------------------------------------
30512 5.2 12.5 7.3 1.65
------------------------------------------------------------------
30517 10.5 15.9 5.4 1.97
------------------------------------------------------------------
30518 15.9 26.6 10.7 1.79
------------------------------------------------------------------
30519 9.1 10.8 1.7 1.62
------------------------------------------------------------------
30520 5.7 10.8 5.1 1.86
------------------------------------------------------------------
30522 9.7 13.0 3.3 1.65
------------------------------------------------------------------
30523 16.3 19.0 2.7 1.67
------------------------------------------------------------------------
Area
251 33001 6.0 14.5 8.5 1.70
------------------------------------------------------------------------
33080 2.5 10.2 7.7 2.04
------------------------------------------------------------------
33081 no significant intercept
------------------------------------------------------------------
33090 5.4 23.7 18.3 1.66
includes 5.4 12.6 7.2 2.05
includes 19.1 23.7 4.6 1.99
------------------------------------------------------------------
33091 7.2 12.8 5.6 2.06
------------------------------------------------------------------
33120 11.8 24.1 12.3 1.75
------------------------------------------------------------------
33148 no significant intercept
------------------------------------------------------------------
33186 11.7 16.5 4.8 2.12
------------------------------------------------------------------
33187 20.4 38.1 17.7 1.75
------------------------------------------------------------------
33208 4.9 12.7 7.8 2.12
------------------------------------------------------------------
33209 9.0 34.3 25.3 1.96
------------------------------------------------------------------
33216 5.7 14.6 8.9 2.38
------------------------------------------------------------------
33258 21.8 31.0 9.2 1.79
------------------------------------------------------------------
33288 11.9 19.3 7.4 1.93
------------------------------------------------------------------
33328 0.6 4.3 3.7 1.73
------------------------------------------------------------------
33329 3.7 13.0 9.3 1.93
------------------------------------------------------------------
33354 8.4 20.6 12.2 1.75
------------------------------------------------------------------
33357 8.0 10.4 2.4 1.61
------------------------------------------------------------------
33426 no significant intercept
------------------------------------------------------------------
33471 10.0 22.4 12.4 1.80
------------------------------------------------------------------
33472 15.3 16.5 1.2 2.10
------------------------------------------------------------------

Contact Information

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