Skyline Gold Corporation
TSX VENTURE : SK

Skyline Gold Corporation

September 29, 2009 13:25 ET

Skyline Gold Announces Initiation of Bronson Slope Magnetite Resource Estimate Project

RICHMOND, BRITISH COLUMBIA--(Marketwire - Sept. 29, 2009) – Skyline Gold Corporation ("the Company") (TSX VENTURE:SK), a company engaged in the exploration and development of its 2.6 million ounce Bronson Slope gold deposit in north western British Columbia's 'Golden Triangle', is pleased to announce that it has initiated a project to analyze drill core from the Bronson Slope project to quantify and add magnetite to the project's N.I. 43-101 compliant mineral resource estimate.

A report prepared by BC Mining Research Ltd. in September 2008 found that a composite test sample from Bronson Slope drill core contained 7.53% magnetite by mass. An important end use of magnetite is as the "heavy media" in the preparation of clean coal using the gravity separation process.

This project will be managed for the Company by Arnd Burgert, P.Geo. and the resource update Technical Report will be completed by Al Burgoyne, P.Eng. M.Sc. of Burgoyne Geological Inc. and Gary Giroux, P.Eng., M.A.Sc. of Giroux Consultants Ltd. Release of the updated resource is targeted for December 2009. BC Mining Research Ltd. will act as metallurgical consultants to the project.

The Bronson Slope deposit contains an N.I. 43-101 compliant mineral resource of 225,100,000 tonnes on a measured and indicated basis and is estimated to contain 2.6 million ounces of gold, 16.1 million ounces of silver, 694.9 million pounds of copper, and 38.2 million pounds of molybdenum.

Bronson Slope Mineral Resource (April 30, 2008) – Case 2(i) Metal Prices
Cut-Off US $ 9.00 /Tonne Net Recoverable Metal Value

CategoryMetric TonnesAu (g/t)Ag (g/t)Cu (%)Mo (%)
Measured  74,800,0000.452.310.170.0059
Indicated150,300,0000.312.170.130.0087
Total Measured + Indicated225,100,0000.362.220.140.0077
Inferred  91,600,0000.271.760.130.0080

(i) Case 2 uses metal prices of US$650.00 per ounce for gold, US$10.00 per ounce for silver, US$2.00 per pound for copper and US$12.00 per pound for molybdenum.

ON BEHALF OF THE BOARD OF DIRECTORS SKYLINE GOLD CORPORATION.
Per:

"David Jensen"

David Jensen, P.Eng.
President

Cautionary Statement

Statements in this release may be viewed as forward-looking statements. Such statements involve risks and uncertainties that could cause actual results to differ materially from those projected. There are no assurances the Company can fulfill such forward-statements and the Company undertakes no obligation to update statements. Such forward looking statements are only predictions; actual events or results may differ materially as a result of risks facing the Company, some of which are beyond the Company's control.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Skyline Gold Corporation
    David Jensen, P.Eng.
    President
    604.270.3878
    604.270.3858 (FAX)
    www.skylinegold.com