Skyline Gold Corporation

Skyline Gold Corporation

March 05, 2010 08:30 ET

Skyline Gold Releases Bronson Slope Magnetite Resource Estimate Technical Report

RICHMOND, BRITISH COLUMBIA--(Marketwire - March 5, 2010) - Skyline Gold Corporation ("the Company") (TSX VENTURE:SK), a company engaged in the exploration and development of its Bronson Slope gold, copper, silver and magnetite project in north western British Columbia's 'Golden Triangle', is pleased to announce that it has received and released the National Instrument 43-101 compliant magnetite resource estimate technical report for the Bronson Slope deposit. The initial results of the technical report, authored by Qualified Persons Al Burgoyne, P.Eng., M.Sc., Arnd Burgert, P.Geo., and Gary Giroux P.Eng., MASc., were released by the Company on January 28, 2010.

The report, in combination with the results from metallurgical testing carried out in 2008 under the direction of Dr. Bern Klein of B.C. Mining Research of Vancouver ("BCMR"), indicates the potential to add magnetite as a significant increase in metal production in addition to gold, copper, and silver production from the proposed milling facility at Bronson Slope.

The full Magnetite Mineral Resource technical report has been posted on and is also available on the Company's website at

In accordance with TSX-V disclosure requirements, on a stand-alone production basis and assuming that magnetite is the only mineral produced at Bronson Slope and assuming a cut-off grade of 7% magnetite by weight, the Bronson Slope Measured and Indicated magnetite resource is 100,640,000 tonnes grading 8.8% magnetite for a total Measured and Indicated estimate of 8,900,000 tonnes of contained magnetite. The magnetite resource estimate at various cut-off grades is shown in the table below. It is reasonable to expect that, on a by-product production basis, the magnetite economic cut-off grade would be lower and the tonnage of the resource would be higher.

BCMR's 2008 magnetite report included a marketing study noting a British Columbia coal producer was sourcing magnetite for $210 per tonne, including delivery cost, from the tailings reprocessing facility near Merritt. The metallurgical analysis of Bronson Slope drill core included in the BCMR report also indicates that magnetite recoveries up to 95% can be achieved from the Bronson mill tailings. A conventional magnetic separation process can be used to recover the magnetite from the tailings generated after processing the Bronson Slope sulphide ores to recover gold, copper and silver.

The magnetite product generated from the proposed Bronson Slope milling facility flotation tailings will meet the specification required by the coal industry for the production of clean coal using magnetite for the dense media separation ("DMS") cleaning process. The only Canadian producer of bulk DMS-grade magnetite is a tailings reprocessing operation at a former copper mine near Merritt B.C. Canadian coal producers contacted by the Company have expressed concerns that this magnetite producer, having reprocessed most of the available tailings, has a limited remaining life. When that DMS magnetite production facility closes, the coal mines in Western Canada will be without a local supplier.

U.S. coal mines currently source their DMS magnetite for coal cleaning offshore from producers located in Peru, Chile and Sweden. Development of the Bronson Slope deposit to production will position the Company as a strategic magnetite supplier to the North American coal industry. With completion of the 27 km access road to Bronson Slope, the planned mine's magnetite production can be trucked to the Canadian National Railway line between Prince Rupert and Prince George for rail transport to coal mines in eastern British Columbia, Alberta and elsewhere.

The following table provides the Measured and Indicated resource estimate for magnetite contained in the Bronson Slope deposit using various magnetite cut-off grades:

  Magnetite Cut-off
( weight % )
  Tonnes greater than Cut-off
( tonnes )
  Grade greater than Cut-off
( % )

  Contained Magnetite
  1.00   179,960,000   6.74   12,130,000
  2.00   163,160,000   7.28   11,880,000
  3.00   151,400,000   7.66   11,600,000
  4.00   143,170,000   7.90   11,310,000
  5.00   131,840,000   8.19   10,800,000
  6.00   118,220,000   8.50   10,050,000
  7.00   100,640,000   8.84   8,900,000
  8.00   72,680,000   9.34   6,790,000
  9.00   42,880,000   9.92   4,250,000
  10.00   15,960,000   10.73   1,710,000



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-looking 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Skyline Gold Corporation
    David Jensen, P.Eng.
    604.270.3858 (FAX)