Skye Resources Inc.
TSX VENTURE : SKR

Skye Resources Inc.

September 15, 2005 14:43 ET

Skye Continues to Confirm High Grades on its Fenix Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 15, 2005) - Skye Resources Inc. ("Skye") (TSX VENTURE:SKR) is pleased to announce further assay results from the core drilling program on its Fenix ferro-nickel project in Guatemala. By the end of August, 424 holes totalling 11,475 meters of drilling had been completed (See Table 1).

Assay results received during July from the twin hole component of the drilling program are included in Table 2. The twin hole program targeted the previously mined area 212 and the adjacent 213 and 217 areas. Assays have now been received for all but two holes of this twin hole program.

Highlights from the reported assays are as follows:



Area 212:
- Hole 30049: 16.2 meters grading 2.67% Ni
- Hole 30089: 12.7 meters grading 2.52% Ni
Area 213:
- Hole 32010: 5.6 meters grading 2.11% Ni
Area 217:
- Hole 30056: 10.2 meters grading 2.47% Ni
- Hole 30057: 11.7 meters grading 2.50% Ni
- Hole 30064: 22.4 meters grading 2.23% Ni
- Hole 30086: 10.1 meters grading 2.28% Ni


Deposit locations are shown in Figure 1.

Skye is continuing the in-fill component of the drilling program on the property with 6 drills working in Areas 217 and 251. The 35-45,000 meter drilling program will furnish data for new resource estimates to be carried out by Snowden Engineering Ltd. as part of the Fenix feasibility study.

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 to allow for comparison with the original holes. 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 Notice:

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.

DISTRIBUTION OF ALL HOLES DRILLED

------------------------------------------
No. of
AREA HOLES METERS
------------------------------------------
Twin holes 212 55 1987
----------------------------
213 11 250
----------------------------
217 38 1325
------------------------------------------
In-fill holes 217 69 2519
----------------------------
251 251 5394
------------------------------------------


Table 2.

ASSAY RESULTS FOR TWIN-HOLE PROGRAM RECEIVED IN JULY(i)

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

----------------------------------------------------------------
212 30029 16.9 28.5 11.7 2.47
----------------------------------------------------------------
212 30043 19.0 27.3 8.3 2.04
----------------------------------------------------------------
212 30049 13.8 30.0 16.2 2.67
----------------------------------------------------------------
212 30050 1.2 15.8 9.8 2.40
----------------------------------------------------------------
212 30051 6.6 25.0 18.4 1.96
----------------------------------------------------------------
212 30088 11.1 29.8 18.7 2.27
----------------------------------------------------------------
212 30089 12.0 24.7 12.7 2.52
----------------------------------------------------------------
212 30090 9.6 15.5 5.9 2.11
----------------------------------------------------------------
212 30091 5.8 27.6 21.9 1.80
----------------------------------------------------------------

----------------------------------------------------------------
213 32010 2.8 8.4 5.7 2.11
----------------------------------------------------------------

----------------------------------------------------------------
217 30052 32.0 38.8 6.8 1.75
----------------------------------------------------------------
217 30053 13.4 29.3 15.9 2.01
----------------------------------------------------------------
217 30054 13.2 21.8 9.7 1.57
----------------------------------------------------------------
217 30055 17.9 27.0 9.1 2.03
----------------------------------------------------------------
217 30056 19.7 29.9 10.2 2.47
----------------------------------------------------------------
217 30057 8.3 20.0 11.7 2.50
----------------------------------------------------------------
217 30058 38.9 46.0 7.2 1.75
----------------------------------------------------------------
217 30059 20.0 27.3 7.3 2.20
----------------------------------------------------------------
217 30060 9.1 19.0 9.9 1.77
----------------------------------------------------------------
217 30061 14.8 22.9 8.1 1.97
----------------------------------------------------------------
217 30062 16.7 26.2 9.5 2.13
----------------------------------------------------------------
217 30063 25.0 33.5 8.5 1.89
----------------------------------------------------------------
217 30064 14.0 36.4 22.4 2.23
----------------------------------------------------------------
217 30065 0.7 8.3 7.6 2.10
----------------------------------------------------------------
217 30066 No significant intercept
----------------------------------------------------------------
217 30067 18.0 27.7 5.4 2.08
----------------------------------------------------------------
217 30068 7.2 13.1 5.9 1.54
----------------------------------------------------------------
217 30069 11.4 27.1 12.4 1.72
----------------------------------------------------------------
Includes 12.2 18.4 6.2 2.30
----------------------------------------------------------------
217 30070 12.3 28.1 15.8 1.82
----------------------------------------------------------------
217 30072 20.1 30.5 10.4 1.41
----------------------------------------------------------------
217 30073 9.6 15.0 5.4 2.30
----------------------------------------------------------------
217 30074 9.7 23.5 13.8 2.26
----------------------------------------------------------------
217 30075 3.6 17.8 14.2 1.59
----------------------------------------------------------------
217 30076 12.2 28.8 16.7 1.73
----------------------------------------------------------------
217 30077 17.4 25.6 8.2 1.68
----------------------------------------------------------------
217 30078 3.2 23.4 20.2 1.86
----------------------------------------------------------------
Includes 4.4 12.5 8.1 2.16
----------------------------------------------------------------
217 30079 19.8 32.5 12.8 2.01
----------------------------------------------------------------
217 30080 14.6 22.4 7.8 2.02
----------------------------------------------------------------
217 30081 15.5 23.4 8.0 1.98
----------------------------------------------------------------
217 30082 20.5 30.4 9.9 1.86
----------------------------------------------------------------
217 30084 19.5 27.8 8.3 1.75
----------------------------------------------------------------
217 30085 5.9 13.8 7.9 1.74
----------------------------------------------------------------
217 30086 6.1 29.5 23.4 1.89
----------------------------------------------------------------
Includes 6.1 16.2 10.1 2.28
----------------------------------------------------------------
217 30087 5.1 16.5 11.4 1.76
----------------------------------------------------------------

(i) Additional twin hole assays were reported in the press
release dated August 3, 2005


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Contact Information

  • Skye Resources Inc.
    Colin McKenzie
    Vice President, Exploration
    (604) 602-9500
    (604) 602-9510 (FAX)
    www.skyeresources.com