Skygold Ventures Ltd.
TSX VENTURE : SKV

Skygold Ventures Ltd.

May 04, 2009 08:01 ET

Skygold Provides a Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 4, 2009) - Skygold Ventures Ltd. ("Skygold" or the "Company") (TSX VENTURE:SKV) is pleased to provide an update on the Company and its exploration plans for 2009.

Spanish Mountain

The Company disclosed an updated resource estimate for Spanish Mountain in a release dated March 18, 2009. The updated measured and indicated resource at a gold cut-off grade of 0.5 g/t is 102.26 million tonnes at an average grade of 0.785 g/t (2.58 million ounces gold) and an inferred resource of 11.65 million tonnes at an average grade of 0.787 g/t (290,000 ounces gold). The Main Zone remains open to the north, south and at depth. Modeling of all drill data has identified a north-south oriented structural corridor within and extending beyond the current limits of the Main Zone. The Company plans to complete the following work at Spanish Mountain this year:

- Preliminary engineering studies to evaluate conceptual pit designs and potential mill capacity.

- Drilling to the north and south of the Main Zone to assess the potential to increase the resource. Limited deep drilling will be completed to ascertain the potential for additional gold mineralization below the currently defined mineralized areas.

- Drilling of target areas along the structural corridor including the Oscar and Cedar Ridge zones as shown on the target map located on the company website at www.skygold.ca.

- Drilling of interpreted parallel structural corridors in areas where these structures intersect favourable stratigraphy similar to the stratigraphy which hosts the gold mineralization within the Main Zone.

- Drilling of large diameter core holes for additional metallurgical and geotechnical sampling.

- Ongoing environmental baseline work.

Spanish Creek (Thunder Ridge) Property

The Company disclosed the results from a drilling program on this property in January, 2009. Highlights included:

- Hole SC-005 intersected 45.49 g/t gold over 2.5 metres including 223.0 g/t gold over 0.5 metre.

- Hole SC-007 intersected 1.23 g/t gold over 11.5 metres including 4.83 g/t gold and 232.0 g/t silver over 1.5 metres and 1.32 g/t gold over 6.5 metres in separate horizons.

Lower grade gold mineralization has been intersected in wide (up to 28 metres) zones in 5 of the 7 drill holes completed on the property. This drilling was in an area where available government assessment data had suggested that no previous drilling had been undertaken. High grade gold mineralization with associated silver mineralization was encountered within the wider zones of lower grade gold mineralization. Preliminary interpretation of the results suggests that the mineralization is within a wide deformation corridor which has been currently traced over a strike length of at least 600 metres and is open in all directions.

The Company is planning to complete further drilling on the property to ascertain the extent of the deformation corridor and to assess the potential for additional higher grade gold mineralization.

Trenching and prospecting work is planned for the Manson Creek and Prince George properties.

About Skygold

Skygold is an exploration company focused on advancing its flagship Spanish Mountain gold project in central southern British Columbia. The Company is well funded with a current cash position of $3.2 million and has applied for Mineral Exploration Tax Credits from the Province of British Columbia totaling $2.7 million. These funds are expected to be received in 2009.

Robert Darney, P.Geo. and R. Bob Singh, P.Geo. are the qualified persons (as defined in NI 43-101) who have reviewed this news release.

On Behalf of the Board,

SKYGOLD VENTURES LTD.

Brian Groves, President

This news release may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. Actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.

Neither the 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

  • Skygold Ventures Ltd.
    Tim Mikula
    (604) 484-6317
    (604) 684-0279 (FAX)
    www.skygold.ca
    or
    B&D Capital Partners
    (604) 685-6465