Skygold Ventures Ltd.
TSX VENTURE : SKV

Skygold Ventures Ltd.

September 02, 2005 08:00 ET

Skygold Ventures Ltd.: Diamond Drilling at Spanish Mountain Confirms and Extends Gold Mineralized; System to Depths of 246m; Mineralization Remains Open to Depth

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 2 2005) - Skygold Ventures Ltd. ("Skygold") (TSX VENTURE:SKV) and Wildrose Resources Ltd. ("Wildrose") (TSX VENTURE:WRS) are pleased to announce gold assay results from the first four of fourteen completed diamond drill holes at the Spanish Mountain project in north-central British Columbia. The drilling has successfully confirmed previous reverse circulation drill assays, extended the average intercept of the upper horizon to 105.5 meters, and discovered a new deeper horizon of gold mineralization.

All four diamond drill holes successfully intersected significant gold mineralization over wide intervals in areas of both known mineralization and step-out holes. The average intercepts within the Upper Horizon from the last eleven holes to the north, now stands at 81.44m with a weighted average grade of 1.27gpt gold. Drill hole DDH-251 successfully confirmed the presence of gold rich mineralization encountered in reverse circulation hole SPRC-247 and intercepted mineralization 70 metres vertically below any previous intercept on the property.

Drill hole DDH-251 intersected 53.8 metres grading 1.06g/t gold including 36.75 metres grading 1.27g/t gold and 9.3 metres grading 2.51g/t gold in the upper horizon. The hole also intersected a lower horizon grading 1.12g/t gold over 52.47 metres including 2.07g/t gold over 16.0 metres.

Drill hole DDH-252 is a 30 metre step-out hole designed to expand on mineralization intersected in hole SPRC-249 (2.05g/t over 53.3 metres). Hole DDH-252 intersected 107 metres of 1.22g/t gold including 37.75m 1.83gpt gold in the upper horizon but did not reach depth to test the presence of the lower horizon.

Holes DDH-253 and DDH-254 were drilled perpendicular to hole DDH-252 to test a stratigraphic interpretation. Hole DDH-253 intersected 31.4 metres of 1.22g/t gold within the upper horizon but did not reach a depth to test the lower horizon of mineralization. Hole DDH-254 was drilled below hole 253 to test for stratigraphic continuity and potential for deep mineralization. Only upper horizon results for the hole have been received to date, which average 90.6 metres grading 1.15g/t gold including 46.9 metres of 1.59g/t. Results are pending for the remaining portion of the hole.



The following table summarizes significant intercepts:

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From To (i)Width (m) Au (g/t)
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Hole DDH-251 19.5 73.3 53.8 1.06
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Including... 36.55 73.3 36.75 1.27
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Including... 64 73.3 9.3 2.51
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Upper Horizon 19.5 140 120.5 0.81
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Lower Horizon 193.5 245.97 52.47 1.12
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Including... 195 211 16.0 2.07
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Total Intercept 19.5 (ii)245.97 226.47 0.74
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Hole DDH-252 49.0 156.0 107 1.22
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Including... 62.43 154.5 92.07 1.35
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Including... 86 123.75 37.75 1.83
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Hole DDH-253 36.1 67.5 31.4 1.22
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And 131.4 138.4 7.0 2.65
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Upper Horizon 34.6 138.4 103.8 0.84
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Hole DDH-254 (iii) 12.6 103.2 90.6 1.15
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Including... 38.8 85.7 46.9 1.59
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Including... 38.8 58.5 19.7 1.83
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(i) Apparent width
(ii) Hole 251 bottoms in Mineralization
(iii) Assays pending from 186.7m to 343.51


DISCUSSIONS

The discovery of mineralization in DDH hole 251 has proven extremely important to assist in geological interpretation and underscores the potential of this gold bearing system. Drill hole 251 was drilled within a transition zone where the first signs of pervasive mineralization can exist through all rock types, indicating the potential for wider zones of mineralized intercepts. Previous drill holes uphill from drill hole 251 tend only to be mineralized within the more receptive black argillites. These units may or may not repeat themselves through bedding or folding within the sequence and provide opportunity for stacked productive horizons.

In contrast holes such as SPRC-250 down hill and north of # 251 demonstrated that the mineralization has now penetrated the meta-siltstones pervasively and produced 1.17 gram material over 56.3m bottoming in similar grade. Hole 250 was not drilled deep enough to intersect the more favorable argillite units if they still exist in that area. Four deeper drill holes have now been drilled downhill from hole 251 and underneath hole 250 to expand the mineralization at depth and for geological interpretation (results are pending). Two deep holes have also been drilled in the Far East zone and two more deep holes drilled in the south zone area to help confirm the geological model. Based on early geological interpretation, it is apparent that the depth potential of Spanish Mountain has significantly increased and may host a much larger gold bearing system than previously anticipated. Plan and sectional maps are available on the company website www.skygold.ca. Assays will continue to be released as they are received.

The Spanish Mountain project is a joint venture between Skygold Ventures Ltd. and Wildrose Resources Ltd. in which Skygold has a 70% participating interest and Wildrose has a 30% participating interest.

Eco Tech Laboratory Ltd. of Kamloops B.C., an accredited laboratory, is conducting the sample preparation and analyses. Skygold/Wildrose is submitting standards, blanks and duplicates into the sample stream to maintain quality control. All gold analyses will utilize standard screen metallic assay techniques. Robert Darney, P.Geo. and J.W. (Bill) Morton, 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

Doug Fulcher, 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.

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

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