Skyline Gold Corporation
TSX VENTURE : SK

Skyline Gold Corporation

May 07, 2008 09:00 ET

Skyline Announces Completion of the Bronson Slope Technical Report

RICHMOND, BRITISH COLUMBIA--(Marketwire - May 7, 2008) - Skyline Gold Corporation ("Skyline") (TSX VENTURE:SK) engaged in the business of exploring for precious and base metals from its properties in northwestern British Columbia's 'Golden Triangle' announces the completion of a Technical Report on its Bronson Slope gold-copper-silver-molybdenum deposit. The National Instrument 43-101 compliant Technical Report was completed by Burgoyne Geological Inc. and Giroux Consultants Ltd.

The Technical Report indicates an increase in both measured and indicated tonnage. Case 2 using more realistic 2008 price assumptions substantially enhances the value of the Bronson Slope deposit.



Bronson Slope Mineral Resource
Base Case 2007 vs. Case 1 2008

2007 Base Case Resource Estimate
--------------------------------------------------------------
NRV
Cut-Off Metric Au Ag Cu Mo
Category US$ Tonnes (g/t) (g/t) (%) (%)
--------------------------------------------------------------
Measured $9.00 54,500,000 0.51 2.47 0.19 0.005
--------------------------------------------------------------
Indicated $9.00 75,400,000 0.39 2.41 0.14 0.011
--------------------------------------------------------------
M+I $9.00 129,800,000 0.44 2.44 0.16 0.008
--------------------------------------------------------------
Inferred $9.00 45,200,000 0.37 1.92 0.16 0.011
--------------------------------------------------------------

2008 Case 1 Resource Estimate
---------------------------------------------------------------------------
NRV
Cut-Off Metric Au Ag Cu Mo Tonnage
Category US$ Tonnes (g/t) (g/t) (%) (%) Difference
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Measured $9.00 58,700,000 0.50 2.45 0.18 0.006 7.70%
---------------------------------------------------------------------------
Indicated $9.00 80,800,000 0.36 2.38 0.15 0.009 7.20%
---------------------------------------------------------------------------
M+I $9.00 139,500,000 0.42 2.41 0.17 0.008 7.50%
---------------------------------------------------------------------------
Inferred $9.00 30,200,000 0.34 1.89 0.15 0.007 -33.20%
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The Base Case for the 2007 mineral resource and Case 1 for the 2008 mineral resource were calculated using metal prices of US$525.00 per ounce for gold, US$8.00 per ounce for silver, US$1.50 per pound for copper and US$10.00 per pound for molybdenum. The new resource estimate of 139,500,000 tonnes measured and indicated at a cut-off of US$9.00 net recoverable value (NRV) per tonne contains 1.9 million ounces of gold, 10.8 million ounces of silver, 522.9 million pounds of copper, and 24.3 million pounds of molybdenum.

The report also provides a resource estimate using more realistic price assumptions. 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 and using the same US$9.00 NRV per tonne produced the following results:



Bronson Slope Current Mineral Resource - Case 2 Metal Prices
Cut-Off US $9.00/Tonne Net Recoverable Metal Value

----------------------------------------------------------------------
Metric Au Ag Cu Mo
Category Tonnes (g/t) (g/t) (%) (%)
----------------------------------------------------------------------
Measured 74,800,000 0.45 2.31 0.17 0.0059
----------------------------------------------------------------------
Indicated 150,300,000 0.31 2.17 0.13 0.0087
----------------------------------------------------------------------
Total Measured + Indicated 225,100,000 0.36 2.22 0.14 0.0077
----------------------------------------------------------------------
Inferred 91,600,000 0.27 1.76 0.13 0.0080
----------------------------------------------------------------------


The mineral resource increases to 225,100,000 tonnes measured and indicated and 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.

This increase in the resource substantially enhances the value of the Bronson Slope deposit. The Technical Report contains a number of recommendations to advance the deposit.

The Bronson Slope deposit should be advanced through further mine development and drilling programs. It is the opinion of Burgoyne and Giroux that the character of the defined porphyry gold-copper-silver-molybdenum deposit and the continuity defined by drill results obtained from 1993 through 1997 and in 2006 and 2007 by Skyline, when considered in terms of currently high precious and base metal prices, are of sufficient merit to warrant the following programs as detailed below.

Due to the remote location and relative lack of infrastructure at Bronson Slope, it will require air support with fairly major and costly programs to be done during the relatively short field season of June to late October. The Preliminary Economic Assessment Study (PEA) and pit design study, initiated in mid 2007, should be completed to guide further mine development and drilling. Skyline should now focus primarily on future mine and development studies. The objective of the development programs below is for Skyline to initiate and complete an Environmental Assessment Report (EAR) for submission to the BC Government and the Ministries of Environment and Energy, Mines and Petroleum Resources.

The programs and budget have been discussed with Skyline, tailored to their requirements, and are given in the report. A two-stage development and exploration program with stage one including:

- The hiring of a mining engineer or other suitably qualified professional to conduct and direct current and future mine development and engineering studies.

- The hiring of a full time geologist or geological engineer to direct all geological drilling programs and to assist with metallurgical and development studies.

- Completion of the PEA with pit design and optimization to direct further mine development studies and core drilling.

- Completion of mine development studies initiated in 2007 including environmental baseline monitoring, road construction, hydroelectric studies, metallurgical, and First Nations discussions; and

- A study to assess the amenability of the Bronson Slope Au-Cu-Ag-Mo mineralization to pre-concentration and to assess the economic impacts (scoping study) on the Bronson Slope project.

- A program of exploration drilling on the east side of the Bronson Slope deposit to expand/define additional mineralization. The deposit is open to the east, south in the high wall area and to depth.

The stage one program is expected to cost in the order of $1.5 million.

The stage two program cannot be fully quantified as to cost, at this point, but would include commencement of the EAR, substantial mine development and metallurgical studies and in-fill core drilling that will cost a minimum of $1.0 million but will be quantifiable after completion of the PEA. With respect to stage two in-fill core drilling, a minimum of 2,000 metres should be planned for, although the actual amount may be more.

Skyline endorses these recommendations and will proceed with their implementation immediately.

Skyline also believes the advancement of the Bronson Slope project through the feasibility process will also add significant value. Skyline has an ambitious development plan for Bronson Slope and expects to aggressively address the recommendations in the Technical Report.

The Technical Report can be viewed in its entirety on Skyline's website at www.skylinegold.com or on SEDAR at www.sedar.com.

Al Burgoyne, M.Sc., P. Eng., an independent qualified person for the Company has reviewed this news release.

ON BEHALF OF THE BOARD OF DIRECTORS

SKYLINE GOLD CORPORATION

Cliff Grandison, Chairman and Chief Executive Officer

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 fulfil 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
    Cliff Grandison
    Chairman and Chief Executive Officer
    (604) 270-3878
    (604) 270-3858 (FAX)
    Website: www.skylinegold.com