Skyline Gold Corporation

Skyline Gold Corporation

December 10, 2007 08:01 ET

Skyline Continues Development of Its Bronson Slope Deposit

RICHMOND, BRITISH COLUMBIA--(Marketwire - Dec. 10, 2007) - Skyline Gold Corporation (TSX VENTURE:SK) ("Skyline") is investigating several alternatives for power in the Bronson Slope area.

On November 28, 2007 the Minister of Energy, Mines and Petroleum Resources, Mr. Richard Neufeld, stated that, "Our immediate response obviously, unless we hear something different from Galore Creek, is that the transmission line would be put on hold," due to the Teck Cominco and NovaGold's decision to suspend construction of the Galore Creek project.

The impact of this comment on Skyline's development plan for its Bronson Slope deposit has the potential but not the certainty of affecting the project timelines.

Plans for the Northwest Transmission Line (NTL) called for construction in two stages. The first stage was to construct the line and energize it to 138 kV and to complete this in 2009 with the second stage to be completed in 2011 and energize it to 287 kV. A delay in the completion of the first stage by one or two years could still meet Skyline's power requirements because Bronson Slope's much smaller power requirement can be easily met with the 138 kV connection which is in keeping with Skyline's original plans.

Skyline will however investigate other alternatives. The first alternative for Skyline's Bronson Slope project is located only ten miles away in Alaska where there is excess power. The Alaska alternative requires very little infrastructure and could be completed in a timely fashion subject to the regulatory process and First Nations consultation, accommodation and reconciliation.

A second alternative is local generation of electricity from coal, coal gas or hydro. These resources are being studied by other companies in the area. Skyline will examine these sources in detail.

Additionally, Skyline has an agreement with Coast Mountain Power Corp. ("Coast") to provide access to the BC Hydro grid should Coast decide to build its own line. BC Hydro has announced its intent to issue a call for green power in 2008. Should Coast decide to submit a bid, it must have an interconnection with BC Hydro. Since Coast has all the permits and approvals to proceed with their own line, an interconnection with BC Hydro would be possible. This line would be more than adequate to transfer the 20 MW's needed to power up Bronson.

Skyline will proceed on its current plans to advance the Bronson Slope project through the engineering, design, approval and permitting process on assumption that a source of power will be found and be available to meet the company's timelines.



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)