Skyline Gold Corporation
TSX VENTURE : SK

Skyline Gold Corporation

July 14, 2010 11:48 ET

Skyline Gold Acquires Additional Iskut Claims From Newcastle Minerals Ltd.

RICHMOND, BRITISH COLUMBIA--(Marketwire - July 14, 2010) - Skyline Gold Corporation (TSX VENTURE:SK) ("the Company"), a company engaged in the exploration and development of its Bronson Slope porphyry style gold-copper deposit in north western British Columbia's 'Golden Triangle', is pleased to announce that it has received the TSX-Venture Exchange's approval and, subject to completion of a payment schedule, it is entitled to acquire 100% ownership of 6 mineral tenures comprising 2,250 hectares in the vicinity of Bronson Slope from Newcastle Minerals Ltd. ("Newcastle").

The mineral tenures that have been acquired are as follows:

Tenure No: Claim Name Good to Date Area (Hectares)
222212 WARATAH #7 2018/nov/30 500
392384 BUG 1 2018/nov/30 300
392385 BUG 2 2018/nov/30 300
392386 BUG 3 2018/nov/30 300
392387 SNIP NORTH 2018/mar/13 400
396466 PHIZ 1 2014/sep/19 450

The Companies mineral tenures can be viewed at the following link:

http://www.skylinegold.com/i/pdf/ClaimMap.pdf

Acquisition of the mineral tenures secures mineral rights on a portion of a road route of access to the proposed Bronson Slope project and the tenures have excellent exploration potential.

Prior exploration on Snip North has identified, with a 2,200 meter drill program in 2006 and 2007, a porphyry-style gold, copper, and molybdenum mineralized area with drill core grades similar to the Company's Bronson Slope deposit and located approximately 4.5 kilometres from Bronson Slope. Snip North also contains the "Gorge Showing" for which historic exploration identified gold targets that will be further reviewed and investigated by the Company.

The Phiz 1 tenure contains the Phiz vein discovered in 1988. Stripping and trenching of this vein exposed the vein over 24 meters strike length and, where exposed, the vein averaged 3.0 meters (m) in width. Surface channel samples assayed 49.7 grams /tonne (g/t) gold and 135.8 g/t silver over 3.2 m, 88.0 g/t gold and 87.1 g/t silver across 2.98 m, and 16.9 g/t gold and 44.6 g/t silver across 7.0 meters (George Cross Newsletter, November 18, 1988). An historical 15 hole drilling program on the Phiz vein totalling 950 metres returned encouraging results with assays up to 17.09 g/t gold over 0.8 metres (B.C. Ministry of Energy, Mines and Petroleum Resources Assessment Report 18512). The Phiz vein remains a significant exploration target as geologic constraints on mineralization were apparently inadequately understood at the time of drilling.

Purchase terms of the acquisition are:

  1. An initial payment of $400,000 in the form of 2,139,037 common shares of Skyline Gold priced at $0.187 per share.
  1. A final payment to Newcastle of 1,426,025 Skyline Gold common shares priced at $0.2805 per share, or $400,000 in cash, at the option of Newcastle, by June 29, 2011.

This news release has been reviewed for technical accuracy by David Yeager, P.Geo., who fulfils the requirements to be a Qualified Person for the purposes of National Instrument 43-101.

ON BEHALF OF THE BOARD OF DIRECTORS

SKYLINE GOLD CORPORATION

David Jensen, P.Eng., President

Neither 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

  • Skyline Gold Corporation
    David Jensen, P.Eng.
    President
    (604) 270-3878
    (604) 270-3858 (FAX)
    www.skylinegold.com