Skyline Gold Corporation
TSX VENTURE : SK

Skyline Gold Corporation

December 22, 2010 13:04 ET

Skyline Gold Reports Assays Including 1.0 Meter Grading 27.4 Grams Per Tonne Gold From Snip-1 Definition Drilling Program

RICHMOND, BRITISH COLUMBIA--(Marketwire - Dec. 22, 2010) - Skyline Gold Corporation ("the Company") (TSX VENTURE:SK), 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 assay results from the 1,063 meter definition drilling program at the high-grade gold outcrop zone at Johnny Creek drilled in October 2010. Drilling occurred approximately 1,500 m south east of the Bronson Slope deposit, on the "Snip-1" mineral tenure adjacent and on the east and west side of the Johnny Creek gorge.

Assay results for the October 2010 definition drill program holes SK-10-11 through SK-10-18, which include screen for metallics analysis for all initial gold fire assay values over 3.0 grams/tonne (g/t) gold, are summarized below:

From To Width Gold Silver Copper Lead Zinc
(m) (m) (m) (g/t) (g/t) (%) (%) (%)
SK-10-12              
  123.00 174.00 51.00 0.34 7.49 0.03 0.06 0.58
including:              
  123.00 125.00 2.00 3.92 14.15 0.04 0.04 0.03
SK-10-13              
  122.00 132.00 10.00 2.34 11.27 0.04 0.14 0.57
including:              
  122.00 125.00 3.00 5.72 16.27 0.06 0.23 1.17
  122.00 123.00 1.00 13.35 16.70 0.04 0.18 1.53
SK-10-14              
  109.85 111.20 1.35 6.27 4.60 0.01 0.03 0.12
  140.80 142.80 2.00 3.45 6.90 0.09 0.01 0.03
  158.00 160.00 2.00 4.57 17.40 0.17 0.01 0.02
SK-10-15              
  72.00 93.00 21.00 0.68 13.95 0.02 0.32 1.50
including:              
  72.00 73.00 1.00 4.29 17.90 0.02 0.41 2.71
  91.50 93.00 1.50 4.25 26.10 0.07 0.47 3.68
SK-10-16              
  18.23 18.53 0.30 6.88 51.40 0.39 0.11 0.57
SK-10-17              
  90.00 102.50 12.50 3.36 22.51 0.11 0.18 1.42
including:              
  90.00 91.00 1.00 6.18 28.10 0.13 0.03 0.05
  101.50 102.50 1.00 27.40 9.80 0.02 0.07 0.28
SK-10-18              
  16.00 17.50 1.50 2.94 70.80 0.06 0.77 2.29

Hole SK-10-11 yielded no significant mineralization.

The assay data will be reviewed in conjunction with the structural geology analysis currently underway for the Snip-1 high grade gold exploration zone.

Drill pad locations and drill hole orientations are shown in the drill plan map below. A cross-section view is also provided below.

The drill core contains mineralization consisting of a stockwork of disseminated to semi-massive and massive textured sulphides including pyrite, sphalerite, galena, chalcopyrite and minor pyrrhotite with occasional instances of visible gold and electrum. This mineral assemblage is typical of occurrences that form in the haloes of porphyry copper-gold deposits; however, the high sulphidation character implies a "transition" to a separate mesothermal to epithermal style system. The host rocks are fine to coarse-grained volcaniclastic sedimentary rocks.

Characterizing the newly discovered high grade Johnny Creek gold occurrence (see Skyline Gold September 29, 2010 news release) was the objective of the October 2010 drilling. The mineralized structure was successfully traced for a distance of 25m to the west and 55m to the east. The program encountered significant structural offsets due to faulting that disrupted the continuity of the mineralized structure at these locations.

Due to the multiple mineralized directions encountered in the drilled area, the holes were not drilled exactly perpendicular to the strike and dip of the mineralization. The intersections listed in the previous summary table are core length, not true thicknesses. The true thickness of the mineralization is less than the core lengths quoted.

An analysis of core angles noted during the core logging indicates several persistent orientations of mineralization. A common orientation of the mineralization was parallel to the Johnny Creek showing, striking approximately 120 degrees and dipping steeply to the north. Also of note was a second orientation striking approximately 120 degrees and dipping moderately to the southwest. This latter orientation is similar to the structures mined in the historic Snip Gold Mine (with production of over 1 million ounces of gold), located approximately 3.0 kilometres along strike to the northwest.

A trenching program was also performed concurrent with the October 2010 drilling program. Results of the trenching will be released separately after the assay results are compiled.

The results of the October 2010 drilling program will also be reviewed in conjunction with the results of the Spring 2010 drilling program, the Fall 2009 drilling program, the structural geology analysis of the Snip-1 high-grade gold zone, and the historical drilling that was performed in 1989.

Complete drill core assay data will be posted to the company's website.

Assays were completed by ALS Canada Ltd., an ISO 9001:2008 certified facility. The following assay procedures were utilized:

Analytical   Procedures
     
Gold   Au-AA24: 50g fire assay with atomic absorption finish
    Au-GRA 22: 50g fire assay with gravimetric finish
    Au-SCR24: 1000g screen for metallics assay
     
Silver plus trace metals   ME-ICP41: 1.0g aqua regia digestion, 35 element ICP-AES determination
     
Silver plus trace element overlimits   ME-OG46: aqua regia digestion, various determination methods depending on element

David Yeager, P.Geo. the Company's consulting geologist who meets the requirements of a Qualified Person in accordance with N.I. 43-101, has reviewed this news release for technical accuracy.

ON BEHALF OF THE BOARD OF DIRECTORS

SKYLINE GOLD CORPORATION.

David Jensen, P.Eng., President and C.O.O.

To view the maps accompanying this press release please click on the following link: http://media3.marketwire.com/docs/SKmaps.pdf

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 fulfill 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.

NR - 00011

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 and C.O.O.
    604 270 3878
    604 270 3858 (FAX)
    www.skylinegold.com