Skyline Gold Corporation
TSX VENTURE : SK

Skyline Gold Corporation

January 21, 2011 20:37 ET

Skyline Gold Reports Assays Including 8.5 Metres Grading 6.4 Grams Per Tonne Gold (g/t) and 50.0 g/t Silver from Snip-1 Trenching Program

RICHMOND, BRITISH COLUMBIA--(Marketwire - Jan. 21, 2011) - Skyline Gold Corporation ("the Company") (TSX VENTURE:SK), a company engaged in the exploration of its Iskut River property and development of its Bronson Slope porphyry style gold-copper-silver-magnetite deposit, both located in northwestern British Columbia's 'Golden Triangle', is pleased to announce the results of its Fall 2010 surface trenching program at the Snip-1 high-grade gold exploration zone.

The program included excavation, mapping and sampling of nine trenches totalling 131 lineal metres (m), (see accompanying trench and gold sample results map; a full listing of assay results will be posted on the Company's website). These trenches were laid out to identify and locate on surface, drilled mineral structures occurring at depth; and to aid in determining the orientation and any significant offsets of the structures. The trenching and sampling were done at locations on the east side of Johnny Creek, southeast of the Johnny Creek Gorge Showing; and on the west side of Johnny Creek northeast of the drill pad used for the 2009 drilling (SK09-1, 2) and the first eight holes of the 2010 drilling (SK10-1 to 8). The trenches are excavated at right angles to the indicated strike direction of the mineralization in the Snip-1 area. A total of 80 channel samples that cut across the mineralized trend were collected from the trenches.

The most significant gold assays occur on the west side of Johnny Creek in Trench W7 where five consecutive channel samples assay a length (or mass)-weighted composite grade of 6.4 grams per tonne (g/t) gold and 50.0g/t silver along 8.5m of trench. This trench was oriented perpendicular to the strike of the mineralization and overlies hole SK-09-02 drilled in 2009 that intersected a 27m drill core interval from 48m to 75m assaying 4.7 g/t gold and 75.9 g/t silver.

In addition, historical results from Trench CE13 (1990 – Company files) are also plotted on the accompanying map. Trench CE13 is located on the west side of Johnny Creek and is a continuation to the northeast of Trench W7. The most significant gold grade assays in Trench CE13 occur at two locations. The first location is at the southwest end of the trench where Trench CE13 adjoins the northeast end of Trench W7. At the first location, a cluster of 11 consecutive and/or adjacent chip samples represent a sampled panel that assayed a length-weighted composite grade of 2.8g/t gold and 105.0g/t silver over an area of 2.5m x 6.0m. At the second location of anomalous grades from historic Trench CE13, approximately 45m to the northeast of the first location, three consecutive channel samples assayed a length-weighted composite grade of 4.85g/t gold and 8.1g/t silver along 3.9m of trench.

On the east side of Johnny Creek, structurally hosted silver and base metal mineralization in Trenches E1 to E6 demonstrate continuity of the mineralized structural trend evident at the Johnny Creek Gorge Showing.

The significant gold grade trench assays and drill hole composites appear to indicate zones within which precious and base metal minerals have been deposited in openings in the rock caused by structural features such as fractures, shear zones and faults. These high sulphidation, gold mineralized features form a mineralized stockwork presently explored for 170m of strike length by up to 80m of width that is open in both strike directions and on trend with the historically mined Snip Gold Mine. Drilling and trenching indicate the existence of this style of mineralization from surface to a depth of at least 200m below surface. 

The Company considers the 2010 trenching program to be a success and is planning to expand the program during 2011. The primary focus of the 2011 exploration program will be to determine the extent of the mineralized stockwork and to identify the location of higher grade gold and silver mineralization within these series of structures.

The trenching and drill core assay data obtained historically and from the 2009 and 2010 exploration of the Snip-1 high-grade gold zone are being reviewed as part of the structural geological analysis of this zone. The Company looks forward to receipt of the structural mapping report on the Snip-1 area that is expected in February 2011.

The objective of the Company is to develop a resource amenable to selective mining methods that will provide high grade, early stage mill feed for the proposed Bronson Slope mine as delineated in the November 2010 Preliminary Assessment technical report and posted on Skyline Gold's website.

The Company is proceeding with the compilation of current and historical assays and exploration information into a comprehensive digital database that will allow a complete evaluation of the Snip-1 area.

This focus on the Snip 1 area is the first set in a comprehensive data compilation that will ultimately encompass the entire property.

The CE13 Trench results are historical results that were obtained prior to the inception of National Instrument 43-101. David Yeager, P.Geo., the Company's Qualified Person, supervised the historical exploration activities resulting in the assays presented and believes that the practices utilized were compliant with best industry practices at the time; however, the sample results have not been confirmed using modern assay techniques and have not been the subject of rigorous modern QA/QC sampling and assay procedures.

The 2010 trench 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.

Patrick Soares, P.Geo., Executive Director and C.E.O.

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 – 00012

To view the maps and tables associated with this release, please click here: http://media3.marketwire.com/docs/sky121map.pdf.

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Contact Information

  • Skyline Gold Corporation
    Patrick Soares, P.Geo.
    Executive Director and C.E.O.
    604 270 3878
    604 270 3858 (FAX)
    www.skylinegold.com