Skyline Gold Corporation

Skyline Gold Corporation

April 22, 2008 14:30 ET

Skyline Initiates Iron Magnetite Study

RICHMOND, BRITISH COLUMBIA--(Marketwire - April 22, 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 that it has initiated an Iron Magnetite Study on its Bronson Slope gold-copper-silver-molybdenum deposit.

This porphyry deposit has an iron magnetite component which has significant value added potential. Iron magnetite is used as a heavy density medium by the coal industry for the production of clean coal. The growth in the demand for coal has increased the need for iron magnetite.

The Bronson Slope deposit contains up to 7% magnetite in the Quartz Magnetite zones within the porphyry deposit and has been shown to be recoverable in previous tests. Skyline has engaged BC Mining Research Ltd. (UBC) to prepare a report on the magnetite market; magnetite recovery; regrind bond work index test and product characterization-mineralogy. Test work will be done on samples already in Vancouver and will assist in the design and planning of the Bronson Slope concentrator. The Bronson Slope concentrator is currently the subject of a Preliminary Assessment Study with an initial capacity of 15,000 tonnes per day with an annual throughput of 5.5 million tonnes.

Magnetite will be recovered from tailings by magnetic separation and graded according to fineness. Highest grade material would be direct shipped while coarse material will either be reground or sold as iron concentrate.

Iron magnetite prices tend to be stable and sold under long term contract. Export prices depend on the location of the end user and proximity to tide water. While Skyline has no assurance of price, it expects the magnetite price to exceed $80/tonne at the mine. Magnetite recovery costs are not expected to be significant in relation to the cost of mining and processing of gold and copper concentrates. The Study is expected to take two months to complete.



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)