Skyline Gold Corporation

Skyline Gold Corporation

September 06, 2011 09:00 ET

Skyline Provides an Update on Current Exploration Activities

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 6, 2011) - Skyline Gold Corporation (TSX VENTURE:SK) ("Skyline" or the "Company") is pleased to provide a brief update on the on-going exploration efforts on its wholly-owned Bronson Project in the Iskut River area of British Columbia.

Skyline's 2011 field exploration program started in mid-June with the re-establishment and up-grading of the exploration camp; field exploration began in the third week of June. The 2011 exploration efforts are focused on three initial targets; the Snip-Bronson Extension, the Bug Lake area, and the Gorge-Gregor area. Early review of historical exploration data indicated these three target areas offer excellent potential to contain high-grade gold mineralization as well as an extended field season because of their relatively low elevation. These three priority targets are displayed on Figure 1 (to view click on:

Over the next several weeks, the Company intends to release details on each of these priority targets and the information will include both historic data as well as results from the current exploration program.

Skyline's exploration oriented team, led by Mr. Zbeetnoff and Mr. Sparling, is only part-way through a comprehensive compilation effort that is assessing and prioritizing the exploration targets on the Company's newly expanded land package. The compilation is detailing the exploration efforts of approximately 20 companies that explored all parts of Skyline's current land holdings over the past 30 years.

Skyline's exploration team has found that the historic exploration efforts in the area were carried out by various operators that often had limited budgets and held small land packages. As a result, good showings that were discovered were often not followed up due to the inability to raise adequate funds. It was also noted that in a few instances that strongly mineralized trends were historically held by several operators who did not share exploration information. These mineralized trends are now completely within Skyline's expanded land package.

Much of the early exploration work, typically of very good quality, was completed prior to the advanced exploration and development of both the Snip and the Johnny Mountain Mines. Both mines were high-grade gold producers that were closed in the 1990's. The Snip Mine was closed in 1999, when gold was under $300 an ounce. Only minimal exploration for high-grade gold mineralization has been undertaken in the area since the closure of these producing mines. The understanding of the geological and structural controls on the gold mineralization advanced considerably during the production efforts at these mines. With the aid of this knowledge, the Skyline exploration team is looking forward to applying current exploration technology to the numerous showings in their property. Skyline is also looking forward to the next several exploration seasons in which they plan to work towards advancing the most prospective exploration targets to the drill testing stage.

The on-going compilation work has already delivered a wealth of historic data that is being re-interpreted based upon the significantly expanded understanding of the controls on mineralization. The Company has had a large detachment of employees and contractors in the field since June and the exploration team's objective is to advance each of the primary targets towards drill-testing later this fall and next spring.

The work on this year's priority targets includes grid establishment, verifying historic anomalies by infilling and extending soil geochemical coverage, prospecting, as well as geological and structural mapping and trenching on both previously located and newly discovered showings. Historic drill collar locations will be resurveyed using high resolution GPS units which will provide a greater degree of confidence in the on-going geological interpretation.

The Company has contracted specialists in particular phases of exploration to allow for a focused effort on specific tasks. Shaun Parent, Dipl.Geo, BSc, P.Geo., an exploration geologist who is considered an expert in sampling-prospecting-mapping and traversing steep, high-angle exploration targets. Mr. Parent is responsible for prospecting and mapping the steeper portions of the Iskut Property. John Fedorowich, P.Geo., PhD, Senior Structural Geologist with Itasca Consulting Canada Inc., is mapping and interpreting the surface expressions of the gold mineralization and controlling structures. Dr. Fedorowich has over 25 years of field experience and adds considerable expertise to the field crew.

A 1,200 line-kilometre airborne Magnetometer, Frequency Domain EM, and Radiometrics survey is currently underway. The airborne program will focus on the three primary targets for 2011 as well as additional areas set for exploration early next season. The airborne program will be flown at two levels of resolution, a higher resolution flight pattern over areas containing known high-grade gold showings, and a slightly less dense pattern to be flown along trend of these areas.

The Company believes that all of these aspects of exploration will be far enough advanced to be factored into this year's fall drill program. The drill program is expected to commence in mid to late September. The drill program is also intended to be the base from which a down-hole geophysical program will be carried out late this fall or early next spring.

The Company has also contracted Eagle Mapping to fly the property with both high resolution air photography and with a Lidar survey. Both surveys are critical to understanding the fine detail required to interpret the structural controls on the gold mineralization. The air photography is scheduled for mid-September and if weather permits, this program is to be followed by the Lidar survey. These surveys, combined with the airborne geophysical program and further compilation of historic data, will be the base from which next year's exploration targets will be prioritized.

Within the near future, the Company expects to be able to release initial assay results from this year's exploration program. The Company is finding that the increase in exploration activities this year has created long delays between delivering samples for assay and receiving the results. Skyline will also be updating its website with current and historic data as it is incorporated into the GIS database.

Cautionary Statements

Statements in this release may be viewed as forward-looking statements. Such statements involve risks and uncertainties that could cause actual events to differ materially from those projected. There are no assurances the Company can fulfil such forward-looking 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.

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
    John Zbeetnoff
    Chief Executive Officer
    604-681-3557 (FAX)