Skyline Gold Corporation (TSX VENTURE:SK), a company engaged in the exploration for high-grade gold deposits and development of its Bronson Slope project at the Snip Gold Mine camp in north western British Columbia's 'Golden Triangle', has announced that it has agreed to acquire 8,775 hectares of mineral tenures from St. Andrew Goldfields Ltd. adjacent and near the Company's current tenure holdings in return for total payment of $1,406,000 subject to receipt of regulatory approval.
Payment is comprised of an initial payment and a final payment. The initial payment is 2,179,845 common shares of the Company valued at $0.3225 per share (the 10 day average closing share price to and including November 16, 2010). The final payment is comprised of, at the election of St. Andrew Goldfields Ltd., cash payment of $703,000 or 1,453,380 common shares valued at $0.4837 per share by November 17, 2011.
The Company's total tenure holdings in the region will increase to 20,925 hectares (ha) from 12,150 ha.
The Inel Property contains numerous precious and base metal occurrences. Included on the Property is the Inel Stockwork vein system containing gold mineralization as well as the AK Zone intrusive breccia hosted gold mineralization.
The Inel Stockwork vein zone was previously explored by underground panel sampling and diamond drilling from 850m of underground exploration workings. An historical resource of 317,485 tonnes grading 3.4g/t gold, 13.3g/t silver, 0.1% copper and 2.6% zinc is reported in the B.C. Minfile No. 104B.113 records. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources. The Company is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.
The AK intrusive breccia zone, located 550m from the Inel Stockwork, was historically explored by underground sampling and drilling along its 380m of underground workings. The mineralized breccia has been traced over a strike length of 240m and has a similar dip and strike to the Snip Gold Mine Twin Zone. Historical exploration reports drill intersections, including an intersection with assays of 18.1g/t gold over a core length of 9.2m is reported in the B.C. Minfile No. 104B.113 records.
The Inel Stockwork zone lies approximately 8.5km from and on trend with the Snip-1 exploration area currently being explored by the Company and approximately 11km along trend from Barrick Gold Corporation's former producing Snip Gold Mine.
This winter, a comprehensive digital compilation of the extensive exploration data that exists for the Company's existing and newly acquired properties will occur with a focus on prioritizing high grade gold anomalies intended to be tested in the 2011 exploration season.
The Company has announced that it has recently completed a 1,063m exploration diamond drilling program on the Snip-1 tenure. This program tested a limited strike length of the high grade mineralized zone at the Johnny Creek gorge. The assays for the surface samples collected at this target were announced in the Company's September 29, 2010 news release. Assays from the drill program are expected to be received over the next two weeks.
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.
Source: Skyline Gold Corporation