Skyline Gold Corporation (TSX VENTURE:SK), a company engaged in 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 received TSX-Venture Exchange approval 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 in common shares or a combination of common shares and cash.
The Company's total tenure holdings in the region will increase to 20,925 hectares (ha) from 12,150 ha.
The new tenure holdings carry significant potential with numerous gold, silver, and base metal occurrences including five areas of mineralization that have undergone historic exploration.
The AK intrusive breccia zone was historically explored by underground sampling and drilling along its 380m of underground workings. The mineralized breccia has been traced over a minimum strike length of 240m and has a strike and dip that is coincident with that of the Snip Gold Mine Twin Zone. Historically reported exploration drill intersections, including two holes with intersections assaying, respectively, 41.1g/t gold over a core length of 7.4m and 18.1g/t gold over a core length of 9.2m, are documented in the B.C. Assessment Report AR 21157 and B.C. Minfile No. 104B.113 records.
The Inel Stockwork vein zone was previously explored by underground sampling and diamond drilling from 850m of underground exploration workings. An historical, non-N.I. 43-101 compliant resource estimate of 317,485 tonnes grading 3.4g/t gold, 13.3g/t silver, 0.1% copper and 2.6% zinc is reported in B.C. Minfile No. 104B.113 records. This historical estimate was completed prior to the implementation of the N.I. 43-101 reporting and as such the Company is not treating the historical estimate as current mineral resources and this estimate should not be relied upon.
Historical surface sampling of the Gim Gold zone has discovered structurally controlled high-grade gold vein mineralization with assay values up to 50.98g/t gold across a 3.0m width as recorded in Assessment Report AR 20459.
The Khyber Pass and Pyramid Hill gold areas as well as other base metal showings are located approximately 1.5km and 3.0km, respectively, south of the Inel workings. These areas were the subject of considerable grid-based exploration work as well as limited trenching and drilling, primarily by Western Canadian Mining. This work resulted in the discovery of large zones of high sulphidation mineralization containing significant amounts of gold, silver, copper and zinc.
These historical discoveries as well as large underexplored areas of the Company's large mineral tenure property will undergo review during the digital compilation work to be completed this winter. All exploration targets will be prioritised for the upcoming exploration season.
Payment for the Inel Property 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 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 gold 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. Final assays from the drill program are expected to be received in the near term.
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