Skyline Gold Acquires Key Properties and Substantially Concludes Its Land Consolidation Program
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/08/11 -- Skyline Gold Corporation (TSX VENTURE: SK) ('SK' or the 'Company') is pleased to announce that it has signed a letter agreement with Golden Band Resources Inc. and its joint venture partner American Bonanza Gold Corp. for the Company to acquire the Iskut Joint Venture ('Iskut JV') mineral claims. The Iskut JV mineral claims total 4,250 hectares and are adjacent to the historic Snip mine and the properties previously acquired from Newcastle Minerals in 2010.
This transaction will result in SK having consolidated a total land position of 25,969 hectares (an increase of 25,526 hectares since November of 2009). The Company will, upon completion of a final acquisition agreement accepted by the various Boards and the TSX Venture Exchange, issue 5,000,000 common shares of SK and a further 2,500,000 common share purchase warrants exercisable at a price of $0.50 for a period of 5 years. An existing 2% NSR on the mineral claims will continue. The Company has entered into preliminary discussion with the holders of the NSR to acquire it for shares.
This transaction brings in some of the most prospective claims in the area and delivers to Skyline the remaining key land position it has targeted for its Golden Triangle property. A map of the Company's land position is linked which includes the Iskut JV mineral claims. As the data compilation progresses the Company will be detailing and releasing some of the historic results which will be the focus for future exploration programs starting this summer.
The Company's new, strategically selected, exploration team has made some relatively rapid progress in the digital compilation of historic exploration data acquired from various properties with exploration work spanning the past 30 years. Most of this early work dates back to the late 1980's and early 1990's, had excellent results, but were never followed up by subsequent programs.
Skyline's current expectation is to have crews on the property by late June to commence the work needed to verify historic soil anomalies, trench results, and to confirm the location and attitude of several hundred historic drill holes. The ground-truthing of these early results is intended to ensure the data compilation and consolidation is providing reliable information. Once the historical results are confirmed, exploration will focus on expanding existing showings and developing new targets into drill ready prospects to be tested starting in the fall of 2011.
The linked map displays some of the exploration targets highlighted by the data compilation to date. The two highest priority targets are the Gorge and Bug Lake.
To view the map please visit the following link: http://media3.marketwire.com/docs/skMAP.pdf
Skyline management is extremely pleased with the latest acquisition as it has resulted in the Company gaining access to further exploration targets to those already within the control of the Company. The combined assets provide SK with holdings that offer an excellent opportunity to work towards renewed production from the prolific Iskut area.
Skyline Gold Corporation is a Canadian company engaged in the exploration of precious and base metal prospects in mining friendly British Columbia. Skyline Gold is committed to building an experienced technical team with seasoned management equipped to explore and assess the geological controls on mineralization that are unique to the Golden Triangle of BC. Skyline exploration staff is anxious to test and better define the numerous historical prospects as well as explore for both new structurally controlled high grade gold mineralization and large tonnage porphyry systems. Further details on Skyline Gold Corporation and its high quality precious and base metal exploration targets can be found at www.skylinegold.com.
Skyline Gold Corporation
Bob Matthews, Chairman of the Board
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.
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.
Contacts:
Skyline Gold Corporation
Bob Matthews
Chairman of the Board
604-681-3989
604-681-3557 (FAX)
www.skylinegold.com