Skyline Gold Announces Non-Brokered Financing of $4 Million
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/13/11 -- Skyline Gold Corporation (TSX VENTURE: SK) ('Skyline' or the 'Company') recently announced the signing of a letter agreement with Golden Band Resources Inc. and American Bonanza Gold Corp. for the Company to acquire the Iskut Joint Venture ('Iskut JV') mineral claims adjacent to the historic Snip mine (news release of June 8, 2011). This transaction brings in some of the most prospective claims in the area and delivers to Skyline the remaining key land positions it had targeted for its Golden Triangle property.
The Iskut JV mineral claims substantially surround the Snip Mine, now closed. During its operation from 1991 to 1999, the Snip Mine produced 32.093 million grams of gold (1.03M ounces @ 26.74 g/t), 12.183 million grams of silver (392,000 ounces) and 249,276 kilograms of copper (548,000 pounds) from about 1.2 million tonnes. Grades similar to those of the Snip Mine can be found throughout the geochemical database being compiled by Skyline exploration staff, including grab, trench and drillhole intersections, which form part of the newly assembled Skyline dataset.
On June 9, 2011, the Company announced that Mr. Ron Netolitzky had joined the Advisory Board, bringing to the Skyline team extensive experience in successful exploration and a vast knowledge of the geology of the Golden Triangle of British Columbia. All at Skyline welcome his enthusiastic involvement.
Jim Sparling, Skyline's Chief Operating Officer says, 'Reviewing the historic data with our team over the past few weeks has been very exciting as we are continuing to reveal new high-grade targets. Aside from geochemical targets, digital compilation has also revealed coincident geophysical and geological targets. With the on-going prioritization of these targets, and a new inventory of historical geological data from the Iskut JV to add to our compilation, we are anxious to get out into the field to 'ground truth' the best showings on the newly assembled land position.'
Skyline's current expectation is to have crews on the property by late June to locate and verify historic soil anomalies and trench results and to confidently locate historical drillhole collars using high precision GPS units. Having exact coordinates will significantly enhance the confidence level of our on-going interpretation of mineralization. The plan for this season's exploration activity is to confirm location grades and widths of historical showings; as well as to extend soil geochemical coverage where historical sampling left open ended anomalies. Work plans include detailed prospecting and trenching as well as a geological and structural mapping program. All exploration efforts will be focused on acquiring the necessary information, from either existing showings or newly discovered mineralization, in order to undertake a well planned drill program starting in the fall of 2011.
Skyline has accomplished its desired land acquisitions, hired an experienced exploration management team and has completed a significant amount of geological compilation work. The first program of follow-up field work is about to be undertaken. The Company estimates that the planned 2011 spring and summer exploration activity will require an initial funding of approximately $4 million. Consequently, subject to TSX Venture Exchange approval, the Company is preparing to issue a selection of units; some will be comprised of one flow-through common share at a price of $0.28 per unit with a half flow-through warrant exercisable for two years at a price of $0.40 per whole common share; and others will be comprised of one non-flow-through common share at a price of $0.24 per unit with a half warrant exercisable for two years at a price of $0.35 per whole common share. Finders' fees may be paid in accordance with TSX Venture Exchange policies.
Skyline Gold Corporation is a Canadian company engaged in the exploration of precious and base metals in mining friendly British Columbia. The Company is committed to building an experienced technical team with seasoned management equipped to understand the geological controls on mineralization known to exist in the Golden Triangle of British Columbia. The Skyline land package has consolidated some of the most prospective ground Canada has to offer, hosting both high grade structural systems and lower grade large tonnage porphyries. 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 events to differ materially from those projected. There are no assurances the Company can fulfill 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.
NR - SK-11-08
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