The Spanish Mountain Project is a high profile gold property located in the central Cariboo region of British Columbia. The project is a Joint Venture between Skygold (70% ownership) and Wildrose Resources Ltd. (Wildrose) (30% ownership). The Joint Venture has been aggressively exploring, and expanding bulk tonnage, sedimentary hosted gold mineralization discovered in 2005 which sparked one of the largest staking rushes in provincial history. At present, the main zone mineralization has been traced over an area of at least 1200 metres by 800 metres and remains open in all directions. The potential for adding mineralization both within the main zone and for discovery of new zones within the 10,000 acre property remains very high. The scope of the 2007 program is to expand and tighten the Main Zone mineralization in preparation for a 43-101 compliant resource estimate and to test several large geochemical soil anomalies for additional gold mineralization.
The recent boom in global mineral exploration has caused significant labor shortages and long assay turnaround times which directly affects timing on news releases and more importantly slows the overall progress of mineral exploration programs. Even with these delays and labor shortages, the Spanish Mountain project has advanced significantly over the past six months with the discovery of higher grade mineralization and an increased understanding of the geological model. The geological model has placed Spanish Mountain among a class of deposits in the world termed Sediment Hosted Vein or "SHV" deposits which tend to be very profitable and have a low cost of discovery. These deposits are only discovered by drilling and require aggressive exploration plans with lots of drilling and sampling.
The timeline to finish a 60,000 metre diamond drill program has been extended until the Spring of 2008 due to a lack of diamond drills and drill crews. To allow for the continued aggressive exploration of the property the Spanish Mountain Camp and drill areas have been outfitted to support winter drilling. There are currently two diamond drills on the property drilling in the Main Zone and on regional targets.
Since 2005, diamond drilling has consistently provided greater than 96% core recovery with some of the lowest cost per meter rates in the industry. Because of the nature of the gold mineralization at Spanish Mountain, management is very demanding of drill contractors, specifically in the area of recoveries. As a result of unsatisfactory performance and an unprecedented demand for drills in the industry Skygold has been unable to maintain four drill rigs on the property. We are actively searching for additional drills and still plan to have four drills on the property to complete and expand the 60,000 metre program.
Since the start of the 2007 drill program (June 1, 2007) the company has collected and shipped approximately 12,000 samples from Spanish Mountain project alone of which approximately 4600 have been returned with assays completed. Of these samples, approximately 4000 where the subject of the news release dated Sept 10, 2007, the remaining are from partial holes yet to be released. Excessive delays at the lab are partially responsible for the long turnaround times. In addition, due to the coarse nature of the gold at Spanish Mountain, a 1 kg metallic screen assay is required for each sample which typically requires more time at the lab than a standard fire assay. Assays will continue to be released in batches as they are received from the lab.
Metallurgical test work is progressing and a report is anticipated within the next 4 to 8 weeks. Initial test work indicated over 90% of the gold could be recovered in a float concentrate. Additional test work was hampered by delays caused by the assay labs as well as back logs in the mettarurgical labs. Skygold was successful in engaging a new metallurgist and analytical lab in August of 2007. Since that time progress has been excellent. We are extremely pleased with the results to date and eagerly anticipate final results.
The Joint Venture is in the process of calculating a NI 43-101 compliant resource on the Main Zone. An additional 21 holes have been completed within the Main Zone in October and the results of this drilling has been given a priority at the lab in order to complete the resource in the first quarter of 2008.
Results from the second phase of work on Skygold's 100% owned regional SHV properties are now beginning to come in. Results have been received and have been released on the Prince George and Manson Creek properties with large scale, gold geochemical anomalies being defined on both projects. Additional results will be released as they are received.
The Joint Venture currently has well over 5 million dollars in the treasury and is fully funded to complete this phase of exploration through the winter. On October 18, 2007 the outstanding 5,496,625 warrants priced a $1.60 expired. This will leave only 525,000 warrants outstanding at a price of $2.00 with an expiry date of October 5th, 2008. The current fully diluted number of shares in Skygold Ventures is now 51,191,834.
The Spanish Mountain project is a joint venture between Skygold Ventures Ltd. and Wildrose Resources Ltd. in which Skygold has a 70% participating interest and Wildrose has a 30% participating interest.
Eco Tech Laboratories Ltd. of Kamloops BC, a BC accredited laboratory, is conducting the sample preparation and analyses of samples. Skygold/Wildrose are submitting standards, blanks and duplicates into the sample stream to maintain quality control. All gold analyses will utilize standard screen metallic assay techniques. Robert Darney, P.Geo. and J.W. (Bill) Morton, P.Geo. are the qualified persons (as defined in NI 43-101) who have reviewed this news release.
On Behalf of the Board,
SKYGOLD VENTURES LTD.
This news release may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. Actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
For more information, please contact
Skygold Ventures Ltd.
(604) 684-0279 (FAX)
B&D Capital Partners
VANCOUVER, BRITISH COLUMBIA - Skygold Ventures Ltd. ("Skygold") (TSX VENTURE:SKV) wishes to update shareholders on; current exploration at the Spanish Mountain Project, ongoing exploration on its regional exploration program and corporate matters.