$9.5 Million Program Planned for 2007
VANCOUVER, BRITISH COLUMBIA - Skygold Ventures Ltd. (Skygold) (TSX VENTURE:SKV), a Vancouver-based resource company exploring for precious metals in North America, and its partner Wildrose Resources Ltd. (Wildrose) (TSX VENTURE:WRS), today announced preliminary results from metallurgical testing on dill core samples taken from the Main Zone of the Company's Spanish Mountain project in central British Columbia. The metallurgical work is ongoing and a final report is expected in June 2007.
Metallurgical test work was completed on diamond drill core from three general styles of mineralization: greywacke hosted; high grade argillite hosted; and low-grade argillite hosted. A total of 267 samples from 12 drill holes are being used in this study.
The test work was completed under the direction of John Fox (P. Eng.) and Peter Stokes (P. Eng.) of Beacon Hill Consultants (1988) Ltd, an independent engineering company based in Vancouver. The initial results indicate that between 36.4% and 38.8% of the gold can be recovered in a simple gravity circuit and that between 95.9% and 96.8% of the gold reports to a simple gravity/flotation circuit. Ongoing metallurgical testing will determine the most effective method of treating the flotation concentrate.
Scott Weekes, VP Exploration for Skygold, said, "These initial results are excellent and the fact that we can recover almost 40% of the contained gold directly in a gravity circuit is extremely positive. This means that a gravity circuit and simple floatation circuit captures over 95% percent of the gold at the Spanish Mountain property. We are eagerly anticipating the results from the ongoing test work and are in the process of planning our most aggressive exploration program to date with a 2007 budget estimated at 9.5 million dollars. Details of the 2007 program will be released following the final results from the 2006 drilling."
The proposed gravity/flotation circuit would mean the bulk of the tailings (Flotation tailings) will be free of chemicals and sulphide minerals making them easily disposed of. The flotation concentrate representing a small proportion of the ore can now be handled easily to minimize environmental impact.
Mr. Weekes continued, "Gold mineralization at Spanish Mountain is hosted in sediments and has been classified as a "Sedimentary Hosted Vein Deposit" or SHV. SHV gold deposits are some of the largest in the world and, although exploration at Spanish Mountain dates back to the gold rush of the 1850's, exploration targeting the SHV style of mineralization has been limited to the work completed by Skygold and Wildrose Resources over the past three years. Since that time gold mineralization within the Main Zone has been traced over an area of approximately 1200 x 750 metres. Recent drilling, geophysics and soil geochemistry has indicated there is potential to significantly expand on this zone (see news release dated Feb. 20, 2007).
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
Doug Fulcher, President
About Skygold Ventures Ltd.
Skygold Ventures is a Vancouver-based resource company exploring for precious metals in North America. Its shares trade on the TSX-V exchange under the symbol SKV.
Skygold's Spanish Mountain property, located near the historic town of Likely in south-central British Columbia, is one of the top gold prospects of the Cariboo region. Although Spanish Mountain has a long history of exploration, results from the past four years have produced the most convincing evidence to date that this exciting property may contain the source of some of the Cariboo's richest placer finds.
The Spanish Mountain project is a joint venture between Skygold and Wildrose Resources Ltd. Skygold owns a 70% interest and Wildrose holds a 30% participating interest.
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. There can be no assurance that such statements will prove to be accurate and 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.
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