60,000 Metre Program Planned for 2007
VANCOUVER, BRITISH COLUMBIA - Skygold Ventures Ltd. (Skygold) (TSX VENTURE:SKV), (the "Company") and joint-venture partner, Wildrose Resources Ltd. (Wildrose) (TSX VENTURE:WRS) today announced the start of the largest exploration drilling program to date at Spanish Mountain. Three drills are currently on site testing the Sedimentary Hosted Vein (SHV) style gold mineralization on the Spanish Mountain project in central British Columbia.
A 60,000 metre drill program is planned for Spanish Mountain in 2007 and the main focus will be a series of fence lines, drilled at approximately 400 metre centers (see attached diagram), that will test for the continuity of Main Zone style mineralization over an area of approximately three by two kilometers. These fence lines will cut across areas of favourable stratigraphy with corresponding anomalous gold soil geochemistry.
The 2006 program was extremely successful in outlining a broad area of near surface gold mineralization termed the Main Zone and the knowledge gained is the foundation for the 2007 program. Drilling within the Main Zone in 2006 returned values up to 1.23 g/t gold over 112 metres and had a 97% success rate (see attached table). The borders of the Main Zone denote the limits of drilling to date and remain open in all directions. Gold mineralization has been traced up to 1000 metres in a north-south direction and up to 850 metres in a northwest-southeast direction (see attached diagram).
Late in 2006 it became apparent the style of gold mineralization at Spanish Mountain was consistent with SHV style deposits in other parts of the world. SHV style gold deposits represent some of the largest gold deposits in the world including Muruntau (60+ million ounces gold), Natalka (40+ million ounces gold) and Sukhoy Log (30+ million ounces gold).
This connection between Spanish Mountain and other significant SHV deposits was reinforced by Paul Klipfel who visited the project in 2006. Mr. Klipfel is recognized as one of the leading authorities in SHV deposits and, after his visit to the property, noted that Spanish Mountain conforms to the criteria he has developed for SHV deposits and has similarities not only to Sukhoy Log but a number of others. "It looks the world like Sukhoy Log in virtually all ways. And it conforms to the criteria I have developed for SHV deposits, in general, which includes a cast of characters beyond Sukhoy Log. So you're not stuck trying to mimic one deposit in your exploration efforts."
Doug Fulcher, president of Skygold, stated: "Skygold is pleased with the recognition by an independent expert that the gold mineralization at Spanish Mountain is consistent with SHV style deposits. Past drilling has outlined a large near surface zone of gold mineralization. This years aggressive drilling program will test geophysical and geochemical anomalies that have the potential to dramatically increase the size of the Main Zone gold mineralization."
The drill program in 2006 broadened the Company's understanding of the nature of the gold mineralization at Spanish Mountain. After the 2005 program the Main Zone was represented as a 200 metre x 1000 metre north-south trending zone of near surface gold mineralization. It became apparent during the 2006 program that the mineralization was strongly stratigraphically controlled and trends northwest-southeast. The current outline of the Main Zone now clearly shows mineralization following this northwest-southeast trend and the limits of the mineralization have yet to be found.
Shallow reverse circulation (RC) drilling completed in 2006 intersected anomalous gold and arsenic mineralization approximately 2,200 metres west of the Main Zone. Drilling in 2006 also defined at least three mineralized, stratigraphic intervals within the Main Zone, which highlights the potential for finding additional stacked zones of gold mineralization on the property. You can view a summary of 2006 Diamond Drill Intercepts on the company website www.skygold.ca.
In addition to the 60,000 metres of diamond drilling, base line environmental studies have been initiated, metallurgical test work is ongoing and calculation of a 43-101 compliant resource has been initiated on the current limits of the Main Zone.
Bob Singh, P.Geo., is the qualified person (as defined in NI 43-101) who has reviewed this news release.
On Behalf of the Board,
SKYGOLD VENTURES LTD.
Scott Weekes, V.P. Exploration
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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B&D Capital Partners