DAILY NEWS Jun 24, 2010 4:59 PM - 0 comments
Skyline explores new targets at Bronson Slope
Vancouver - With an updated scoping study on the way for the main zone, Skyline Gold (SK-V) has released drill results from a new target at the Bronson Slope project in northwest British Columbia.
This year's drill program is following up on good-grade hits from last fall on the Snip-1 tenure, roughly 1,500-metres southeast of the existing Bronson resource. The company is also conducting induced polarization work on both the Snip-1 area and the adjacent Chopin tenures acquired last November.
So far 1,350 metres have been drilled and the results of the first hole have been released. The hole hit 176.5 metres grading 1.04 grams gold per tonne, 22.4 grams silver per tonne, 0.06% copper, 0.05% lead and 0.39% zinc between 9 and 185.5 metres. The intercept included 3.9 metres grading 12.02 grams gold and 106.8 grams silver.
The drill core contained disseminated to semi-massive and massive textured sulphides including pyrite, sphalerite, galena, chalcopyrite and minor pyrrhotite, with some instances of visible gold and electrum.
Last fall the company drilled 730 metres over two holes. Hole 2 included 81 metres carrying 2.07 grams gold and 30.4 grams silver and then a further 18.7 metres carrying 1.94 grams gold and 11.5 grams silver. Hole 1 included 14 metres grading 2.07 grams gold and 23.2 grams silver and 26.5 metres carrying 1.56 grams gold and 17.2 grams silver. Both holes contained some copper and zinc.
The fly-in project lies on Skyline's 9,900 hectare Iskut property, roughly 110 km northwest of Stewart. The property, which Skyline has been working on for close to two decades, also hosts the historic Snip and Johnny Mountain mines.
Last year Skyline initiated a program to re-test old core for magnetite content. In January the company released a resource estimate that outlined 100.6 million measured and indicated tonnes grading 8.84% magnetite, assuming a 7% cut-off grade and on a stand-alone production basis.
In May Skyline commissioned an updated PEA on the Bronson Slope to factor in the magnetite content. The study will also use updated metal prices and a new mine plan and is expect to be finished in late July.
The last PEA was completed in March of 2009 and outlined a modest mine plan. It set out $237 million in capital costs to build a open-pit that could produce 62,600 oz. gold, 15.2 million lbs. copper and 245,100 oz. silver a year for just over 18 years. The project had a pretax net present value of $59.3 million using a 7.5% discount and a 10% after tax internal rate of return, with a eight year payback.
The last assessment used life-of-mine average metal prices of US$700 per oz. gold, US$2 per lb. copper and US$15 per oz. silver at an exchange rate of US85� to the Canadian dollar. The 2009 PEA was itself an update on a 1997 study on the project.
Skyline's share price remained unchanged on the latest result to close at 19.5� on 750,000 trades. The company has a 52-week share price range between 5� and 21.5� and 106 million shares outstanding.
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