Guatemala

[Tackler]

Skye Resources finds 3.1% Ni over 14 m at Fenix

2005-08-03 14:34 ET - News Release

Mr. Ian Austin reports

SKYE REPORTS EXCELLENT GRADES FROM DRILLING AT FENIX

Skye Resources Inc. has released the initial results from a continuing 45,000-metre drilling program at its Fenix nickel laterite project in Guatemala.

"These results, which include results to the end of June, are just the first in a series due out over the next several months. We expect they will form the foundation of the feasibility study we have under way aimed at potentially restarting the mine, which had been operated by Inco from 1977 to 1980," says Skye's president, Ian Austin.

Highlights from this drilling include the following.

Area 212:

-hole 30008: 14 metres grading 3.15 per cent Ni;
-hole 30012: 18 metres grading 2.94 per cent Ni and a deeper zone of 12 metres grading 1.77 per cent Ni; and
-hole 30021: 21.8 metres grading 2.33 per cent Ni.

Area 213:

-hole 32003: 11.7 metres grading 2.81 per cent Ni; and
-hole 32006: 19.2 metres grading 3.13 per cent Ni.

The first phase of the drilling program was designed to twin a statistically significant number of the historic drill holes in the 212, 213 and 217 (La Gloria) deposit areas. This phase began in late April and the drilling was essentially completed in early June with a total of 109 holes drilled comprising 3,728 metres.

The twinned holes were targeted within one metre of the original drill hole in order to allow an unbiased geological representation of the deposit, as well as the reconfirmation of the extensive historic resource database (which had been used for the former mine and smelter facility during its operation in the 1977 to 1980 period). These new data will also allow Skye to evaluate the multielement chemistry of the laterite profile and to examine deeper sections of the profile in those areas where the original drilling stopped in above-cut-off-grade material.

Skye's technical team is particularly encouraged by the fact that in these first results, three of the holes -- namely 30012, 30018 and 30020 -- cut deeper saprolite zones not sampled by the original drilling.

The infill drill program, which is designed to evaluate the less intensively drilled deposits on a 50-metre hole spacing, also got under way, with 30 holes completed (421 metres) by the end of June in area 251. The first three holes in the 217 infill program (146 metres) were also completed.

Assay results have been received for nine holes drilled in area 213 and 47 holes drilled in area 212. With the exception of results from hole 30043 that require reanalysis to address a lab quality control failure, assays received to date are summarized in Table 2, and the distribution of the drill holes is summarized in Table 1.

Until a revised resource estimate, is prepared it is not possible to determine the impact these new drill results will have on the historical resource estimate, which is based on the original drilling.

Review by qualified person, quality control and reports

Dr. Paul Golightly, PGeo, is the independent qualified person as defined under National Instrument 43-101 responsible for the quality control and verification of the data contained in this release. The Fenix project diamond drill core is logged and marked for sampling by company geologists. Sample lengths are 0.3 to 1.3 metres. All boreholes in the twin hole program (HQ size) are cut in half either by knife or diamond saw, depending on sample hardness, with one-half bagged and tagged for shipment to the sample preparation laboratory. The remaining half of the split core is returned to the core box for storage and future reference. Sample rejects are returned to the project after 15 days for long-term storage; sample pulps are presently stored at the sample preparation lab.

Samples are shipped from the Fenix project site to BSI Inspectorate in Guatemala City for sample preparation. Samples are dried at 105 degrees for 12 hours, crushed to 90 per cent less than 10 mesh, riffle split and pulverized to 95 per cent less than 150 mesh. The prepared samples (150 to 200 grams of pulverized laterite) are air freighted to SGS Lakefield for assay by lithium borate fusion, XRF. SGS Lakefield has ISO/IEC 17025 accreditation for its mineral analytical services.

Twelve major element oxides, loss on ignition plus Ni and Co, are analyzed. Detection limits are 0.05 per cent for Ni and 0.01 per cent for Co. Field duplicates (1:20) and standards or blanks (1:20) are inserted at the project site to monitor lab procedures and assay quality. All batches of analysis are subjected to statistical tests to ensure they meet established quality control criteria. Procedures for check assaying at a secondary lab are being put in place to further verify assay quality.

Mineralized intercepts are herein reported using a 1.5-per-cent Ni cut-off for the purposes of comparison with the original holes. The intercepts are averages weighted by sample length and a calculated density. New resource and reserve cut-off grades will be determined by Skye Resources during the course of its feasibility study of the Fenix project (see news in Stockwatch Feb. 28, 2005).

 
  
            TABLE 1 
  
 Area    No. of  Metres  Holes 
         holes           with 
                        results 
 Twin 
 holes 
  
 212       62      2231    48 
 213       11       250     9 
 217       36      1247     0 
  
 Infill 
 holes 
  
 217        3       146     0 
 251       30       421     0 
  
                TABLE 2 
  
 Area  Hole  From  To    Length   Ni 
              (m)  (m)    (m)     (%) 
  
 212  30001  13.2  27.5   14.3   2.40 
 212  30002  10.0  23.3   13.3   2.90 
 212  30003   6.5  21.1   14.5   2.88 
 212  30004   2.0  19.4   17.5   2.49 
 212  30005  10.6  32.0   21.5   2.62 
 212  30006  22.6  40.6   18.0   2.05 
 212  30007   2.0  19.0   17.0   1.60 
 212  30008  13.0  27.0   14.0   3.15 
 212  30009   6.3  35.5   29.2   2.76 
 212  30010   0.0   9.7    9.7   1.85 
 212  30011   6.0  26.0   20.0   2.72 
  
 212  30012   4.0  22.0   18.0   2.94 
 212  30012  33.0  45.0   12.0   1.77 
  
 212  30013   0.3  20.0   19.7   2.39 
 212  30014   0.0  15.0   15.0   2.61 
 212  30015   1.0  15.1   14.1   2.70 
 212  30016  15.0  27.0   12.0   2.58 
 212  30017  14.6  33.9   19.3   1.98 
  
 212  30018  21.0  26.4    5.4   2.21 
 212  30018  35.1  38.0    2.9   1.74 
  
 212  30019  11.5  32.0   20.6   2.15 
 212  30020  22.6  25.3    2.7   2.33 
 212  30020  35.4  37.3    1.9   1.70 
 212  30021   1.2  23.0   21.8   2.33 
 212  30022   3.0  18.4   15.4   2.19 
 212  30023  12.0  21.0    9.0   2.24 
 212  30024  16.3  18.4    2.2   1.58 
 212  30025   1.0  16.1   15.1   2.59 
 212  30026   3.9  18.3   14.4   1.81 
 212  30027  11.2  24.0   12.8   2.23 
 212  30028  14.4  21.8    7.4   2.73 
 212  30029  Not received from lab 
 212  30030   7.8  19.0   11.2   2.31 
 212  30031  21.8  33.2   11.4   2.23 
 212  30032  23.3  39.9   16.7   2.52 
 212  30033  17.2  27.0    9.8   2.13 
 212  30034  32.0  44.0   12.0   1.97 
 212  30035  15.5  24.0    8.5   2.15 
 212  30036   9.6  25.2   15.6   2.17 
 212  30037  15.5  24.0    8.5   2.15 
 212  30038  10.3  21.8   11.5   1.77 
 212  30039  35.8  49.6   13.9   2.33 
 212  30040  21.6  31.8   10.2   2.07 
 212  30041  17.1  38.4   21.3   1.72 
 212  30042  26.6  30.7    4.1   1.83 
 212  30043  QA/QC failure 
 212  30044  12.0  27.0   15.0   2.33 
 212  30045   9.3  28.7   19.5   2.43 
 212  30046  14.0  36.0   22.0   1.72 
 212  30047  23.5  31.4    7.9   1.65 
 212  30048   7.1  27.0   20.0   2.06 
  
 213  32000   0.4  11.9   11.5   1.98 
 213  32001   0.3  17.5   17.2   2.34 
 213  32002   0.2  15.7   15.5   2.25 
 213  32003   0.3  12.0   11.7   2.81 
 213  32004  No significant intercepts 
  
 213  32005   6.7  15.0    8.3   2.71 
 213  32005  25.7  29.2    3.5   1.87 
  
 213  32006   0.0  19.3   19.3   3.13 
 213  32007   0.0   9.9    9.9   1.82 
 213  32008   0.0  16.5   16.5   2.63