Skygold Ventures Ltd. (“Skygold” or the “Company”) (SKV-TSXV) is pleased to announce that a reconnaissance diamond drilling program is underway on the SHG regional properties in British Columbia. Drilling will focus on the Spanish Creek Property (located approximately 90 km southeast of the Company’s flagship Spanish Mountain Property) and the Manson Creek Property (located approximately 400 km northwest of Spanish Mountain).
This limited program which will allow the Company to vest a 100% undivided interest in the SHG properties and will test for gold mineralization in similar geological environments to that of Spanish Mountain. The properties are under option from the Hunter Exploration Group.
The Company has elected to proceed with this option despite the current turmoil in financial markets as both properties have many similarities to Spanish Mountain and have the potential to host gold mineralization. Work conducted by Skygold in 2006 and 2007 has outlined drill ready targets on both Spanish Creek and Manson Creek. Upon completion of the drill program, Skygold will still have a strong cash position going into 2009.
- Historic exploration carried out between 1982 and 1984 delineated a large and significant gold anomaly (1500 metres x 600 metres) with mineralized float boulders assaying up to 25 g/t gold and 217 g/t silver in black phyllites. In 2006, Skygold carried out detailed soil sampling to confirm the 1982 results. A gold anomaly up to 700 metres wide with values ranging from 20 ppb to 500 ppb was traced over a length of 800 metres and remains open in all directions.
- In 2007, trench sampling in the soil anomaly identified gold mineralization in quartz veins with anomalous gold values. The best sample returned 3473 ppb Au and 4.8 ppm Ag. This trench program confirmed that the source for the geochemical soil anomaly is in bedrock below it and confirmed that float boulders sampled during historical work are derived locally.
- A drill program of approximately seven diamond drill holes will test the soil anomaly and trench samples in the central anomaly. The potential to intersect historical values of gold mineralization is very high.
- The Manson Creek Property lies in the heart of the prolific Manson Creek Placer gold district in the Quesnel Trough of British Columbia. Geochemical sampling has outlined a large area (approximately 5 km by 4 km) of anomalous gold trends parallel to major geological contacts and structures. Within this large anomaly, Skygold has identified contact parallel geochemical gold anomalies in black phyllite sequences similar to Spanish Mountain.
- Early geological reports on the Manson Creek Property indicate that much of the placer gold at Manson Creek is locally derived and not deposited by glacial transport. Skygold’s geochemical anomalies are situated up-hill and up-stream from several historical placer mines and drainages indicating that the source may be on Skygold’s property. The anomalies occur in discrete trends parallel to major geological contacts and structures and are composed of multiple or single point anomalies greater than 40 ppb gold with spot values as high as 766 ppb or 0.76 g/t gold. The geological trend has been confirmed with field mapping and an airborne geophysical survey completed by Skygold in 2008.
- Several drill targets exists on the property. Skygold is focusing on the center of the Main Anomaly which is surrounded by active placer gold mines. The company intends to drill approximately 7 drill holes to test for gold mineralization similar to that at Spanish Mountain.
“Utilizing the knowledge we have gained from our flagship Spanish Mountain property, the company has advanced the SHG properties to drill ready stage and believes that at this time, these properties offer good potential for a new gold discovery in the Province. Upon completion of this drill program, Skygold will have vested its 100% interest in the SHG properties. In conjunction with Spanish Mountain, Skygold now controls 100% of some of the most prospective gold projects in the Quesnel Trough” commented Scott Weekes, Vice President Exploration for Skygold.
Robert Darney, P.Geo. and R. Bob Singh 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
President and CEO