SKYGOLD IDENTIFIES NEW HIGH-GRADE GOLD INTERSECTIONS IN ASSAY RESULTS FROM 2008 SPANISH MOUNTAIN DRILL PROGRAM

Skygold Ventures Ltd. (“Skygold” or the “Company”) (SKV-TSXV) is pleased to announce new high-grade gold results from the Spanish Mountain project in Central British Columbia.  These latest results are part of the final group of assay results from the 2008 exploration program.   The results represent a continued expansion of the Main Zone and the “Ropes of Gold” target (“ROG”) approximately 700 metres to the south. The Company has previously (April 3, 2008) disclosed the results of a NI 43-101 compliant initial resource estimate for an area within the Main Zone which is referred to as the “Resource Area”.

The Company has also completed drilling on two of the SHG Properties. A total of 7 holes were drilled on the Spanish Creek Property and 8 holes on the Manson Creek Property. Assay results are expected to be received in early January, 2009.

Spanish Mountain Drilling Highlights:

  • Hole 08-DDH-823 (Main Zone) intersected 16.0 metres of 2.94 g/t gold including 0.75 metres of 48.46 g/t gold.
  • Hole 08-DDH-816 (Main Zone) intersected 2.0 metres of 31.30 g/t gold.
  • Hole 08-DDH-836 (Main Zone) intersects 2.0 metres of 20.0 g/t gold.
  • Hole ROG-015 intersected 9.5 metres of 5.72 g/t gold including 25.7 g/t gold over 1.5m.
  • Hole ROG-014 intersected 6.0 metres of 5.64 g/t gold.

A complete list of results is attached to this release. Plan maps showing the location of all drill holes are available on the Company’s website www.skygold.ca.

Discussion of Results:

Gold mineralization in the Main Zone continues to expand outward from the existing Resource Area.  Several holes continued to intersect wide zones of anomalous gold mineralization.

Current geological interpretation on the Main Zone has identified several key structural controls on mineralization which trend north-south and dip to the west.   Several occurrences of high grade gold mineralization have been identified along these structures which have been traced for approximately 1.3km.  These structures remain open for drilling to the north and south and are particularly attractive targets at depth where gold grades tend to increase.  The identification of these structures is assisting in creating a more robust geological model which may ultimately lead to higher gold grades contained within an updated resource model.

Drilling at the ROG target was designed to evaluate areas of higher grade gold values returned from surface sampling performed during geological mapping programs in previous years.  Five of the holes drilled in this area intersected gold mineralization. The two best holes drilled into this zone, holes ROG-014 and ROG-015, were drilled 50 metres apart and intersected gold mineralization within a mineralized quartz vein closely associated with a fault corridor. This fault corridor is open along strike and at depth.

Updated Resource Estimate Timing 

Delays in receipt of final assays for all holes drilled in 2008 will impact the delivery of an updated compliant resource estimate for the Main Zone at Spanish Mountain.

The initial resource estimate disclosed in April, 2008 was based on results from drilling completed up to the end of 2007. This estimate represents a global estimate of gold within a portion of the Main Zone and few geological constraints were applied to gold distribution.

The results from drilling completed in 2008 have provided the Company with an improved understanding of lithological and structural controls on the distribution of gold mineralization.

Consequently, the Company is using these interpretations to finalize a robust geological model which will be used to better constrain gold distribution. This process is necessary and will enable the completion of an updated resource estimate that could serve as the basis for economic evaluations of the project.

Skygold now anticipates that the updated resource estimate will be completed by the middle of January, 2009.

Scott Weekes, VP Exploration stated:  “We are extremely pleased with the results of the 2008 program at Spanish Mountain.  Our technical team is still reviewing results but has already identified key lithological and structural controls to the gold mineralization that will allow for a more detailed resource calculation and provide drill targets moving forward.  This is a very key step in advancing the Spanish Mountain project.”

Project Quality Control / Quality Assurance

NQ and NQ2 core samples are typically collected in 1.5 metre intervals and cut in half using a diamond saw at Skygold’s secure on-site facility.  Recoveries are generally better than 90%.

Samples are shipped directly to Eco Tech Labs.  Eco Tech Laboratories Ltd. of Kamloops BC, a BC accredited laboratory which is independent of the Company, is conducting the sample preparation and analyses of samples. Skygold routinely submits standards, blanks and duplicates into the sample stream to maintain quality control.  All gold analyses will utilize standard screen metallic assay techniques.  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 

Brian Groves
Brian Groves.
President

Forward-Looking Information

This release includes certain statements that may be deemed “forward-looking statements”.  All statements in this release, other than statements of historical facts, that address events or developments that Skygold Ventures Ltd. expects to occur, are forward-looking statements.  Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur.  Although the Companies believe the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include the conditions of the letter agreement not being satisfied.  Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required under applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. 

Hole

 

From

To

Width

Au (g/t)

08-DDH-793

46.50

54.00

7.50

0.76

and

288.50

299.00

10.50

1.46

incl.

288.50

296.00

7.50

1.74

08-DDH-805

196.00

205.00

9.00

3.21

08-DDH-806

130.00

139.00

9.00

1.23

08-DDH-807

103.50

114.00

10.50

1.03

and

222.50

225.50

3.00

2.92

and

273.50

303.50

30.00

0.80

incl.

279.50

299.00

19.50

1.04

08-DDH-808

26.00

33.50

7.50

3.80

incl.

29.00

33.50

4.50

6.08

and

87.50

108.50

21.00

1.83

incl.

92.50

107.00

14.50

2.44

and

259.50

264.00

4.50

2.02

08-DDH-810

25.00

26.50

1.50

3.95

08-DDH-813

24.50

33.50

9.00

1.35

08-DDH-816

104.50

112.00

7.50

0.73

and

125.50

134.50

9.00

0.77

and

152.00

161.50

9.50

0.95

and

218.00

220.00

2.00

31.30

08-DDH-817

69.50

89.00

19.50

0.87

incl.

77.00

84.50

7.50

1.53

08-DDH-819

101.50

106.50

5.00

1.15

and

137.50

140.50

3.00

2.43

08-DDH-820

13.00

15.00

2.00

3.58

08-DDH-821

52.00

57.00

5.00

0.89

08-DDH-822

81.00

85.75

4.75

1.99

and

155.50

164.50

9.00

1.04

08-DDH-823

7.25

8.00

0.75

8.10

and

36.50

60.50

24.00

0.87

incl.

36.50

41.00

4.50

1.19

and incl.

51.50

60.50

9.00

1.20

and

71.00

87.00

16.00

2.94

incl.

78.00

78.75

0.75

48.46

08-DDH-824

184.50

189.00

4.50

3.88

08-DDH-826

88.00

145.00

57.00

0.70

incl.

122.50

139.00

16.50

1.89

incl.

133.00

134.50

1.50

8.54

08-DDH-827

48.50

56.00

7.50

1.16

and

134.00

135.50

1.50

5.18

08-DDH-828**

66.50

74.50

8.00

1.29*

08-DDH-830

36.00

37.50

1.50

3.97*

08-DDH-831

8.00

18.50

10.50

0.91

08-DDH-836

58.50

60.50

2.00

20.00

and

104.50

109.00

4.50

1.02

and

116.50

120.00

3.50

3.28

and

140.00

142.00

2.00

3.37

** To bottom of hole.

Holes 08-DDH-731, 809, 811, 812, 814, 815, 818, 829, & 834 contained anomalous values
Holes 08-DDH-804,825,835 were abandoned

Hole 08-DDH-832 & 833 had no anomalous values

 

Hole

 

From

To

Width

Au (g/t)

ROG-001

67.50

69.00

1.50

1.92

ROG-004

13.00

17.00

4.00

1.19

incl.

15.50

17.00

1.50

2.69

ROG-014

150.00

156.00

6.00

5.64

incl.

153.00

156.00

3.00

8.82

ROG-015

81.00

90.50

9.50

5.73

incl.

81.00

82.50

1.50

25.70

and incl.

87.23

90.50

3.27

4.79

ROG-018

142.00

143.50

1.50

2.02

Holes ROG-010, and ROG-013 contained weakly anomalous values

Hole ROG-002, 003, 005, 006, 007, 008, 009, 011, 012, 016, 017 contained no significant values

* Failed to reach target depth

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