Bloom off Spanish rose (February 03, 2005)

Vancouver – Although there are a few significant intercepts within Skygold Ventures’ (SKV-V) latest set of drill results at Spanish Mountain, they pale by comparison to the high-grades released in mid-January.

The project is near Likely in northern British Columbia’s Cariboo Mining District, and within 50 km of the historic placer mining town of Barkerville.

Skygold has an option to earn a 70% interest in the Spanish Mountain project from Wildrose Resources (WRS-V).

The latest set of results is for the final seven of Skygold’s 34-hole reverse circulation (RC) drill program.

Significant intercepts were reported for the three holes drilled on the north facing bank of Spanish Creek. However, no significant intercepts were found in holes 231-234 which tested targets within the Cedar Creek watershed some 1.2-2.5 km south of holes 201-230.The significant intervals are:

• Hole 203 3 metres of 1.39 grams gold from 25.3 metres depth; and

1.5 metres of 1.85 grams gold from 63.4 metres; and 1.5 metres of 3.02 grams gold from 80 metres;

• Hole 204 1.5 metres of 1.69 grams gold from 49.7 metres; and, 4.5 metres of 1.04 grams gold from 75.6 metres;
• Hole 205 4.5 metres of 1.1 grams gold from 23.7 metres

Wildrose plans to test numerous other target areas within the Cedar Creek area this year, in conjunction with a major program focusing on the north-facing slope of Spanish Mountain. The Cedar Creek area reportedly played host to several rich placer deposits.

Last month, Skygold’s shares shot up on news of hole 228, which intersected 60.1 metres grading 2.47 grams gold per tonne, including a 12.1-metre section of 8.9 grams gold, starting at a depth of 31 metres. The hole hit bedrock at 3.7 metres from surface and ended at a depth of 64 metres. Meanwhile hole 221, cut 27.5 metres grading 2.2 grams gold at a down-hole depth of 78.3 metres — all within a 41.2-metre interval of 1.76 grams gold starting at 64.6 metres.

The drilling indicated the presence of stratiform gold combined with structurally controlled high-grade gold.Wildrose said it wants to diamond drill, to confirm some of the reverse-circulation results.

The companies plan to deepen six of the holes which ended in mineralization that graded between 1.43 and 4.37 grams gold, this year.

Wildrose is working on a 3D-model to guide future drilling, by compiling data from 2004 drill holes with 106 holes drilled between 1984 and 1988

So far, Skygold has completed 2,506 metres in 34 RC holes to fulfill its $700,000 exploration commitment on the project and found that the mineralization covers a 1,400-metre by 600-metre area.