Mill construction contract awarded by Skyline Expl.

A contract has been awarded to Orocan Inc. of North Vancouver for mill construction at Skyline Explorations’ Reg property north of Stewart, B.C.

Initial mill capacity will be 200 tons per day, expandable to 400 tons at “a nominal additional capital cost,” says Skyline. Construction is expected to begin July 1 following approval of the company’s Stage 1 report.

High grade gold values have been reported in a 16-vein raise and a comprehensive back sampling and detailed mapping program are under way to fully assess the mineralization.

The company says the 1987 exploration drift on the 16 vein has advanced 320 ft. Claiming the structure is continuous and has averaged 4 ft plus an altered mineralized hangingwall, Skyline states that “periodic face samples indicate an average grade of 1.05 oz per ton.” A comprehensive panel sampling program over the entire drift was completed in late May but assay results are not yet available.

The 16 veins at the present east face has been offset by a fault to approximately 100 ft north; this was expected and drifting has resumed, says Skyline.

A 370-ft ventilation raise in the 16 zone has broken through to surface, confirming its vertical continuity. Skyline says that “preliminary early samples indicate a grade of 0.91 oz per ton gold.” A comprehensive panel sampling and mapping program will begin shortly, the company adds.

Diamond drilling is under way from a hangingwall drift which will allow Skyline to explore the 16 zone and Discovery vein to a depth of 150 ft below the existing level. A second level will be established at the approximate 3,525-ft elevation immediately adjacent to the proposed mill site.