Skygold shoots sky high on drill results

Vancouver — Stratiform high grade gold in the second set of drill results from SkyGold Ventures (SKV-V) and Wildrose Resources’ (WRS-V) Spanish Mountain project have caught the market’s attention. SkyGold, which is near earning a controlling interest in the gold project, saw its shares climb by over 50% on nearly forty times its average volume on the Toronto Venture Exchange today.

The Spanish Mountain project is situated in the Cariboo Mining Division some 15 km east of Imperial Metals’ Mount Polley porphyry copper and gold mine/mill complex and 50 km due south of the historic town of Barkerville, British Columbia.

The results for holes 220 through 230 are part of a 34-hole reverse circulation drill program at Spanish Mountain.

Wildrose considers twenty two of the intercepts in the latest eleven holes to be economically significant, with two that stood out in particular owing to their host rock.

RC hole 228 returned 2.47 grams gold per tonne over 60.1 metres over the entire length of the hole, including a 12.1 metre interval grading 8.90 grams gold starting at a depth of 31 metres. The hole hit bedrock at 3.7 metres from surface and ended at 64 metres depth.

Wildrose believe this could be a significant new discovery because the high grade gold was found within a dark shale unit that comprises the footwall of a 10-metre wide massive quartz vein called the Flat Vein. The footwall had not been tested before and the Flat Vein had yielded disappointing gold grades previously.

Hole 228 was collared 40 metres northwest of the company’s “2000 pit” from which 2,100 tonnes of material grading 3.02 grams gold per tonne were test-mined and milled at Imperial Metals Mount Polley Mine in 2000.

The other significant hole is 221 which was collared 180 metres northeast of hole 228, and crosses some 25 metres north of the “2000 pit”. Hole 221 intersected pyritic dark shale, believed to be the northerly down-plunge extension of the mineralized zone in the pit.

Hole 221 intersected 27.5 metres grading 2.2 grams gold from 78.3 metres down the hole contained within a 41.2 metre interval grading 1.76 grams gold starting at 64.6 metres. The mineralization is open to the north, to the east and to depth with the last sample grading 2.80 grams gold.

Wildrose’s Bill Morton believes that the drill results show that the gold mineralization is both structurally and stratigraphically-controlled. The footwall mineralization, found in hole 228, straddles both styles of mineralization with the dark shale likely having provided a favourable environment for deposition of gold.

Skygold is earning up to a 70% interest in the Spanish Mountain project from Wildrose through an option agreement. The current program will largely fulfill the exploration portion of the agreement which called for $700,000 in exploration to be spent.

To date, mineralization is open-ended over 1,000 metres in an east-west trend on the north-facing slope of Spanish Mountain. The property covers over 2,200 hectares and includes three placer claims.