Skyline updates geological reserve estimate

The company said the new estimate of 876,000 tons grading 0.55 oz gold reflects an increase of 190,000 tons in overall reserves since Oct 31, 1988. The estimate does not include the 45,000 tons of ore that were milled in the six months ended April 30, 1989.

The reserve estimate includes 54,000 tons of broken ore grading 0.50 oz gold, 51,000 tons of 0.84 oz in the proven category, 91,000 tons of 0.82 oz in the probable category and 680,000 tons of 0.50 oz gold per ton in the possible category. Proven, probable and possible reserves are undiluted and uncut, however a cut-off grade of 0.3 oz per ton was used to develop th e total estimate.

The company intends to announce an updated reserve at year- end to reflect the results of its current summer exploration program.

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