Vancouver, BC --Skyharbour Resources Ltd. (SYH) (the "Company") announces that it has entered into an Option Agreement with Carl D. Huston, an insider of the Company, (the "Optionor") to earn a 100% interest in four claims blocks he has held since 2002, known as the South Bay properties, consisting of 35 units (approximately 1,400 acres) located in the Dent and Agnew Townships, Red Lake District, Kenora Mining Division, Ontario.
The South Bay properties cover the South Bay copper / zinc deposit and adjoining ground. The South Bay deposit was mined by Selco between 1970 and 1982 and produced approximately 1.6 million tons of 1.5% copper and 10% zinc. The mine produced to a vertical depth of 410 metres and was developed and explored to a vertcal depth of 600 metres. The South Bay deposit is a classic Archean Volcanic associated Massive Sulfide (VMS) deposit.
The South Bay deposit lies within a coalescing series of rhyolite domes and exhibits a small but distinct alteration zone in the footwall. Large scale lithogeochemical sampling indicates the known deposit is related to a large zone of sodium depletion that terminates against a more mafic rock sequence in the hanging wall of the rhyolite dome complex. This setting is deemed exceptionally favorable and has not been systematically explored. Several surface geophysical targets and off-hole responses generated from down hole pulse electromagnetic surveys have not been tested.
Skyharbour Resources believes there is significant potential to identify new, highly prospective base metal settings on these properties. In addition, current geophysical methods allow exploration to depths in excess of 1000 metres, opening up a very large prospective area for further exploration. The Company proposes to initiate a detailed geophysical work program on its newly acquired South Bay claims in the fall of 2006. The geophysical surveys are intended to further enhance the known conductors on the South Bay claims in preparation for a diamond drill program.
VMS deposits are major sources of copper and zinc. Approximately 80% of the world's VMS deposits occur in arc-related successions typical of many Archean greenstone belts. Archean and Phanerozoic VMS deposits are typically hosted by rhyolite and tend to cluster in a favorable time stratigraphic interval. Two essential elements of most genetic models include strata bound mineralization and alteration pipes crosscutting rock types stratigraphically below mineralization. Stacking of mineralized bodies is common.
David J. Busch, B.A., B.Sc., PGeo., Vice President of Explorations, is the qualified person, under the meaning of National Instrument 43-101, and has reviewed the data in this News Release.
Consideration for the option to earn a 100% interest in the South Bay properties will be as follows:
In order to exercise the option, Skyharbour Resources must issue 250,000 shares and $42,000 to the Optionor, in stages, over a three year period. The Company has also committed to an exploration program of $1 million over the three year option period. The expenditures will be $200,000 in the first year, $300,000 in the second year, and $500,000 in the third year. The Option Agreement is subject to TSX Venture Exchange approval.
The Optionor has granted the Company the right to purchase, at anytime, one-half of the 2% NSR reserved by the Optionor for a purchase price of $1,000,000.
About Skyharbour Resources Ltd.:
Skyharbour Resources is a mineral exploration company that focuses on the acquisition and exploration of projects in Northwestern, Ontario. The Company has options or interests in 7 gold or base metal properties located in the Red Lake greenstone belt.
To find out more about Skyharbour Resources Ltd. (TSX.V: SYH), visit the Company's website at www.skyharbourltd.com.
ON BEHALF OF THE BOARD OF DIRECTORS
JAMES G. PETTIT
For further information contact myself or:
Skyharbour Resources Ltd.
VP Corporate Communications
Toll Free: 800-567-8181
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the British Columbia Securities Commission and the United States Securities & Exchange Commission.