Vancouver, BC -- Skyharbour Resources Ltd. (TSX.V: SYH) announces that the Company has entered into an agreement with a third party to acquire a 20% interest in the Broulan Reef property, Red Lake, northwestern Ontario. The new Broulan Reef property ownership shall be Skyharbour 20% and Cypress Development Corp. (TSX.V: CYP) 80%. To earn a 100% interest, the companies are committed to pay $80,000 and spend $1,150,000 in exploration over three years.
The Broulan Reef property is located in the Bruce Channel area in the heart of the Red Lake gold mining district. The acreage is comprised of 10 mineral claims (21 year renewable Leases with the Ontario Government), situated adjacent to the Exall Resources / Southern Star Resources major diamond drill program now underway on their Gold Eagle mine property to the north, and to the west of Wolfden Resources promising drill results on their Folansbee property. Both of these properties are the subject of ongoing exploration and delineation drilling.
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Skyharbour Resources considers the Broulan Reef property to be one of the key properties in understanding the geology of the Red Lake Gold Belt. Only 2 drill holes (1962) are known to have ever been drilled on this property. The complete lack of previous exploration in the productive heart of this major gold producing area makes this property very exciting for immediate exploration.
Two of the main gold producing trends in Red Lake converge on the Broulan Reef property. The property is located at the southern extent of the East Bay Deformation zone and at the west end of the Mine Trend Deformation zone that is host to the Goldcorp Red Lake Mine and the Placer Dome Campbell Mine. The resulting structural complexities are likely to have produced numerous favorable depositional settings in this "gold prone" section of the Red Lake belt.
Skyharbour Resources is immediately establishing a line grid and will complete a detailed magnetometre survey on the property. The Company is also constructing ice pads at this time and intends to complete an initial drill program on the Broulan Reef property this winter to be able to take advantage of the ice conditions on Red Lake.
Skyharbour Resources is also conducting a Phase I diamond drill program at this time on its 20% owned McKenzie Island property. The targets being drilled now are immediately to the west of the Broulan Reef property. The first drill hole of a 6 to 8 drill hole program is now underway.
The Company believes that the Red Lake area has great potential to host another Goldcorp (Red Lake mine) or Placer Dome (Campbell mine) type gold deposit.
A total of 19.2 million ounces of gold have been produced from 13 mines in the Red Lake area. Gold production has been continuous since 1930 when the Howey Gold Mine entered production. Current gold production is around 700,000 ounces per year from the Campbell mine of Placer Dome and the Red Lake mine of Goldcorp.
About Skyharbour Resources Ltd.:
Skyharbour Resources Ltd. is a gold exploration company that focuses on the acquisition and exploration of projects in northwestern, Ontario. The Company has options or interests in 5 mineral properties located in the Red Lake greenstone belt.
ON BEHALF OF THE BOARD OF DIRECTORS
DONALD C. HUSTON
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.