Vancouver, BC --Skyharbour Resources Ltd. (TSX.V: SYH) (the "Company") announces that it has entered into a Property Option Agreement with Martin Bobinski and Antony Maciejewski, both of Red Lake, Ontario, to earn a 100% interest in four claim blocks consisting of five units (approximately 200 acres) located in the Dent and Mitchell Townships, Red Lake District, Kenora Mining Division, Ontario. The Claims are contiguous to, and will form part of, the Company's recently acquired 1400 acre South Bay properties.
In order to earn its interest in the new property, Skyharbour must issue an aggregate of 250,000 shares and pay $42,500 to the Optionors, in stages, over a three year period. The Company has also agreed to carry out a $120,000 exploration program over the three-year term of the agreement. The Company must spend $20,000 during the first year, $40,000 during the second year and $60,000 during the third year. The Property Option Agreement is subject to the acceptance of the TSX Venture Exchange.
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 vertical depth of 600 metres. The South Bay deposit is a classic Archean Volcanic associated Massive Sulfide (VMS) deposit.
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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 litho geochemical 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.
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.
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.