Vancouver, BC - Skyharbour Resources Ltd (TSX.V: SYH) (20%) and Cypress Development Corp. (TSX.V: CYP) (80%) announce initial exploration on their Broulan Reef property, located in Red Lake, northwestern Ontario, has been completed and results to date are highly encouraging.
From a raw, 90% water covered prospect with no information, the Skyharbour / Cypress Development joint venture have advanced the property with data from a ground magnetic survey and a Phase 1 diamond drill program. A structural / lithological framework has been clearly identified from the ground mag data and a preliminary geological model has emerged from the diamond drilling. The companies were able to complete 5 drill holes on the ice portion of the Broulan Reef property before the spring breakup forced the equipment to be moved off the ice in the Bruce Channel of Red Lake. A total of 2,437 metres of drilling in 5 holes were completed in this Phase 1 program.
The property covers a regional fold closure in rocks of the Bruce Channel sediments. These sediments have become the target of intense exploration as Wolfden Resources continues to expand their Bonanza deposit on its Folansbee property to the east and Southern Star Resources / Exall Resources expand a zone under the Bruce Channel adjacent to the north on their Gold Eagle property.
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The fold closure is evident from the position of a distinctive sericitic rhyolite horizon identified in the recently completed drilling. The fold limbs dip steeply to the south and west with the fold nose having an indicated plunge to the southwest. Numerous geological structures have been interpreted with only a very small part of the structures having been tested by the winter drill program. The companies have proposed a Phase 2 drill program to commence at the beginning of June 2006. These summer drill hole locations will be collared on the land portion of the Broulan Reef property and will be drilled out underneath the waters of Bruce Channel in an attempt to encounter the distinctive gold bearing horizons at depth.
The companies have found all of the gold intersections encountered in the initial 5 Broulan Reef holes of drilling to be very encouraging. The Broulan Reef property has had virtually no exploration work ever done on it. The companies summer 2006 drill program will consist of holes drilled deeper into the regional fold closures of the Bruce Channel sedimentary horizons in an attempt to encounter the higher grade gold intersections reported by both SSR/EXL to the north and Wolfden to the east of the Broulan Reef boundaries. With the drilling to date having encountered the numerous gold bearing zones and with the ideal geological location of the property, the companies believe that there is significant potential to warrant an extended summer 2006 Phase 2 diamond drill program.
Initial drill results show widespread highly anomalous gold values in up to 25 metre wide intersections with typical associations for Bruce Channel type mineralization. Elevated gold values were encountered in every hole. Elevated to strongly anomalous gold values occur in broad zones of silicification with arsenopyrite. Structures are evident but typically subtle. The alteration zones appear crudely controlled by stratigraphy. Gold values occur over significant widths in various lithologies including sulfide and silicate facies iron formation on both sides of the folded sericitic rhyolite.
Hole #1 encountered .43 gm/t Au over a 4 metre intersection contained within a broad 12.5 metre intersection (40m to 52.5m) of highly anomalous gold values. Hole #2 (550.8 metres) encountered several intersections with elevated gold values throughout including 1 metre (128.3m to 129.3m) of .51 gm/t Au within a 6 metre anomalous intersection, and 1 metre (142.3m to 143.3m) of 1.43 gm/t Au. Hole #3 has intersected a 7.5 metre zone of highly anomalous gold (157.6m to 165.1m) that includes 3.4 metres (158.1m to 161.5m) of 1.23 gm /t Au. Hole #5 also encountered significant widths of highly anomalous gold throughout. Values of .36gm/t Au over 2 metres (129m to 131m), and 5 metres (617.8m to 622.8m) of .86 gm/t Au is reported. Intersection includes .4 metres (617.8m to 618.2m) of 1.34 gm/t Au and 1 metre (618.2 to 619.2m) of 3.18 gm/t Au.
To date, only a small part the property has been explored by the first round of drilling. All essential elements, including widespread gold values, are present. Planned Phase 2 drilling in the summer of 2006 will explore litho-structural settings on the balance of the property.
Three holes were initially drilled on McKenzie Island property in January 2006 for a total depth of 1385.8 metres. All 3 holes encountered intersections of anomalous gold values. The 3rd hole was drilled on the west boundary of the Southern Star / Exall Gold Eagle property in an attempt to encounter the known SSR / EXL Western Zone. Favorable geological horizons were encountered in the drill core. The companies have left the drill casing in the #3 hole (703.4 metres) to allow the drill rig to re-enter the same hole to be able to increase the depth at some later date.
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 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 6 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.