Skyline Announces Initiation of New Preliminary Economic Assessment Report Project for Bronson Slope Deposit

Skyline Announces Initiation of New Preliminary Economic Assessment Report Project for Bronson Slope Deposit

Skyline Gold Corporation, a company engaged in the exploration and development of its Bronson Slope mining property in north western British Columbia’s ‘Golden Triangle’, is pleased to announce that it has retained Moose Mountain Technical Services to generate a new Preliminary Economic Assessment technical report for the Bronson Slope project.

The new technical report will assess the impact of the addition of high purity magnetite powder production on the planned Bronson Slope mine’s production economics in addition to revisions to the planned mine’s output of gold, copper and silver. It will also include a new estimate of the resource to be evaluated, a new mine plan and new operating costs and capital equipment cost estimates. The new technical report will also utilize updated gold, copper and silver metal prices, at prices used in current technical reports, to indicate the impact on the planned mine’s production economics. The NI 43-101 compliant magnetite resource for the Bronson Slope deposit was initially announced on January 28, 2010.

High purity magnetite powder is used in applications such as cleaning of coal and is seeing growing applications as a purification agent in municipal water cleaning systems in North America. Users of high purity magnetite powder in the U.S. currently import this material from producers in Sweden, Peru, and Chile. The only Canadian producer of bulk high purity magnetite powder is a tailings reprocessing operation at a former copper mine near Merritt B.C. Canadian coal producers contacted by the Company have expressed concerns that this magnetite producer, having reprocessed most of the available tailings, has a limited remaining life. When that magnetite powder production facility closes, the coal mines in Western Canada will be without a local supplier.

David Jensen, P.Eng., President of Skyline Gold, comments, “Moose Mountain Technical Services presented the strongest team and an excellent proposal for preparing a new Bronson Slope Preliminary Economic Assessment report. I believe that their experience with numerous mining projects in northern British Columbia and their pragmatic engineering and operational approach will greatly benefit the Bronson Slope project as we advance this project toward production.”

It is estimated that the initial results of the new technical report will be released to market in approximately 10 weeks.

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