Skye ups resource in Guatemala (July 17, 2006)

A recalculation of resources in conjunction with a feasibility study for the Fenix nickel-laterite project, in central Guatemala, puts the size of the five deposits planned for development at 41.1 million tonnes grading 1.69% nickel, in measured and indicated categories.

The new estimate, prepared for owners Skye Resources (SKR-T) by Snowden Mining Industry Consultants, also classifies another 20.5 million tonnes as inferred resources, at an average grade of 1.46% nickel. The calculation used a cutoff grade of 1.5% nickel.

Outside that project area, Skye reports 38.6 million tonnes grading 1.8% nickel in measured and indicated resources, plus 48.2 million tonnes grading 1.64% nickel in inferred resources. Those resources are based on a 1.6% nickel cutoff.

Skye’s consultants are studying the economics of a conventional laterite smelting operation on five deposits on the Fenix property: 212, 213, 215, 217 and 251. There are about 14 other zones on the property that contain the other resources.