After winding down exploration efforts at its claims in the Iskut River area of northwestern British Columbia this past summer, Skyline Gold (TSE) is reviewing its exploration and financing options for the coming year.
The company commissioned two studies as part of a re-evaluation of its Iskut River holdings. The studies identified the potential for additional gold reserves at the Johnny Mountain, the possible extension of the Snip shear vein system on to company ground and the potential for the discovery of a large tonnage copper-gold porphyry system.
Skyline shut down the Johnny Mountain mine in the fall of 1990 after two years in operation which netted 85,000 oz. gold, 133,000 oz. silver and 2.1 million lb. copper.
The first study recommends a $600,000 initial phase of surface drilling to test four areas near present mine workings where high-grade mineralization and preliminary reserves have been delineated.
A second phase of work, at a cost of about $250,000, is recommended to test an additional 12 underground and surface vein targets.
The second study identified a number of areas with potential to host gold-bearing shear veins, including three locations for possible extensions of the Snip shear vein system.
The Snip mine, 60% owned by Cominco (TSE) and 40% owned by Prime Resources Group (VSE), grades an average of 0.85 oz. gold per ton and is within 650 ft. of the northern boundary of the Skyline property.
David Yeager, chief geologist with Skyline, said the company is reviewing the possibility of raising exploration funds through a secondary public offering. Yeager noted that Skyline’s finances will require some form of restructuring prior to the placement.
The company currently has no working capital and has about $28.7 million in debts.
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