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SNIP-BRONSON TREND EXPLORATION


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The Snip-Bronson Trend is to the east of both the historic Snip Mine and the Bronson Slope gold-copper porphyry Deposit. The Snip Mine is a historic, high-grade gold producer that is immediately adjacent to Skyline's land holdings; its strike extent trends directly onto Skyline's Iskut Property. This trend is in close proximity to the Bronson Slope Deposit, a gold-copper porphyry deposit with a gold inventory of 2.2 million ounces as determined in a 2010 Preliminary Assessment Study.

The Snip-Bronson Trend was an obvious choice as a priority exploration target. Not only is this trend the strike extension of the historic Snip gold mine, but it also contains several key elements needed to be a good target for mineral resources. The trend is large, up to 750 metres wide and over 3.5 kilometres in strike length. The trend is defined by exceptionally high-grade multi-element soil geochemical anomalies. Gold, copper, zinc, and lead are all anomalous along this trend. On most gold exploration projects, the typical levels at which gold-in-soil values are of interest are in the order of 20 to 25 parts per billion ("ppb") gold. A typical gold-in-soil anomaly that has values at the level of 50 ppb gold is considered exceptional and typically warrants detailed work. The first order Snip-Bronson trend gold-in-soil geochemical anomalies are defined by values in excess of 100 ppb gold that extend for over two kilometres. Individual soil values on this trend are as high as 17,000 ppb gold (17 grams per tonne ("g/t") gold).

Despite these exceptional exploration features the trend is considered underexplored. The lack of historical exploration is in part due to the relatively steep terrain in this area and also because, until recently, Skyline had focused its resources on advancing the Bronson Slope Deposit through the successful completion of a Preliminary Assessment ("PA").

To overcome the difficulty of access to the steeper portions of the Snip-Bronson Trend, Skyline has contracted an exploration geologist with exceptional rock climbing experience. Shaun Parent has been on the project for the duration of the field season and was instrumental in locating a new zone of mineralization on this trend. This new zone, the "Fuschite Zone", is scheduled to be drilled this fall.

To gain a better understanding of the structural controls on the Snip-Bronson Trend mineralization, Skyline contracted with a Ph.D. structural geologist. Dr. John Fedorowich is the Senior Structural Geologist for Itasca Consulting Canada Inc., Dr. Fedorowich's structural mapping this season will be used directly in the drill program this fall and during geological interpretation of the area this winter; this interpretation will guide the 2012 exploration season.

The gold mineralization along the Snip-Bronson Trend and that at the Snip Mine is high in iron sulphide content which makes it very susceptible to EM geophysical surveys. As such, Skyline has undertaken an airborne geophysical program to allow for comprehensive coverage of the rugged terrain. This data was collected from early- to mid-September this year and is currently being processed by the survey contractor. Final data and the geophysical interpretation are expected by late October. Skyline brought in an experienced, independent geophysicist to assist with early interpretations which are being incorporated into the fall 2011 drill program.  
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