Sky Gold raising funds to drill Evening Star Project, Nevada
Sky Gold Corp. [TSXV: SKYG: OTC PINK: SRKZF] reported a non-brokered private placement of up to 20 million units at a price of $0.04 per Unit for aggregate gross proceeds of $800,000.00 (the Offering). Each Unit will be comprised of one common share and one transferable share purchase warrant of the company. Each warrant is good to buy one warrant share for a 36-month period after the closing date at an exercise price of $0.07 per share subject to an acceleration right.
Acceleration right: If the 20-day volume weighted average price of the listed shares of the company close at a price equal to or greater than 15 cents, the company will have the option to accelerate the expiry date of the warrants to the date that is 30 days from the date that the company announces the acceleration through a news release.
Proceeds raised from the offering will be used towards drilling on the permitted Evening Star project located in Nevada as well as general and administrative purposes. It is anticipated approximately 75% of the proceeds of this financing will go towards drilling and exploration of the Evening Star project. Finder’s fees will be paid pursuant to this financing. The financing is subject to TSX Venture approval.
The road-accessible Evening Star copper-gold property totals 1,450 acres (586 hectares) and is located in Mineral County, Nevada, approximately 10 miles (16 km) east of Hawthorne in the prolific Walker Lane Trend.
Sky Gold’s upcoming drill program will consist of core drilling at its Evening Star property to test both targets.
At the Highlife Copper target, a +1,000-foot (304 metres) long copper-in-soil anomaly overlies bedrock of altered quartz monzonite porphyry dikes that intruded a biotite-rich granodiorite. Samples of the porphyry dikes exposed in road cuts and old prospect pits contain up to 1.54% copper and 0.159 ppm gold. The quartz monzonite porphyry dikes exhibit pervasive quartz-sericite-pyrite alteration (QSP) and is possibly the “phyllic” alteration zone found in/with porphyry copper-gold systems.
The drilling program is designed to test for a deeper “potassic” alteration zone, where if present, copper-gold mineralization is likely to be the strongest. Also, a ground-based magnetic “high” anomaly is coincident with the Highlife Geochem anomaly. This suggests that the deeper, richer part(s) of a copper-porphyry system may lie below the mineralized altered quartz monzonite porphyry exposed at the surface.
At the Tower Gold target several holes are planned to test a +3,000-foot (914 metres) long by up to a 300-foot (91 metres) wide zone of anomalous gold in soil and bedrock. The target area is an intrusion-hosted zone(s) of shallowly-dipping, gold-bearing quartz veins marked by old prospect pits, trenches and declines. Rock samples of the limonitic quartz veins and altered granitoid host rocks returned up to 18.21 ppm gold and 1.16% copper. Soil samples contain up to 2.83 ppm gold and 930 ppm copper. The Tower Gold mineralized zone has been traced for approximately 1.5 km along the surface and bedrock sampling suggests it may be 160 feet (50 metres) or more in width. Tower Gold may be a distal gold system to a porphyry copper deposit or another event of the Walker Lane trend.