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MEI Online: Commodities: Metallic Ores: Nickel: Latest News: April 5th 2006


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:: Skye Completes Atmospheric Leaching Pilot Plant Program

Skye Resources Inc. has announced the successful completion of the pilot plant testing of its proprietary Sulphation Atmospheric Leach ("SAL") process for the recovery of nickel and cobalt from nickel laterites.

"Given the positive results from the pilot plant program, Skye has initiated a preliminary assessment to determine the approximate capital and operating costs of a proposed 50 million pound per year expansion of the Fenix project" said Ian Austin President and CEO of Skye Resources.

Both the assessment and the current feasibility study on the Fenix project are being prepared primarily by Hatch Ltd. and will be completed in the third quarter of 2006. The Preliminary Assessment initially will compare the SAL Process to the High Pressure Acid Leach (HPAL) Process, and one of these options will be selected for detailed cost estimation. Either option would allow exploitation of the limonite resources associated with the Fenix project.

The testing was carried out by SGS Minerals Services in Lakefield, Ontario, Canada. Ten continuous test campaigns were completed between February and December 2005 using bulk samples of nickel and cobalt bearing laterites taken from Skye’s Fenix project in Guatemala. The final 10-day campaign achieved overall recoveries of 85.4 % for nickel and 84.8 % for cobalt from ore through production of a mixed hydroxide intermediate product.

The SGS Minerals Services Final Report, which was received in March 2006, said that, "Based on the smooth operation of the last 5 days of the final integrated campaign and the virtually zero downtime of all unit processes, the SAL process flow sheet appears to be fundamentally sound."

More detailed information concerning the pilot plant program is available on the company’s website www.skyeresources.com




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