Overview

Skye is an international mining company focused on becoming a mid-tier nickel producer. We have assembled a seasoned, technically sophisticated management team, and acquired the rights to an established world-class nickel project (the Fenix Project) in Guatemala. The Fenix Project is one of the most advanced brownfield ferro-nickel projects in the world and Skye is preparing to initiate construction once financing is in place.

Skye owns over 98% of the Fenix Project. We acquired a 70% interest from Inco Limited in December 2004 and have been adding to our interest as we have been funding all of the development costs and diluting the other shareholder, the Government of Guatemala.

The Fenix project consists of an exploitation license encompassing 248 square kilometers and an exploration license covering 32 square kilometers in eastern Guatemala, together with a pyrometallurgical nickel processing plant and related facilities. Built at a cost of US$238 million in 1977, the plant operated until it was closed in 1980 as a result of low nickel prices and high oil prices. Since the plant shutdown, no mining activity has taken place on the property, but the plant has been on care and maintenance.

A feasibility study drill program, totaling 36,200 metres in over 1,450 holes, was completed in 2006. The drill program provided new data used by Snowden Mining Industry Consultants Ltd. to prepare the resource definition and mining section of the feasibility study. 

In September 2006, we received the results of a feasibility study for a ferro-nickel project at Fenix using proven conventional smelting technology as well as a preliminary assessment study of a subsequent expansion of this lateritic nickel project, using hydrometallurgy.  In 2007 Skye received its environmental permits for the ferro-nickel project, completed basic engineering, filed an updated Technical Report and executed the engineering, procurement and construction management contract.

We have also developed and pilot tested an improved proprietary atmospheric nickel leaching process, for which patent applications have been filed.