Skeena Announces 21A West Zone Expansion Discovery at Eskay Creek Including 8.95 g/t AuEq over 34.00 metres
Skeena Announces 21A West Zone Expansion Discovery at Eskay Creek
Including 8.95 g/t AuEq over 34.00 metres
Vancouver, BC (March 9, 2022) Skeena Resources Limited (TSX: SKE, NYSE: SKE) (“Skeena” or
the “Company”) is pleased to announce final drilling results from the 2021 regional and near mine
exploration programs at the Eskay Creek gold-silver Project (“Eskay Creek” or the “Project”) in the
Golden Triangle of British Columbia. Analytic al results from the recently completed drill holes are
detailed in this release. Reference images are presented at the end of this release as well as on the
Company’s website.
New 2021 Exploration Program Highlights:
• 1.29 g/t Au, 36 g/t Ag (1.76 g/t AuEq) over 14.50 m (SK-21-972)
• 0.79 g/t Au, 26 g/t Ag (1.14 g/t AuEq) over 21.11 m (SK-21-972)
• 1.77 g/t Au, 200 g/t Ag (4.44 g/t AuEq) over 11.73 m (SK-21-983)
• 0.78 g/t Au, 120 g/t Ag (2.39 g/t AuEq) over 11.50 m (SK-21-985)
• 8.78 g/t Au, 13 g/t Ag (8.95 g/t AuEq) over 34.00 m (SK-21-997)
Gold Equivalent (AuEq ) calculated via the formula: Au (g/t) + [Ag (g/t) / 75]. True widths and zone geometries cannot be
definitively determined at this time. Grade-capping of individual assays has not been applied to the Au and Ag assays informing
the length-weighted AuEq composites. Metallurgical processing recoveries have not been applied to the AuEq calculation and
are taken at 100%. Samples below detection limit were nulled to a value of zero.
New In-Pit Discovery Expands 21A Zone
Following up on resource category conversion drilling performed in early 2021, exploratory drill hole
SK-21-997 intersected high -grade gold mineralization averaging 8.78 g/t Au, 13 g/t Ag (8.95 g/t
AuEq) over 34.00 m located 60 m west of Skeena’s current 21A Zone pit -constrained resources.
Hosted entirely within the rhyolite sequenc e, this new mineralization is only 30 m vertically below
surface. This discovery remains open for expansion 120 m to the north and already occurs within the
limits of the contemplated open-pit from Skeena’s 2021 Prefeasibility Study (“PFS”). The high-grade
gold and essentially negligible silver concentrations in this new intersection is u ncharacteristic of
rhyolite hosted mineralization at Eskay Creek. Refer to Table 1 below.
Table 1: Drill hole SK-21-997 length weighted drill hole composite and high-grade subintervals –
21A West Expansion
Hole-ID From (m) To (m) Sample Length (m) Au (g/t) Ag (g/t) AuEq (g/t)
SK-21-997 44.00 78.00 34.00 8.78 13 8.95
Including 61.00 61.50 0.50 43.10 19 43.35
and 61.50 62.20 0.70 63.60 18 63.85
and 72.70 73.20 0.50 30.00 <0.5 30.00
and 73.20 73.70 0.50 16.15 <0.5 16.15
and 74.20 74.70 0.50 12.55 <0.5 12.55
and 74.70 75.20 0.50 14.15 <0.5 14.15
and 75.20 76.00 0.80 16.00 <0.5 16.00
and 76.00 76.95 0.95 75.70 <0.5 75.70
NR: 22-05 | March 9, 2022
“Due to a lack of drilling, this new discovery which expands the 21A Zone to the west, was considered
waste rock in the currently proposed PFS reserve pit area,” notes Paul Geddes P.Geo., the Company’s
Vice President of Exploration and Resource Development . “We will work to expand and infill drill the
21A West Zone and potentially bolster th e pit -constrained resources surrounding this new ly
discovered mineralization”.
Other Near Mine Targets
Additional mineralization has been discovered between the 21A and 23 Zones highlighted by drill hole
SK-21-972, which intersected three intervals averaging 1.29 g/t Au, 36 g/t Ag (1.76 g/t AuEq) over
14.50 m, 0.79 g/t Au, 26 g/t Ag (1.14 g/t AuEq) over 21.11 m and 1.14 g/t Au, 23 g/t Ag (1.45 g/t
AuEq) over 13.50 m. These intervals are hosted within the footwall da cite series as is the case with
the recently discovered 23 Zone.
2022 Exploration Outlook
The Company is anticipating a staged drilling startup beginning in early Q2 2022 , focusing on near
mine and regional targets that were not explored during the 2021 drilling program. Overall, 60,000 m
has been allocated to the 2022 exploration program which will continue to focus on supplementing the
existing mine plan with additional near surface mineralization amenable to open-pit mining methods
and will be paralleled by exploratory drill testing of the deep Mudstone extensions north of the former
Eskay Creek mine. Allocation of meterage will remain results driven. Expansion and delineation drilling
will also occur in the new 21A West Zone as well as the recently discovered 23 Zone.
About Skeena
Skeena Resources Limited is a Canadian mining exploration and development company focused on
revitalizing the past-producing Eskay Creek gold-silver mine located in Tahltan Territory in the Golden
Triangle of northwest British Columbia, Canada. The Company released a Prefeasibility Study for
Eskay Creek in July 2021 which highlights an open -pit average grade of 4.57 g/t AuEq, an after -tax
NPV5% of C$1.4B, 56% IRR, and a 1.4 -year payback at US$1,550/oz Au. Skeena is currently
completing both infill and exploration drilling to advance Eskay Creek to a full Feasibility Study in 2022.
On behalf of the Board of Directors of Skeena Resources Limited,
Walter Coles Jr.
President & CEO
Contact Information
Investor Inquiries: [email protected]
Office Phone: +1 604 684 8725
Company Website: www.skeenaresources.com
Qualified Persons
Exploration activities at the Eskay Creek Proj ect are administered on site by the Company’s
Exploration Managers, Raegan Markel, P.Geo., John Tyler and Director of Exploration, Adrian Newton
P.Geo. In accordance with National Instrument 43 -101 Standards of Disclosure for Mineral Projects,
Paul Geddes, P.Geo. Vice President Exploration and Resource Development, is the Qualified Person
for the Company and has prepared, validated and approved the technical and scientific content of this
news release. The Company strictly adheres to CIM Best Practices Guid elines in conducting,
documenting, and reporting the exploration activities on its projects.
Quality Assurance – Quality Control
Once received from the drill and processed, all drill core samples are sawn in half, labelled and
bagged. The remaining drill core is subsequently securely stored on site. Numbered security tags are
applied to lab shipments for chain of custody requirements. The Company inserts quality control (QC)
samples at regular intervals in the sample stream, including blanks and reference materials with all
sample shipments to monitor laboratory performance. The QAQC program was designed and
approved by Lynda Bloom, P.Geo. of Analytical Solutions Ltd., and is overseen by the Company’s
Qualified Person, Paul Geddes, P.Geo, Vice President Exploration and Resource Development.
Drill core samples are submitted to ALS Geochemistry’s analytical facility in North Vancouver, British
Columbia for preparation and analysis. The ALS facility is accredited to the ISO/IEC 17025 standard
for gold assays and all analytical methods include qu ality control materials at set frequencies with
established data acceptance criteria. The entire sample is crushed and 1 kg is pulverized. Analysis for
gold is by 50 g fire assay fusion with atomic absorption (AAS) finish with a lower limit of 0.01 ppm and
upper limit of 100 ppm. Samples with gold assays greater than 100 ppm are re-analyzed using a 50 g
fire assay fusion with gravimetric finish. Analysis for silver is by 50 g fire assay fusion with gravimetric
finish with a lower limit of 5ppm and upper lim it of 10,000 ppm. Samples with silver assays greater
than 10,000 ppm are re -analyzed using a gravimetric silver concentrate method. A selected number
of samples are also analyzed using a 48 multi -element geochemical package by a 4 -acid digestion,
followed by Inductively Coupled Plasma Atomic Emission Spectroscopy (ICP -AES) and Inductively
Coupled Plasma Mass Spectroscopy (ICP-MS) and also for mercury using an aqua regia digest with
Inductively Coupled Plasma Atomic Emission Spectroscopy (ICP -AES) finish. Sa mples with sulfur
reporting greater than 10% from the multi -element analysis are re -analyzed for total sulfur by Leco
furnace and infrared spectroscopy.
Cautionary note regarding forward-looking statements
Certain statements and information contained or incorporated by reference in this press release constitute “forward-looking information”
and “forward -looking statements” within the meaning of applicable Canadian and United States securities legislation (collectively,
“forward-looking statements”). These statements relate to future events or our future performance. The use of words such as
“anticipates”, “believes”, “proposes”, “contemplates”, “generates”, “targets”, “is projected”, “is planned”, “considers”, “es timates”,
“expects”, “is expected”, “potent ial” and similar expressions, or statements that certain actions, events or results “may”, “might”, “will”,
“could”, or “would” be taken, achieved, or occur, may identify forward -looking statements. All statements other than statements of
historical fact a re forward -looking statements. Specific forward -looking statements contained herein include, but are not limited to,
statements regarding the results of the PFS, completion of a feasibility study, processing capacity of the mine, anticipated mine life,
probable reserves, estimated project capital and operating costs, sustaining costs, results of test work and studies, planned
environmental assessments, the future price of metals, metal concentrate, and future exploration and development. Such forwar d-
looking statements are based on material factors and/or assumptions which include, but are not limited to, the estimation of minera l
resources and reserves, the realization of resource and reserve estimates, metal prices, taxation, the estimation, timing and amount of
future exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory app rovals,
environmental risks, title disputes and the assumptions set forth herein and in the Company’s Management’s Discussio n and Analysis
(“MD&A”) for the year ended December 31, 2020, and the Company’s Annual Information Form (“AIF”) dated March 25, 2021. Such
forward-looking statements represent the Company’s management expectations, estimates and projections regarding futur e events or
circumstances on the date the statements are made, and are necessarily based on several estimates and assumptions that, while
considered reasonable by the Company as of the date hereof, are not guarantees of future performance. Actual events and results may
differ materially from those described herein, and are subject to significant operational, business, economic, and regulatory risks and
uncertainties. The risks and uncertainties that may affect the forward -looking statements in this press re lease include, among others:
the inherent risks involved in exploration and development of mineral properties, including permitting and other government a pprovals;
changes in economic conditions, including changes in the price of gold and other key variables; changes in mine plans and other factors,
including accidents, equipment breakdown, bad weather and other project execution delays, many of which are beyond the contro l of
the Company; environmental risks and unanticipated reclamation expenses; and othe r risk factors identified in the Company’s 2020
MD&A and AIF, and in the Company’s other periodic filings with securities and regulatory authorities in Canada and the United States
that are available on SEDAR at www.sedar.com or on EDGAR at www.sec.gov.
Readers should not place undue reliance on such forward -looking statements. The Company does not undertake any obligations to
update and/or revise any forward-looking statements except as required by applicable securities laws.
Cautionary note to U.S. Investors concerning estimates of mineral reserves and mineral resources
Skeena’s mineral reserves and mineral resources included or incorporated by reference herein have been estimated in accordance with
National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43 -101”) as required by Canadian securities regulatory
authorities, which differ from the requirements of U.S. securities laws. The terms “mineral reserve”, “proven mineral reserve”, “probable
mineral reserve”, “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resourc e” are
Canadian mining terms as defined in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”)
“CIM Definition Standards – For Mineral Resources and Mineral Reserves” adopted by the CIM Council (as amended, the “CIM Definition
Standards”). The U.S. Securities and Exchange Commission (the “SEC”) has mineral property disclosure rules in Regulation S -K
Subpart 1300 applicable to issuers with a class of securities registered under the Securities Exchange Act of 1934 (the “Exchange Act”),
which rules were updated effective February 25, 2019 (th e “SEC Mineral Property Rules”) with compliance required for the first fiscal
year beginning on or after January 1, 2021. Skeena is not required to provide disclosure on its mineral properties under the SEC Mineral
Property Rules or their predecessor rules under SEC Industry Guide 7 because it is a “foreign private issuer” under the Exchange Act
and entitled to file reports with the SEC under MJDS.
The SEC Mineral Property Rules include terms describing mineral reserves and mineral resources that are substantially similar, but not
always identical, to the corresponding terms under the CIM Definition Standards. The SEC Mineral Property Rules allow estimat es of
“measured”, “indicated” and “inferred” mineral resources. The SEC Mineral Property Rules’ definiti ons of “proven mineral reserve” and
“probable mineral reserve” are substantially similar to the corresponding CIM Definition Standards. Investors are cautioned t hat, while
these terms are substantially similar to definitions in the CIM Definition Standards , differences exist between the definitions under the
SEC Mineral Property Rules and the corresponding definitions in the CIM Definition Standards. Accordingly, there is no assurance any
mineral reserves or mineral resources that Skeena may report as “prov en mineral reserves”, “probable mineral reserves”, “measured
mineral resources”, “indicated mineral resources” and “inferred mineral resources” under NI 43 -101 would be the same had Skeena
prepared the mineral reserve or mineral resource estimates under the standards adopted under the SEC Mineral Property Rules.
In addition, investors are cautioned not to assume that any part or all of Skeena’s mineral resources constitute or will be converted into
reserves. These terms have a great amount of uncertainty as to their economic and legal feasibility. Accordingly, investors are cautioned
not to assume that any “measured”, “indicated”, or “inferred” mineral resources that Skeena reports are or will be economically or legally
mineable. Further, “inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to
their economic and legal feasibility. It cannot be assumed that all or any part of an “inferred mineral resource” will ever b e upgraded to
a higher category. Under Canadian securities laws, estimates of “inferred mineral resources” may not form the basis of feasibility or
prefeasibility studies, except in rare cases where permitted under NI 43-101.
For these reasons, the mineral reserve and mineral resource estimates and related information presented herein may not be comparable
to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the U.S. fede ral
securities laws and the rules and regulations thereunder.
Table 2: Eskay Creek Project 2021 Exploratory Drilling Campaign Length-Weighted Drill Hole
Composites:
Hole-ID From (m) To (m) Sample Length (m) Au (g/t) Ag (g/t) AuEq (g/t) Area
SK-21-911 NSA 21A GAP
SK-21-922 NSA SOUTH EXTENSION
SK-21-923 NSA SOUTH EXTENSION
SK-21-924 NSA SOUTH EXTENSION
SK-21-931 NSA EASTERN LIMB
SK-21-937 NSA EASTERN LIMB
SK-21-956 NSA 21A EAST
SK-21-972 106.50 121.00 14.50 1.29 36 1.76 21A EAST
Including 114.62 115.58 0.96 7.58 350 12.25 21A EAST
SK-21-972 127.00 148.11 21.11 0.79 26 1.14 21A EAST
SK-21-972 153.00 166.50 13.50 1.14 23 1.45 21A EAST
SK-21-975 63.40 64.30 0.90 1.88 10 2.01 21A EAST
SK-21-975 121.86 125.69 3.83 3.16 28 3.53 21A EAST
Including 124.12 124.62 0.50 8.96 100 10.29 21A EAST
SK-21-980 NSA 21A GAP
Hole-ID From (m) To (m) Sample Length (m) Au (g/t) Ag (g/t) AuEq (g/t) Area
SK-21-981 182.00 183.50 1.50 0.57 23 0.88 21A EAST
SK-21-982 36.15 37.50 1.35 1.10 9 1.22 21A EAST
SK-21-983 43.47 55.20 11.73 1.77 200 4.44 21A EAST
Including 45.83 47.00 1.17 5.88 1340 23.75 21A EAST
and 47.60 48.17 0.57 3.92 806 14.67 21A EAST
SK-21-983 124.50 126.00 1.50 1.15 2 1.17 21A EAST
SK-21-985 9.50 32.00 22.50 0.68 14 0.87 21A EAST
SK-21-985 36.50 38.00 1.50 0.44 24 0.76 21A EAST
SK-21-985 43.00 54.50 11.50 0.78 120 2.39 21A EAST
Including 43.00 44.50 1.50 3.24 725 12.91 21A EAST
SK-21-985 75.50 77.00 1.50 0.32 23 0.63 21A EAST
SK-21-985 83.00 90.50 7.50 0.46 13 0.63 21A EAST
SK-21-985 186.57 194.00 7.43 0.42 5 0.49 21A EAST
SK-21-985 207.50 209.00 1.50 0.52 7 0.61 21A EAST
SK-21-986 9.50 23.00 13.50 0.54 51 1.23 21A EAST
SK-21-986 94.00 98.62 4.62 0.45 46 1.07 21A EAST
SK-21-986 104.12 106.50 2.38 1.67 121 3.28 21A EAST
SK-21-986 112.00 113.50 1.50 0.59 3 0.62 21A EAST
SK-21-986 163.00 168.00 5.00 0.69 2 0.72 21A EAST
SK-21-986 172.50 174.00 1.50 0.68 1 0.69 21A EAST
SK-21-986 184.00 190.00 6.00 0.08 46 0.69 21A EAST
SK-21-987 6.30 9.00 2.70 1.01 19 1.26 21A EAST
SK-21-987 134.25 137.00 2.75 0.64 5 0.70 21A EAST
SK-21-987 155.00 159.50 4.50 0.58 15 0.77 21A EAST
SK-21-987 168.50 170.00 1.50 2.90 7 2.99 21A EAST
SK-21-987 174.50 176.00 1.50 0.69 17 0.92 21A EAST
SK-21-987 190.50 192.00 1.50 0.85 7 0.95 21A EAST
SK-21-989 NSA 21A EAST
SK-21-991 NSA EASTERN LIMB
SK-21-992 NSA EASTERN LIMB
SK-21-993 NSA EASTERN LIMB
SK-21-994 47.00 49.25 2.25 3.22 64 4.08 21A WEST
SK-21-994 75.00 76.50 1.50 0.09 40 0.63 21A WEST
SK-21-994 81.40 87.50 6.10 0.26 54 0.98 21A WEST
SK-21-994 101.00 108.10 7.10 0.73 4 0.79 21A WEST
SK-21-994 112.30 113.00 0.70 1.19 5 1.26 21A WEST
SK-21-997 44.00 78.00 34.00 8.78 13 8.95 21A WEST
Including 61.00 61.50 0.50 43.10 19 43.35 21A WEST
and 61.50 62.20 0.70 63.60 18 63.85 21A WEST
and 72.70 73.20 0.50 30.00 <0.5 30.00 21A WEST
and 73.20 73.70 0.50 16.15 <0.5 16.15 21A WEST
and 74.20 74.70 0.50 12.55 <0.5 12.55 21A WEST
and 74.70 75.20 0.50 14.15 <0.5 14.15 21A WEST
and 75.20 76.00 0.80 16.00 <0.5 16.00 21A WEST
and 76.00 76.95 0.95 75.70 <0.5 75.70 21A WEST
Gold Equivalent (AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 75]. True widths and zone geometries cannot be definitively
determined at this time . Grade-capping of individual assays has not been applied to the Au and Ag assays informing the length -
weighted AuEq composites. Metallurgical processing recoveries have not been applied to the AuEq calculation and are taken at 100%.
Samples below detection limit were nulled to a value of zero. NSA – No Significant Assays.
Table 3: Mine Grid Drill Hole Locations and Orientations:
Hole-ID Easting (m) Northing (m) Elevation (m) Length (m) Azimuth (°) Dip (°)
SK-21-911 9538.7 9154.7 1115.0 104.4 67.2 -50.2
SK-21-922 9288.4 7128.4 1077.5 151.0 67.3 -49.7
Hole-ID Easting (m) Northing (m) Elevation (m) Length (m) Azimuth (°) Dip (°)
SK-21-923 9288.4 7128.4 1077.5 151.4 126.7 -49.8
SK-21-924 9288.4 7128.4 1077.5 212.0 102.3 -75.4
SK-21-931 11048.8 9322.8 836.6 181.0 146.5 -50.4
SK-21-937 10622.2 9681.2 934.0 244.5 42.4 -50.0
SK-21-956 9949.1 9814.6 986.2 76.5 92.0 -68.2
SK-21-972 9961.0 9914.0 981.1 166.5 357.1 -55.0
SK-21-975 9961.1 9912.3 981.1 170.0 247.0 -70.0
SK-21-980 9486.4 9366.3 1088.2 124.6 0.0 -90.0
SK-21-981 9742.6 8843.6 1039.9 195.2 82.0 -50.2
SK-21-982 9746.2 8837.8 1039.9 141.5 107.1 -50.0
SK-21-983 9746.2 8837.8 1039.9 244.2 132.1 -50.2
SK-21-985 10082.9 9835.3 993.9 220.7 312.1 -63.0
SK-21-986 10082.7 9831.0 993.9 215.0 269.2 -60.1
SK-21-987 10088.3 9831.2 993.9 210.5 91.7 -50.1
SK-21-989 9948.8 9814.9 986.2 61.0 92.1 -68.0
SK-21-991 10632.9 9870.4 885.5 197.0 56.3 -49.8
SK-21-992 10632.9 9870.4 885.5 225.0 106.3 -50.2
SK-21-993 10632.9 9870.4 885.5 133.0 81.6 -70.1
SK-21-994 9735.9 9729.9 1074.6 125.0 97.0 -50.3
SK-21-997 9789.8 9876.8 1055.3 110.0 281.9 -50.3