Skeena Announces Discovery of New 23 Zone at Eskay Creek: 2.33 g/t AuEq over 59.91 metres and 1.08 g/t AuEq over 90.00 metres
Skeena Announces Discovery of New 23 Zone at Eskay Creek:
2.33 g/t AuEq over 59.91 metres and 1.08 g/t AuEq over 90.00 metres
Vancouver, BC (January 19, 2022) Skeena Resources Limited (TSX: SKE, NYSE: SKE) (“Skeena”
or the “Company”) is pleased to announce the discovery of a significant zone of near surface, footwall
style mineralization, the 23 Zone . This new zone is outside the limits of the Company’s current pit-
constrained mineral resources at the Eskay Creek gold-silver project (“Eskay Creek” or the “Project”)
located in the Golden Triangle of British Columbia. Analytical results from the recently completed drill
holes are detailed in this release. Reference images are presented at the end o f this release as well
as on the Company’s website.
New 23 Zone Discovery Highlights:
• 0.99 g/t Au, 6.5 g/t Ag (1.08 g/t AuEq) over 90.00 m (SK-21-945)
• 1.30 g/t Au, 31.4 g/t Ag (1.72 g/t AuEq) over 43.39 m (SK-21-946)
• 2.14 g/t Au, 14.6 g/t Ag (2.33 g/t AuEq) over 59.91 m (SK-21-947)
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 23 Zone Discovered Outside Current Resources
Situated beyond the extents of the currently defined pit -constrained resources at Eskay Creek, the
Company has discovered a new zone of near surface Au-Ag mineralization beginning only 15 m
vertically below surface. This new 23 Zone was revealed by Q4 2021 drilling as part of the ongoing
regional exploration program.
Positioned 200 m east of the high -grade 21A Zone, the area was historically drilled from surface by
previous operators on widely spaced drill centers. Selective drill hole sampling during this era meant
that the discovery of the larger and more robust mineralized widths observed as a result of the 2021
drilling program, were missed historically. This lack of non-continuous historical sampling is evidenced
by 2021 drill hole SK-21-947 which intersected 2.14 g/t Au, 14.6 g/t Ag (2.33 g/t AuEq) over 59.91
m only metres away from historical 1990 drill hole CA90 -511 which due to non-continuous sampling
only reported 1.97 g/t AuEq and 0.84 g/t AuEq over 2.00 and 8.00 m, respectively.
Mineralization in the 23 Zone is almost exclusively hosted within dacitic volcanic rocks and to a lesser
degree, the overlying Lower Mudstone unit. As such, the Au-Ag tenor is consistent with that observed
in footwall mineralization elsewhere on the property (21A, 21B, 21C, 22 Zones). Concentrations of the
epithermal suite of elements (As, Hg, Sb) are negligible , as is the case with this style of footwall
mineralization across Eskay Creek.
Drilling to date indicates a shallow , westerly dipping geometry and the 23 Zone remains open for
expansion in all directions. Proximity to surface, in addition to the grades and widths of this evolving
zone are a perfect complement to the existing mine plan and potential throughput expansion.
NR: 22-01 | January 19, 2022
22 Zone and Eastern Limb Targets
Drilling along the southeastern strike extension of the 22 Zone was performed on 50 m spacings. Most
notably, 2021 drill hole SK-21-927 intersected 3.39 g/t Au, 4.8 g/t Ag (3.45 g/t AuEq) over 21.55 m
in the Even Lower Mudstone (ELM) approximately 200 metres southeast of the 22 Zone. This broader
interval included a visible gold bearing subinterval grading 59.10 g/t Au, 61.5 g/t Ag (59.92 g/t AuEq)
over 0.65 m and 19.55 g/t Au, 7.4 g/t Ag (19.65 g/t AuEq) over 0.95 m.
Gold in soil anomalies supported by geological considerations were targeted by nine drill holes on the
eastern limb of the property. Despite intersecting highly altered host rocks, no significant grades were
returned in these specific locations.
Current Status - Exploration
The regional exploration drilling program was designed to pragmatically test near surface targets
across the property with the goal of delineating additional near surface resources to supplement the
existing mine plan. To date, 72 drill holes totaling 12,890 m have been completed representing ~37%
of the budgeted 35,000 m drill program. The outstanding meterage will be drilled once the Albino
Waste Facility drill program has been completed in Q2 2022.
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 C olumbia, 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 full Feasibility Study in Q1
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 Project 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 Guidelines 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 s awn 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 accr edited to the ISO/IEC 17025 standard
for gold assays and all analytical methods include quality 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 limit 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 a lso 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 regi a digest with
Inductively Coupled Plasma Atomic Emission Spectroscopy (ICP -AES) finish. Samples 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”, “estimates”,
“expects”, “is expected”, “potential” and similar expressions, or statements that certain actions, events or results “may”, “ might”, “will”,
“could”, or “would” be taken, achieved, or occu r, may identify forward -looking statements. All statements other than statements of
historical fact are forward -looking statements. Specific forward -looking statements contained herein include, but are not limited to,
statements regarding the results of th e 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 f uture price of metals, metal concentrate, and future exploration and development. Such forward -
looking statements are based on material factors and/or assumptions which include, but are not limited to, the estimation of mineral
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 Discussion 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 future 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 release 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 be yond the control of
the Company; environmental risks and unanticipated reclamation expenses; and other risk factors identified in the Company’s 2 020
MD&A and AIF, and in the Company’s other periodic filings with securities and regulatory authorities in Can ada 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 “i nferred mineral resource” 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 (the “SEC Mineral Property Rules”) with compliance required for the firs t 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 Excha nge 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’ definitions of “proven mineral rese rve” and
“probable mineral reserve” are substantially similar to the corresponding CIM Definition Standards. Investors are cautio ned that, while
these terms are substantially similar to definitions in the CIM Definition Standards, differences exist between the definitio ns 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 “proven mineral reserves”, “probable mineral reserves”, “meas ured
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 uncertain ty as to
their economic and legal feasibility. It cannot be assumed that all or any part of an “inferred mineral resource” will ever be upgraded to
a higher category. Under Canadian securities laws, estimates of “inferred mineral resources” may not form the basis of feasib ility 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 disc losure requirements under the U.S. federal
securities laws and the rules and regulations thereunder.
Table 1: 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-21-894 85.00 85.50 0.50 0.40 14.0 0.59 22
SK-21-894 96.15 100.31 4.16 0.47 18.8 0.72 22
SK-21-895 20.75 22.71 1.96 0.17 25.4 0.51 22
SK-21-895 115.40 115.98 0.58 1.81 19.3 2.07 22
SK-21-895 133.50 134.64 1.14 0.83 5.2 0.90 22
SK-21-895 160.56 163.40 2.84 0.37 21.8 0.67 22
SK-21-895 223.52 224.37 0.85 0.57 3.2 0.61 22
SK-21-895 236.50 239.00 2.50 1.97 2.9 2.01 22
SK-21-895 284.20 287.00 2.80 3.06 7.9 3.17 22
SK-21-896 22.63 23.20 0.57 1.96 37.4 2.46 22
SK-21-896 46.14 49.00 2.86 0.56 7.5 0.66 22
SK-21-896 65.00 68.46 3.46 6.73 22.5 7.03 22
INCLUDING 66.50 67.50 1.00 21.50 43.1 22.07 22
SK-21-896 79.00 80.00 1.00 0.63 18.8 0.88 22
SK-21-896 141.38 158.00 16.62 0.72 6.0 0.80 22
SK-21-896 186.50 187.50 1.00 1.01 6.8 1.10 22
SK-21-896 212.25 213.50 1.25 0.63 2.2 0.66 22
SK-21-897 19.50 20.98 1.48 0.63 16.2 0.85 22
Hole-ID From (m) To (m) Sample Length (m) Au (g/t) Ag (g/t) AuEq (g/t) Area
SK-21-897 35.50 46.40 10.90 1.04 24.4 1.37 22
SK-21-897 97.18 98.08 0.90 0.42 69.5 1.35 22
SK-21-898 35.00 36.09 1.09 0.60 67.9 1.51 22
SK-21-898 120.05 121.00 0.95 0.23 31.2 0.65 22
SK-21-911 PENDING 22
SK-21-912 ABANDONED 22
SK-21-913 81.83 82.50 0.67 0.56 24.3 0.88 22
SK-21-913 93.50 101.00 7.50 0.34 5.4 0.41 22
SK-21-914 134.91 138.29 3.38 0.96 1.8 0.99 22
SK-21-922 PENDING 22
SK-21-923 PENDING 22
SK-21-924 PENDING 22
SK-21-925 33.00 35.45 2.45 0.97 1.5 1.00 22
SK-21-925 85.79 86.82 1.03 0.55 3.5 0.60 22
SK-21-925 94.17 95.59 1.42 0.94 22.8 1.24 22
SK-21-925 137.50 138.50 1.00 0.95 2.1 0.98 22
SK-21-926 32.50 37.00 4.50 1.24 2.5 1.27 22
SK-21-926 92.20 96.20 4.00 0.48 19.1 0.73 22
SK-21-926 150.50 153.50 3.00 2.68 0.6 2.68 22
SK-21-927 13.95 35.50 21.55 3.39 4.8 3.45 22
INCLUDING 14.90 15.55 0.65 59.10 61.5 59.92 22
AND 15.55 16.50 0.95 19.55 7.4 19.65 22
SK-21-927 83.50 85.00 1.50 0.69 2.0 0.72 22
SK-21-927 94.00 97.00 3.00 0.88 4.9 0.94 22
SK-21-927 144.00 145.05 1.05 1.56 1.1 1.57 22
SK-21-928 14.50 36.00 21.50 0.58 1.5 0.59 22
SK-21-928 178.00 179.00 1.00 1.02 2.4 1.05 22
SK-21-929 20.80 23.50 2.70 0.64 1.7 0.66 22
SK-21-929 59.75 66.00 6.25 0.52 4.2 0.57 22
SK-21-929 111.00 117.00 6.00 0.67 3.6 0.72 22
SK-21-929 139.00 140.50 1.50 0.52 0.5 0.52 22
SK-21-929 194.50 196.00 1.50 0.79 0.5 0.79 22
SK-21-930 105.00 110.87 5.87 1.35 10.5 1.50 22
SK-21-930 120.50 125.00 4.50 0.56 0.5 0.56 22
SK-21-930 132.50 134.00 1.50 0.58 0.5 0.58 22
SK-21-931 PENDING
SK-21-932 NSA EASTERN LIMB
SK-21-933 203.50 204.00 0.50 0.65 3.3 0.69 EASTERN LIMB
SK-21-933 216.00 216.50 0.50 0.49 15.9 0.70 EASTERN LIMB
SK-21-934 NSA EASTERN LIMB
SK-21-935 NSA EASTERN LIMB
SK-21-936 NSA EASTERN LIMB
SK-21-937 PENDING
SK-21-938 NSA EASTERN LIMB
SK-21-939 31.45 38.65 7.20 0.26 10.1 0.39 EASTERN LIMB
SK-21-940 61.60 65.30 3.70 0.26 6.4 0.35 EASTERN LIMB
SK-21-940 112.00 112.50 0.50 0.37 21.0 0.65 EASTERN LIMB
SK-21-941 16.50 18.00 1.50 1.66 0.8 1.67 23
SK-21-941 52.00 64.92 12.92 0.69 8.9 0.81 23
SK-21-942 48.00 49.00 1.00 0.60 4.5 0.66 23
SK-21-942 100.62 105.00 4.38 0.54 4.4 0.59 23
SK-21-942 119.00 141.50 22.50 0.55 0.6 0.55 23
SK-21-942 167.63 168.50 0.87 0.57 0.6 0.58 23
SK-21-943 8.00 9.50 1.50 0.56 9.1 0.68 23
SK-21-943 67.50 78.00 10.50 0.36 0.9 0.37 23
Hole-ID From (m) To (m) Sample Length (m) Au (g/t) Ag (g/t) AuEq (g/t) Area
SK-21-944 42.00 54.57 12.57 0.46 16.8 0.69 23
SK-21-944 114.23 123.50 9.27 1.05 4.8 1.11 23
SK-21-944 132.50 152.50 20.00 0.64 7.1 0.73 23
SK-21-944 188.00 190.05 2.05 0.51 22.4 0.81 23
SK-21-945 22.00 112.00 90.00 0.99 6.5 1.08 23
INCLUDING 22.00 23.15 1.15 17.95 23.1 18.26 23
SK-21-945 119.50 136.00 16.50 0.61 1.5 0.63 23
SK-21-946 29.00 72.39 43.39 1.30 31.4 1.72 23
SK-21-946 80.00 101.50 21.50 0.59 2.2 0.62 23
SK-21-946 112.00 118.00 6.00 0.62 1.6 0.64 23
SK-21-947 44.58 104.49 59.91 2.14 14.6 2.33 23
INCLUDING 56.00 57.00 1.00 21.90 57.1 22.66 23
AND 57.00 58.00 1.00 19.30 50.5 19.97 23
SK-21-947 123.43 124.00 0.57 0.50 19.5 0.76 23
SK-21-947 172.50 173.50 1.00 0.56 13.8 0.74 23
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 2: Mine Grid Drill Hole Locations and Orientations:
Hole-ID Easting (m) Northing (m) Elevation (m) Length (m) Azimuth (°) Dip (°)
SK-21-894 9623.1 8649.8 1080.2 289.5 50.0 -53.0
SK-21-895 9622.9 8649.6 1080.2 296.2 65.0 -62.0
SK-21-896 9750.3 8659.0 1032.1 233.2 250.6 -72.2
SK-21-897 9749.8 8660.0 1032.0 151.8 282.0 -50.0
SK-21-898 9751.5 8656.3 1032.1 132.7 183.0 -50.0
SK-21-913 9715.2 8585.2 1040.7 103.5 265.0 -50.0
SK-21-914 9715.8 8585.4 1040.7 151.2 232.0 -50.0
SK-21-925 9812.4 8614.3 986.2 199.3 281.1 -50.1
SK-21-926 9812.0 8612.9 986.2 202.0 246.0 -50.0
SK-21-927 9811.7 8567.8 983.0 150.0 253.8 -50.1
SK-21-928 9812.3 8569.0 983.1 200.0 276.8 -74.1
SK-21-929 9790.1 8468.1 988.9 229.0 25.0 -50.0
SK-21-930 9790.9 8465.4 988.9 152.0 82.1 -50.1
SK-21-932 11049.5 9322.5 836.6 190.0 127.3 -68.2
SK-21-933 11049.1 9323.8 836.6 219.0 106.8 -49.6
SK-21-934 11048.5 9325.5 836.6 219.0 67.0 -50.1
SK-21-935 10623.0 9678.2 934.1 225.0 117.2 -50.5
SK-21-936 10622.8 9679.1 934.0 209.1 77.2 -50.6
SK-21-938 10542.4 9447.3 1005.6 102.0 191.7 -50.3
SK-21-939 10543.9 9447.6 1005.6 162.0 127.4 -50.5
SK-21-940 10544.3 9449.6 1005.6 231.0 77.2 -50.0
SK-21-941 10161.5 10104.3 977.0 94.6 91.8 -84.9
SK-21-942 10159.7 10105.1 977.0 204.0 292.0 -70.0
SK-21-943 10161.8 10104.1 977.0 205.2 92.0 -60.2
SK-21-944 10158.3 10105.6 977.0 196.0 292.1 -49.9
SK-21-945 10069.1 10066.6 959.0 170.5 137.2 -50.1
SK-21-946 10069.7 10069.3 959.0 160.0 92.5 -60.0
SK-21-947 10066.2 10071.8 959.0 190.5 326.5 -80.1