Skeena Announces Expansion of New 23 Zone at Eskay Creek: 2.00 g/t AuEq over 40.50 metres
Skeena Announces Expansion of New 23 Zone at Eskay Creek:
2.00 g/t AuEq over 40.50 metres
Vancouver, BC (January 26, 2022) Skeena Resources Limited (TSX: SKE, NYSE: SKE) (“Skeena”
or the “Company”) is pleased to announce the expansion of the recently discovered 23 Zone, located
outside the limits of the Company’s current pit-constrained mineral resources at the Eskay Creek gold-
silver project (“Eskay Creek” or the “Project ”) 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 of this release as well as on the Company’s website.
New 23 Zone Highlights:
• 1.97 g/t Au, 3 g/t Ag (2.00 g/t AuEq) over 40.50 m (SK-21-971)
• 0.58 g/t Au, 14 g/t Ag (0.76 g/t AuEq) over 52.00 m (SK-21-963)
• 3.00 g/t Au, 4 g/t Ag (3.05 g/t AuEq) over 7.49 m (SK-21-973)
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.
Step Out Drilling Expands New 23 Zone
Situated beyond the extents of the curr ently defined pit -constrained resources at Eskay Creek, the
Company has grown the recently discovered 23 Zone of near surface Au-Ag mineralization. This new
zone was revealed by drilling in Q4 2021 as part of the ongoing regional exploration program.
Drill hole SK-21-971 was collared east of the newly announced discovery drill holes and has expanded
the up-dip mineralization by 90 m having intersected 1.97 g/t Au, 3 g/t Ag (2.00 g/t AuEq) over
40.50 m. Drilling to date indicates a shallow, westerly dipping geometry and the 23 Zone remains open
for expansion in all directions.
New 23 Zone Discussion
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-21-963 which intersected 0.58 g/t Au, 14 g/t Ag (0.76 g/t AuEq) over 52.00 m
only metres away from historical 1990 drill hole CA90-433 which due to non-continuous sampling only
reported 1.44 g/t AuEq and 0.82 g/t AuEq over 2.00 m and 5.00 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 grade 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.
NR: 22-02 | January 26, 2022
Southern Extension Targets
Gold in soil anomalies supported by geological considerations were targeted by an additional 6 drill
holes on the Southern Extension targets on the property. Despite intersecting highly altered host rocks,
no substantial 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 Eskay Creek property with the goal of delineating additional near surface resources to
supplement the existing mine plan. To date, 72 drill hole s totaling 12,890 m have been completed
representing ~37% of the budgeted 35,000 m drill program. Of the 72 drill holes , 44 have been
released to date and the remaining 28 will be released once the Company receives the pending assay
results. The outstanding meterage for the regional exploration program 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 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 explo ration 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 Compa ny 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 sawn i n 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 t he 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 accredite d 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 also a nalyzed 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 dig est 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 (co llectively,
“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 occur, may identify forward -looking statements. All state ments 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 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 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 he rein 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 beyond the contro l of
the Company; environmental risks and unanticipated reclamation expenses; and other 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. Secur ities 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 upda ted effective February 25, 2019 (the “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 Ac t
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 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 definitio ns 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 resourc es that Skeena may report as “proven 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 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 disclosure requirements under the U.S. fede ral
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-21-954 2.35 20.00 17.65 0.40 12.46 0.56 SOUTH EXTENSION
SK-21-954 32.00 33.80 1.80 0.98 146.00 2.92 SOUTH EXTENSION
SK-21-954 71.20 72.05 0.85 0.64 4.30 0.70 SOUTH EXTENSION
SK-21-954 101.00 102.00 1.00 0.64 0.70 0.65 SOUTH EXTENSION
SK-21-954 298.00 300.90 2.90 0.90 0.75 0.91 SOUTH EXTENSION
SK-21-955 0.84 20.00 19.16 0.54 26.09 0.89 SOUTH EXTENSION
SK-21-955 51.50 53.00 1.50 0.82 1.80 0.84 SOUTH EXTENSION
SK-21-955 101.50 102.40 0.90 6.32 89.20 7.51 SOUTH EXTENSION
SK-21-955 234.00 237.00 3.00 0.70 1.50 0.72 SOUTH EXTENSION
SK-21-956 PENDING 23
SK-21-957 3.50 20.00 16.50 0.43 18.55 0.68 SOUTH EXTENSION
SK-21-957 34.70 35.70 1.00 1.30 42.20 1.86 SOUTH EXTENSION
SK-21-957 43.50 47.70 4.20 0.52 7.05 0.61 SOUTH EXTENSION
SK-21-958 4.60 36.50 31.90 0.46 18.04 0.70 SOUTH EXTENSION
SK-21-958 120.20 121.10 0.90 0.76 1.60 0.78 SOUTH EXTENSION
SK-21-958 177.00 183.00 6.00 0.40 7.63 0.50 SOUTH EXTENSION
SK-21-962 13.50 20.45 6.95 0.67 4.13 0.72 23
SK-21-962 31.92 41.00 9.08 1.06 2.57 1.09 23
SK-21-962 101.50 111.00 9.50 0.76 70.52 1.70 23
Hole-ID From (m) To (m) Sample Length (m) Au (g/t) Ag (g/t) AuEq (g/t) Area
SK-21-963 13.26 13.89 0.63 0.37 11.80 0.53 23
SK-21-963 40.50 92.50 52.00 0.58 13.53 0.76 23
SK-21-964 8.52 38.00 29.48 0.55 8.05 0.65 23
SK-21-964 69.54 81.50 11.96 0.59 4.65 0.65 23
SK-21-964 109.06 131.95 22.89 0.30 7.15 0.40 23
SK-21-964 155.50 156.10 0.60 0.54 0.60 0.55 23
SK-21-965 NSA SOUTH EXTENSION
SK-21-970 7.50 14.44 6.94 0.50 5.42 0.57 23
SK-21-970 73.50 76.63 3.13 0.67 1.87 0.70 23
SK-21-971 12.00 13.50 1.50 0.85 5.50 0.92 23
SK-21-971 22.73 26.72 3.99 0.66 10.19 0.80 23
SK-21-971 55.46 60.50 5.04 0.48 2.45 0.51 23
SK-21-971 72.00 112.50 40.50 1.97 2.66 2.00 23
Including 90.00 90.51 0.51 16.70 9.80 16.83 23
SK-21-972 PENDING 23
SK-21-973 61.50 63.00 1.50 0.60 1.00 0.61 23
SK-21-973 116.67 124.16 7.49 3.00 4.14 3.05 23
SK-21-974 89.00 96.04 7.04 0.65 3.19 0.69 23
SK-21-974 106.00 111.50 5.50 0.46 8.33 0.57 23
SK-21-974 119.21 130.30 11.09 0.45 33.63 0.90 23
SK-21-975 PENDING 23
SK-21-976 NSA SOUTH EXTENSION
SK-21-977 13.50 22.50 9.00 0.35 0.70 0.36 23
SK-21-977 45.00 57.00 12.00 0.37 5.86 0.45 23
SK-21-977 96.09 97.19 1.10 3.19 8.40 3.30 23
SK-21-978 NSA 21A GAP
SK-21-979 NSA 21A GAP
SK-21-980 PENDING 22
SK-21-981 PENDING 22
SK-21-982 PENDING 22
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-21-954 9373.2 7102.9 1088.1 300.9 167.1 -50.0
SK-21-955 9373.9 7104.2 1088.1 297.0 146.9 -70.0
SK-21-957 9374.0 7105.5 1088.1 313.5 102.3 -70.2
SK-21-958 9375.3 7106.6 1089.4 253.2 82.1 -50.3
SK-21-962 10054.6 9993.9 961.6 126.0 272.0 -50.1
SK-21-963 10058.7 9997.6 961.6 150.2 351.9 -49.9
SK-21-964 10057.7 9991.6 961.6 166.0 197.1 -75.1
SK-21-965 9018.6 7234.5 1146.9 212.2 307.0 -70.0
SK-21-970 10152.2 10046.5 982.5 128.0 96.4 -50.2
SK-21-971 10152.2 10046.2 982.5 161.0 156.8 -50.1
SK-21-973 9961.2 9912.4 981.1 195.8 327.0 -65.1
SK-21-974 9962.4 9913.0 981.0 151.0 27.0 -80.0
SK-21-976 9017.2 7234.0 1146.9 103.6 277.1 -49.9
SK-21-977 10160.8 10104.6 977.0 173.0 92.2 -85.0
SK-21-978 9484.8 9367.8 1088.2 174.0 357.0 -50.2
SK-21-979 9486.1 9367.0 1088.2 159.5 32.1 -50.0