Skeena Announces Maiden Resource for Snip Gold Project
Skeena Announces Maiden Resource for Snip Gold Project
Vancouver, BC ( July 21, 2020 ) Skeena Resources Limited (TSX.V: SKE, OTCQX: SKREF)
(“Skeena” or the “Company”) is pleased to announce an underground constrained Mineral Resource
Estimate (“MRE”), for the Snip gold project (“Snip”), located in the Golden Triangle of northwest British
Columbia, which has been reviewed and validated by SRK Consulting (Canada) Inc. (“SRK”). This
MRE was derived from a database containing 3,697 surface and underground diamond drill holes
totalling 309,327 metres of which 3,112 drill holes and 14,113 composites of 1.5 metres in length were
used directly in the estimate. The MRE reports resources amenable to underground mining methods.
The effective date of this MRE is July 21, 2020 and a technical report will be filed on the Company’s
website and SEDAR within 45 days of this disclosure.
Underground Resource Estimate
The underground constrained Indicated resources include 244,000 ounces of gold hosted within
539,000 tonnes at an average gold grade of 14.0 g/t Au. Resources within the Inferred category include
402,000 ounces of gold hosted within 942,000 tonnes at an average gold grade of 13.3 g/t Au (Table
1). In the determination of reasonable prospects for economic extraction, long hole stoping is
contemplated. Sensitivities to the gold cut-off are presented in Table 2.
Table 1: Snip Indicated and Inferred underground resources reported undiluted at a 2.5 g/t Au cut -off grade
within stope optimized mining shapes.
Domain Tonnes Contained Grade Contained Metal
(000) Au (g/t) Au (000 oz)
Indicated Mineral Resources
Main - V 165 12.8 68
Main - S 337 15.0 163
Twin West 37 10.4 12
Total Indicated 539 14.0 244
Inferred Mineral Resources
Main - V 287 13.1 121
Main - S 599 13.4 258
Twin West 56 12.4 23
Total Inferred 942 13.3 402
“Our efforts in the coming months will focus on expanding these now well-defined resources with
expansion drilling in the newly evolving 200 Footwall Corridor as well as other near -mine targets,”
notes Paul Geddes P.Geo, Vice President of Exploration & Resource Development. “In parallel with
SRK, Kathi Dilworth, Skeena’s Chief Resource Geologist, has developed a very robust and defendable
resource model that will formulate the basis of future economic studies.”
Walter Coles Jr., President & CEO, goes on to add, “We are very excited about the maiden resource
at Snip, particularly because of the excellent grade and the proximity to Eskay Creek. We will
commence drilling at Snip shortly to follow-up on the exciting exploration success from last summer in
an effort to expand the resource.”
NR: 20-19
July 21, 2020
Table 2: Snip Indicated and Inferred Resource sensitivities to block cut-off grade.
Cut-off Grade Tonnes Grade Ounces
Au (g/t) (000) (g/t) (000)
Indicated Category
>2 557 13.7 245
>2.5 (reported) 539 14.0 244
>3 518 14.5 242
>3.5 495 15.0 239
Inferred Category
> 2 977 12.9 404
> 2.5 (reported) 942 13.3 402
> 3 911 13.6 399
> 3.5 880 14.0 396
Snip Mineral Resource Estimate Notes:
The mineral resources disclosed in this press release were estimated using the Canadian Institute of
Mining, Metallurgy and Petroleum (“CIM”) standards on mineral resources and reserves definitions,
and guidelines prepared by the CIM standing committee on reserve definitions and adopted by the
CIM Council.
• Mineral resources are not mineral reserves and do not have demonstrated economic
viability. There is no certainty that all or any part of the mineral resources estimated w ill be
converted into mineral reserves.
• In accordance with NI 43 -101 recommendations, the number of metric tonnes and ounces
were rounded to the nearest thousand. Any discrepancies in the totals are due to rounding
effects.
• As defined by NI 43 ‑101, the Independent and Qualified Person for the Snip MRE is Ms.
Sheila Ulansky P.Geo., of SRK Consulting (Canada) Inc. who has reviewed and validated
the Snip MRE. The effective date of the MRE is July 21, 2020.
• Reasonable prospects for economic extraction were determined by means of applying stope
optimization parameters summarized in Table 3. Resources are reported in -situ and
undiluted within potentially economical and minable underground long hole stope shapes.
• Long hole stope shapes <500 m3 were removed due to potential operational challenges.
• Metal price used is US$1,550 per ounce of gold.
• Metallurgical recoveries of 90% were utilized in the determination of cut -off grades for the
underground resources.
• The calculated underground cut-off grade was determined to be 2.5 g/t Au. Cut-off grades
must be re -evaluated considering prevailing market conditions (including gold prices,
exchange rates and costs).
• Mineral resources have been depleted to account for pa st production and exclude
mineralization within a 1 metre buffer around historical underground development.
• Block tonnage was estimated from volumes using a density of 2.78 g/cm3 for all lithologies
except the unmineralized BSU (Biotite Spotted Unit) which used a density of 2.86 g/cm3.
• Three mineralization domains were created to constrain the estimate: V, S and TW. The V
and S domains are a collection of veins that occur in the Main Twin Zone, whereas TW
domain is a series of veins in the Twin West Zone.
• A total of 72 veins were modelled; 10 V-veins, 52 S-veins and 10 TW- veins.
• April 29, 2020 is the close out date of the Snip database.
• The vein model was created in Leapfrog Geo TM by Dr. Ron Uken, Pr.Sci.Nat , of SRK
Consulting (Canada) Inc. Composite intervals greater than or equal to 1.0 g/t Au over 1.5 m
were included into the vein model if following interpreted structures and displaying
mineralization continuity up to half drill hole spacings.
• For estimation, 1.5 metre composites were created within the vein boundaries using equally
distributed composites. Composites less than 0.1 metres were excluded from the estimate.
• The Snip deposit consists of high-grade narrow veins where composite lengths less
than 1.5 m are common where the vein narrows or pinches; therefore, length
weighting was applied during estimation.
• High grade capping was performed using composite data. Gold capping values used were
350 g/t, 300 g/t and 80 g/t in the V, S and TW domains, respectively.
• Gold variograms were used to determine the spatial relationship of grade over distance.
• Maximum variogram search distances were determined to be 32 m in the V domain and 30
m in the S- and TW- domains.
• Search orientations per domain were established during variography. Unique orientations
for the S, V and TW domain were derived, including an additional orientation in the S domain
where a collection of steeper veins occur.
• Ordinary Kriging (OK) was used for estimation.
• Resources were estimated using Maptek Vulcan 12.0.5 software using an unrotated model
with a parent block size of 4 x 4 x 4 metres and sub-block size of 0.5 x 0.5 x 0.5 metres.
• The mineral resources were estimated using three passes with increasing search radii
based on variogram ranges.
• Indicated and Inferred resources were classified as follows;
o For the Indicated category a 40 metre buffer was created around current Skeena drill
holes (>/= 2016) as these drill holes have supporting QA/QC data. All blocks within
the 40 metre buffer zone and estimated with at least 3 drill holes extending no more
than the range of the variogram (32 m etres maximum) were classified as Indicated
resources.
o Inferred resources were partitioned using a minimum of 2 drill holes at 2 times the
variogram range (64 metre maximum).
o Blocks were locally reclassified to reduce ‘spotted’ Indicated resources within Inferred
resources, and vice versa.
• Estimates use metric units (metres, tonnes and g/t). Metal contents are presented in troy
ounces (metric tonne x grade / 31.10348).
• Neither the Company, nor SRK, is aware of any known environmental, permitting, legal, title-
related, taxation, socio-political, marketing or other relevant issue that could materially affect
this mineral resource estimate.
• The quantity and grade of reported Inferred mineral resources in this estimation are
uncertain in nature and there has been insufficient exploration to re-define these Inferred
mineral resources as Indicated mineral resources. It is uncertain if further exploration will
result in upgrading them to the Indicated mineral resources category.
Table 3: Snip underground scenario assumptions for determining cut-off grades with reasonable prospects of
economic extraction.
Input Parameters Value Unit
Sell Price Au $1,550 US Dollars per Ounce
Metal Recovery 90% Percent
Selling Cost $30 US Dollars per Ounce
Metal Revenue $51.74 Canadian Dollars per Tonne Milled
Mining Cost $120 Canadian Dollars per Tonne Milled
Process Cost $25 Canadian Dollars per Tonne Milled
G&A Cost $15 Canadian Dollars per Tonne Milled
All-In Cost $160 Canadian Dollars per Tonne Milled
Cut-off Grade 2.5 g/t Grams per Tonne Au
Buffer Around Historic Voids 1 metre 1 metre
Snip Mineralization
Snip is hosted within a moderately to steeply northwesterly -dipping sequence of the Triassic Stuhini
Group, a sequence of feldspathic greywackes with subordinate siltstone and conglomerates. These
rocks are intruded by Early Jurassic monzonitic stocks and plutons including the Red Bluff Porphyry.
The bulk of mineralization historically mined at Snip is hosted in the westerly-trending Twin Zone, a
semi-brittle, moderately to shallow southwest-dipping extensional shear vein system with an average
dip of approx. 40°. The shear is intruded by a barren, post mineralization mafic dyke, the Biotite
Spotted Unit (“BSU”) which divides the Twin Zone into two parts for most of its length. Veins in this
westerly orientation are termed the V -Vein system. Subordinate to, and in the footwall of the Twin
Zone V-veins is the S-Vein system, which comprises a series of more steeply southwesterly -dipping
(approx. 60°), less continuous, sub -parallel extensional she ar veins such as the 150, 130, and 412
veins. Across the Monsoon Lake valley to the west is the Twin West Zone which is interpreted to be a
continuation of the Twin Zone dextrally displaced by the northeast trending Monsoon Valley fault.
Gold mineralization is associated with several generations of syntectonic quartz and sulphide veins
that developed during progressive extensional slip accompanied by cycles of highly pressured
mineralizing fluids. Predominant mineralogy comprises calcite, quartz, chlorite, biotite-phlogopite, and
pyrite.
Qualified Persons
The Independent and Qualified Person for the Eskay Creek MRE is Ms. Sheila Ulansky P.Geo., of
SRK Consulting (Canada) Inc. (Vancouver), who has reviewed, validated and approved the Snip MRE
as well as the technical disclosure in this release. In accordance with National Instrument 43 -101
Standards of Disclosure for Mineral Projects, Mr. Paul Geddes, P.Geo. Vice President Exploration and
Resource Development, is the Qualified Person for the Company and has 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 its activities on its various exploration
projects.
About Skeena
Skeena Resources Limited is a junior Canadian mining exploration company focused on developing
prospective precious metal properties in the Golden Triangle of northwest British Columbia, Canada.
The Company’s primary a ctivities are the exploration and development of the past -producing Eskay
Creek gold-silver mine. The Company released a robust Preliminary Economic Assessment in late
2019 and is currently focused on infill and exploration drilling at Eskay Creek to advan ce the project
to Pre-feasibility. Skeena is also exploring the past-producing Snip gold mine.
On behalf of the Board of Directors of Skeena Resources Limited,
Walter Coles Jr.
President & CEO
Cautionary note regarding forward-looking statements
Certain statements made, and information contained herein may constitute “forward looking information” and “forward looking
statements” within the meaning of applicable Canadian and United States securities legislation. These statements and informat ion are
based on facts currently available to the Company and there is no assurance that actual results will meet management’s expect ations.
Forward-looking statements and information may be identified by such terms as “anticipates”, “believes”, “targets”, “estimates”, “plans”,
“expects”, “may”, “will”, “could” or “would”. Forward -looking statements and information contained herein are based on certain factors
and assumptions regarding, among other things, the estimation of mineral resources and reserves, the re alization 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 approvals, environmental ris ks, title disputes and other matters. While the
Company considers its assumptions to be reasonable as of the date hereof, forward -looking statements and information are not
guarantees of future performance and readers should not place undue importance on such statements as actual events and results may
differ materially from those described herein. The Company does not undertake to update any forward-looking statements or information
except as may be required by applicable securities laws.
Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy
or accuracy of this release.