Skeena Completes Positive Metallurgical Testwork Program in Support of Upcoming PFS for Eskay Creek
Skeena Completes Positive Metallurgical Testwork Program
in Support of Upcoming PFS for Eskay Creek
Vancouver, BC ( January 26, 202 1) Skeena Resources Limited (TSX: SKE, OTCQX: SKREF)
(“Skeena” or the “Company”) is pleased to present key findings from recently completed metallurgical
testwork in support of the upcoming Pre -Feasibility Study (“ PFS”) for the Company’s Eskay Creek
Project (“Eskay Creek” or the “Project”) located in the Golden Triangle of British Columbia. This latest
campaign of testwork produced a modified plant flowsheet which resulted in improved results over the
flowsheet included in the Eskay Creek Preliminary Economic Assessment (“ PEA”). The PEA stu dy
report entitled “NI 43 -101 Technical Report on Preliminary Economic Assessment” was filed on
SEDAR by Skeena on December 20, 2019 and can be found on the Company’s website.
Highlights
• An extensive metallurgical testing program was conducted on fresh core samples from the 21A,
21B, 21C, 21E and HW Zones as well as samples included in the previous PEA testwork
• The process flowsheet now includes a desliming stage to improve flotation response for coarser
material, resulting in the option of producing a higher gold concentrate grade and opportunities
to reduce capital costs
• The testwork results further de -risks the Eskay Creek metallurgy and improves confidence in
the process plant design for the upcoming PFS
2019 PEA Testwork
As part of the 2019 PEA study, a metallurgical testwork program was conducted on samples from the
21A, 21C and 22 Zones. Flotation testwork demonstrated the ability to generate a saleable 25 g/t gold
concentrate at a grind size of 60 µm with regrinding of the rougher concentrate. For the expected
range of mill feed grades over the mine life, plant recovery of gold was between 80% to 90%. Leach
tests (including flotation concentrate leaching) showed lower overall gold recovery due to its fine -
grained nature, as well as a portion of the gold being encapsulated in sulphide minerals.
PEA testwork showed some issues with high mass pull (% of feed to concentrate), slow flotation
kinetics and poor settling characteristics due to the presence of muscovite and other soft minerals.
This was noted in the technical report as needing further investigation.
2020 PFS Testwork
To improve upon the PEA testwork, Skeena completed additional PFS testwork in 2020. The samples
used in the PEA test program as well as fresh core intervals from the 21A, 21B, 21C, 21E and HW
Zones were evaluated by Base Metallurgical Laboratories Ltd. in Kamloops BC. Composite samples
representing the first three years of plant feed were also prepared. An extensive flotation testing
program was completed, resulting in a modified process flowsheet.
Mineralogical studies indicated a portion of the gold was associated wi th non-sulphide gangue and
flotation performance was negatively influenced by the presence of soft minerals. The solution was to
include a desliming stage where these soft minerals were isolated and floated separately. The result
NR: 21-03 | January 26, 2021
was improved flotation response for the coarse material. This mill-float-mill-float circuit (“MF2”) is used
in platinum processing for fine-grained precious metal recovery.
The modified flowsheet allows for separate flotation of the coarse and fine fractions, resulting in
savings in regrind power requirements. A smaller flotation circuit is required due to the lower mass of
material needing regrinding before cleaning to a final concentrate.
Improved Metallurgy
The MF2 flowsheet was tested on both the annual composites and variability samples to evaluate its
suitability to process a range of Eskay Creek material. The result was the ability to generate a higher
concentrate grade without significant loss in gold recovery – this is a n improvement over the PEA
flowsheet.
A 25 g/t gold concentrate is being targeted to maximise gold recovery although samples generated
final concentrate grades in excess of 60 g/t Au. Concentrate silver grades are expected to be between
500 g/t and 900 g/t with arsenic and mercury penalties being incurred in the first three years of
operation (when the higher gold grade feed is processed). From Year 4 onwards, arsenic in
concentrate is expected to be below 0.5% and mercury below 300 ppm.
Skeena will release an updated Resource Estimate for Eskay Creek in the spring with the PFS study
to follow later in 2021.
Shane Williams, Chief Operating Officer commented, “The results of the metallurgical test work to
support the upcoming PFS study are very positive. We were particularly pleased that the results further
optimize and enhance the flowsheet for Eskay Creek, allowing flexibility on concentrate grade as well
as opportunities to reduce capital costs. We now have greater confidence in the process plant design
as we progress with the PFS, which remains on track to be completed in mid-2021.”
Technical Disclosure
All metallurgical testwork referenced in this press release has been completed by Base Metallurgical
Laboratories Ltd., based in Kamloops BC, Canada. Data verification consisted of ensuring that the
samples selected came from within the area where Mineral Reserves were estimated, and that the
selected samples were representative of the ore to be mined. The Qualified Person (“QP”) checked
that the sampling protocol used was applicable for the planned testwork. In the QP's opinion, the
testwork conducted was completed by a reputable metallurgical testing facility and used industry -
standard methods. The QP has visited the testwork facility.
Qualified Persons
Adrian Dance, P .Eng of SRK Consulting, independent of the Company and a Qualified Person as
defined by National Instrument 43 -101, has reviewed and approved the scientific and technical
information in this news release.
About Skeena
Skeena Resources Limited is a Canadian mining exploration company focused on developing 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 robust Preliminary Economic
Assessment in late 2019 and is curre ntly focused on infill and exploration drilling at Eskay Creek to
advance the project to Prefeasibility. 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
Contact Information
Investor Inquiries: [email protected]
Office Phone: +1 604 684 8725
Company Website: www.skeenaresources.com
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 information are based on facts currently available to the Company and there is no assurance that actual results will
meet management’s expectations. Forward -looking statements and information may be identified by such t erms 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 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 approvals, environmental risks, 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 the Toronto Stock Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility
for the adequacy or accuracy of this release.