Skeena Discovers Additional High Grade Mineralization at Eskay Creek Albino Waste Facility Including 10.13 g/t AuEq over 16.77 metres
Skeena Discovers Additional High Grade Mineralization at Eskay Creek Albino
Waste Facility Including 10.13 g/t AuEq over 16.77 metres
Vancouver, BC ( December 8 , 202 1) Skeena Resources Limited (TSX: SKE, NYSE: SKE)
(“Skeena” or the “Company”) is pleased to report new drilling results from the 2021 Phase II Albino
Waste Facility (“AWF”) investigation at the Eskay Creek gold-silver p roject (“Eskay Creek” or the
“Project”) located in the Golden Triangle of British Columbia. This expansion program, totaling 212 m
over 12 vertical drill holes, was completed utilizing an air rotary drill rig from the surface of the permitted
AWF in Q4 2021. 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.
Eskay Creek AWF Phase II 2021 Highlights:
• 5.90 g/t Au, 317 g/t Ag (10.13 g/t AuEq) over 16.77 m (SK-21-899)
• 4.53 g/t Au, 168 g/t Ag (6.77 g/t AuEq) over 12.20 m (SK-21-901)
• 5.84 g/t Au, 222 g/t Ag (8.80 g/t AuEq) over 13.72 m (SK-21-903)
• 3.39 g/t Au, 156 g/t Ag (5.47 g/t AuEq) over 16.77 m (SK-21-908)
• 3.76 g/t Au, 151 g/t Ag (5.77 g/t AuEq) over 16.76 m (SK-21-909)
Gold Equivalent (AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 75]. True widths equate to 100% of reported sample
lengths. 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.
Phase II Drilling Substantively Increases AWF Mineralization
Phase II AWF expansion drilling has been very successful in increasing the Au-Ag mineralization
discovered during the Company’s initial drill program in Q1 2021. This new drilling was completed
from a floating barge on the water surface of the AWF on 50 m staggered drill centers. Highlights of
the drilling include SK-21-899: 5.90 g/t Au, 317 g/t Ag (10.13 g/t AuEq) o ver 16.77 m, SK-21-903:
5.84 g/t Au, 222 g/t Ag (8.80 g/t AuEq) over 13.72 m and are comparable in grade and width to the
mineralization intersected in the Phase I progra m. Courtesy of this expansion drilling, mineralization
within the AWF has now been increased to an area measuring 350 m by 125 m. The remainder of the
AWF is untested by drilling and remains open for expansion.
To date, th e combined Phase I and Phase II prog rams have intersected a mineralized horizon
averaging 13.20 m (true thickness) across 20 drill holes with length weighted grades averaging 4.03 g/t
Au, 163 g/t Ag ( 6.21 g/t AuEq ), 39 ppm Hg, 331 ppm As and 922 ppm Sb. The length weighted
concentrations of Hg, As and Sb from the combined AWF programs are, to date, consistent with the
Company’s pit constrained Mineral Resource Estimate (MRE) for the in situ Eskay Creek deposits.
Current Status and Next Steps
The Company anticipates continuing the Phase II program in early Q1 2022 with two drill rigs from the
ice surface once the engineered ice thicknesses at the AWF meet s safety requirements. Staggered
NR: 21-40 | December 8, 2021
50 m drill spacings are expected to be completed to determine the exte nts of the mineralization
followed by infill on 25 m centers.
Albino Waste Facility Discussion
Situated west of the Eskay Creek mine site, the Albino Waste Facility was utilized by former operators
as a subaqueous repository for mine waste and included both development waste rock as well as mill
tailings. It is estimated that approximately 2 million tonnes of waste rock and tailings material was
deposited into the AWF during the previous operations at Eskay Creek.
During historical operations, the underground mine development was largely driven in the often -
mineralized footwall rhyolite sequences be low the mined contact mudstone. Although these rocks
possessed variable Au -Ag tenor, former operators considered the rhyolite hosted mineralization
uneconomic due to the high cutoff grades required at the time. Hence, this development rock was
transferred to the AWF for subaqueous deposition.
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 full Feasibility by 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 a t 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 C IM 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 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 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 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. 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 “inferre d 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 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 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 a ll 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 disclosure requirements under the U.S. federal
securities laws and the rules and regulations thereunder.
Table 1: Eskay Creek Project 2021 Phase II Albino 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) Hg (ppm) As (ppm) Sb (ppm)
SK-21-899 3.35 9.45 6.10 3.62 88.0 4.79 29 184 389
SK-21-899 9.45 12.50 3.05 3.28 190.0 5.81 25 338 629
SK-21-899 12.50 15.54 3.04 4.50 239.0 7.69 37 278 989
SK-21-899 15.54 17.07 1.53 13.80 1040.0 27.67 111 508 3,440
SK-21-899 17.07 18.59 1.52 10.30 575.0 17.97 154 514 3,460
SK-21-899 18.59 20.12 1.53 10.75 663.0 19.59 195 506 4,290
COMPOSITE 3.35 20.12 16.77 5.90 317.4 10.13 64 318 1,454
SK-21-900 2.74 6.71 3.97 0.10 4.0 0.15 3 15 41
COMPOSITE 2.74 6.71 3.97 0.10 4.0 0.15 3 15 41
SK-21-901 2.74 5.79 3.05 1.54 59.2 2.33 22 203 438
SK-21-901 5.79 7.32 1.53 2.79 75.9 3.80 30 308 642
SK-21-901 7.32 8.84 1.52 4.09 160.0 6.22 44 418 1,085
SK-21-901 8.84 10.36 1.52 6.14 268.0 9.71 66 316 1,680
SK-21-901 10.36 11.89 1.53 5.13 278.0 8.84 82 291 2,530
SK-21-901 11.89 13.41 1.52 10.40 315.0 14.60 132 670 3,420
SK-21-901 13.41 14.94 1.53 4.67 128.0 6.38 40 466 1,725
COMPOSITE 2.74 14.94 12.20 4.53 167.8 6.77 55 359 1,494
SK-21-902 3.05 6.10 3.05 3.00 91.0 4.21 21 366 464
SK-21-902 6.10 7.62 1.52 2.44 61.8 3.26 19 270 347
SK-21-902 7.62 9.14 1.52 3.48 122.0 5.11 41 325 752
SK-21-902 9.14 10.67 1.53 3.07 137.0 4.90 34 177 1,055
Hole-ID From (m) To (m) Sample Length (m) Au (g/t) Ag (g/t) AuEq (g/t) Hg (ppm) As (ppm) Sb (ppm)
COMPOSITE 3.05 10.67 7.62 3.00 100.6 4.34 27 301 617
SK-21-903 3.35 6.40 3.05 11.80 492.0 18.36 56 320 662
SK-21-903 6.40 7.92 1.52 7.60 322.0 11.89 47 305 776
SK-21-903 7.92 9.45 1.53 4.50 114.0 6.02 23 358 611
SK-21-903 9.45 10.97 1.52 2.55 94.5 3.81 23 369 451
SK-21-903 10.97 12.50 1.53 4.50 135.0 6.30 44 466 597
SK-21-903 12.50 14.02 1.52 4.86 163.0 7.03 207 308 633
SK-21-903 14.02 15.54 1.52 4.26 166.0 6.47 46 320 507
SK-21-903 15.54 17.07 1.53 0.72 22.3 1.02 6 68 104
COMPOSITE 3.35 17.07 13.72 5.84 222.2 8.80 56 315 556
SK-21-904 2.44 5.49 3.05 2.34 83.8 3.46 25 316 435
SK-21-904 5.49 7.01 1.52 3.90 162.0 6.06 39 349 820
SK-21-904 7.01 8.53 1.52 3.78 150.0 5.78 33 290 646
SK-21-904 8.53 10.06 1.53 2.96 150.0 4.96 26 236 682
SK-21-904 10.06 11.58 1.52 3.51 160.0 5.64 28 230 821
SK-21-904 11.58 13.11 1.53 5.68 172.0 7.97 29 297 824
SK-21-904 13.11 14.63 1.52 6.33 247.0 9.62 56 370 3,700
SK-21-904 14.63 16.15 1.52 0.46 18.4 0.71 6 40 789
COMPOSITE 2.44 16.15 13.71 3.48 136.3 5.30 30 272 1,016
SK-21-905 3.35 6.40 3.05 4.93 87.0 6.09 18 199 293
SK-21-905 6.40 7.92 1.52 1.75 38.9 2.27 10 95 182
COMPOSITE 3.35 7.92 4.57 3.87 71.0 4.82 15 164 256
SK-21-906 5.49 8.53 3.04 3.50 122.0 5.13 48 485 859
SK-21-906 8.53 10.06 1.53 2.70 104.0 4.09 40 507 544
SK-21-906 10.06 11.58 1.52 3.93 138.0 5.77 54 383 857
SK-21-906 11.58 13.11 1.53 3.26 119.0 4.85 38 461 683
SK-21-906 13.11 14.63 1.52 3.91 132.0 5.67 49 784 766
SK-21-906 14.63 16.15 1.52 3.39 99.0 4.71 37 672 422
SK-21-906 16.15 17.68 1.53 5.27 154.0 7.32 73 1115 753
SK-21-906 17.68 19.20 1.52 1.39 56.0 2.14 20 170 310
COMPOSITE 5.49 19.20 13.71 3.43 116.2 4.98 45 563 673
SK-21-907 3.05 6.10 3.05 2.57 101.0 3.92 28 239 986
SK-21-907 6.10 7.62 1.52 0.83 36.9 1.32 11 30 183
COMPOSITE 3.05 7.62 4.57 1.99 79.7 3.06 22 169 719
SK-21-908 2.74 4.27 1.53 2.77 97.0 4.06 44 241 636
SK-21-908 4.27 5.79 1.52 4.50 157.0 6.59 72 355 771
SK-21-908 5.79 7.32 1.53 4.08 223.0 7.05 53 418 840
SK-21-908 7.32 8.84 1.52 4.39 207.0 7.15 38 571 947
SK-21-908 8.84 10.36 1.52 3.53 199.0 6.18 61 465 900
SK-21-908 10.36 11.89 1.53 2.66 112.0 4.15 61 533 604
SK-21-908 11.89 13.41 1.52 3.66 160.0 5.79 46 654 787
SK-21-908 13.41 14.94 1.53 4.35 239.0 7.54 63 301 972
SK-21-908 14.94 16.46 1.52 3.74 124.0 5.39 41 314 554
SK-21-908 16.46 17.98 1.52 3.36 157.0 5.45 56 352 667
SK-21-908 17.98 19.51 1.53 0.30 40.8 0.84 4 44 101
COMPOSITE 2.74 19.51 16.77 3.39 155.9 5.47 49 386 707
SK-21-909 3.05 6.10 3.05 2.84 197.0 5.47 24 370 578
SK-21-909 6.10 7.62 1.52 4.08 238.0 7.25 108 534 1,355
Hole-ID From (m) To (m) Sample Length (m) Au (g/t) Ag (g/t) AuEq (g/t) Hg (ppm) As (ppm) Sb (ppm)
SK-21-909 7.62 9.14 1.52 5.16 188.0 7.67 62 549 2,200
SK-21-909 9.14 10.67 1.53 3.92 177.0 6.28 44 613 1,430
SK-21-909 10.67 12.19 1.52 4.21 166.0 6.42 41 623 1,090
SK-21-909 12.19 13.72 1.53 2.52 109.0 3.97 34 596 1,455
SK-21-909 13.72 15.24 1.52 3.46 111.0 4.94 31 489 639
SK-21-909 15.24 16.76 1.52 4.91 128.0 6.62 84 636 1,025
SK-21-909 16.76 18.29 1.53 4.05 84.1 5.17 35 660 581
SK-21-909 18.29 19.81 1.52 3.37 64.0 4.22 23 405 317
COMPOSITE 3.05 19.81 16.76 3.76 150.8 5.77 46 531 1,023
SK-21-910 2.44 3.96 1.52 2.07 61.0 2.88 12 393 250
SK-21-910 3.96 5.49 1.53 4.81 191.0 7.36 43 725 909
SK-21-910 5.49 7.01 1.52 2.43 194.0 5.02 35 736 741
SK-21-910 7.01 8.53 1.52 0.45 53.5 1.16 7 81 194
COMPOSITE 2.44 8.53 6.09 2.44 125.0 4.11 24 484 524
Gold Equivalent (AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 75]. True widths equate to 100% of reported sample lengths.
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.
Table 2: Mine Grid Drill Hole Locations and Orientations:
Hole-ID Easting (m) Northing (m) Elevation (m) Length (m) Azimuth (°) Dip (°)
SK-21-899 6,649.0 9,675.9 1,052.2 23.2 - - 90.0
SK-21-900 6,736.6 9,661.9 1,048.1 11.9 - - 90.0
SK-21-901 6,695.7 9,641.1 1,048.5 19.5 - - 90.0
SK-21-902 6,726.8 9,604.3 1,049.3 13.7 - - 90.0
SK-21-903 6,734.3 9,496.9 1,048.0 20.1 - - 90.0
SK-21-904 6,732.5 9,441.9 1,048.0 19.2 - - 90.0
SK-21-905 6,774.5 9,457.0 1,048.1 11.6 - - 90.0
SK-21-906 6,684.0 9,359.4 1,051.1 22.9 - - 90.0
SK-21-907 6,773.4 9,404.7 1,049.9 11.3 - - 90.0
SK-21-908 6,728.2 9,379.4 1,049.9 22.6 - - 90.0
SK-21-909 6,725.5 9,330.1 1,051.5 24.4 - - 90.0
SK-21-910 6,769.6 9,349.3 1,050.1 11.6 - - 90.0