Skeena Discovers Mineralization at Eskay Deeps
Skeena Discovers Mineralization at Eskay Deeps
Vancouver, BC (September 15, 2020) Skeena Resources Limited (TSX: SKE, OTCQX: SKREF)
(“Skeena” or the “Company”) is pleased to announce the discovery of high -grade gold -silver
mineralization hosted 600 m below surface in the newly recognized Eskay Deeps prospect. Results
presented here are from widely spaced deep exploration diamond drill holes into both the Eskay
Deeps, hosted in the newly recognized Even Lower Mudstone (“ELM”) unit and the Water Tower Zone
(“WTZ”). Six helicopter-supported drill rigs are currently active for the 2020 Phase I program focused
in the 21A, 21B and 21C Zones for Pre-Feasibility Study (“PFS”) resource category conversions at the
Eskay Creek Project (“Eskay Creek” or the “Project") located in the Golden Triangle of British
Columbia. Reference images are presented at the end of this release as well as on the Compa ny’s
website.
Eskay Creek Exploration Drilling Highlights:
Eskay Deeps
• 5.72 g/t Au, 12 g/t Ag (5.88 g/t AuEq) over 17.00 m (SK-20-257)
o Including: 20.29 g/t Au, 37 g/t Ag (20.78 g/t AuEq) over 3.50 m
• 15.38 g/t Au, 11 g/t Ag (15.53 g/t AuEq) over 3.18 m (SK-20-257)
o Including: 44.60 g/t Au, 28 g/t Ag (44.97 g/t AuEq) over 1.00 m
o 17.45 g/t Au, 10 g/t Ag (17.58 g/t AuEq) over 1.38 m
Water Tower Zone
• 12.67 g/t Au, 22 g/t Ag (12.96 g/t AuEq) over 14.50 m (SK-20-289)
o Including: 28.70 g/t Au, 29 g/t Ag (29.09 g/t AuEq) over 1.30 m
• 5.75 g/t Au, 14 g/t Ag (5.94 g/t AuEq) over 11.00 m (SK-20-289)
o Including 13.25 g/t Au, 23 g/t Ag (13.56 g/t AuEq) over 1.50 m
Gold Equivalent (AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 75]. True widths cannot be estimated at this time due to a lack of information.
Length weighted AuEq composites were constrained by geological considerations. Grade capping of individual assays has not been applied to the
Au and Ag assays informing the length weighted AuEq composites. Processing recoveries have not been applied to the AuEq calculation and are
disclosed at 100%. Samples below detection limit were nulled to a value of zero. WTZ – Water Tower Zone, NWTZ – New Water Tower Zone, LM
– Lower Mudstone, DEEPS – Eskay Deeps.
Multiple Mineralized Zones Identified in New Eskay Deeps
Exploration drilling has intersected significant mineralization in the recently recognized Eskay Deeps
prospect, situated 600 m vertically below surface in a previously unexplored area of the Project. This
previously unidentified mineralization occurs greater than 260 m vertically below the lower extents of
the currently modelled WTZ and is open in all directions. Minerali zation in this new area occurs as
discordant, pyritic replacements devoid of impurities (Hg -As-Sb) and is hosted within the ELM and
Lower Andesite sequence. The intersected apparent thickness of the ELM at this location is
NR: 20-26 | September 15, 2020
approximately 125 m. Due to a lac k of any other supporting drill holes in this new area, true widths
cannot yet be estimated.
Water Tower Zone Expanded by Drilling – New Mineralized Feeder Structure
The known mineralization in the WTZ has been expanded downdip by this recent drilling. Up -hole of
the main WTZ, another new occurrence of feeder -style, discordant mineralization was intersected to
the west, hosted within intensely sericitized and silicifie d rhyolite breccias. This newly found
mineralization potentially represents a previously unidentified second syn -volcanic feeder structure
parallel to the WTZ. At greater depths, a substantial thickness (160 m), of ELM was intersected
averaging only trace gold-silver mineralization. This remains very prospective.
“The discovery of multiple zones of ELM -hosted mineralization in the new Eskay Deeps adds
significant exploration upside to the current resource base”, comments Paul Geddes, P.Geo., the
Company’s Vice President Exploration & Resource Development. “Our success rate to date with only
a handful of exploratory drill holes emphasizes the untapped growth potential and magnitude of the
Eskay Creek mineralized system”.
About Skeena
Skeena Resources Limi ted is a junior mining 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 currently 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
Qualified Persons
Exploration activities at the Eskay Creek Project are administered on site by the Company’s
Exploration Managers, Colin Russell, P.Geo. and 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, documenti ng, 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 ship ments 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 incl ude quality control materials at set frequencies with
established data acceptance criteria. The entire sample is crushed and 1kg is pulverized. Analysis for
gold is by 50g 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 100ppm are re -analyzed using a 50g
fire assay fusion with gravimetric finish. Analysis for silver is by 50g fire assay fusion with gravimetric
finish with a lower limit of 5ppm and upper limit of 10,000ppm. Samples with silver assays greater than
10,000ppm are re -analyzed using a gravimetric silver concentrate method. A selected number of
samples are also analyzed using a 48 multi -elemental 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. S amples 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 made and information containe d 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 expectations.
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 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 matt ers. 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.
Table 1: Eskay Creek Project 2020 Length Weighted Drill Hole Gold and Silver Composites:
HOLE-ID FROM (m) TO (m) CORE LENGTH (m) AU (g/t) AG (g/t) AUEQ (g/t) ZONE
SK-20-256 359.50 362.50 3.00 7.52 72.00 8.48 WTZ
SK-20-256 431.00 432.50 1.50 9.04 40.00 9.57 LM
SK-20-256 632.00 632.50 0.50 14.75 <5 14.75 DEEPS
SK-20-257 611.00 628.00 17.00 5.72 11.96 5.88 WTZ
INCLUDING 611.00 614.50 3.50 20.29 36.81 20.78 WTZ
INCLUDING 611.00 612.30 1.30 39.90 55.00 40.63 WTZ
AND 612.30 613.35 1.05 15.80 36.00 16.28 WTZ
AND 627.00 628.00 1.00 13.30 27.00 13.66 WTZ
SK-20-257 633.00 633.58 0.58 10.45 14.00 10.64 DEEPS
SK-20-257 672.90 676.08 3.18 15.38 11.40 15.53 DEEPS
INCLUDING 672.90 673.90 1.00 44.60 28.00 44.97 DEEPS
SK-20-257 686.12 687.50 1.38 17.45 10.00 17.58 DEEPS
SK-20-257 688.07 689.00 0.93 9.86 32.00 10.29 DEEPS
HOLE-ID FROM (m) TO (m) CORE LENGTH (m) AU (g/t) AG (g/t) AUEQ (g/t) ZONE
SK-20-267 323.30 332.50 9.20 4.49 1.94 4.52 WTZ
INCLUDING 331.00 332.50 1.50 10.50 <5 10.50 WTZ
SK-20-267 436.40 437.00 0.60 5.39 27.00 5.75 WTZ
SK-20-289 244.50 255.50 11.00 5.75 13.91 5.94 NWTZ
INCLUDING 246.00 247.50 1.50 13.25 23.00 13.56 NWTZ
SK-20-289 362.00 376.50 14.50 12.67 21.74 12.96 WTZ
INCLUDING 362.00 362.70 0.70 13.10 28.00 13.47 WTZ
AND 362.70 364.00 1.30 20.00 56.00 20.75 WTZ
AND 364.00 365.50 1.50 17.20 23.00 17.51 WTZ
AND 367.00 368.50 1.50 14.10 8.00 14.21 WTZ
AND 368.50 369.50 1.00 13.00 9.00 13.12 WTZ
AND 371.40 372.70 1.30 28.70 29.00 29.09 WTZ
AND 373.20 374.45 1.25 12.70 25.00 13.03 WTZ
AND 374.45 375.25 0.80 10.60 78.00 11.64 WTZ
SK-20-289 463.00 464.00 1.00 6.63 <5 6.63 DEEPS
SK-20-289 465.50 467.00 1.50 5.42 7.00 5.51 DEEPS
SK-20-289 478.00 479.00 1.00 6.99 13.00 7.16 DEEPS
Gold Equivalent (AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 75]. True widths cannot be estimated at this time due to a lack of information.
Length weighted AuEq composites were constrained by geological considerations. Grade capping of individual assays has not been applied to the
Au and Ag assays informing the length weighted AuEq composites. Processing recoveries have not been applied to the AuEq calculation and are
disclosed at 100%. Samples below detection limit were nulled to a value of zero. WTZ – Water Tower Zone, NWTZ – New Water Tower Zone, LM
– Lower Mudstone, DEEPS – Eskay Deeps.
Table 2: Mine Grid Drill Hole Locations and Orientations:
HOLE-ID EASTING NORTHING ELEVATION LENGTH AZIMUTH DIP
SK-20-256 9,701.0 10,997.0 856.9 758.1 86.6 - 61.0
SK-20-257 9,620.6 10,901.5 842.3 704.3 89.0 - 67.0
SK-20-267 9,701.4 10,996.8 830.3 764.0 92.8 - 67.4
SK-20-289 9,701.4 10,996.8 830.3 836.0 75.0 - 67.0