Skeena Establishes 21A West Zone Continuity at Eskay Creek with 2.27 g/t AuEq over 50.00 metres
Skeena Establishes 21A West Zone Continuity at Eskay Creek with
2.27 g/t AuEq over 50.00 metres
Vancouver, BC (October 18, 2022) Skeena Resources Limited (TSX: SKE, NYSE: SKE) (“Skeena”
or the “Company”) is pleased to announce drilling results from the 2022 regional and near mine
exploration programs at the Eskay Creek gold-silver Project (“Eskay Creek” or the “Project”) in the
Golden Triangle of British Columbia. Analytical res ults and reference images from the recently
completed drill holes are presented at the end of this release as well as on the Company’s website.
Additional results will be reported once available.
21A West Zone Continuity Develops
Building upon the in -pit mineralization discovered in 2021 by drill hole SK-21-997 which intersected
high-tenor gold mineralization averaging 8.78 g/t Au, 13 g/t Ag (8.95 g/t AuEq) over 34.00 m and
recently expanded by 2022 drill hole SK -22-1093 47.50 g/t Au, 73.4 g/t Ag (48.48 g/t AuEq) over
12.12 m, drillhole SK-22-1031 has intersected 2.21 g/t Au, 4.6 g/t Ag (2.27 g/t AuEq) over 50.00 m.
Due to the lack of historical drilling in this portion of the 21A Zone, the area was considered as barren
waste rock for both the 2022 Resource Estimate and Feasibility Study. This recently discovered
feeder-style mineralization occurs within the footwal l Rhyolite sequence immediately below the
Contact Mudstone and will be incorporated into the future resource and economic updates for the
Eskay Creek Project. The limited drilling to date in the 21A West Zone indicates that precious metal
tenor typically increases vertically up stratigraphy with closer proximity to the Contact Mudstone.
The ongoing 2022 exploration program has not yet fully defined the extents of the 21A West Zone. As
is the case with similar feeder style mineralization in other portions of the Eskay Creek deposit, zone
geometry is well established and hole to hole continuity of mineralization is very predictable to
date. The new intersection in hole SK-22-1031 highlighting 2.27 g/t AuEq over 50.00 m is 75 metres
south along strike of the previously reported 48.48 g/t AuEq over 12.12 m in hole SK-22-1093.
23 Zone Expanded to South
Situated 500 metres south of the currently defined mineralization in the 23 Zone , recently competed
exploratory drill hole SK-22-1040 has intersected 0.78 g/t Au, 0.8 g/t Ag (0.79 g/t AuEq) over 95.75
m hosted entirely within the dacite package and Even Lower Mudstone, which is consistent with the
23 Zone mineralization. This new discovery begins only 25 metres below surface and is open for
expansion.
Exploration Status Update
The Company is currently performing expansion and infill drilling with six helicopter supported drill rigs
at the Eskay Creek Project. The focus is to expedite not only the organic growth of open pittable
resources in the 23, 21A West and 22 Zones, but to infill these new zones for ultimate conversion to
Probable Reserves.
NR: 22-22 | October 18, 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 Feasibility Study for Eskay
Creek in September 2022 which highlights an open -pit average grade of 4.00 g/t AuEq, an after -tax
NPV5% of C$1.4B, 50% IRR, and a 1-year payback at US$1,700/oz Au and US$19/oz Ag. Skeena is
currently continuing exploration drilling at Eskay Creek.
On behalf of the Board of Directors of Skeena Resources Limited,
Walter Coles Jr.
CEO & Director
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 Proj ect are administered on site by the Company’s
Exploration Managers, Raegan Markel, P.Geo. 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. Senior 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,
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 de signed 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 mult i-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 news release constitute “forward-looking
information” and “forward -looking statements” within the meaning of applicable Canadian and United States securities
legislation (collectively, “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 statements 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 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 approvals,
environmental risks, title disputes and the assumptions set forth herein and in the Company’s MD&A for the year ended
December 31, 2021, its most recently filed interim MD&A, and the Company’s Annu al Information Form (“AIF”) dated
March 31, 2022. 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 b ased 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 news release include, among others: the inherent risks involved in
exploration and developme nt of mineral properties, including permitting and other government approvals; 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 control of the Company; environmental risks and unanticipated reclamation expenses; and other risk factors
identified in the Company’s MD&A for the year ended December 31, 2021, its most recently filed interim MD&A, the AIF
dated March 31, 2022, 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. Any forward-looking statement speaks only
as of the date on which it is made and 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 reser ves 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 resource” ar e 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”). These
standards differ significantly from the mineral property disclosure requirements of the U.S. Securities and Exchange
Commission in Regulation S-K Subpart 1300 (the “SEC Modernization Rules”). Skeena is not currently subject to the SEC
Modernization Rules. Accordingly, Skeena’s disclosure of mineralization and other technical information may differ
significantly from the information that would be disclosed had Skeena prepared the information under the standards
adopted under the SEC Modernization 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 be upgraded to a higher category. Under Canadian securities
laws, estimates of “inferred mineral resources” may not form the basis of feasibility 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 2022 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)
SK-22-1031 10.50 11.90 1.40 0.36 17.9 0.56
SK-22-1031 63.50 68.00 4.50 0.28 11.7 0.41
SK-22-1031 78.00 128.00 50.00 2.21 4.6 2.27
SK-22-1031 137.00 162.00 25.00 0.43 16.7 0.62
SK-22-1031 187.50 190.50 3.00 0.30 1.4 0.32
SK-22-1033 16.00 17.04 1.04 0.39 8.6 0.49
SK-22-1033 45.68 56.83 11.15 0.27 6.4 0.34
SK-22-1033 69.72 77.50 7.78 0.39 6.4 0.47
SK-22-1033 85.10 89.50 4.40 1.81 27.7 2.12
SK-22-1033 108.62 116.00 7.38 0.42 1.7 0.44
SK-22-1033 128.00 129.50 1.50 0.68 0.5 0.68
SK-22-1037 60.42 61.50 1.08 0.47 1.0 0.48
SK-22-1037 67.15 80.50 13.35 0.47 2.7 0.50
SK-22-1037 93.50 100.50 7.00 0.30 3.5 0.34
SK-22-1037 107.73 138.00 30.27 0.45 1.0 0.45
SK-22-1037 145.00 160.00 15.00 0.37 0.8 0.37
SK-22-1037 167.00 177.50 10.50 0.35 0.6 0.35
SK-22-1037 219.00 226.50 7.50 0.30 17.2 0.49
SK-22-1037 251.00 252.00 1.00 0.30 0.5 0.30
SK-22-1040 46.15 141.90 95.75 0.78 0.8 0.79
SK-22-1040 180.50 183.50 3.00 0.33 0.3 0.33
SK-22-1040 203.00 204.00 1.00 0.35 0.4 0.35
SK-22-1045 PENDING
SK-22-1046 PENDING
SK-22-1047 82.00 82.80 0.80 0.40 5.7 0.46
SK-22-1047 155.50 195.06 39.56 0.90 1.0 0.91
SK-22-1047 209.50 211.00 1.50 0.31 0.3 0.31
SK-22-1047 232.00 238.00 6.00 0.45 0.4 0.45
SK-22-1047 244.00 248.50 4.50 0.88 0.9 0.89
SK-22-1047 289.00 327.00 38.00 0.32 9.3 0.43
SK-22-1047 337.50 343.50 6.00 0.57 4.1 0.61
SK-22-1048 100.00 100.97 0.97 0.88 14.5 1.04
SK-22-1048 140.00 141.30 1.30 0.84 9.0 0.94
SK-22-1048 257.50 269.00 11.50 0.26 16.7 0.44
SK-22-1048 279.50 298.00 18.50 0.48 43.1 0.96
SK-22-1048 334.50 335.50 1.00 0.27 6.7 0.35
SK-22-1048 341.92 343.10 1.18 0.29 3.4 0.33
SK-22-1048 355.00 360.21 5.21 2.29 135.8 3.82
INCLUDING 359.00 359.50 0.50 12.25 1020.0 23.71
SK-22-1049 PENDING
SK-22-1052 67.50 75.00 7.50 1.11 4.3 1.15
SK-22-1052 92.70 147.00 54.30 0.35 6.2 0.42
SK-22-1052 156.78 193.70 36.92 0.35 1.6 0.37
SK-22-1052 205.25 205.85 0.60 1.09 9.6 1.20
SK-22-1052 213.10 213.66 0.56 0.29 0.9 0.30
Gold Equivalent (AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 90]. 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-22-1031 9787.5 9878.3 1056.8 275.0 297.0 -70.0
SK-22-1033 9986.7 9579.4 1013.0 150.6 106.6 -49.9
SK-22-1037 9860.4 9462.3 1078.7 252.0 57.2 -54.9
SK-22-1040 9861.0 9459.1 1078.3 205.0 142.4 -50.0
SK-22-1047 9458.5 8691.9 1081.0 375.8 62.3 -50.3
SK-22-1048 9456.5 8691.1 1081.3 401.4 70.4 -63.3
SK-22-1052 9950.4 9811.1 984.8 220.5 129.2 -59.9