Skeena Expands 23 Zone to Surface at Eskay Creek Intersecting 1.20 g/t AuEq over 96.02 metres
Skeena Expands 23 Zone to Surface at Eskay Creek
Intersecting 1.20 g/t AuEq over 96.02 metres
Vancouver, BC (October 25, 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.
New 2022 Drilling Highlights:
• 1.94 g/t Au, 32.3 g/t Ag (2.30 g/t AuEq) over 26.50 m (SK-22-1069)
• 2.59 g/t Au, 7.9 g/t Ag (2.68 g/t AuEq) over 21.00 m (SK-22-1069)
• 0.98 g/t Au, 6.4 g/t Ag (1.05 g/t AuEq) over 29.87 m (SK-22-1069)
• 1.97 g/t Au, 9.3 g/t Ag (2.07 g/t AuEq) over 13.56 m (SK-22-1069)
• 1.12 g/t Au, 4.7 g/t Ag (1.17 g/t AuEq) over 109.82 m (SK-22-1071)
• 1.13 g/t Au, 6.6 g/t Ag (1.20 g/t AuEq) over 96.02 m (SK-22-1090)
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.
23 Zone Mineralization Expands to Surface
Infill drill hole SK-22-1090 successfully confirmed the continuity of gold-silver mineralization in the 23
Zone and has expanded mineralization to surface intersecting 1.13 g/t Au, 6.6 g/t Ag (1.20 g/t AuEq)
over 96.02 m. This newly drilled mineralization demonstrates excellent downhole continuity but most
importantly has extended mineralization to surface, which will have a potentially positive impact on the
future open -pit strip ratio once the updated resource and engineering studies are completed.
Additional drillholes targeting the surficial mineralization will be planned for future drilling campaigns.
Multiple New Intersections Discovered in 21A West Zone
Highlighted by recently completed exploratory drill hole SK-22-1071, a very wide interval of continuous
dacite hosted gold-silver mineralization was intersected grading 1.12 g/t Au, 4.7 g/t Ag (1.17 g/t
AuEq) over 109.82 m. This new occurrence of feeder style mineralization occurs 150 metres vertically
below surface and b elow the current engineered pit. Due to the wide spacings of exploratory holes
drilled to date, it is currently unclear if this mineralization is an extension of the 21A West Zone or if it
represents a new dacite hosted replacement discovery analogous to the 23 Zone.
Situated 70 metres along strike to the southeast of SK-22-1071, numerous rhyolite and dacite hosted
gold-silver intersections were encountered by SK-22-1069 over the length of the drillhole including
1.94 g/t Au, 32.3 g/t Ag (2.30 g/t AuEq) over 26.50 m, 2.59 g/t Au, 7.9 g/t Ag (2.68 g/t AuEq) over
21.00 m and 0.98 g/t Au, 6.4 g/t Ag (1.05 g/t AuEq) over 29.87 m . Based upon currently defined
NR: 22-23 | October 25, 2022
zone geometries, these occurrences are likely a combination of 21A West feeder style mineralization
and possibly the dacite hosted mineralization uncovered in SK-22-1071.
Additional new mineralization was also discovered in the Even Lower Mudstone via SK-22-1069 which
averaged 1.97 g/t Au, 9.3 g/t Ag (2.07 g/t AuEq) over 13.56 m including the high tenor subinterval
grading 11.55 g/t Au, 25 g/t Ag (11.83 g/t AuEq) over 1.19 m.
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 Project 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 st rictly 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 samp le 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 qu ality 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 lim it 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. Sa mples 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 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”, “potentia l” 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, estimat ed 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, it s most recently filed interim MD&A, and the Company’s Annual 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 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 mater ially 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 development 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 a nd 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 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 “inferred 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 Min eral 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 Skeen a 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 ha ve 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 ra re
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-22-1056 16.88 17.50 0.62 0.31 0.3 0.31
SK-22-1056 29.22 32.83 3.61 0.36 3.1 0.39
SK-22-1056 44.14 48.66 4.52 0.72 107.0 1.92
SK-22-1056 78.70 79.46 0.76 0.34 3.9 0.38
SK-22-1056 89.00 90.50 1.50 0.30 10.5 0.42
SK-22-1056 96.50 98.00 1.50 0.33 1.7 0.35
SK-22-1056 105.50 108.50 3.00 0.43 3.8 0.47
SK-22-1056 116.00 129.50 13.50 0.42 2.5 0.44
SK-22-1056 138.77 142.50 3.73 0.56 9.9 0.67
SK-22-1057 9.50 16.80 7.30 0.99 47.1 1.52
SK-22-1057 25.12 30.20 5.08 0.56 33.6 0.94
SK-22-1058 7.18 13.00 5.82 0.46 16.9 0.65
SK-22-1058 20.50 50.00 29.50 0.46 6.9 0.53
SK-22-1058 59.00 66.50 7.50 0.25 2.5 0.28
SK-22-1058 93.50 99.50 6.00 0.24 1.2 0.25
SK-22-1058 109.50 154.00 44.50 0.40 4.3 0.44
SK-22-1058 163.00 175.40 12.40 0.78 5.5 0.84
SK-22-1059 23.65 25.00 1.35 0.36 0.5 0.36
SK-22-1059 36.50 38.00 1.50 0.29 1.1 0.30
SK-22-1059 44.70 68.45 23.75 0.40 3.6 0.44
SK-22-1059 74.00 75.50 1.50 0.41 0.5 0.41
SK-22-1059 97.50 99.00 1.50 1.16 0.5 1.16
SK-22-1059 124.50 129.00 4.50 0.30 4.0 0.35
SK-22-1060 0.70 15.20 14.50 1.03 5.7 1.10
SK-22-1060 22.00 27.00 5.00 0.32 4.1 0.37
SK-22-1060 47.50 56.00 8.50 0.45 0.7 0.46
SK-22-1060 62.50 65.50 3.00 0.32 0.4 0.32
SK-22-1060 71.47 72.75 1.28 0.58 0.7 0.59
SK-22-1060 80.00 81.00 1.00 0.46 0.3 0.46
SK-22-1060 96.67 98.00 1.33 4.29 15.4 4.46
SK-22-1060 121.00 122.36 1.36 0.36 2.0 0.38
SK-22-1061 62.45 90.50 28.05 1.54 1.5 1.56
Including 78.00 79.00 1.00 13.00 13.0 13.17
SK-22-1061 120.00 121.50 1.50 2.47 2.5 2.50
SK-22-1062 0.07 30.00 29.93 1.03 4.3 1.08
SK-22-1062 54.50 68.93 14.43 0.59 2.1 0.61
SK-22-1062 85.37 89.00 3.63 0.30 2.3 0.32
SK-22-1062 99.21 103.00 3.79 0.23 0.6 0.23
SK-22-1062 111.00 112.50 1.50 0.41 0.5 0.41
SK-22-1063 68.50 69.55 1.05 0.35 0.5 0.36
SK-22-1063 99.70 104.20 4.50 0.60 1.9 0.62
SK-22-1063 121.75 128.00 6.25 0.46 3.0 0.49
SK-22-1063 142.50 144.00 1.50 0.42 3.2 0.46
SK-22-1063 149.74 158.25 8.51 0.40 3.7 0.44
SK-22-1063 182.12 222.00 39.88 0.47 43.7 0.97
SK-22-1064 PENDING
SK-22-1065 124.10 144.00 19.90 0.88 7.9 0.97
SK-22-1065 194.50 202.00 7.50 0.28 2.9 0.31
SK-22-1065 207.50 216.50 9.00 0.18 528.0 6.11
Including 209.00 212.00 3.00 0.14 1505.0 17.05
SK-22-1065 223.47 227.00 3.53 0.33 5.1 0.39