Skeena Initiates Phase II Drilling Program at Eskay Creek Albino Waste Facility and Releases Snip Infill Results
Skeena Initiates Phase II Drilling Program at Eskay Creek Albino Waste Facility
and Releases Snip Infill Results
Vancouver, BC ( October 4 , 2021) Skeena Resources Limited (TSX: SKE, OTCQX: SKREF)
(“Skeena” or the “Company”) is pleased to report that it has initiated the Phase II drill investigation of
the Albino Waste Facility ( “AWF”) at the Eskay Creek gold-silver p roject (“Eskay Creek” or the
“Project”) located in the Golden Triangle of British Columbia. The Phase II program is designed to test
the Au-Ag grade potential of the remaining untested portions of the AWF on 50 metre drill spacings
as follow up from the initial investigation completed in Q1 2021. Analytical results from the 2021 Phase
III drill program at the Snip gold project (“Snip”) are also included in this release. Reference images
are presented at the end of this release as well as on the Company’s website.
Phase II AWF Drilling Program
Situated west of the Eskay Creek mine site, the AWF was utilized by former operators as a
subaqueous repository for mine waste management and included both mine waste rock as well as mill
tailings.
Previously reported in Q2 2021, the Company drilled eight vertical drill holes on staggered 50 metre
drill centers to test the grade potential of the AWF. All drill holes were successful in intersecting
remarkable grades and thicknesses:
• 4.17 g/t Au, 160 g/t Ag (6.31 g/t AuEq) over 16.01 m (SK-21-841)
• 4.18 g/t Au, 190 g/t Ag (6.72 g/t AuEq) over 12.16 m (SK-21-842)
• 4.16 g/t Au, 204 g/t Ag (6.89 g/t AuEq) over 22.80 m (SK-21-843)
• 3.13 g/t Au, 127 g/t Ag (4.82 g/t AuEq) over 19.76 m (SK-21-844)
• 3.97 g/t Au 130 g/t Ag (5.70 g/t AuEq) over 15.20 m (SK-21-845)
• 8.68 g/t Au 330 g/t Ag (13.09 g/t AuEq) over 13.68 m (SK-21-846)
• 3.19 g/t Au 115 g/t Ag (4.73 g/t AuEq) over 14.19 m (SK-21-847)
• 2.62 g/t Au 82 g/t Ag (3.71 g/t AuEq) over 19.76 m (SK-21-848)
Locations of Phase II drill holes, a composite vertical section and a plan map of previously disclosed
results are presented at the end of this release.
The Company is currently utilizing a waterborne barge to safely drill vertical holes over the remainder
of the AWF on staggered 50 metre spaced centers. A Phase III program of infill to 25 metre hole
spacings will be contingent on the results from the Phase II investigation.
Albino Waste Facility History and Discussion
During historical operations, the underground mine development was largely tunneled in the often -
mineralized footwall rhyolite sequences below the mined Contact Mudstone. Although these rocks
possessed variable Au -Ag grades, 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.
NR: 21-36 | October 4, 2021
Via the initial drill -based investigation performed in Q1 2021, the Company has now empirically
demonstrated that significant Au-Ag grades are hosted in the AWF.
2021 Snip Project Phase III Results
The ongoing 2021 drilling program at the Company’s 100% owned Snip Gold Project is being
performed to convert Inferred resources from the Company’s 2020 MRE to higher confidence
categories (Measured and Indicated) through surface and underground drilling. Additional analytical
results from underground infill drilling in the 412 and Twin East areas are detailed in Table 1. These
infill results corroborate the modelled mineralization in the Company’s 2020 M ineral Resource
Estimate.
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.
Additionally, the Company continues exploration programs at 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
Qualified Persons
Exploration activities at the Snip Project are administered on site by the Company’s Exploration
Managers, Raegan Markel, P.Geo. and John Tyler. 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, 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 materi als 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 low er 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 Spe ctroscopy (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 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 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 an d 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.
Table 1: Snip Project Phase III 2021 Length-Weighted Drill Hole Gold Composites:
Hole-ID From (m) To (m) Core Length (m) Au (g/t)
UG21-218 ABANDONED
UG21-219 5.50 8.50 3.00 3.14
UG21-219 26.00 27.50 1.50 11.95
UG21-220 16.00 17.50 1.50 5.21
UG21-220 92.00 93.50 1.50 3.88
UG21-220 144.00 146.00 2.00 18.58
INCLUDING 145.00 146.00 1.00 35.00
UG21-220 152.00 153.50 1.50 2.77
UG21-221 43.00 44.00 1.00 2.61
UG21-222 15.00 16.50 1.50 4.33
UG21-222 30.50 31.50 1.00 3.32
UG21-223 15.00 16.00 1.00 2.88
UG21-224 14.00 15.00 1.00 2.52
UG21-224 30.00 31.00 1.00 2.53
UG21-225 9.00 10.00 1.00 2.45
Hole-ID From (m) To (m) Core Length (m) Au (g/t)
UG21-225 85.00 86.50 1.50 7.38
UG21-225 96.92 97.42 0.50 29.20
UG21-225 100.00 101.50 1.50 8.29
UG21-226 3.00 4.50 1.50 4.62
UG21-226 139.00 142.00 3.00 6.32
UG21-227 36.00 37.50 1.50 2.62
UG21-227 42.00 43.00 1.00 3.39
UG21-227 45.50 47.00 1.50 15.80
UG21-227 58.50 59.50 1.00 3.65
UG21-227 84.70 85.80 1.10 3.39
UG21-227 87.00 88.50 1.50 3.58
UG21-227 109.80 111.00 1.20 4.57
UG21-228 NSA
UG21-229 140.00 141.00 1.00 2.07
UG21-229 149.00 150.00 1.00 3.56
True widths range from 60-100% of reported core lengths. Length weighted Au composites are constrained by geological considerations. Grade-
capping of individual assays has not been applied to the Au assays informing the length -weighted Au composites. 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 (°)
UG21-218 4845.7 2186.2 417.5 15.1 172.1 -51.7
UG21-219 4845.7 2186.2 417.5 39.0 177.0 -16.0
UG21-220 4845.7 2186.2 417.5 162.0 179.0 -8.9
UG21-221 4845.7 2186.2 417.5 69.0 189.7 23.1
UG21-222 4845.7 2186.2 417.5 63.1 172.1 -23.9
UG21-223 4845.7 2186.2 417.5 48.9 172.1 -24.0
UG21-224 4845.7 2186.2 416.7 33.4 172.1 -24.1
UG21-225 4845.7 2186.2 417.5 135.0 175.4 -21.9
UG21-226 4845.7 2186.2 417.5 162.0 180.0 -15.9
UG21-227 4845.7 2186.2 417.5 138.3 190.0 20.0
UG21-228 4845.7 2186.2 417.5 36.0 175.0 -21.9
UG21-229 4845.7 2186.2 417.5 193.0 177.0 -20.0