Skeena Intersects 10.97 g/t AuEq Over 42.65 metres at Eskay Creek
Skeena Intersects 10.97 g/t AuEq Over 42.65 metres at Eskay Creek
Vancouver, BC ( October 10, 2018) Skeena Resources Limited (TSX.V: SKE, OTCQX: SKREF)
(“Skeena” or the “Company”) is pleased to announce additional Au-Ag drill results for three drill holes
from the ongoing Phase I surface drilling program at the Eskay Creek Project (“Eskay Creek”) located
in the Golden Triangle of British Columbia. The multifaceted Phase I program is being performed in
the historically drill defined 21A, 21C and 22 Zones. A cross section and tabled data are presented at
the end of this release and on the Company’s website.
Eskay Creek Phase I Drilling Highlights
• 9.49 g/t Au, 111 g/t Ag, 10.97 g/t AuEq over 42.65 m (SK-18-009)
o Including: 17.35 g/t Au, 147 g/t Ag, 19.31 g/t AuEq over 19.65 m
• 5.93 g/t Au, 166 g/t Ag, 8.14 g/t AuEq over 36.25 m (SK-18-010)
o Including: 5.66 g/t Au, 296 g/t Ag, 9.61 g/t AuEq over 14.00 m
• 7.95 g/t Au, 140 g/t Ag, 9.82 g/t AuEq over 33.60 m (SK-18-011)
Gold Equivalent (AuEq) was calculated with the formula: Au (g/t) + [Ag (g/t) / 75]. Reported core lengths represent 80-100% of true widths and are
supported by well -defined mineralization geometries derived from historical drilling. Length weighted AuEq composites were constrained by
geological considerations as well as a calculated 1.0 g/t AuEq assay grade cutoff assuming reasonable prospects for economic extraction via open
pit mining methods. Grade capping of individual assays has not been applied to the Au and Ag assays informing the length weig hted AuEq
composites. Processing recoveries have not been applied to the AuEq calculation and are disclosed at 100% due to a lack of supporting information.
Samples below detection limit were nulled to a value of zero.
Phase I Drilling Discussion
The Phase I drilling program on the 21A, 21C and 22 Zones is designed to infill and improve definition
in areas with low drill density to a drill spacing sufficient to allow for future economic analyses, and to
collect fresh material for an upcoming metallurgical characterization and testing program. As no
historical drill core remains for any zones at Eskay Creek, new material must be collected for this
purpose. Overall, the metallurgical drilling program is designed to gather unbiased, representative
material that is spatially distributed throughout the various zones that will ultimately be used to optimize
future economic analyses.
The 21A Zone represents a significant portion of the pit constrained resources hosted at Eskay Creek,
containing Indicated Resources of 207,000 oz AuEq grading 5.9 g/t AuEq and Inferred Resources of
418,000 oz AuEq grading 4.6 g/t AuEq.
Designed to infill an area of Inferred Resources, three drillholes were collared on section 10020N, all
of which intersected continuous intervals of exhalative mudstone and footwall rhyolite hosted
mineralization. Most notably, drillhole SK-18-009 intersected 9.49 g/t Au, 111 g/t Ag (10.97 g/t AuEq)
over 42.65 metres including a subinterval within the mudstone averaging 17.35 g/t Au, 147 g/t Ag,
(19.31 g/t AuEq) over 19.65 metres . Situated immediately downdip, Phase I drillholes SK-18-010
and SK-18-011 intersected 5.93 g/t Au, 166 g/t Ag (8.14 g/t AuEq) over 36.25 metres and 7.95 g/t
Au, 140 g/t Ag (9.82 g/t AuEq) over 33.60 metres respectively.
NR: 18-25
October 10, 2018
The 21A Zone continues to demonstrate excellent geological and grade continuity and will be further
infill drilled during the continuing Phase I program to 20 metre drill spacings to upgrade I nferred
Resources to the Indicated category. The 21A Zone is currently drill defined over a large are a
measuring 420 m along strike and 180 m down dip with true widths ranging from 1 to 80 m in thickness.
21A and 21B Zones - Analogous Mineralization Styles
The 21B Zone is geologically and geochemically equivalent to the 21A Zone and accounted for the
bulk of mineralization historically mined at Eskay Creek. The 21B Zone occurs as a tabular, stratiform,
fault bounded body characterized by well -bedded, reworked sulfides and sulfosalts interbedded with
unmineralized, carbonaceous argillite (mudstone). In addition to the extremely high precious metal
grades, Eskay Creek as a whole, parti cularly the 21A and 21B Zones, is distinguished from
conventional VMS deposits by the association with elements of the epithermal suite (Sb -Hg±As).
Elevated concentrations of Sb-Hg-As in the 21A and 21B Zones are not evenly distributed throughout
the zones but rather occur as isolated clusters due to later stage localized, hydrothermal overprinting.
Although the bulk of the mined material was hosted in the contact mudstone, significant unmined
mineralization exists in proximal feeder structures in the foot wall rhyolites (21C and Pumphouse
Zones). These zones differ geochemically from the 21A and 21B Zones in that they contain low levels
of Sb-Hg-As as compared to those hosted in the contact mudstone.
21B Zone Historical Reconciliation
Underground mining at Eskay Creek was performed using the drift and fill mining method with run of
mine material either milled at site to generate a concentrate or as direct shipping ore (“DSO”), to
smelters. Due to the elevated concentrations of Sb -Hg-As in the 21B Zone, smel ter penalties were
often prevented via blending with slightly less deleterious material hence diluting the penalty elements
while maintaining a profitable head grade.
Based upon historical internal technical reports from the Eskay Creek Mine, the paramete rs for
determining reserves in 2006 were based upon a gold price of US$475.00 per ounce, a silver price of
US$8.50 per ounce and a copper price of US$1.50 per pound. The determination of whether material
was milled on site versus shipped directly to an offsite smelter was based on mercury concentrations
less than 200 ppm and antimony concentrations less than 1% for onsite milling and greater than 200
ppm mercury and greater than 1% antimony for smelter DSO. The same 2006 mill performance report
indicates metallurgical recoveries from onsite milling of the 21B Zone at 84% for gold and 96% for
silver.
Despite the substantial precious metal grades and base metal credits of the 21A Zone, in the opinion
of the Company, the 21A Zone was historically uneconomic due to prevailing low commodity prices
combined with smelter penalties and the necessary high cut-off grade used. As well, antimony was
treated as a penalty element, but now has the potential to offer significant by-product credits.
About Eskay Creek
In December 2017, Skeena secured an option to acquire 100% interest in the Eskay Creek property.
Discovered in the Golden Triangle in 1988, the former Eskay Creek mine produced approximately 3.3
million ounces of gold and 160 million ounces of silver at average grades of 45 g/t gold and 2,224 g/t
silver and was once the world’s highest-grade gold mine and fifth-largest silver mine by volume.
A precious and base metal -rich volcanogenic massive sulphide (VMS) deposit, Eskay -style
mineralization has been the foc us of considerable exploration activity in the Golden Triangle dating
back to 1932. Exploration programs in 1988 led to the discovery of the 21A and 21B zones, followed
by underground development of the 21B zone starting in 1990 with the official opening o f the Eskay
Creek mine in 1994. Over the 14 -year life of the mine, approximately 2.2 million tonnes of ore were
mined with cut-off grades ranging from 12 to 15 g/t AuEq for mill ore and 30 g/t AuEq for direct shipping
smelter ore.
Eskay is endowed with excellent infrastructure including all-weather road access and proximity to the
new 287-kilovolt Northwest Transmission Line. The Property consists of 8 mineral leases, 2 surface
leases and several unpatented mining claims totaling 6,151 hectares.
Eskay is in the traditional territory of the Tahltan Nation. Skeena has a positive working relationship
with the Tahltan Central Government (“TCG”) and has signed Exploration and Communication
Agreements with the TCG that cover the Company’s other projects in Tah ltan territory (see new
releases dated September 25, 2017 and January 24, 2017).
About Skeena
Skeena Resources Limited is a junior Canadian mining exploration company focused on developing
prospective precious and base metal properties in the Golden Triangle of northwest British Columbia,
Canada. The Company’s primary activities are the exploration and development of the past-producing
Snip mine and the recently optioned Eskay Creek mine, both acquired from Barrick . In addition, the
Company has completed a Preliminary Economic Assessment on the GJ copper -gold porphyry
project.
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 its exploration
activities on its exploration 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 material s 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 a nalytical methods include 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 Spectrosco py (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 information 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 ot her 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 TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for
the adequacy or accuracy of this release.
Table 1: Eskay Creek Project Phase I 21A Zone 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)
SK-18-009 78.35 121.00 42.65 9.49 111 10.97
INCLUDING 78.35 98.00 19.65 17.35 147 19.31
INCLUDING 81.15 82.50 1.35 28.40 558 35.84
AND 82.50 83.00 0.50 10.40 55 11.13
AND 83.00 84.60 1.60 9.86 163 12.03
AND 86.00 87.50 1.50 14.85 81 15.93
AND 87.50 89.00 1.50 72.60 126 74.28
AND 89.00 90.32 1.32 48.80 166 51.01
AND 90.32 90.93 0.61 13.20 1,645 35.13
AND 96.50 98.00 1.50 23.60 23 23.91
SK-18-010 80.25 116.50 36.25 5.93 166 8.14
INCLUDING 87.00 101.00 14.00 5.66 296 9.61
INCLUDING 95.00 96.50 1.50 4.46 503 11.17
AND 97.50 98.45 0.95 24.80 310 28.93
AND 98.45 99.42 0.97 9.21 205 11.94
INCLUDING 105.50 113.50 8.00 12.82 115 14.35
INCLUDING 105.50 107.00 1.50 11.45 6 11.53
AND 107.00 108.50 1.50 12.05 30 12.45
AND 108.50 110.00 1.50 12.45 31 12.86
AND 110.00 110.92 0.92 12.00 457 18.09
AND 110.92 112.00 1.08 18.40 310 22.53
AND 112.00 113.50 1.50 11.80 42 12.36
SK-18-011 81.68 115.28 33.60 7.95 140 9.82
INCLUDING 82.59 84.00 1.41 9.86 98 11.17
AND 84.00 85.30 1.30 28.70 197 31.33
AND 85.30 86.15 0.85 92.70 83 93.81
AND 93.00 94.50 1.50 5.48 541 12.69
AND 94.50 96.00 1.50 10.40 404 15.79
AND 96.00 97.50 1.50 11.55 334 16.00
AND 99.00 100.50 1.50 6.94 304 10.99
Gold Equivalent (AuEq) was calculated with the formula: Au (g/t) + [Ag (g/t) / 75]. Reported core lengths represent 80-100% of true widths and are
supported by well -defined mineralization geometries derived from historical drilling. Length weighted AuEq composites were constrained by
geological considerations as well as a calculated 1.0 g/t AuEq assay grade cutoff assuming reasonable prospects for economic extraction via open
pit mining methods. Grade capping of individual assays has not been applied to the Au and Ag assays informing the length weig hted AuEq
composites. Processing recoveries have not been applied to the AuEq calculation and are disclosed at 100% due to a lack of supporting information.
Samples below detection limit were nulled to a value of zero.
Table 2: Mine grid Phase I drill hole locations and orientations
HOLE-ID EASTING NORTHING ELEVATION LENGTH (M) AZIMUTH DIP
SK-18-009 9807.5 10021.0 1043.6 149.0 89.6 -44.6
SK-18-010 9807.5 10021.0 1043.6 152.5 90.8 -52.4
SK-18-011 9807.5 10021.0 1043.6 152.5 89.0 -60.6