Skeena Intersects 14.57 g/t AuEq over 31.50 metres at Eskay Creek
Skeena Intersects 14.57 g/t AuEq over 31.50 metres at Eskay Creek
Vancouver, BC (November 21, 2018) Skeena Resources Limited (TSX.V: SKE, OTCQX: SKREF)
(“Skeena” or the “Company”) is pleased to announce additional Au-Ag drill results for seven holes from
the recently completed 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 was performed
in the historically drill defined 21A, 21C and 22 Zones to infill and upgrade areas of inferred resources
as well to collect fresh material for an upcoming metallurgical study. Reference images are presented
at the end of this release as well as on the Company’s website.
Eskay Creek Phase I Drilling Highlights
• 5.28 g/t Au, 62 g/t Ag (6.11 g/t AuEq1) over 42.00 m (SK-18-020)
o Including: 10.71 g/t Au, 135 g/t Ag (12.51 g/t AuEq) over 17.19 m
• 10.31 g/t Au, 73 g/t Ag (11.29 g/t AuEq) over 20.18 m (SK-18-021)
• 13.40 g/t Au, 1 g/t Ag (13.42 g/t AuEq) over 10.50 m (SK-18-022)
• 10.16 g/t Au, 331 g/t Ag (14.57 g/t AuEq) over 31.50 m (SK-18-023)
o Including: 14.24 g/t Au, 963 g/t Ag (27.08 g/t AuEq) over 8.41 m
• 8.82 g/t Au, 97 g/t Ag (10.11 g/t AuEq) over 11.50 m (SK-18-024)
Discussion of Drill Results for 21A Zone
The 2018 Phase I drilling program was designed to infill and upgrade the inferred resource in the 21A
Zone by increasing drill density to 20 m intercept spacing. This spacing will allow for future economic
analyses and will also allow the Company to collect fresh material for an upcoming metallurgical
characterization and testing program. Reported core lengths represent 80 -100% of true widths and
are supported by well-defined mineralization geometries derived from historical drilling. The majority
of intercepts are less than 125 meters from surface. The shallow extent of mineralization in the 21A
zone should be suitable for open-pit mining.
Centered on section 10140N in the northern portion of the 21A Zone, 2018 Phase I drillholes
SK-18-023 and SK -18-024 intersected 10.16 g/t Au, 331 g/t Ag (14.57 g/t AuEq) over 31.50 m
including 14.24 g/t Au, 963 g/t Ag (27.08 g/t AuEq) over 8.41 m and 8.82 g/t Au, 97 g/t Ag (10.11
g/t AuEq) over 11.50 m respectively. These holes continue to demonstrate the grade, thickness and
continuity of the 21A Zone mineralization in an area of low historical drill density.
1 Gold Equivalent (AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 7 5]. 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.
NR: 18-29
November 21, 2018
Additional confidence in grade and continuity has also been established 20 m further north on section
10160N by infill drillholes SK-18-021 which intersected 10.31 g/t Au, 73 g/t Ag (11.29 g/t AuEq) over
20.18 m and SK-18-022 averaging 13.40 g/t Au, 1 g/t Ag (13.42 g/t AuEq) over 10.50 m.
The 21A Zone represents a significant portion of the 2018 pit constrained resource hosted at Eskay
Creek containing an Indicated Resource of 207,000 oz AuEq grading 5.9 g/t AuEq (1.088 M tonnes
grading 4.9 g/t Au, 72 g/t Ag) and an Inferred Resource of 418,000 oz AuEq grading 4.6 g/t AuEq
(2.809 M tonnes grading 3.8 g/t Au, 63 g/t Ag) (see news release dated (September 17, 2018).
Exploration Update
Due to the onset of winter at Eskay Creek, the 2018 Phase I drilling program has been paused until
conditions improve. The planned drilling in the 21A and 21C Zones was completed in its entirety ;
however only 30% of the infill drilling was completed in the 22 Zone . The two drill rigs have been
remobilized to the Company’s 100% owned Snip Project where a 2,000 m surface exploration drilling
program is being performed to assess previously untested soil anomalies as well as depth extensions
of the Twin Zone and 200 Footwall targets.
About Eskay Creek
In December 2017, Skeena secured an option to acquire 100% interest in the Eskay Creek property.
Discovered in the Gold en 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. Eskay Creek 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 focus 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 of 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.
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 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 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. Samples with sulfur
reporting greater than 10% from the multi -element analysis are re -analyzed for total sulfur by Leco
furnace and infrared spectroscopy.
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-18-018 43.00 72.50 29.50 1.39 51 2.07
INCLUDING 49.35 50.50 1.15 2.23 792 12.79
SK-18-018 88.00 116.50 28.50 1.85 6 1.94
SK-18-018 144.50 147.50 3.00 1.49 4 1.54
SK-18-019 41.00 79.50 38.50 1.90 167 4.12
INCLUDING 48.65 49.50 0.85 4.51 2,560 38.64
AND 60.85 61.50 0.65 6.46 305 10.53
SK-18-019 94.50 114.50 20.00 0.94 6 1.02
SK-18-019 132.00 160.50 28.50 0.91 9 1.03
SK-18-020 38.00 80.00 42.00 5.28 62 6.11
INCLUDING 52.48 69.67 17.19 10.71 135 12.51
INCLUDING 52.48 54.00 1.52 9.82 82 10.91
AND 54.00 55.00 1.00 13.55 222 16.51
AND 55.00 56.00 1.00 15.55 222 18.51
AND 56.00 57.00 1.00 18.80 272 22.43
AND 57.00 58.35 1.35 32.60 265 36.13
AND 58.35 59.50 1.15 24.10 38 24.61
AND 59.50 61.00 1.50 12.20 364 17.05
AND 61.00 62.50 1.50 5.79 104 7.18
SK-18-020 96.50 140.00 43.50 1.16 8 1.27
SK-18-021 104.32 124.50 20.18 10.31 73 11.29
INCLUDING 104.32 104.82 0.50 12.80 800 23.47
AND 104.82 105.35 0.53 2.90 574 10.55
AND 105.35 106.35 1.00 9.37 157 11.46
AND 109.50 110.88 1.38 17.30 8 17.41
AND 115.50 117.00 1.50 24.80 58 25.57
AND 117.00 118.50 1.50 30.10 92 31.33
AND 118.50 120.00 1.50 15.35 70 16.28
SK-18-022 110.00 120.50 10.50 13.40 1 13.42
INCLUDING 110.66 112.00 1.34 10.55 0 10.55
AND 112.00 113.00 1.00 11.30 0 11.30
AND 113.00 114.00 1.00 17.60 0 17.60
AND 114.00 115.00 1.00 28.20 0 28.20
AND 115.00 116.00 1.00 33.10 0 33.10
AND 116.00 117.00 1.00 23.50 0 23.50
SK-18-023 96.50 128.00 31.50 10.16 331 14.57
INCLUDING 96.50 104.91 8.41 14.24 963 27.08
AND 97.78 98.75 0.97 48.90 845 60.17
AND 98.75 100.00 1.25 9.85 1,290 27.05
AND 100.00 100.78 0.78 46.10 6,890 137.97
AND 100.78 102.09 1.31 6.96 210 9.76
INCLUDING 113.00 114.50 1.50 20.40 43 20.97
AND 114.50 116.00 1.50 9.97 15 10.17
AND 120.50 123.00 2.50 26.90 49 27.55
AND 123.00 125.00 2.00 10.40 942 22.96
AND 126.50 128.00 1.50 11.90 17 12.13
SK-18-024 114.00 125.50 11.50 8.82 97 10.11
INCLUDING 119.50 121.00 1.50 12.55 453 18.59
AND 121.00 122.50 1.50 20.70 0 20.70
AND 122.50 124.00 1.50 23.00 55 23.73
Gold Equivalent (AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 7 5]. 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-18-018 9794.5 9925.4 1057.7 176.0 89.0 -50.5
SK-18-019 9794.1 9925.3 1057.6 176.0 89.6 -66.0
SK-18-020 9794.0 9925.2 1057.6 176.0 91.9 -79.6
SK-18-021 9866.1 10135.3 1037.2 152.0 70.9 -46.3
SK-18-022 9866.2 10135.5 1037.0 152.0 56.9 -56.3
SK-18-023 9866.4 10134.9 1036.1 152.0 86.5 -46.4
SK-18-024 9865.9 10135.0 1036.9 152.0 89.4 -66.3
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”, “estim ates”, “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 risk s, title disputes and 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 s uch 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.