Skeena Intersects 25.03 g/t AuEq over 35.42 metres in 21A Zone at Eskay Creek New Discovery of Deep Mineralization in Lower Mudstones
Skeena Intersects 25.03 g/t AuEq over 35.42 metres in 21A Zone at Eskay Creek
New Discovery of Deep Mineralization in Lower Mudstones
Vancouver, BC ( August 25, 20 20) Skeena Resources Limited (TSX: SKE, OTCQX: SKREF)
(“Skeena” or the “Company”) is pleased to announce gold-silver drill results from the 2020 Phase I
surface drilling program at the Eskay Creek Project (“Eskay Creek”) located in the Golden Triangle of
British Columbia. Six ground-based and helicopter supported diamond drill rigs are being utilized for
the 2020 Phase I program in the 21A, 21B and 21C Zones for Preliminary Feasibility Study (“PFS”)
resource category conversions. Additionally, the Company is also conducting exploratory drilling in the
near-mine environment testing the Water Tower Zone ( “WTZ”) as well as the largely underexplored
Lower Mudstone (“LM”) sequences, which lie beneath the historically mined Contact Mudstone
sequences. Reference images are presented at the end of this release as well as on the Company’s
website.
Phase I – 21A Zone Infill Drilling Highlights: Excellent grades over substantial thicknesses
• 5.93 g/t Au, 40 g/t Ag (6.46 g/t AuEq) over 34.40 metres (SK-20-274)
• 21.90 g/t Au, 235 g/t Ag (25.03 g/t AuEq) over 35.42 metres (SK-20-290)
• 6.52 g/t Au, 24 g/t Ag (6.84 g/t AuEq) over 36.50 metres (SK-20-291)
Phase I – Exploratory Lower Mudstones Drilling Highlights: New discovery below historic mining
• 11.99 g/t Au, 21 g/t Ag (12.27 g/t AuEq) over 5.99 metres (SK-20-274)
• 5.99 g/t Au, 20 g/t Ag (6.26 g/t AuEq) over 4.20 metres (SK-20-290)
Gold Equivalent (AuE q) 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. Grade capping of individual assays has not been applied to the
Au and Ag assays informing the length weighted AuEq composites. Processing recoveries have not been applied to the AuEq calculation and are
disclosed at 100%. Samples below detection limit are nulled to a value of zero.
New Deep Mineralization Discovered in Even Lower Mudstone Below 21A Zone
Three drill holes designed for PFS resource category conversion in the 21A Zone were extended to
explore the Lower and Even Lower Mudstone (“ELM”) sequences. This drilling intersected 5.99 g/t
Au, 20 g/t Ag (6.26 g/t AuEq) over 4.20 m within a broader anomalous interval grading 3.67 g/t Au,
12 g/t Ag (3.83 g/t AuEq) over 10.50 m in the ELM at a v ertical depth approximately 200 m below
surface in a previously unexplored area (SK-20-290). This new discovery of discordant, replacement-
style mineralization is hosted within a n intercalated sedimentary sequence of mudstones and
siltstones. Differing from the overlying historically mined Contact Mudstone, this new discovery
possesses a different geochemical signature in that there are no significant concentrations of the
pathfinder suite of elements ( Hg-As-Sb). Drill holes SK-20-274 and SK -20-291 intersected weakly
anomalous mineralization in the Lower Mudstones suggesting they are a greater distance from a yet
to be discovered synvolcanic feeder and provide support for the geological concept model . The
evidence of mineralization in these lower mudstone units, lying below the historically important Contact
Mudstone, could represent not only the discordant, crosscutting epigenetic/replacement style, but also
NR: 20-23
August 25, 2020
needs to be evaluated for the possible prese nce of stacked predecessor exhalative synsedimentary
mineralization events. This new discovery is entirely open for expansion along strike and up -dip and
represents a target amenable to underground mining methods.
Additional Mineralization Discovered in Lower Mudstone Below 21A Zone
Phase I drilling has intersected additional mineralization in the LM grading 11.99 g/t Au, 21 g/t Ag
(12.27 g/t AuEq) over 5.99 m within a larger interval averaging 6.49 g/t Au, 11 g/t Ag (6.63 g/t AuEq)
over 12.94 m (SK-20-274). This mineralization is situated 50 m below the designed PEA open-pit and
25 m up-dip of the previously reported intersection of 312.81 g/t Au, 95 g/t Ag (314.07 g/t AuEq) over
2.21 m including 1,380.00 g/t Au, 322 g/t Ag (1,384.29 g/t AuEq) over 0.50 m (SK-19-063).
Infill Drill Results Demonstrate Grade and Width Continuity
The infill component of the Phase I program continues to confirm the continuity of the modelled
mineralization in the 21A Zone as demonstrated by intersection of 21.90 g/t Au, 235 g/t Ag (25.03 g/t
AuEq) over 35.42 m (SK-20-290). Further support for the geological concept model are provided by
intersections 5.93 g/t Au, 40 g/t Ag (6.46 g/t AuEq) over 34.40 m and 6.52 g/t Au, 24 g/t Ag (6.84
g/t AuEq) over 36.50 m (SK-20-274 and SK -20-291, respectively), which validated the expected
resource grades and mineralization distribution.
“This is the first time Skeena has systematically tested the laterally -extensive Lower Mudstone
Sequences with exploratory drilling”, notes Paul Geddes, the Company’s Vice President Exploration
& Resource Development. “With only three drill holes in a very limited area of the property, we have
proven the geological concept model that the LM and ELM , laying below the Contact Mudstone, are
mineralized by the same fluids that produced the overlying mining area, and are very prospective. Our
ongoing 2020 exploration program will continue to focus on syn-volcanic feeder zones with emphasis
on where these feeders intersect all the mudstones, specifically the Lower Mudstones discussed
here.”
Skeena’s CEO, Walter Coles Jr. commented, “We’ve drilled 46 h oles at Eskay Creek since we
restarted our exploration program in July. This press release represents the assay results from only
the first three of those holes. In September we intend to add two more drill rigs, which will bring our rig
count up to eight. Over the next six month s we will have a steady stream of assay results from both
infill and step-out exploration holes, which should make for an exciting fall.”
About Skeena
Skeena Resources Limited is a junior mining company focused on developing 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 robust Preliminary Economic Assessment in late 2019
and is currently focused on infill and exploration drilling at Eskay Creek to advance the project to Pre-
feasibility. Skeena is also exploring the past-producing Snip gold mine.
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, 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 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 170 25 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 Coup led 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.
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 regulator y approvals, environmental risks, 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 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 2020 Phase I 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) ZONE
SK-20-274 81.10 115.50 34.40 5.93 40 6.46 21A
INCLUDING 82.50 84.00 1.50 19.05 175 21.38 21A
AND 84.00 85.00 1.00 19.05 218 21.96 21A
AND 85.00 85.90 0.90 10.85 12 11.01 21A
AND 87.50 88.45 0.95 10.85 10 10.98 21A
AND 100.22 101.00 0.78 9.58 36 10.06 21A
AND 103.00 104.50 1.50 16.40 20 16.67 21A
AND 106.00 107.50 1.50 11.60 157 13.69 21A
SK-20-274 186.06 199.00 12.94 6.49 11 6.63 LM
INCLUDING 186.06 192.05 5.99 11.99 21 12.27 LM
INCLUDING 187.00 188.00 1.00 22.10 41 22.65 LM
AND 190.00 191.00 1.00 25.00 22 25.29 LM
AND 191.00 192.05 1.05 11.70 6 11.78 LM
SK-20-290 79.55 114.97 35.42 21.90 235 25.03 21A
INCLUDING 80.45 81.20 0.75 16.20 9 16.32 21A
AND 82.20 83.20 1.00 13.50 6 13.58 21A
AND 83.20 84.15 0.95 27.90 25 28.23 21A
AND 84.15 85.00 0.85 69.70 15 69.90 21A
AND 85.00 86.00 1.00 99.60 30 100.00 21A
AND 86.00 86.52 0.52 122.50 38 123.01 21A
AND 86.52 87.40 0.88 158.50 2350 189.83 21A
AND 87.40 88.10 0.70 108.00 1450 127.33 21A
AND 88.10 88.85 0.75 206.00 762 216.16 21A
AND 88.85 89.60 0.75 50.30 375 55.30 21A
AND 89.60 90.38 0.78 18.40 6 18.48 21A
AND 107.32 108.70 1.38 4.40 428 10.11 21A
AND 110.00 111.50 1.50 2.48 1480 22.21 21A
SK-20-290 390.50 401.00 10.50 3.67 12 3.83 ELM
INCLUDING 394.00 398.20 4.20 5.99 20 6.26 ELM
SK-20-291 82.00 118.50 36.50 6.52 24 6.84 21A
INCLUDING 82.90 84.00 1.10 11.95 61 12.76 21A
AND 84.00 84.70 0.70 21.80 39 22.32 21A
AND 86.00 87.00 1.00 9.07 192 11.63 21A
AND 87.00 88.00 1.00 27.50 200 30.17 21A
AND 88.00 89.00 1.00 24.80 109 26.25 21A
AND 91.00 92.00 1.00 11.50 <5 11.50 21A
AND 99.00 100.00 1.00 21.50 10 21.63 21A
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 AuE q composites we re constrained by
geological considerations. Grade capping of individual assays has not been applied to the Au and Ag assays informing the length weighted AuE q
composites. Processing recoveries have not been applied to the AuEq calculation and are disclosed at 100%. Samples below detection limit were
nulled to a value of zero. LM – Lower Mudstone. ELM – Even Lower Mudstone.
Table 2: Mine grid Phase I drill hole locations and orientations:
HOLE-ID LOCATIONX LOCATIONY LOCATIONZ LENGTH AZIMUTH DIP
SK-20-274 9815.3 10030.5 1046.9 506.0 90.0 -55.3
SK-20-290 9815.3 10030.5 1046.9 518.0 88.6 -45.4
SK-20-291 9815.3 10030.5 1046.9 350.0 90.1 -64.6