Skeena Intersects 30.99 g/t AuEq over 14.72 metres at Eskay Creek
Skeena Intersects 30.99 g/t AuEq over 14.72 metres at Eskay Creek
Vancouver, BC ( January 15, 201 9) Skeena Resources Limited (TSX.V: SKE, OTCQX: SKREF )
(“Skeena” or the “Company”) is pleased to announce additional Au-Ag drill results for eight 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 focused on the
21A, 21C and 22 Zones . Assays reported in this release are from the 21A Zone; assays from the
remaining 22 Zone will be released once finalized. Reference images are presented at the end of this
release as well as on the Company’s website.
Eskay Creek 21A Zone Phase I Drilling – Current Highlights
• 4.93 g/t Au, 134.59 g/t Ag, (6.73 g/t AuEq) over 33.57 m (SK-18-033)
• 7.11 g/t Au, 54.21 g/t Ag, (7.83 g/t AuEq) over 28.88 m (SK-18-034)
• 22.36 g/t Au, 646.92 g/t Ag, (30.99 g/t AuEq) over 14.72 m (SK-18-036)
• 6.68 g/t Au, 14.56 g/t Ag, (6.88 g/t AuEq) over 5.50 m (SK-18-037)
• 12.73 g/t Au, 1.71 g/t Ag, (12.76 g/t AuEq) over 4.50 m (SK-18-040)
Gold Equivalent (AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 7 5]. Reported core lengths represent 70- 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 were nulled to a value of zero.
21A Zone Phase I Drilling – Discussion
The 2018 drilling program was designed to infill and upgrade the inferred resources in the 21A Zone
by increasing drill density to 20 m etre intercept spacing. This will allow for future economic analyses
as well as the collection of fresh material for an upcoming metallurgical characterization and testing
program. Reported core lengths represent 70-100% of true widths and are supported by well-defined
mineralization geometries derived from historical drilling. The majority of intercepts are less than 125
metres from surface and the shallow extent of mineralization in the 21A Zone is potentially amenable
to open-pit mining methods.
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 (1.0 9 Mt 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 (2.81 Mt
grading 3.8 g/t Au, 63 g/t Ag) (for full resource details including the additional underground resource,
refer to Skeena news release dated September 17, 2018).
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 av erage grades of 45 g/t gold and
NR: 19-01
January 15, 2019
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 offici al 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-kV 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 analyti cal methods include quality control materials at set fr equencies 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 (IC P-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 ava ilable 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 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 eve nts
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-18-033 93.43 127.00 33.57 4.93 135 6.73
INCLUDING 94.50 96.00 1.50 8.11 181 10.52
AND 97.50 99.00 1.50 15.20 89 16.39
AND 100.50 102.00 1.50 7.57 293 11.48
AND 112.42 113.00 0.58 14.00 2390 45.87
AND 119.00 120.50 1.50 7.04 223 10.01
AND 120.50 121.00 0.50 11.85 500 18.52
AND 121.00 122.50 1.50 11.55 167 13.78
SK-18-033 140.00 141.50 1.50 0.61 232 3.70
SK-18-034 86.62 115.50 28.88 7.11 54 7.83
INCLUDING 91.31 92.50 1.19 9.36 529 16.41
AND 92.50 94.00 1.50 5.71 <5 5.71
AND 94.00 95.50 1.50 10.95 59 11.74
AND 95.50 96.25 0.75 15.20 174 17.52
AND 96.25 97.50 1.25 15.90 39 16.42
AND 97.50 99.00 1.50 19.85 319 24.10
AND 99.00 100.50 1.50 12.55 21 12.83
AND 100.50 102.00 1.50 18.00 8 18.11
SK-18-034 135.50 137.00 1.50 1.94 <5 1.94
SK-18-034 140.00 141.50 1.50 1.49 6 1.57
SK-18-034 167.00 168.50 1.50 4.57 8 4.68
SK-18-035 127.50 134.00 6.50 0.72 25 1.06
SK-18-036 76.78 91.50 14.72 22.36 647 30.99
INCLUDING 79.70 80.42 0.72 88.50 10 88.63
AND 80.42 81.50 1.08 33.20 294 37.12
AND 81.50 82.90 1.40 36.20 155 38.27
AND 82.90 83.95 1.05 22.30 15 22.50
AND 83.95 84.99 1.04 41.40 422 47.03
AND 84.99 85.66 0.67 83.30 12,695 252.56
AND 85.66 86.50 0.84 42.20 20 42.47
SK-18-037 74.00 79.50 5.50 6.68 15 6.88
INCLUDING 74.94 75.80 0.86 17.60 35 18.07
AND 75.80 77.18 1.38 10.60 9 10.72
SK-18-038 89.50 91.00 1.50 0.68 <5 0.68
SK-18-039 74.21 75.50 1.29 0.52 <5 0.52
SK-18-040 65.20 69.70 4.50 12.73 2 12.76
INCLUDING 67.40 68.50 1.10 32.70 7 32.79
Gold Equivalent (AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 75 ]. Reported core lengths represent 70- 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. 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 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-18-033 9778.9 10012.7 1040.2 164.0 89.2 -50.6
SK-18-034 9780.0 10012.4 1040.2 200.0 89.0 -65.6
SK-18-035 9781.0 10012.8 1040.0 200.0 87.6 -84.7
SK-18-036 9780.6 10012.7 1040.0 152.0 268.7 -45.4
SK-18-037 9780.3 10012.7 1040.2 152.0 267.4 -71.5
SK-18-038 9739.1 10043.2 1028.9 123.0 91.0 -70.6
SK-18-039 9738.9 10043.2 1028.7 101.0 87.0 -81.9
SK-18-040 9739.0 10043.2 1028.9 102.0 10.7 -89.6