Skeena Intersects 314.07 g/t AuEq over 2.21 m in Lower Mudstone at Eskay Creek
Skeena Intersects 314.07 g/t AuEq over 2.21 m in
Lower Mudstone at Eskay Creek
Vancouver, BC ( October 22, 2019) Skeena Resources Limited (TSX.V: SKE, OTCQX: SKREF)
(“Skeena” or the “Company”) is pleased to announce additional Au-Ag drill results from the 2019 Phase
I surface drilling program at the Eskay Creek Project (“Eskay Creek”) located in the Golden Triangle
of British Columbia . Two surface drill rigs are being used for the 2019 Phase I program in the 21A,
21E and 22 Zones to infill and upgrade areas of Inferred resources to the Indicated classification. Drill
hole results reported in this release are from the 21A Zone and include results from a Lower Mudstone
horizon, below the current Eskay Creek resource. Reference images are presented at the end of this
release as well as on the Company’s website.
Phase I Eskay Creek Drilling Highlights
• 312.81 g/t Au, 95 g/t Ag (314.07 g/t AuEq) over 2.21 m (SK-19-063)
o Including: 1,380.00 g/t Au, 322 g/t Ag (1,384.29 g/t AuEq) over 0.50 m
• 3.34 g/t Au, 56 g/t Ag (4.09 g/t AuEq) over 37.50 m (SK-19-065)
• 4.02 g/t Au, 79 g/t Ag (5.07 g/t AuEq) over 30.50 m (SK-19-066)
o Including: 68.40 g/t Au, 342 g/t Ag (72.96 g/t AuEq) over 1.00 m
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. 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.
Infill Drilling Intersects High Grade Mineralization in Lower Mudstone
The ongoing 2019 Phase I infill and expansion drilling program at Eskay Creek continues to predictably
upgrade the Inferred mineralization hosted in the 21A Zone as demonstrated by 2019 drill holes
SK-19-065 and SK-19-066 (Table 1).
During this program, two additional drill holes (SK-19-063 and SK-19-067), were extended below the
Inferred resources to test the exploration potential of a secondary and lesser known mineralized
mudstone horizon. This Lower Mudstone is situated approximately 100 metres stratigraphically below
the more familiar Contact Mudstone, host to the previously developed Eskay Creek deposits (see
attached sections).
Below the 21A Zone Contact Mudstone and rhyolite package, 2019 Phase I drill hole SK-19-063
intersected a broad package of the Lower Mudstone that hosts a mineralized interval grading 312.81
g/t Au, 95 g/t Ag (314.07 g/t AuEq) over 2.21 metres including an individual sample with considerable
visible gold grading 1,380 g/t Au, 322 g/t Ag (1,384.29 g/t AuEq) over 0.50 metres. This mineralization
is further corroborated by historic (1989) drill hole CA89-023 grading 5.80 g/t Au, 5.75 g/t Ag (5.88 g/t
AuEq) over 6.00 metres as well as recently completed Phase I drill hole SK-19-067 which intersected
8.02 g/t Au, <5 g/t Ag (8.05 g/t AuEq) over 1.50 metres.
NR: 19-17
October 22, 2019
Lower Mudstone Geology
Regionally extensive and averaging 5 - 15 metres in true thickness , the Lower Mudstone is situated
approximately 100 metres below the Eskay Creek deposits and has been traced by historical drilling
for over 5,000 metres along strike. Typical of bimodal volcanic sequences hosting VHMS (Volcanic
Hosted Massive Sulphide) deposits, the mudstone represents a period of mineralizing quiescence
between the underlying volcanic rocks of the Mount Dilworth Formation (~190Ma) , and the
stratigraphically younger Eskay Creek Mine stratigraphy hosted in the Salmon River Formation
(~175Ma). The Lower Mudstone is essentially analogous to the main Contact Mudstone in that it
occurs at a mineralized time break between periods of volcanic activity. The stratigraphic and
mineralization cyclicity within a volcanic pil e is a common feature to VHMS deposits of which Eskay
Creek is a member.
“Very high grades of gold mineralization hosted within the largely underexplored and undeveloped
Lower Mudstone clearly demonstrate that another high tenor mineralization event occurred in the
Eskay Creek stratigraphy” notes Paul Geddes, P.Geo., Vice President of Exploration and Resource
Development. “Both t he regional and near mine mineralized intersections within this largely
underexplored horizon represent s a significant exploration target for the Eskay Creek Project . The
Company’s detailed understanding of th is mineralized syste m will allow future exploratory drill
targeting to focus on instances where this auriferous horizon links to the known mineralized
synvolcanic feeder zones and paleo-depressions in the mudstones”.
Drilling Status – Snip and Eskay Creek Projects
The helicopter supported portion of the 2019 Phase I program at Eskay Creek has been completed
and the drill rigs are now being converted to ground-based skid mounts. During this brief hiatus, one
helicopter supported rig has been mobilized to the Company’s Snip Project to perform surface-based
drill testing of the 200 Footwall Corridor.
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 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.
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) AREA
SK-19-063 110.32 112.53 2.21 312.81 95 314.07 LMS
INCLUDING 111.43 111.93 0.50 1380.00 322 1384.29 LMS
SK-19-065 44.00 81.50 37.50 3.34 56 4.09 21A
INCLUDING 53.00 53.75 0.75 36.90 21 37.18 21A
AND 53.75 54.25 0.50 49.40 128 51.11 21A
AND 54.25 55.20 0.95 21.30 224 24.29 21A
SK-19-066 40.00 70.50 30.50 4.02 79 5.07 21A
INCLUDING 47.00 48.00 1.00 68.40 342 72.96 21A
AND 57.55 58.05 0.50 0.25 1,175 15.92 21A
SK-19-067 11.45 16.50 5.05 0.80 58 1.57 21A
SK-19-067 117.50 119.00 1.50 8.02 <5 8.05 LMS
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. 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. LMS – Lower Mudstone.
Table 2: Mine grid Phase I drill hole locations and orientations:
HOLE-ID EASTING NORTHING ELEVATION LENGTH (M) AZIMUTH DIP
SK-19-065 9898.9 10089.5 1028.5 85.0 216.8 -82.7
SK-19-066 9898.9 10089.5 1025.7 90.0 93.0 -54.7
SK-19-067 9912.9 10031.3 991.6 135.0 107.2 -51.0
SK-19-063 9912.9 10031.3 991.6 141.0 144.5 -74.5