Skeena Provides Corporate Update and 2019 Outlook
Skeena Provides Corporate Update and 2019 Outlook
Vancouver, BC (February 12, 2019) Skeena Resources Limited (TSX.V: SKE, OTCQX: SKREF)
(“Skeena” or the “Company”) is pleased to provide shareholders with an update on exploration and
development activities for the Company’s projects located in the Golden Triangle of British Columbia,
and an outlook for 2019.
2018 Advancements
In September 2018 (see news release dated September 17, 2018) the Company announced an initial
resource estimate for the high-grade, past-producing Eskay Creek Project (“Eskay Creek”) supported
solely by historical data. Phase I drilling performed by the Company in 2018 was not included in this
estimate but will be included in a resource update expected in Q1 2019.
At Eskay Creek, pit constrained Indicated Resources include 207,000 AuEq ounces within 1. 09 Mt
grading 5.9 g/t AuEq, and a dditional Inferred Resources of 589,000 AuEq ounces contained within
4.26 Mt at an average grade of 4.3 g/t AuEq.
Underground Indicated Resources include 814,000 AuEq ounces contained within 2.51 Mt grading
10.1 g/t AuEq, and an additional underground Inferred Resources of 261,000 AuEq ounces contained
within 0.81 Mt grading 10.0 g/t AuEq.
The Eskay Creek deposits represent a shallow water , bimodal volcanic sequence hosted in a fault
bounded basin with an epithermal VMS signature. Rhyolite facies volcanics (“Rhyolite”) are overlain
by mafic volcanics with a clastic mudstone (“Mudstone”) occurring at the contact between the two
volcanic episodes. This Mudstone represents the period of quiescence between the two volcanic
events and is spatially and temporally related to the main mineralizing event at Eskay Creek . The
epithermal suite of elements (Hg-Sb-As) and bonanza precious metal grades dominantly occur at this
interface but are not homogenously distributed throughout the Mudstone. Rather, they are spatially
associated with vents fed from underlying synvolcanic feeders.
Due to the higher precious metal tenor of the Mudstone-hosted mineralization, the vast majority of
historical production at Eskay Creek occurred within this rock ty pe whilst the Rhyolite-hosted feeder
style mineralization was less developed due to its lower Au-Ag grades. Rhyolite-hosted mineralization
is not enriched in Hg -Sb-As and was often blended with Mudstone-hosted zones to reduce smelter
penalties for the on-site milled concentrates and Direct Shipped Ore (DSO).
Resources for Eskay Creek calculated in 2018 by the Company were categorized by rock type
(Rhyolite or Mudstone) in Tables 1 and 2 below. O n a tonnage weighted basis, pit constrained
resources in the 21A and 22 Zones average 85% Rhyolite and 15% Mudstone. Underground
resources closely mimic these ratios with 75% hosted within Rhyolite and 25% hosted within
Mudstone.
NR: 19-03
February 12, 2019
Table 1: Eskay Creek Indicated and Inferred pit constrained resources reported at a 1.0 g/t Au Eq cut-off grade.
GRADE AUEQ
OUNCES
CONTAINED OUNCES
TONNES AUEQ AU AG AU AG
ZONE RHY:MUD* (000) G/T G/T G/T OZ (000) OZ (000) OZ (000)
INDICATED 21A 85 : 15 1,088 5.9 4.9 72 207 173 2,533
INFERRED 21A 75 : 25 2,809 4.6 3.8 63 418 342 5,653
22 100 : 0 1,452 3.7 2.5 89 171 116 4,151
TOTAL INDICATED 85 : 15 1,088 5.9 4.9 72 207 173 2,533
TOTAL INFERRED 85 : 15 4,261 4.3 3.3 72 589 458 9,805
Table 2: Eskay Creek Indicated and Inferred underground resources reported at a 5.5 g/t Au Eq cut-off grade.
GRADE AUEQ
OUNCES
CONTAINED OUNCES
TONNES AUEQ AU AG AU AG
ZONE RHY:MUD
* (000) G/T G/T G/T OZ (000) OZ (000) OZ (000)
INDICATED
21C 75 : 25 674 9.6 7.5 154 207 163 3,335
21B 50 : 50 338 12.1 8.6 263 132 94 2,855
21BE 70 : 30 246 10.1 6.8 247 80 53 1,954
21E 30 : 70 41 10.8 6.3 337 14 8 441
HW 100 : 0 522 10.2 6.2 295 171 105 4,957
NEX 60 : 40 510 9.6 6.8 209 158 112 3,432
PUMPHOUSE 90 : 10 72 7.9 6.1 140 18 14 323
109 95 : 5 111 9.5 9.4 12 34 34 42
TOTAL INDICATED 75 : 25 2,513 10.1 7.2 215 814 582 17,340
INFERRED
21C 80 : 20 44 7.2 6.7 38 10 10 55
21B 70 : 30 262 10.5 7.8 206 89 66 1,738
21BE 50 : 50 114 15.3 9.5 431 56 35 1,573
21E 65 : 35 53 8.5 4.6 292 14 8 495
HW 100 : 0 87 8.4 5.0 256 24 14 718
NEX 85 : 15 220 8.5 6.8 130 61 48 922
PUMPHOUSE 95 : 5 30 7.8 6.6 92 8 6 88
109 95 : 5 2 7.4 7.3 8 0.4 0.4 0.4
TOTAL INFERRED 75 : 25 812 10.0 7.2 214 261 187 5,590
Gold Equivalent (AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 7 5]. Processing recoveries have not been applied to the AuEq calculation and
are disclosed at 100%. *Ratio of tonnage hosted in Rhyolite to Mudstone.
2019 Outlook - Eskay Creek
An updated resource estimate is scheduled for Q1 2019, which will include all data for estimating both
underground and pit constrained resources. Drilling performed in 2018 was designed to add
confidence and upgrade inferred resources to indicated, as well as to collect spatially distributed
material for representative metallurgical test work optimizations.
Blue Coast Research has been engaged by t he Company to perform the metallurgical work and
process optimizations that will be used in a Preliminary Economic Assessment (“PEA”) on Eskay
Creek. This phase of metallurgical test work is anticipated to be finalized by Q2 2019 and will support
an upcoming PEA which is scheduled for completion in Q3 2019.
Phase II drilling at Eskay Creek will be focused on further upgrading of resources to the indicated
category for future economic analyses, as well as continued exploration and expansion of Rhyolite-
hosted feeder structures, analogous to the 21C and 22 Zones.
2019 Outlook - Snip
Exploration and development activities in 2019 on the Company’s 100% owned Snip Gold Project
(“Snip”) will largely focus on exploratory regional drill assessments and follow -up drilling in the newly
discovered 200 Footwall structure. Regional targeting is designed to assess and expand upon
historically defined mineralization that was not extended , as well as grassroots exploration of
previously untested geochemical anomalies.
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 and Eskay Creek mines, 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.
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 managemen t’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 exp loration 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 h ereof, 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.