Skeena Provides Update on Snip Gold Project
Skeena Provides Update on Snip Gold Project
Vancouver, BC (March 6, 2017) Skeena Resources Limi ted (TSX.V: SKE ) (“ Skeena ” or the
“Company ”) is pleased to announce plans for the upcoming 20 17 field season at the past-producing
Snip gold mine (“ Snip ” or the “ Project ”), located in the Golden Triangle of northwest Bri tish
Columbia. Over 280,000 metres of historical surface and underground drill assays have now been
reviewed and modelled along with the results from S keena’s 2016 program. A total of 15,000 metres
of surface and underground drilling is planned, whi ch should lead to an initial NI 43-101 Resource
Estimate for release in late 2017.
Data Mining & Vein Modelling
Skeena has assembled a highly experienced team of g eologists with past exploration and
operational experience at Snip. The team has spent the last twelve months analyzing historical drill
data from 3,550 holes and 8,435 metres of undergrou nd ramp and haulage development. After an
extensive review of the historical data in combinat ion with the results from last season’s drill
program, Skeena’s technical team was able to model the high-grade gold veins that were left
unmined at Snip as they were below the 24 g/t gold cut-off that existed when the mine shut-down in
1999. Underground and surface drill targets have no w been identified with 9,000 metres of
underground drilling and 6,000 metres of surface drilling planned for 2017.
The Twin Zone, which accounted for 61% of historica l production, is a dilatant shear zone which
developed progressively in response to externally a pplied stresses that caused strain to be localized
in a number of southwest dipping shear veins. The m ost productive parts of the shear system occur
when the structures change orientation and become s teeper dipping, causing zones of extension
that can form thicker zones of mineralization, incl uding parallel zones as seen in the 150 and 130
Veins, which accounted for 24% of historical produc tion. Drilling in 2017 will focus on identifying
other dilatant zones, caused by changes in attitude of the shears, and specifically zones that are
down plunge of or in the footwall of the Twin Zone.
2017 Underground Drill Targets
The initial 9,000 metre underground drill program w ill focus on potential new production areas near
existing underground development and also simultane ously target the numerous mineralized
footwall structures that were not included in the h istorical Snip mineral resource. Drilling is intend ed
to confirm gold mineralization left behind by the p revious operator in the Twin Zone and footwall vein
structures including; the 150 and 130 Veins, the 412 Zone and the 200 Footwall Zone.
Due to the wider nature of the Twin Zone, which var ied from one to thirteen metres in thickness, and
historical gold prices that averaged $350 USD per o unce when the mine was in production, the
former operator focused on the thicker, higher-grad e portions of the Twin Zone and the easiest to
reach portions of the footwall structures. The foot wall structures (150 and 130 Veins) were
supplemental production accessed by the ramp system , which was mainly designed to exploit the
Twin Zone. These near-ramp footwall structures were readily accessible and where continuity of
their resource fit the required cut-off grade at th e then current gold price, portions of these footwa ll
structures were mined. Underground drilling in 2017 will focus on identifying the remaining unmined
mineralized material, below the 24 g/t gold cut-off grade that existed when the mine closed, in these
near ramp footwall structures and in the Twin Zone.
NR: 17-04
March 6, 2017
Historical surface sampling was reviewed in conjunc tion with underground drilling from the 1990’s,
which vectored Skeena’s geologists in 2016 to test a structure located 200 metres into the footwall
from the Twin Zone. This resulted in the intersecti on by hole S16-006 of 16.24 g/t gold over 13.5
metres (see news release dated November 1, 2016 ) and the newly discovered 200 Footwall Zone.
Underground drilling in 2017 will aim to expand the 200 Footwall Zone and show continuity between
it and the historically defined 412 Zone.
To view a 3D model of Snip and other images associa ted with this press release, please click here:
https://skeenaresources.com/projects/snip/maps-and-figures/snip-press-release-images
2017 Surface Drill Targets
An initial 6,000 metre surface drill program will b uild on the drilling completed in 2016 and will foc us
on identifying potential extensions to the west and down plunge of the Twin Zone and newly
identified parallel shear zones, including the Bronson Creek Structure, which has never been drilled.
Surface drilling will test the down plunge continuation of the Twin Zone where historical assay results
intersected 21.4 g/t gold over 6.7 metres in UG-12* and 34 g/t gold over 5.1 metres in UG-602*.
Additionally, the potential west extension of the T win Zone will be tested in the Monsoon Ridge area
where historical intersections in three holes exhib ited a 20-metre-wide shear zone visually identical
to the Twin Zone that assayed 15.4 g/t gold over 0.7 metres in S-218*. Finally, the newly identified
Bronson Creek Structure, situated parallel to the Twin Zone and along the north side of the Red Bluff
Porphyry, will also be tested with surface drilling.
Ownership Transfer
Since acquiring the option on the Snip property in March of 2016 (see news release dated March 23,
2016 ), Skeena has spent over $3 million on exploration and data review. This is well in excess of the
$2 million spending requirement in the option agree ment and the Company will soon seek provincial
approval to effect the transfer of ownership. This will necessitate Skeena posting an environmental
bond. Once Skeena has full ownership of the Snip pr operty (subject to the royalty and back-in right
retained by Barrick Gold), restrictions set out in the option agreement on entering the mine or drilli ng
within 25 meters of historic mining workings will expire. Skeena anticipates being able to re-enter the
mine and more efficiently drill from underground commencing this summer.
*Cautionary Note: Historical drill results were col lected prior to the Company’s involvement and have
not been independently verified by a Qualified Pers on on behalf of Skeena. The historical drill
intercepts quoted represent core lengths, and there has been insufficient exploration to date to
indicate whether or not they represent the true thi cknesses of the mineralized intervals. There has
also been insufficient exploration to define a mine ral resource, and it is uncertain if further
exploration will result in the target being delinea ted as a mineral resource. No exploration or
operational diamond drill core remain at Snip and t he mine site and all openings have been closed
and re-claimed and the mill removed. The informatio n presented herein is for historic perspective
and information purposes.
About Skeena
Skeena Resources Limited is a junior Canadian minin g exploration company focused on developing
prospective base and precious metal properties in t he Golden Triangle region of northwest British
Columbia, Canada. The Company’s primary activities are the evaluation and development of the
Spectrum-GJ gold-copper project as well as explorat ion on the past-producing Snip gold mine,
acquired from Barrick Gold, and the past-producing Porter Idaho silver mine. Skeena’s management
includes a highly experienced team of mine-finders, including Ron Netolitzky, Chairman of the
Board.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and
approved by J. Rupert Allan, P.Geol., VP of Explora tion and Earl Masarsky, P. Geo., Snip Project
Manager. Both are Qualified Persons as defined by National Instrument 43-101.
On behalf of the Board of Directors of Skeena Resources Limited,
Walt Coles Jr.
President & CEO
Cautionary note regarding forward-looking statement s
Certain statements made and information contained h erein may constitute “forward looking information” and “forward
looking statements” within the meaning of applicabl e Canadian and United States securities legislation , including, among
other things, information with respect to this pres entation. 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 expectat ions. Forward-
looking statements and information may be identifie d by such terms as “anticipates”, “believes”, “targ ets”, “estimates”,
“plans”, “expects”, “may”, “will”, “could” or “woul d”. Forward-looking statements and information con tained herein are
based on certain factors and assumptions regarding, among other things, the estimation of mineral reso urces and
reserves, the realization of resource and reserve e stimates, metal prices, taxation, the estimation, t iming and amount of
future exploration and development, capital and ope rating costs, the availability of financing, the re ceipt of regulatory
approvals, environmental risks, title disputes and other matters. While the Company considers its ass umptions to be
reasonable as of the date hereof, forward-looking s tatements and information are not guarantees of fut ure performance
and readers should not place undue importance on su ch statements as actual events and results may diff er materially
from those described herein. The Company does not u ndertake to update any forward-looking statements o r information
except as may be required by applicable securities laws.
Neither TSX Venture Exchange nor the Investment Ind ustry Regulatory Organization of Canada accepts res ponsibility
for the adequacy or accuracy of this release.