Skeena Resources Limited (TSX: SKE, OTCQX: SKREF) (“Skeena” or the “Company”) is pleased to report additional drilling results from the Phase 1 combined definition and exploration drilling campaign at the Eskay Creek Project (“Eskay Creek” or the “Project”) located in the Golden Triangle of British Columbia. Six helicopter-supported drill rigs are now active on the 2020 Phase 2 program with an additional five rigs to be added in the coming weeks. The Phase 2 infill program is focused on Pre-Feasibility Study (“PFS”) resource category conversions for the open-pit constrained resources. Reference images are presented at the end of this release as well as on the Company’s website.
Eskay Creek Drilling Highlights:
Water Tower Zone
• 4.58 g/t Au and 29 g/t Ag (4.96 g/t AuEq) over 27.60 m (SK-20-295)
o Including: 8.01 g/t Au and 36 g/t Ag (8.49 g/t AuEq) over 14.40 m
• 6.89 g/t Au and 10 g/t Ag (7.01 g/t AuEq) over 20.00 m (SK-20-281)
• 6.38 g/t Au and 7 g/t Ag (6.47 g/t AuEq) over 19.00 m (SK-20-282)
• 17.61 g/t Au and 11 g/t Ag (17.76 g/t AuEq) over 5.87 m (SK-20-283)
• 1.93 g/t Au and 39 g/t Ag (2.46 g/t AuEq) over 52.50 m (SK-20-299)
• 1.86 g/t Au and 12 g/t Ag (2.02 g/t AuEq) over 52.09 m (SK-20-300)
• 8.03 g/t Au and 168 g/t Ag (10.27 g/t AuEq) over 10.50 m (SK-20-330)
Gold Equivalent (AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 75]. True widths range from 70-100% of reported core lengths. 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. WTZ – Water Tower Zone, DEEPS – Eskay Deeps.
Walter Coles Jr., President & CEO commented, “These are solid results. The infill drilling continues to prove that Eskay is a deposit with excellent continuity and predictability. The addition of five more drill rigs in the coming weeks should allow us to maintain our aggressive schedule to complete the Phase 2 infill program before year end, as well as test certain high priority exploration targets.”
Water Tower Zone Continues to Expand
Exploration drilling in the Water Tower Zone (WTZ) continues to demonstrate the potential for resource expansion as illustrated by recently completed 2020 drill hole SK-20-295 which intersected 8.01 g/t Au and 36 g/t Ag (8.49 g/t AuEq) over 14.40 m hosted within a larger mineralized envelope grading 4.58 g/t Au and 29 g/t Ag (4.96 g/t AuEq) over 27.60 m. This new intersection represents a 25 m up-dip extension from historical underground drill hole 5925 which intersected grades averaging 4.16 g/t AuEq over 7.25 m and 2.81 g/t AuEq over 8.78 m (see section 10940N below).
21C Zone Infill Drilling Intersects Expected Grades and Thicknesses
The completed 21C Phase 1 infill drilling program has confirmed the estimated Inferred resource which had been supported solely by historic (pre-Skeena) drilling campaigns. Historical underground drill hole 6462, which intersected 2.96 g/t AuEq over 17.82 m correlates with the flanking 2020 infill drill holes SK-20-280, SK-20-283 and SK-20-284 which intersected 2.69 g/t Au and 10 g/t Ag (2.82 g/t AuEq) over 14.00 m, 1.98 g/t Au, 16 g/t Ag (2.19 g/t AuEq) over 15.75 m and 2.71 g/t Au and 5 g/t Ag (2.78 g/t AuEq) over 19.50 m respectively. Drill hole SK-20-282 intersected better than expected grades averaging 6.38 g/t Au and 7 g/t Ag (6.47 g/t AuEq) over 19.00 m (see section 10570N below).
The 21C Zone, which lies deeper and is mined later in the current PEA open-pit mine plan, is hosted in the stratigraphic footwall rhyolite and has a slightly lower Au-Ag grade than the mineralization historically mined in the Contact Mudstones; however, while this type of mineralization was not historically important, it now has potentially significant contributions to the economics of the mine plan.
Update on Site Activities
The Company has now completed the Phase 1 drilling program and the remaining results will be reported once available. With the successful outcome of renegotiations, Skeena now owns 100% of Eskay Creek (see new release dated October 5, 2020). The Company is now focused on the Phase 2 drilling program of resource category conversion, and the campaign can now penetrate the 25 m development buffer surrounding all historic mine workings that were previously restricted.
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 Prefeasibility. Skeena is also exploring the past-producing Snip gold mine.