VANCOUVER, BC / ACCESSWIRE / October 31, 2018 / Skeena Resources Limited (TSX-V: SKE, OTCQX: SKREF) (''Skeena'' or the ''Company'') is pleased to announce additional Au-Ag assays for six holes from the ongoing 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 is being performed in the historically drill defined 21A, 21C and 22 Zones. Reference images are presented at the end of this release as well as on the Company's website.
Eskay Creek Phase I Drilling - Recent Highlights:
- 9.07 g/t Au, 76 g/t Ag, 10.09 g/t AuEq over 45.00 m (SK-18-012)
- Including: 13.06 g/t Au, 84 g/t Ag, 14.18 g/t AuEq over 27.77 m
- 5.39 g/t Au, 139 g/t Ag, 7.24 g/t AuEq over 28.30 m (SK-18-014)
- Including: 8.23 g/t Au, 185 g/t Ag, 10.69 g/t AuEq over 12.45 m
- 4.16 g/t Au, 204 g/t Ag, 6.88 g/t AuEq over 43.50 m (SK-18-017)
- Including: 3.53 g/t Au, 502 g/t Ag, 10.23 g/t AuEq over 15.00 m
Gold Equivalent (AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 75]. 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 as well as a calculated 1.0 g/t AuEq assay grade cutoff assuming reasonable prospects for economic extraction via open pit mining methods. 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% due to a lack of supporting information. Samples below detection limit were nulled to a value of zero.
Phase I Drilling Discussion
The Phase I drilling program at Eskay Creek continues to demonstrate the excellent grade and geological continuity of the 21A Zone. The program is designed to infill and upgrade areas of the 21A Zone with low drill density to sufficient drill spacing to allow for future economic analyses and also to collect fresh material for an upcoming metallurgical testing program.
Mineralization intersected on section 10,000N (see images below) is largely hosted in the footwall rhyolites with minor mineralization hosted in the contact mudstone as illustrated by an intercept of 9.07 g/t Au, 76 g/t Ag, 10.09 g/t AuEq over 45 m (drill hole SK-18-012) including a higher-grade interval grading 13.06 g/t Au, 84 g/t Ag, 14.18 g/t AuEq over 27.77 m. On the same section drilling intersected 5.39 g/t Au, 139 g/t Ag, 7.24 g/t AuEq over 28.3 m including 8.23 g/t Au, 185 g/t Ag, 10.69 g/t AuEq over 12.45 m (drill hole SK-18-014) located 45 m down-dip of SK-18-012. On section 9960N drilling intercepted 4.16 g/t Au, 204 g/t Ag, 6.88 g/t AuEq over 43.5 m hosted entirely within the footwall rhyolite facies (drill hole SK-18-017).
21A and 21B Zones - Analogous Mineralization Styles
The 21B Zone is geologically and geochemically equivalent to the 21A Zone and accounted for the bulk of mineralization historically mined at Eskay Creek. The 21B Zone occurs as a tabular, stratiform, fault-bounded body characterized by well-bedded, reworked sulfides and sulfosalts interbedded with unmineralized, carbonaceous argillite (mudstone). In addition to the extremely high precious metal grades Eskay Creek as a whole (particularly in the 21A and 21B Zones) is distinguished from conventional VMS deposits by the association with elements of the epithermal suite (Sb-Hg±As). Elevated concentrations of Sb-Hg-As in the 21A and 21B Zones are not evenly distributed throughout the zones but rather occur as isolated clusters due to later stage localized hydrothermal overprinting.
Although the bulk of the mined material was hosted in the contact mudstone, significant unmined mineralization exists in proximal feeder structures in the footwall rhyolites (21C and Pumphouse Zones). These zones differ geochemically from the 21A and 21B Zones in that they contain low levels of Sb-Hg-As as compared to those hosted in the contact mudstone.
21B Zone Historical Reconciliation
Underground mining at Eskay Creek was performed using the drift and fill mining method with run-of-mine material either milled at site to generate a concentrate or as direct shipping ore (''DSO''), to smelters. Due to the elevated concentrations of Sb-Hg-As in the 21B Zone, smelter penalties were often prevented via blending with slightly less deleterious material thereby diluting the penalty elements while maintaining a profitable head grade.
Based upon historical internal technical reports from the Eskay Creek Mine, the parameters for determining reserves in 2006 were based upon a gold price of US$475 per ounce, a silver price of US$8.50 per ounce and a copper price of US$1.50 per pound. The nominal price of gold in 2006 averaged US$603 per ounce and the inflation adjusted price averaged US$738 per ounce, which are significantly lower commodity prices than today. The determination of whether material was milled on site versus shipped directly to an offsite smelter was based on mercury concentrations less than 200 ppm and antimony concentrations less than 1% for onsite milling and greater than 200 ppm mercury or greater than 1% antimony for smelter DSO. The same 2006 mill performance report indicates metallurgical recoveries from onsite milling of the 21B Zone at 84% for gold and 96% for silver.
Despite the substantial precious metal grades and base metal credits of the 21A Zone, in the opinion of the Company, the low commodity prices combined with smelter penalties and necessary cut-off grade deemed the 21A Zone historically uneconomic. As well, antimony was treated as a penalty element and now has the potential to offer significant by-product credits.
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 average grades of 45 g/t gold and 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 official 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-kilovolt Northwest Transmission Line. The Property consists of 8 mineral leases, 2 surface leases and several unpatented mining claims totaling 6,151 hectares.
Eskay is in the traditional territory of the Tahltan Nation. Skeena has a positive working relationship with the Tahltan Central Government (''TCG'') and has signed Exploration and Communication Agreements with the TCG that cover the Company's other projects in Tahltan territory (see news releases dated September 25, 2017 and January 24, 2017).
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.