Mr.
Walt Coles reports
SKEENA COMMENCES PEA ON SPECTRUM-GJ PROJECT
Skeena Resources Ltd. has commenced a National Instrument 43-101 preliminary economic assessment and released final 2016 drilling results on the newly expanded Spectrum-GJ gold-copper property in the Golden Triangle of northwest British Columbia, Canada.
Metallurgical, mineral resource modelling, mining and environmental studies are under way, which will provide the basis for the PEA to be released in the second quarter of 2017. The PEA will include updated NI 43-101 mineral resource estimates that incorporate the 2016 definition drilling results reported in this press release.
The company has engaged Stephen Godden, CEng, to direct and manage a team of independent corporate consultants to complete the PEA. The following are the designated qualified persons:
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David Mehner, PGeo -- geology, exploration, local resources;
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David Thomas, PGeo (Fladgate Exploration Consulting Corp.) -- mineral resource estimation;
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Scott Britton, CEng (SAB Mining Consultants Ltd.) -- mine design, infrastructure, capital and operating costs, and market and economic studies;
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Chris Martin, CEng (Blue Coast Group Ltd.) -- process metallurgy;
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John Brodie, PEng (Brodie Consulting Ltd.) -- environment, permitting, closure and reclamation.
Roscoe Postle Associates Inc. (RPA) has also been engaged as an independent third party to review and audit the PEA and its outcomes.
Current NI 43-101 mineral resource estimates are available on SEDAR and the company's website for the Donnelly deposit of the GJ property (G.R. Peatfield, PEng, G.H. Giroux, PEng, and M.S. Cathro, PGeo; April 11, 2016) and the Central zone of the Spectrum property (J.R. Stacey, PGeo, and G.H. Giroux, PEng; May 31, 2016).
Spectrum-GJ definition and metallurgical drilling
In 2016, 2,872 metres were drilled in eight holes at GJ Donnelly deposit and 6,279 metres were drilled in 22 holes at Spectrum Central zone, in part to collect large-diameter core samples for metallurgical test work and to also better define the grade and dimensions of the mineralization within the target mining areas. Complete assay information, a drill plan and list of collar positions are available on the Skeena website.
Several holes at the GJ Donnelly deposit successfully extended the mineralized zone to depth, with gold and copper values higher than the current average mineral resource grades (see Spectrum-GJ 2016 drill results -- GJ Donnelly deposit on the company's website), including hole GJ16-245, which intersected 102.3 metres grading 0.47 gram per tonne gold and 0.29 per cent copper beginning at 276.6 metres. (Note: All intervals reported here are uncut, downhole measurements. True widths are estimated to be between 65 per cent and 90 per cent of drilled widths.)
Drilling at the Spectrum Central zone was focused on a panel of porphyry gold-copper mineralization on the west side and south side of the deposit, which had sparse drill coverage historically due to topographic constraints and difficult drilling conditions. The drilling successfully cut thick intervals of low-to-moderate-grade gold-copper mineralization, as predicted by geological interpretation.
S16-095 intersected a wide interval of 224.9 metres grading 0.79 gram per tonne gold and 0.12 per cent copper, beginning at 23.2 metres below surface (see Spectrum-GJ 2016 drill results -- Spectrum Central zone). This includes a higher-grade interval of 181.0 metres grading 0.94 gram per tonne gold and 0.13 per cent copper, which includes 62.0 metres grading 1.45 grams per tonne gold and 0.11 per cent copper. Other highlight holes include S16-090, which intersected 62.2 metres grading 0.97 gram per tonne gold and 0.20 per cent copper, S16-092 with 69.0 metres grading 0.73 gram per tonne gold and 0.20 per cent copper, and S16-077 with 73.0 metres grading 0.97 gram per tonne gold and 0.26 per cent copper (previously reported on Aug. 24, 2016). Unfortunately, three holes (S16-074, S16-084 and S16-085) were lost in faulted ground above or just after entering the mineralization and thus did not test the full width of the zone. For example, hole S16-085 intersected 12.0 metres grading 2.41 grams per tonne gold, 0.05 per cent copper and 20.5 grams per tonne silver from 236.0 metres to 248.0 metres, before the hole was abandoned at 250.0 metres. Holes S16-088 and S16-095 were drilled in front (east) of holes S16-084 and S16-085 and successfully cored the target zone.
The new drill data will allow for estimation of mineral resources within the western portion of the Spectrum Central zone, part of which was previously counted as waste or low-grade inferred mineralization in the 2016 NI 43-101 mineral resource estimate, due to lack of drilling. This should increase the tonnage of run-of-mine mineralized material and reduce the strip ratio on mining. The gold-copper mineralization in the Spectrum Central zone occurs in a moderately west-dipping panel with a strike length of 1,600 metres in a north-south direction and up to 240 metres in true thickness. It is open below the limit of drill testing at 250 metres to 450 metres down dip, or a maximum of 400 metres below surface.
Exploration of outlying targets
The 2016 Spectrum-GJ program also included prospecting (929 rock samples), soil surveys (1,001 samples), 15.6 kilometres of induced polarization surveying on seven lines over the Spectrum Central zone, a 25.6-kilometre ground magnetic survey and drilling of two holes on outlying targets.
West Creek
A single hole, S16-080, tested the West Creek prospect, which is located 3.5 kilometres southwest of the Spectrum Central zone and has not been previously drilled. Promising bulk-tonnage and high-grade gold-copper-silver values were encountered. The hole intersected 23.4 metres, beginning at 108.3 metres, grading 1.54 grams per tonne gold, 0.20 per cent copper and 7.8 grams per tonne silver, including 1.8 metres grading 14.85 grams per tonne gold, 0.75 per cent copper and 58.5 grams per tonne silver (see Spectrum-GJ 2016 drill results -- Spectrum West Creek target). Further drilling is warranted.
South Copper
A single 2016 drill hole tested a previously undrilled 150-metre-by-200-metre coincident magnetic-high and copper-gold soil and rock geochemical anomaly that lies 450 metres south of the Spectrum Central zone. This hole, S16-097, intersected weakly anomalous gold and copper values, including 14.0 metres grading 0.35 gram per tonne gold and 0.08 per cent copper. Although grades are low, the mineralization is associated with porphyry-style alteration and quartz-sulphide veining similar to the Spectrum Central zone porphyry, which indicates exploration potential for the South Copper area (see Spectrum-GJ 2016 drill results -- Spectrum South Copper target).
Property expansion
The company has acquired a 50-per-cent working interest in three adjacent mineral claims totalling 1,298.8 hectares by purchase agreement with Colorado Resources Ltd. The purchase of these rights makes the GJ and Spectrum properties contiguous and will allow for simpler exploration, development and access permitting in the future. The expanded Spectrum-GJ property now totals 43,410 hectares and extends as far as Highway 37 and the 287-kilovolt Northwest transmission line.
Qualified person
The scientific and technical information contained in this news release has been reviewed and approved by Michael Cathro, PGeo, Skeena's vice-president of operations, a qualified person as defined by NI 43-101.
Quality assurance and quality control
A rigorous chain-of-custody and quality assurance/quality control program, consisting of the insertion of certified standard control samples, duplicates and blanks, was applied to the NQ-diameter, split half-core samples. Sample preparation and analyses for the 2016 samples were completed at ALS Minerals in Kamloops and Vancouver. Gold is determined by 50-gram fire assay followed by an atomic absorption finish or by gravimetric finish for samples over 10 grams per tonne. Copper, silver and other elements are determined by an ICP analysis following aqua regia digestion. Samples with over 100 grams per tonne silver or 1 per cent copper are reanalyzed by a four-acid digestion with atomic absorption finish.
SPECTRUM-GJ 2016 DRILL RESULTS
GJ DONNELLY DEPOSIT DEFINITION DRILLING
Hole No. From To Interval Au Cu Ag
(m) (m) (m) (g/t) (%) (g/t)
GJ16-240 353.10 420.00 66.90 0.33 0.20 1.2
Including 387.00 412.50 25.50 0.53 0.29 1.8
GJ16-241 14.00 24.00 10.00 1.63 0.01 0.4
118.00 135.00 17.00 0.54 0.21 2.8
203.00 217.00 14.00 0.72 0.13 8.5
231.00 377.00 146.00 0.41 0.24 2.6
Including 305.55 375.10 69.55 0.58 0.36 3.2
GJ16-242 129.00 131.00 2.00 0.73 0.55 5.5
GJ16-243 177.35 193.10 15.75 1.72 1.04 2.5
207.10 252.00 44.90 0.49 0.49 2.4
GJ16-244 206.55 239.15 32.60 0.31 0.20 1.2
267.00 329.10 62.10 0.25 0.41 1.7
Including 270.85 306.50 35.65 0.30 0.54 1.3
GJ16-245 223.65 379.00 155.35 0.37 0.25 1.2
Including 276.70 379.00 102.30 0.47 0.29 1.5
GJ16-246 288.32 339.00 50.68 0.42 0.35 2.5
G16-247 327.00 409.00 82.00 0.49 0.17 1.7
SPECTRUM CENTRAL ZONE DEFINITION DRILLING
Hole No. From To Interval Au Cu Ag
(m) (m) (m) (g/t) (%) (g/t)
S16-074* Abandoned at 163 m before zone; no significant values
S16-075* 262.00 445.00 183.00 0.59 0.10 2.4
And 369.00 445.00 76.00 0.99 0.07 4.4
Including 407.00 443.00 36.00 1.55 0.08 6.0
S16-076* 44.00 65.15 21.15 0.34 0.11 0.4
90.00 318.00 228.00 0.61 0.08 1.0
Including 267.80 318.00 50.20 1.47 0.01 1.2
Including 296.00 298.00 2.00 11.85
S16-077* 174.00 354.00 180.00 0.55 0.15 1.0
Including 197.00 296.50 99.50 0.82 0.23 1.3
Including 199.00 272.00 73.00 0.97 0.26 1.2
And 224.10 272.00 47.90 1.14 0.30 1.2
S16-078 165.45 221.00 55.55 0.26 0.10 0.5
290.00 406.00 116.00 0.40 0.14 2.5
Including 301.00 344.00 43.00 0.66 0.23 2.7
S16-079 182.00 205.50 23.50 0.62 0.14 0.8
S16-081 33.00 199.00 166.00 0.31 0.13 1.6
Including 147.00 199.00 52.00 0.40 0.20 2.1
S16-082 26.00 74.00 48.00 0.40 0.09 1.8
S16-083 93.00 97.00 4.00 8.29 0.03 8.1
Including 95.00 97.00 2.00 11.55 0.04 12.1
S16-084 42.00 74.00 32.00 0.63 0.03 1.1
88.00 115.00 27.00 0.64 0.05 1.0
Hole abandoned at 245 m
S16-085 42.00 69.00 27.00 0.52 0.04 1.4
87.00 115.00 28.00 0.92 0.02 0.7
236.00 248.00 12.00 2.41 0.05 20.5
Hole abandoned at 250 m
S15-086 7.50 25.00 17.50 0.31 0.11 0.4
67.00 143.25 76.25 0.35 0.08 0.8
Including 67.00 92.50 25.50 0.49 0.15 0.5
S16-087 36.75 74.50 37.75 0.36 0.09 0.3
S16-088 86.00 113.00 27.00 0.63 0.18 4.2
174.00 212.00 38.00 0.26 0.25 1.3
174.00 196.00 22.00 0.33 0.33 1.6
S16-089 7.00 22.00 15.00 0.84 0.02 0.6
49.00 177.00 128.00 0.44 0.15 1.6
Including 112.00 133.50 21.50 0.81 0.21 1.9
S16-090 40.00 146.00 106.00 0.70 0.18 4.5
Including 83.80 146.00 62.20 0.97 0.20 6.9
Including 118.00 120.00 2.00 5.25 0.21 10.8
192.00 194.00 2.00 4.78 0.03 0.7
S16-091 182.00 241.26 59.26 0.53 0.15 0.6
Including 210.00 241.26 31.26 0.77 0.19 0.9
304.90 321.83 16.93 1.21 0.15 1.8
Including 319.75 321.83 2.08 7.06 0.14 2.1
S16-092 79.00 183.50 104.50 0.63 0.16 0.8
Including 93.00 162.00 69.00 0.73 0.20 0.7
Including 142.00 158.00 16.00 1.70 0.41 1.0
S16-093 266.00 282.00 16.00 0.80 0.01 1.0
333.56 344.00 10.44 0.91 0.15 8.7
S16-094 48.00 183.00 135.00 0.25 0.11 2.7
53.00 95.00 42.00 0.36 0.08 5.5
136.00 174.95 38.95 0.24 0.20 1.4
S16-095 23.15 248.00 224.85 0.79 0.12 1.8
Including 67.00 248.00 181.00 0.94 0.13 2.1
Including 148.00 210.00 62.00 1.45 0.11 3.3
Including 198.00 210.00 12.00 3.49 0.05 2.9
S16-096 7.90 23.00 15.10 0.74 0.01 0.8
211.00 226.60 15.60 0.49 0.29 1.5
SPECTRUM WEST CREEK TARGET
Hole No. From To Interval Au Cu Ag
(m) (m) (m) (g/t) (%) (g/t)
S16-080 23.00 25.15 2.15 3.55 0.17 11.2
108.25 131.60 23.35 1.54 0.20 7.8
Including 108.25 115.00 6.75 4.68 0.48 23.4
Including 108.25 110.00 1.75 14.85 0.75 58.5
SPECTRUM SOUTH COPPER TARGET
Hole No. From To Interval Au Cu Ag
(m) (m) (m) (g/t) (%) (g/t)
S16-097 254.00 268.00 14.00 0.35 0.08 0.8
Notes:
* Assays were previously released on Aug. 24, 2016.
All values are uncut.
True width is estimated to be 65 per cent to 90 per cent
of downhole intervals.
Sample preparation and analyses are completed at ALS Minerals
in Kamloops and Vancouver.
Gold is analyzed by 50-gram fire assay with AA finish or by
gravimetric finish for samples over 10 grams per tonne.
Copper and silver are analyzed by ICP following aqua regia
digestion; samples over 100 grams per tonne silver or
1 per cent copper were reanalyzed by AA following four-acid digestion.
About Skeena
Skeena Resources' primary activities are the evaluation and development of the Spectrum-GJ gold-copper project, as well as exploration on the recently optioned past-producing Snip gold mine, acquired from Barrick Gold, and the past-producing Porter Idaho silver mine.
We seek Safe Harbor.
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