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Skeena Resources begins drilling at Eskay Creek

2019-08-07 09:16 ET - News Release

Mr. Walter Coles reports


Skeena Resources Ltd. has begun surface drilling at the Eskay Creek gold-silver project located in the Golden Triangle of British Columbia.

2019 drill program

The 2019 phase 1 drill program at Eskay Creek will initially focus on converting pit-constrained inferred resources to indicated resources through infill in the 22, 21A, 21E and HW zones. These zones have been prioritized for helicopter-supported drilling, such that the remaining drilling in the 21B zone can be performed with ground-transported drill rigs later this year.

This initial phase of drilling at Eskay Creek will total approximately 15,000 metres over 200 drill holes, with average drilling depths of 75 metres. Hole spacings required for indicated resources varies by zone but averages 15 to 20 metres between drill holes. A second drill rig will be mobilized to Eskay Creek in the coming weeks to accelerate the drilling schedule and may focus on exploration stepout holes to test for additional tonnage potential.

The company also plans to mobilize a drill rig to the Snip gold project later this fall for a 5,000-metre program targeting mineralization in the down plunge of the Twin zone and in the 200 Foot Wall zone.

Eskay Creek PEA update

The preliminary economic assessment (PEA) for Eskay Creek is currently being undertaken by Ausenco Engineering Canada Inc. in Vancouver and is scheduled for completion in the third quarter of 2019. It will include an assessment of an open-pit mining scenario followed by flotation and pressure oxidation of the concentrate for precious metal recovery with tailings deposition similar to historical operations.

Ausenco is a global diversified engineering, construction and project management company providing consulting, project delivery and asset management solutions to the resources, energy and infrastructure sectors, with experience in all stages of project development. Ausenco has previously been engaged on several global projects with similar characteristics and opportunities to Eskay Creek.

About Eskay Creek

In December, 2017, Skeena secured an option to acquire 100-per-cent 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 grams per tonne (g/t) gold and 2,224 g/t silver and was once the world's highest-grade gold mine.

In February, 2019, Skeena released an updated mineral resource estimate for Eskay Creek. The pit-constrained indicated resource includes 2.46 million gold equivalent ounces within 12.7 million tonnes at an average gold equivalent grade of six g/t. The pit-constrained inferred resource includes 1.23 million gold equivalent ounces within 13.6 million tonnes at an average gold equivalent grade of 2.8 g/t. The underground indicated resource estimate includes 218,000 gold equivalent ounces within 819,000 tonnes at an average gold equivalent grade of 8.2 g/t. The underground inferred resource estimate includes 78,000 gold equivalent ounces within 295,000 tonnes at an average gold equivalent grade of 8.2 g/t.

About Skeena Resources Ltd.

Skeena Resources is a junior Canadian mining exploration company focused on developing prospective precious and base metal properties in the Golden Triangle of northwestern British Columbia, Canada. The company's primary activities are the exploration and development of the past-producing Snip and Eskay Creek mines, both optioned from Barrick. In addition, the company has completed a PEA on the GJ copper-gold porphyry project.

Qualified persons

Exploration activities at the Eskay Creek project are administered on site by the company's exploration managers, Colin Russell, professional geoscientist, and Adrian Newton, professional geoscientist. In accordance with National Instrument 43-101 (Standards of Disclosure for Mineral Projects), Paul Geddes, professional geoscientist, vice-president of 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, documenting, and reporting its exploration activities on its exploration projects.

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