SOURCE: Skeena Resources Limited

Skeena Resources Limited

May 09, 2016 09:23 ET

Skeena Announces 2016 Spectrum Exploration Plans

VANCOUVER, BC--(Marketwired - May 09, 2016) - Skeena Resources Limited (TSX VENTURE: SKE) ("Skeena" or the "Company") is pleased to announce exploration plans for the 2016 season at the Company's 100% owned Spectrum gold-copper project. A 10,000 metre drilling and exploration program has been proposed with work focused on:

  • 6,000 m of resource expansion drilling of porphyry Au-Cu mineralization which is open to the west, south, and north sides of the Central Zone (see news release dated April 25, 2016 for maiden independent resource estimate).
  • 4,000 m of exploration drilling on high-priority peripheral exploration targets, aimed at building additional high-grade and/or bulk-tonnage resources.
  • Initial examination of strong new soil anomalies indicative of vein Au and porphyry Cu-Mo mineralization.
  • Environmental, metallurgical and engineering studies for future development options.
  • Community engagement with the Tahltan Nation.

The 2016 program is expected to run from early June through October, 2016 and will involve an initial program of ground investigation followed by drilling. Significant effort will be made to trench and drill exploration targets away from the Central Zone. To date at the Spectrum project only 19 holes (3,644 m) out of a total of 165 holes (31,965 m) on the property have been drilled outside the Central Zone.

Walter Coles Jr., Skeena's President & CEO, commented: "Projects with a substantial number of delineated ounces will provide the greatest valuation leverage to a rising gold price. We believe there is tremendous potential to increase the maiden resource we announced at Spectrum on April 25th, 2016. We now have a better understanding of the geological controls and therefore believe that we should be able to add ounces much more efficiently this season compared to 2015."

Central Zone -- Resource Expansion Drilling
An IP survey and 6000 m of drilling are planned for the Central Zone. Drilling will focus on the large volume of untested ground to potentially expand the resource at depths less than 300 m. A review of 2015 and historic drill results indicate that a newly recognized panel of porphyry gold-copper mineralization partially overlaps and occurs west of the Central Zone resource and is open to the west, south and north. Drilling indicates the panel begins at surface and has potential dimensions of up to 200 m in thickness, 250 m in the down dip direction, and 2000 m in strike length. The Skarn Cu showing further to the south, with a historic 20 m chip sample grading 2.9 g/t Au and 0.5% Cu, may be a continuation of this trend, which represents a top priority untested drill target.

The proposed locations of the resource expansion drilling as well as past drill holes can be found on the Spectrum Property Central Zone map.

Peripheral Exploration Targets for Drilling
Outside of the Central Zone a property-wide compilation of drill, trench, prospecting and soil results has been completed. This effort outlined several promising areas with potential for building additional high-grade and/or bulk tonnage resources. Up to 4000 m of drilling is planned during the 2016 season after a short program of geological mapping, rock sampling, trenching and IP.

High-priority exploration targets include:

  • The 300 Colour Zone, a very strong Au-(Ag-As-Cu-Pb-Sb) soil geochemical anomaly measuring 400 m by 150 m in size, with a 2015 drill intersection of 52 m grading 1.15 g/t Au, including 16 m grading 1.87 g/t Au.
  • The Road-Boundary Area, a 680 m by 340 m area with highly anomalous Au in soil and rock chip samples. A 2015 drill hole intersected 1.14 m grading 10.5 g/t Au.
  • The Fog soil anomaly where only one historic hole was drilled that intersected 40.8 m grading 1.03 g/t Au, including 2 m at 9.18 g/t Au.
  • The Far West Cu-Mo soil anomaly which is comprised of two lobes each roughly 700 by 200 m in size with soil values averaging 36 ppm Mo (max. 437 ppm) and 334 ppm Cu (max. 1080 ppm) and remains open to the west. This promising anomaly has not seen previous prospecting or drilling.

The locations of the various peripheral exploration targets are shown here.

Other Activities for 2016
In additional to geological exploration and drilling, the Company will complete additional bench-scale metallurgical studies, baseline environmental and archaeological studies, and permitting and engineering studies to support future economic and technical evaluations. Community outreach has begun on the Company's projects, which are all in the Traditional Territory of the Tahltan Nation. Two community meetings are planned for early June.

Quality Assurance and Quality Control
2014 and 2015 drilling and prospecting was conducted under the supervision of Jacques Stacey, MSc, PGeol, and Colin Russell, PGeo. A rigorous chain-of-custody and QA/QC program, consisting of the insertion of certified standard control samples, duplicates and blanks, was applied to the NQ diameter, split half-core and rock samples. Sample preparation and analyses for 2015 samples were completed at the Kamloops facility of Activation Laboratories Ltd. Gold is determined by 50-gram fire assay of an 800 g split. Other elements are determined by an ICP analysis following aqua regia digestion.

The technical information in this news release has been reviewed and approved by Michael S. Cathro, P.Geo., Skeena's Vice-President of Operations and a Qualified Person as defined by Canada's National Instrument 43-101.

About Skeena
Skeena Resources Limited is a junior Canadian mining exploration company involved in the acquisition, exploration and development of prospective base and precious metal properties throughout British Columbia. The Company's primary activities at present are the evaluation of the Spectrum gold project and adjacent GJ copper-gold project, located in the prolific Golden Triangle of northwestern BC. The Company recently optioned the Snip mine from Barrick Gold Corp., which is also located in the Golden Triangle. Skeena's management includes a highly experienced team of mine-finders, including Ron Netolitzky, Chairman, who was inducted into the Canadian Mining Hall of Fame in 2015.

On behalf of the Board of Directors of Skeena Resources Limited,

Walt Coles Jr.
President & CEO

Cautionary note regarding forward-looking statements

Certain statements made and information contained herein may constitute "forward looking information" and "forward looking statements" within the meaning of applicable Canadian and United States securities legislation, including, among other things, information with respect to this presentation. 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 expectations. Forward-looking statements and information may be identified by such terms as "anticipates", "believes", "targets", "estimates", "plans", "expects", "may", "will", "could" or "would". Forward-looking statements and information contained herein are based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and reserves, the realization of resource and reserve estimates, metal prices, taxation, the estimation, timing and amount of future exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory approvals, environmental risks, title disputes and other matters. While the Company considers its assumptions to be reasonable as of the date hereof, forward-looking statements and information are not guarantees of future performance and readers should not place undue importance on such statements as actual events and results may differ materially from those described herein. The Company does not undertake to update any forward-looking statements or information except as may be required by applicable securities laws.

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

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Contact Information

  • For Further Information Contact:
    Walt Coles Jr.
    President & CEO

    or

    Tony Perri
    Investor Relations
    Manager

    Suite 650, 1021 W. Hastings St.
    Vancouver, B.C., Canada V6E 0C3

    Tel: (604) 684-8725
    Fax: (604) 558-7695
    Email: tperri@skeenaresources.com