Skeena Resources Limited
TSX VENTURE : SKE

May 10, 2011 10:31 ET

Skeena Provides Update on Current Tropico Drilling, First Batch of Assays Due at End of May

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 10, 2011) - Skeena Resources Limited (TSX VENTURE:SKE) is pleased to present an up-date to its Tropico copper-platinum-palladium-gold project in Sinaloa State, Mexico. A 5,000 metre diamond drill program commenced mid-March. Core from the first 6 holes (SK11-001 to SK11-006), totaling 1,350.4 metres, is in the assay lab and results are expected to be received, compiled and released before the end of May. The drill is currently working on hole SK11-09 and it is anticipated that this first phase will be completed by the end of June.

The present program is focused on the apparently geochemically and geophysically continuous, 5,000 metre long Maricela – San Pablo Zone, which has previously been explored by 22 trenches and 18 drill holes, and the 1,500 metre long El Pochote Zone, which was investigated by 4 trenches and 2 drill holes. These two zones characteristically occur along a low ridge crest with sparse overburden and tree cover in an area bounded by agricultural fields. The Zones appear to be good, potentially open pit targets in a district with excellent infrastructure (the property is crossed by a rail line, two paved highways, numerous secondary roads, and is located within 30 kilometres of the deep-water port at Mazatlan).

The Maricela – San Pablo Zone was previously explored with 21 back-hoe trenches – all of which intersected good mineralization over significant widths (refer to news release dated March 1, 2011). The Zone has been further tested with 24 historic drill holes – of these 2 were vertical (with no PGM assays having been completed), 1 vertical hole was 'outside' the Zone, 6 angle holes were 'outside' of the Zone, 1 reverse circulation hole was drilled at right angles to the Zone, 7 holes were drilled down-dip, and only 6 holes appear to have been successfully drilled at the proper orientation. Furthermore, three gaps of 800 metres, 900 metres and 1,000 metres along strike remain un-drilled. The El Pochote Zone is less explored.

Tropico appears to be a classic, layered, mafic/ultramafic complex. When the historic and current multi-element soil geochemical database of 7,651 samples is geospatially and statistically analyzed, the most striking observation is the enrichment and the strong inter-element correlation amongst copper, nickel, cobalt, chrome, platinum, palladium and gold. The correlations and metal ratios are typical of sulphides segregating from a moderately-to-highly fractionated basic magma with possible alkaline affinities. Furthermore, there is no evidence of any significant supergene enrichment. The more mobile copper and palladium are strongly correlative with the more immobile nickel, chrome, cobalt and platinum.

The complex appears to be dipping to the north-northwest (at least in the Main Maricela – San Pablo area) at 70 to 80 degrees as indicated by modeling and profiling of the Fugro DIGHEM airborne magnetic survey data.

This first phase of drilling is being targeted at proving up lateral continuity to the zones (primarily by infilling the 3 historic 'gaps') to a vertical depth of 150 to 200 metres.

The Qualified Person responsible for the content of this news release, as defined by Canada Securities National Instrument 43-101, is the Company president and chief executive officer, J. R. Allan, P. Geol.

ON BEHALF OF THE BOARD OF DIRECTORS OF SKEENA RESOURCES LIMITED

"Rupert Allan"

J. R. Allan, P.Geol., President

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

Contact Information

  • Skeena Resources Limited
    Tony Perri
    Investor Relations, Manager
    604-684-8725
    604-669-2543 (FAX)
    tperri@skeenaresources.com

    Wani Capital
    Raju Wani
    403-240-0555