Skeena Resources Limited
TSX VENTURE : SKE

January 18, 2011 10:45 ET

Skeena Reports Exploration Update on Tropico Project, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 18, 2011) - Skeena Resources Limited (TSX VENTURE:SKE) is pleased to provide a progress up-date on its 100% owned Tropico copper-platinum-palladium-gold Project, located 25 km north of Mazatlan, Sinaloa State, Mexico. This robust, potentially open pittable, low-strip ratio, large tonnage target has become very attractive with the better than quadrupling of metal prices since it last was investigated by drilling and trenching (9 to 12 years ago).

During the fall of 2010, the Company undertook approximately 170 line kilometres of in-fill and extensions to the historic geochemical sampling grids. This work covers covers 19 kilometres of strike length of a layered mafic intrusive body that hosts numerous, well-documented copper-platinum-palladium-gold occurrences. Mineralization generally occurs as coarse-grained, disseminated, sparse chalcopyrite with very minor cubanite, bornite, pyrrhotite, pyrite and pentlandite (generally less than 5% combined sulphides). Post mineralization alteration is limited to alteration of pyroxenes to tremolite, weak argillic alteration of the feldspar pheocrysts, and very weak, patchy silicification.

Analytical results from approximately 3,500 new soil samples continue to successfully and accurately delineate the main mineralized horizon (the Maricela - San Pablo and the El Pochote Zones) and to detect numerous geochemically anomalous parallel trends. Sampling was commonly undertaken at 50 metre station intervals on 100 metre spaced lines. A back-hoe trenching program, started in early December and interrupted for the holiday season, is approximately one-quarter completed and will again commence in early February.

In 2011, the Company will focus the majority of its back-hoe trenching and diamond drilling efforts on the apparently continuous, 5 kilometre long Maricela – San Pablo Zone, which has previously been explored by 22 trenches and 18 drill holes, and the 1.5 kilometre long El Pochote Zone, which has only been 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).

Within the nearly vertically dipping Maricela – San Pablo Zone, three 800-metre long sections have not been tested by drilling nor have numerous trenches with excellent assay results been further investigated. Mapping and geochemical sampling indicate that trenching has often not exposed the entire width of the mineralized horizon. Some of the historic trench results are reported below:

    grams/tonne  
Trench No. % Copper Pt + Pd + Au Width in metres
       
MTR-8 0.43 0.63 46.5 m
MTR-10 0.37 0.48 134.0 m
MTR-11 0.58 0.78 73.7 m
MTR-3 0.51 0.55 45.0 m
MTR-4 0.94 1.07 54.0 m
MT-02-13 0.64 1.02 85.0 m
MTR-1 0.72 0.99 72.0 m
and 0.46 0.83 14.0 m
and 0.54 0.71 48.0 m

Some of the better reported drill results from the Maricela – San Pablo Zone are also set out below. In, in many cases, the entire width of the Zone appears not to have been tested due to poor or no core recovery in the uppermost 10-15 metres of each hole. Of the drill core assayed, true widths of the mineralized horizon are estimated to be in the order of 70% of the reported drill intercepts.

    grams/tonne Intercept width
Drill Hole No. % Copper Pt + Pd + Au in metres
       
M-01-01 0.34 0.48 110.5 m
M-01-03 0.46 0.64 80.5 m
M-01-04 0.36 0.55 127.4 m
SPD-02-01 0.47 0.45 59.0 m

The soil geochemical expression of the Maricel – San Pablo Zone is characteristically in the order of 1,000 to >10,000 ppm copper, 100 to 376 parts per billion ("ppb") platinum, 100 to 1,185 ppb palladium and 100 to 376 ppb gold.

Some of the reported machine trench results from the El Pochote Zone are:

    grams/tonne  
Trench No. % Copper Pt + Pd + Au Width in metres
       
EPT-02-03 0.51 0.80 60.8 m
EPT-02-01 0.51 0.72 63.0 m

Two down-dip oriented drill holes on the north margin of the Zone (which still intersected anomalous copper and PGM mineralization) failed to properly test these exciting trench results.

The soil geochemical expression of the El Pochote Zone is in the range of 1,000 to >6,200 ppm copper, 100 to 385 ppb platinum, 100 to 294 ppb palladium and 100 to 248 ppb gold.

A series of interpretative maps with the historic trench and drill hole results, and an interpretation of the new and historic soil geochemical anomalies, will be posted to the Company's website later this week. The re-processed airborne geophysical survey electromagnetic/resistivity and magnetic data and the recently completed geological mapping is being integrated with the historic data base in order to prioritize targets before diamond drilling commences. The historic trench and drill results reported herein are available in numerous SEDAR filings under the profile of Santoy Resources Ltd. (the most recent previous operator of the Tropico Project). The soil geochemical samples were trucked to Guadalajara, Mexico and prepared by Acme Analytical Laboratories Ltd. The final analyses are completed in Acme's ISO-registered laboratory in Vancouver, BC. Gold is analyzed by 30 gm fire assay fusion with an ICP-ES finish, and 31 additional elements by 0.5 gm ICP-ES analyses.

The Tropico Project will be drill ready by early February. An initial program of 10,000 metres is proposed. The Company expects to be in receipt of the requisite environmental permits from the Mexican Government (SEMANART) within the next week.

In order to focus on the Tropico Project, the Company is terminating its efforts to assemble a portfolio of exploration properties in the Yukon and is withdrawing from the Karma (Tathe) Option Agreement (refer to news releases June 22 and November 2, 2010). The Karma claims are being returned to the original vendor in return for $26,700, cancellation of the one million shares issued for the acquisition, subject to regulatory approval, and other considerations.

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

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.

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