Skeena Resources Limited
TSX VENTURE : SKE

March 01, 2011 09:33 ET

Skeena to Commence 5,000 Metre Drill Program at Tropico Project, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 1, 2011) - Skeena Resources Limited (TSX VENTURE:SKE) is pleased to announce that it has awarded an initial contract for 5,000 metres of core drilling on its Tropic project, a layered, mafic/ultramafic hosted, copper-platinum-palladium-gold deposit located 25 kilometres north of the deep water port of Mazatlan, Sinaloa State, Mexico. The contract has been awarded to Maza Diamond Drilling of Mazatlan, and drilling is expected to commence on or before March 12th.

Drilling will be directed at the five 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 been investigated by four trenches and two drill holes.

Within the nearly vertically dipping Maricela-San Pablo zone, gaps of 900 metres (at the west end of the zone), 800 metres (internally) and 1,000 metres (at the east end of the zone) have not previously been tested by drilling. All three of these gaps exhibit good geophysical/geological continuity with the main zone, are characterized by numerous trenches with excellent assay results, or display strongly anomalous Cu-Pt-Pd-Au soil geochemical values along their lengths. 

Some of the historic trench results are set out below:

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

Some of the better reported drill results from the Maricela - San Pablo zone are also set out below. 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 to 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 per cent of the reported drill intercepts below.

Drill Hole No. Cu (%) Pt+Pd+Au (g/t) Width (metres)
M-01-01 0.34 0.48 110.5
M-01-03 0.46 0.64 80.5
M-01-04 0.36 0.55 127.4
SPD-02-01 0.47 0.45 59.0

Some of the reported trench results from the El Pochote zone are as shown below:

Trench No. Cu (%) Pt+Pd+Au (g/t) Width (metres)
EPT-02-04 0.37 0.47 42.2
EPD-02-02 0.51 0.80 60.8
EPD-02-01 0.28 0.45 70.0
EPT-02-01 0.51 0.72 63.0

Two down-dip oriented drill holes on the north margin of the zone (which still intersected anomalous Cu-Pt-Pd-Au mineralization) failed to properly test these exciting trench results.

The reprocessed helicopter-borne electromagnetic/resistivity and magnetic survey data, and the recently completed geological mapping, are 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) and are displayed in schematic form on the Company's website (www.skeenaresources.com). This robust, potentially open pittable, low-strip ratio, large tonnage target has become very attractive with the better than four fold plus of metal prices since it last was investigated by drilling and trenching (9 to 12 years ago).

The Company is pleased to announce that $740,000 of outstanding share purchase warrants have been exercised since beginning of 2011.

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.

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