Resource World Magazine

38 www.resourceworld.com D E C E M B E R / J A N U A R Y 2 0 1 9 SKEENA RESOURCES LIMITED [SKE- TSXV; SKREF-OTC] has had a busy summer with its exploration programs on its prospective precious and base metal properties in the Golden Triangle region of northwest British Columbia, Canada. Additional encouraging gold-silver assays for six holes have been reported from the continuing Phase I surface drill- ing program at the Eskay Creek Project. The multifaceted program is being per- formed in the historically drill defined 21A, 21C and 22 zones. Highlights include: • 9.07 g/t gold, 76 g/t silver and 10.09 g/t gold equivalent (AuEq) over 45.00 metres (SK-18-012), including 13.06 g/t gold, 84 g/t silver and 14.18 g/t AuEq over 27.77 metres; • 5.39 g/t gold, 139 g/t silver and 7.24 g/t AuEq over 28.30 metres (SK-18-014), including 8.23 g/t gold, 185 g/t silver and 10.69 g/t AuEq over 12.45 metres; • 4.16 g/t Au, 204 g/t Ag and 6.88 g/t AuEq over 43.50 metres (SK-18-017), including 3.53 g/t gold, 502 g/t silver and 10.23 g/t AuEq over 15.00 metres. The above results follow earlier assays that included highlights such as 9.49 g/t gold, 111 g/t silver and 10.97 g/t AuEq over 42.65 metres (SK-18-009), including 17.35 g/t gold, 147 g/t silver and 19.31 g/t AuEq over 19.65 metres. There were other equally positive drill results. ESKAY CREEK PROJECT In December 2017, Skeena secured an option to acquire a 100% interest in the Eskay Creek property from Barrick Gold Corp. [ABX-TSX, NYSE] which was once the world's highest-grade gold mine and fifth-largest silver mine by volume. Skeena recently completed a maiden resource esti- mate for Eskay Creek. The total Indicated resource includes 1,021,000 AuEq ounces, 207,000 of which is pit constrained, aver- aging 5.9 g/t AuEq with the remaining 814,000 ounces being underground aver- aging 10.1 g/t AuEq. In addition, the total Inferred resource is 850,000 AuEq ounces with 589,000 ounces pit constrained averaging 4.3 g/t AuEq and 261,000 ounces underground averaging 10.0 g/t AuEq. Eskay creek pro- duced approximately 2.2 million tonnes of ore and was mined with cut-off grades ranging from 12-15 g/t AuEq for mill ore and 30 g/t AuEq for smelter ore. Skeena currently has two drills in operation at its ongoing 10,000-metre surface drill program at Eskay Creek. Drill results will build on the Indicated resource and help develop a metallurgical optimization study. SNIP PROJECT The past-producing Snip Mine operated from 1991 until 1998. Low gold prices and high operation costs during production resulted in extremely high cut-off grades ranging from 12-24 g/t gold and ultimately led to the closure of the mine. Skeena acquired 100% interest in the high-grade Snip Mine from Barrick in July 2017. To date, Skeena has drilled a total of 25,413 metres from surface and under- ground. These drill results will be put towards a maiden resource estimate planned for 2019. Skeena will continue drilling from underground at Snip through the 2018 winter. In addition, Hochschild Mining plc [HOC-LSE; HCHDF-OTC], one of the industry's leading underground mining companies, has entered in to an option agreement and partnership with Skeena on the Snip Project. This partner- ship serves as validation that with the help of underground mining professionals, Snip may once again be a very lucrative mine. WHY COME BACK TO THESE MINES? • Extremely high cut-off grades when the mines were in production due to low gold prices and high operating costs due to the remoteness of the mines; • Availability of new infrastructure, including an airstrip, new nearby hydro- electric development, and proximity to power and roads • Immense amount of resource left behind (proven by recent Eskay Creek resource estimate) GJ CU-AU PORPHYRY PROJECT In April 2017, Skeena announced an NI 43-101 Preliminary Economic Assessment (PEA) for its 100%-optioned GJ Project. GJ has a 25-year mine life with a low initial capex of CDN $216 million, a pre-tax 8% NPV of CDN $546 million and a 27% IRR. The GJ claim boundary is located directly adjacent to the paved Stewart Highway and Northwest Transmission line. BRITISH COLUMBIA REGIONAL MINING ALLIANCE Skeena is a founding member of the newly formed British Columbia Regional Mining Alliance (BC RMA). The Alliance is a one of a kind partnership between industry, First Nations and provincial government to promote investment and development in mining in the Golden Triangle of British Columbia. n More details can be found here: http://amebc. ca/bc-regional-mining-alliance/ Diamond drilling on the Eskay Creek Project in northwestern British Columbia. Photo courtesy Skeena Resources Limited. Skeena Resources releases more positive Eskay Creek assays by Ellsworth Dickson MINING

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