Resource World Magazine

d e c e m b e r / j a n u a r y 2 0 1 6 www.resourceworld.com 31 skeena resources [SKE-TSXV; SKREF-OTC] recently completed the acquisition of a 100% interest in the GJ property from Teck resources [TCK.B-TSX; TCK-NYSE] and its 49% joint venture partner, nGex resources [NGQ-TSX]. The 375 km 2 GJ property is located next to the eastern boundary of the company's Spectrum Project in the Golden Triangle of the Stikine Arch in NW British Columbia. Identifying and acquiring quality assets prior to market demand is an attribute of a shrewd junior company pro- vided the timing and price is right. Obviously, Skeena's management, led by Ron Netolitzky, feels confident of an eventual recovery in the market and purchased the GJ property as a long term call on copper. The project lies just 25 km west of the Imperial Metals' Red Chris Mine and has similar geology and grades. The GJ property has a historic resource containing 1.09 billion lbs of copper and 1.82 million oz of gold with excellent expansion development potential. Management reports that the project has deep high-grade copper and gold targets that need to be followed up on. In addition, Skeena comments that the GJ property also has several high-grade gold-silver prospects similar to what was originally found on their Spectrum property, next door. In terms of tonnages and grades, the historic resource on the GJ Project weighs in at 153.3 million tonnes averaging 0.321% copper and 0.369 g/t gold within the measured and indicated cat- egory. An additional 23.0 million tonnes are inferred, averaging 0.26% copper and 0.31 g/t gold. As a comparison, Red Chris has reserves of 301.5 million tonnes averaging 0.351% copper and 0.274 g/t gold. Skeena acquired the GJ property in for $500,000 in cash and 12.9 million shares with a value of $1 million. An additional two tranches of $1.5 million worth of Skeena shares are to be issued by the second and fifth anniversaries of the closing date. Lastly, there is a $4 million cash payment upon commercial production. The main part of the property is subject to a 2% NSR royalty to Teck and NGEx, half of which can be purchased for $2 million. The northern GJ property is subject to a 1% NSR of which 50% can be purchased for a $1 million cash payment. The GJ property is also subject to a 1% NSR payable pursuant to a royalty agree- ment between Canadian Gold Hunter Corp. and 650399 B.C. Ltd. Next door to the GJ property, on the company's wholly-owned Spectrum gold project, Skeena recently tabled more promising results from its 17,357-metre drilling campaign. A total of nine holes were reported and assays from the remaining 18 holes (6,576 metres) are expected before year end. Highlights include drill hole S15-049, which was collared near the south end of the Central Zone. It intersected four intervals with greater than 5.0 g/t gold between a down-hole depth of 197 and 232 metres. The best interval averaged 14.0 metres grading 7.82 g/t gold, including 2.0 metres grading 35 g/t gold. Hole S15-046, was collared in the middle of the Central Zone and intersected a high-grade section measuring 4.0 metres long and averaging 16.97 g/t gold, including 2.0 metres grading 29.8 g/t gold. These high-grade zones of mineralization occur within a broader halo of low-grade porphyry-style gold-copper mineral- ization. Based on 2015 and historic drilling, this porphyry-style mineralization has dimensions of approximately 600 metres in a north-south direction, 100 to 150 metres in width and 200 to 250 metres in depth. Recent drilling results suggest that the tenor of porphyry mineralization tends to improve to the west. The corporate goal at Spectrum is to establish a 2-to-3 mil- lion ounce resource averaging in excess of 12 g/t gold in multiple zones of steeply-dipping vein systems. Currently, the Spectrum property has a historical resource of 614,000 tonnes averaging 12.3 g/t gold or (243,600 contained ounces gold). Skeena states that it remains on track to publish a NI 43-101 compliant resource estimate for Spectrum in the first quarter 2016. In addition, Skeena will publish an updated NI 43-101 compliant resource estimate for the adjacent GJ in December 2015, which will be updated to include drilling completed by Teck during the 2010 through 2014. To help fund these goals and keep drills spinning, Skeena is in the process of raising $6 million and as of November 9 had already closed the first tranche of $4.6 million. The company currently has a market capitalization of about $15.8 million with 264 million shares outstanding and $8.2 mil- lion in working capital. n Skeena secures more ground in BC's Golden Triangle by Thomas Schuster Drilling operations last summer at Skeena's Spectrum property in the Golden Triangle region of northwest British Columbia. Photo courtesy Skeena Resources Ltd. mINING

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