Skeena Resources Ltd. Dec. 8 reported that the phase-1 drill program at Eskay Creek continues to verify the expected grades, thickness and continuity of mineralization modelled in 22 Zone and encountered a new pod of high-grade gold-silver mineralization about 200 meters to the northeast.

Located about 1,000 meters southwest of the five contiguous zones that make up the primary resource area at Eskay Creek, 22 Zone is envisioned to be mined from a separate open-pit.

Skeena reports that the latest batch of results from phase 1 infill drilling continues to verify the expected grades, thickness, and continuity of mineralization modelled in 22 Zone. Highlights from this latest batch of assay results include:

• 42.8 meters averaging 1.73 grams per metric ton gold and 155 g/t silver from a depth of 24.2 meters in hole SK-20-424.

• 31.5 meters averaging 3.02 g/t gold and 11 g/t silver from a depth of five meters in SK-20-444.

• 48 meters averaging 1.37 g/t gold and 80 g/t silver from a depth of 46 meters in SK-20-448.

• 47.5 meters averaging 1.53 g/t gold and 68 g/t silver from a depth of 57.5 meters in SK-20-452.

In addition to the successful 22 Zone infill drilling, Skeena reports that the latest batch of assays include results from two holes that tapped a near-surface zone of high-grade mineralization about 200 meters to the northeast. The best intercepts in these holes were:

• 11.8 meters averaging 20.68 g/t gold and 5 g/t silver from a depth of 1.7 meters in SK-20-456.

• 7.6 meters averaging 6.18 g/t gold and 4 g/t silver from a depth of 0.4 meters in SK-20-268.

Skeena Resources says this unnamed zone, which lies parallel to 22 Zone, has potential for expansion with further drilling.

The company says it has 12 rigs carrying out a roughly 45,000-meter phase-two infill drill program at Eskay Creek, which is focused on upgrading open-pit resource in preparation for a prefeasibility study slated to be completed by mid-2021.

Skeena Resources Ltd.

A preliminary economic assessment completed late in 2019 outlined plans for a 6,850-metric-ton-per day operation at Eskay Creek that would produce an average of 236,000 oz of gold and 5.8 million oz of silver annually over an initial mine-life of 8.6 years.

At conservative base case metals prices – US$1,325/oz gold and US$16/oz silver – this open-pit mine is calculated to produce an after-tax net present value (5% discount) of US$491 million; a very robust 51% internal rate of return; and it would take about 1.2 years to pay back the US$233 million in capital estimated to be needed to develop the mine.

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