Long intervals of high-grade gold from Eskay Creek ahead of resource update

By Magda GardnerCanadian Mining Journal / March 02, 2021 / www.northernminer.com / Article Link

The last batch of infill results from Skeena Resources' (TSX: SKE) second-phase infill program at the past-producing Eskay Creek project in B.C.'s Golden Triangle includes long intervals of near-surface high-grade gold-silver mineralization.

Latest results include assays for drillholes completed at the 21C and HW zones. Drill highlights from the 21C zone included 49 metres of 2.82 grams gold per tonne and 57 grams silver per tonne (3.58 grams gold-equivalent per tonne) starting at 98 metres; and 26.8 metres of 5.45 grams gold per tonne and 12 grams silver per tonne (5.61 grams gold-equivalent per tonne) from 201.7 metres. Notable intercepts from the HW zone included 16.4 metres of 6.06 grams gold per tonne and 11 grams silver per tonne (6.21 grams gold-equivalent per tonne) from 45.6 metres.

In addition to returning strong infill grades, the 49-metre intercept has also expanded mineralization at depth in the 21C zone and two additional intercepts (7.6 metres of 2.5 grams gold-equivalent and 10.3 metres of 2.42 grams gold-equivalent) suggest potential for supplementary near-surface gold-silver mineralization in the HW zone, outside of the current resource blocks.

Skeena has also completed a 5,000-metre near-mine exploration program around Eskay Creek - results are expected shortly.

Last year, between exploration and infill work, Skeena drilled 83,000 metres at the project. A resource update is expected in the spring, which would be followed by a prefeasibility study in the second quarter.

Current open-pit resources at Eskay Creek include 12.7 million indicated tonnes at 4.3 grams gold per tonne and 110 grams silver per tonne for a total of 1.7 million oz. of gold and 44.7 million oz. of silver. Additional inferred pit resources total 14.4 million tonnes at 2.3 grams gold per tonne and 47 grams silver per tonne for 1.1 million gold oz. and 21.7 million silver ounces.

A 2019 preliminary economic assessment on Eskay Creek outlined an open pit mine producing an average of 306,000 gold-equivalent oz. annually at all-in sustaining costs of US$757 per ounce.

Between 1994 and 2008, Eskay Creek produced 3.3 million gold oz. and 160 million oz. of silver from head grades of 45 grams gold per tonne and 2,224 grams silver per tonne.

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