Skeena Resources Ltd (SKE)

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Skeena Intersects 25.03 g/t AuEq over 35.42 metres in 21A Zone at Eskay Creek New Discovery of Deep Mineralization in Lower Mudstones

Vancouver, BC (August 25, 2020) Skeena Resources Limited (TSX: SKE, OTCQX: SKREF) (“Skeena” or the “Company”) is pleased to announce gold-silver drill results from the 2020 Phase I surface drilling program at the Eskay Creek Project (“Eskay Creek”) located in the Golden Triangle of British Columbia. Six ground-based and helicopter supported diamond drill rigs are being utilized for the 2020 Phase I program in the 21A, 21B and 21C Zones for Preliminary Feasibility Study (“PFS”) resource category conversions. Additionally, the Company is also conducting exploratory drilling in the near-mine environment testing the Water Tower Zone (“WTZ”) as well as the largely underexplored Lower Mudstone (“LM”) sequences, which lie beneath the historically mined Contact Mudstone sequences. Reference images are presented at the end of this release as well as on the Company’s website.

Phase I – 21A Zone Infill Drilling Highlights: Excellent grades over substantial thicknesses

• 5.93 g/t Au, 40 g/t Ag (6.46 g/t AuEq) over 34.40 metres (SK-20-274)
• 21.90 g/t Au, 235 g/t Ag (25.03 g/t AuEq) over 35.42 metres (SK-20-290)
• 6.52 g/t Au, 24 g/t Ag (6.84 g/t AuEq) over 36.50 metres (SK-20-291)

Phase I – Exploratory Lower Mudstones Drilling Highlights: New discovery below historic mining

• 11.99 g/t Au, 21 g/t Ag (12.27 g/t AuEq) over 5.99 metres (SK-20-274)
• 5.99 g/t Au, 20 g/t Ag (6.26 g/t AuEq) over 4.20 metres (SK-20-290)

Gold Equivalent (AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 75]. Reported core lengths represent 80-100% of true widths and are supported by well-defined mineralization geometries derived from historical drilling. Grade capping of individual assays has not been applied to the Au and Ag assays informing the length weighted AuEq composites. Processing recoveries have not been applied to the AuEq calculation and are disclosed at 100%. Samples below detection limit are nulled to a value of zero.

New Deep Mineralization Discovered in Even Lower Mudstone Below 21A Zone
Three drill holes designed for PFS resource category conversion in the 21A Zone were extended to explore the Lower and Even Lower Mudstone (“ELM”) sequences. This drilling intersected 5.99 g/t Au, 20 g/t Ag (6.26 g/t AuEq) over 4.20 m within a broader anomalous interval grading 3.67 g/t Au, 12 g/t Ag (3.83 g/t AuEq) over 10.50 m in the ELM at a vertical depth approximately 200 m below surface in a previously unexplored area (SK-20-290). This new discovery of discordant, replacement-style mineralization is hosted within an intercalated sedimentary sequence of mudstones and siltstones. Differing from the overlying historically mined Contact Mudstone, this new discovery possesses a different geochemical signature in that there are no significant concentrations of the pathfinder suite of elements (Hg-As-Sb). Drill holes SK-20-274 and SK-20-291 intersected weakly anomalous mineralization in the Lower Mudstones suggesting they are a greater distance from a yet to be discovered synvolcanic feeder and provide support for the geological concept model. The evidence of mineralization in these lower mudstone units, lying below the historically important Contact Mudstone, could represent not only the discordant, crosscutting epigenetic/replacement style, but also needs to be evaluated for the possible presence of stacked predecessor exhalative synsedimentary mineralization events. This new discovery is entirely open for expansion along strike and up-dip and represents a target amenable to underground mining methods.



Read more at:
https://skeenaresources.com/news/skeena-intersects-25.03-g-t-aueq-over-35.42-metres-in-21a-zone-at-eskay-creek-new-discovery-of-deep-mineralization-in-lower/