Skeena pleased by Eskay Creek deep drilling news

Skeena Resources Ltd. [SKE-TSXV, SKE-NASDAQ, RXFB-FRA] on Tuesday released new drilling results from the continuing 2022 regional and near-mine exploration programs at the Eskay Creek gold-silver project in British Columbia.

The company said it has released drilling results from the very first deep hole that successfully intersected the down-dip extension of the Eskay Creek deposits. It said exploration drill hole SK-22-1081 has identified a completely new occurrence of Rhyolite-hosted mineralization situated 650 metres down dip of the NEX Zone in the Eskay Deeps area.

“This very broad interval grades 3.79 g/t gold, 59.4 g/t silver (4.46 g/t gold equivalent AuEq) over 32.19 metres and includes numerous high tenor subintervals, including 10.15 g/t gold, 44.0 g/t silver (10.64 g/t AuEq) over 1.00 metres, and 2.33 g/t gold, 699 g/t silver (10.18 g/t AuEq) over 1.00 metres,’’ the company said.

Situated at a vertical depth of 850 metres below surface, the new gold-silver mineralization is hosted entirely within altered Rhyolite Breccias which begin four metres below a very thin (around 1.0 metre) and unmineralized layer of Contact Mudstone. The stratigraphic sequence, styles of mineralization, alteration and geochemical signature area all analogous to those observed throughout the Eskay Creek deposits, the company said.

“This new discovery suggests significant exploration potential north and west of the currently defined resources for the project. This also unequivocally demonstrates that the Eskay Creek mineralized system is still thriving at depth,” said Paul Geddes, Skeena’s Senior Vice-President, of Exploration and Resource Development.

“Preliminary drill testing at Eskay Deeps was necessary to investigate the true size potential of the Eskay Rift,’’ said Walter Coles, Skeena’s new Executive Chairman. “It is still early days, but we are excited by this discovery as it opens up an entirely new area for underground exploration.’’

On October 31, 2022, Skeena shares closed at $6.19 and currently trade in a 52-week range of $17.11 and $5.64.

Skeena is a Canadian mining exploration and development company. It is focused on revitalizing the past-producing Eskay Creek mine in the Golden Triangle region of northwestern B.C.

Skeena recently tabled results of a feasibility study for Eskay Creek, which produced 3.3 million ounces of gold and 160 million ounces of silver from 2.2 million tonnes of ore from 1994 until closure in 2008.

In years one to five, the study envisages average annual production of 431,000  AuEq ounces, placing Eskay Creek as a tier one operation. Life of mine production is expected to be 3.2 million AuEq ounces from 2.4 million ounces of gold and 66.7 million ounces of silver.

The study is based on proven and probable open-pit mineral reserves of 29.9 million tonnes, containing 2.87 million ounces of gold and 75.5 million ounces of silver (combined 3.85 million AuEq ounces).