Skeena drills new Eskay Creek gold find, shares advance

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Skeena Resources Ltd. [SKE-TSXV, SKREF-OTCQX, RXFB-FRA] has announced expansion exploration results at its Eskay Creek gold-silver project in a new Rhyolite target located 200 metres east of the 22 Zone and starting at a depth of only 23 metres below surface. Eskay Creek is located in British Columbia’s Golden Triangle area.

The latest results are from an area with no historical drill testing located beyond the extents of Eskay Creek’s currently defined pit-constrained resources as defined in a 2022 feasibility study. Exploratory hole SK-22-1054 includes key intercepts of 2.15 g/t gold equivalent (AuEq) over 40.7 metres (downhole width, from 99 metres depth) and 2.4 g/t AuEq over 13 metres (downhole width from 250 metres depth.

Skeena has stated that it is planning additional exploration drilling in the area as part of its 2023 program as the new discovery remains open in all directions with additional work required to determine the geometry of the mineralization.

Skeena shares advanced on the news, rising 4.7% or 35 cents to $7.74 in light trading volume. The shares are currently trading in a 52-week range of $17.11 and $5.64.

Skeena is engaged in a bid to revive two of Canada’s most successful high-grade precious metal mines – Snip and Eskay Creek. Both are located in the Golden Triangle area.

The company’s primary activities are the exploration and development of Ekay 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.

Eskay Creek ranked as highest-grade gold mine in the world at the time that it was in production. It was also the world’s fifth highest grade silver producer.

Skeena recently announced the results of an Eskay Creek feasibility study, which envisages a planned open-pit operation using conventional mining equipment. The potential for an underground mining component to the project is still being evaluated.  It is anticipated that Skeena will have a stockpile developed ahead of mill start up of approximately 600,000 tonnes of ore.

In years one to five, the study envisages average annual production of 431,000 gold equivalent (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).

On Tuesday, Skeena said the new discovery has the style of mineralization alteration and geochemical signature consistent with feeder style mineralization encountered throughout the main Eskay Creek deposits.

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