Skeena earns ownership of high-grade Snip Mine

Skeena Resources Ltd. Nov. 1 reported the final assay results from its 2016 drill program at Snip, which hosts the historic Snip high-grade gold mine in the Golden Triangle of northwestern British Columbia.

Hole S-16-16, targeting an extension of the newly discovered Twin West structural corridor, cut 3.2 meters averaging 24.44 g/t gold.

Additional holes targeting the Twin Zone confirmed the presence of the newly defined 200 Footwall zone, which is approximately 200 meters below the historical Twin zone mine workings. Highlights include 1 meter of 60.7 g/t gold and 1.2 meters of 8.44 g/t gold in hole S-16-26.

One previous hole drilled in the 200 Footwall zone, S-16-06, cut 13.5 meters of 16.24 g/t gold.

Drilling at Lamp zone, which is just east of the Twin Zone mine workings, indicate at least two new high-grade vein structures that remain open along strike. Highlights include S-16-03, which cut 1.4 meters of 59.5 g/t gold and 1.15 meters of 21.3 g/t gold; and S-16-02, which cut .24 meters of 33.07 g/t gold.

With the goal of discovering parallel high-grade vein structures, Skeena completed 28 holes for 7,180 meters of drilling at Snip in 2016. This program identified and three significant high-grade zones outside of historic mine working areas.

"The 2016 drill program successfully tested several promising high-grade targets away from the historical mine workings, including the new 200 Footwall zone," summarized Skeena Chairman Ron Netolitzky.

At C$2 million, this program also met the primary requirement to earn full ownership in the property just seven months after entering an option agreement on the property with Barrick Gold Corp. Under the agreement, Barrick required Skeena to refrain from drilling within 25 meters of historic underground workings, planning for the 2017 exploration program can now include drilling from underground.

Access to the underground workings will allow for year-round drilling and the ability to delineate vein structures in a much more efficient and cost-effective manner.

"Our objective over the next few months is to complete the acquisition of the mine and to prepare for an aggressive underground drill program in 2017," Netolitzky added.

Largely due to his role in realizing the potential of the Snip and Eskay Creek deposits, both of which were developed into mines, Skeena Chairman Netolitzky was inducted into the Canadian Mining Hall of Fame in 2015.

-SHANE LASLEY