Eskay Creek 21C holes confirm gold-silver

Skeena Resources Ltd. Dec. 5 reported gold-silver intercepts from another eight holes drilled at the Eskay Creek project in British Columbia's Golden Triangle.

Skeena cut a deal with Barrick Gold Corp. late in 2017 to acquire the major's interest in Eskay Creek. This year the junior carried out an initial phase of expansion and infill drilling targeting three zones – 21A, 21C and 22.

The latest batch of results are from holes testing the 21C Zone, highlights include:

• 10.84 meters averaging three grams per metric ton gold and 233 g/t silver in hole SK-18-026;

• 11.25 meters of 4.02 g/t gold and 83 g/t silver in SK-18-027;

• 14.34 meters of 9.86 g/t gold and 92 g/t silver in SK-18-029;

• 14.55 meters of 7.36 g/t gold and 1,189 g/t silver in SK-18-031;

• 27.5 meters of 6.39 g/t gold and 157 g/t silver in SK-18-031; and

• 14.5 meters of 4.23 g/t gold and 314 g/t silver in SK-18-032.

The 2018 Phase I program in the 21C Zone was principally directed at collecting new material for an upcoming metallurgical optimization study. Historical drilling in this zone is tightly-spaced and sufficient for reporting dominantly indicated resources.

According to a resource estimate calculated for Skeena Resources in September, 21C Zone hosts 674,000 metric tons of underground indicated resource averaging 7.5 g/t (163,000 ounces) gold and 154 g/t (3.34 million oz) silver; plus 44,000 metric tons of underground inferred resource averaging 6.7 g/t (10,000 oz) gold and 38 g/t (55,000 oz) silver.

This is part of a larger underground resource at Eskay Creek that totals 2.51 million metric tons in the indicated category averaging 7.2 g/t (582,000 oz) gold and 215 g/t (17.34 million oz) silver; plus 812,000 metric tons of inferred resource averaging 7.2 g/t (187,000 oz) gold and 214 g/t (5.59 million oz) silver.

Eskay Creek also hosts 1.09 million metric tons of open-pit indicated resource averaging 4.9 g/t (173,000 oz) gold and 72 g/t (2.53 million oz) silver; plus 4.26 million metric tons of open-pit inferred resource averaging 4.3 g/t (458,000 oz) gold and 72 g/t (9.81 million oz) silver.

None of the drilling completed this year is included in this resource calculation.

In addition to upgrading and expanding the resource – especially in targeted 21A, a zone that hosts roughly 91 percent of the open-pit resource – this year's drilling aimed to collect fresh material for metallurgical work.

The volcanogenic massive sulfide deposit at Eskay Creek also hosts copper, zinc and antimony.

During previous mining at Eskay Creek, antimony was treated as a penalty element. Skeena Resources believes this mineral, which is considered critical in the United States, could offer significant by-product credits during future mining.

The new metallurgical work, slated for completion in the first half of 2019, is expected to include information on recovery of antimony and other base metals at Eskay Creek.

–SHANE LASLEY