Skeena drills more high grades, 10 g/t gold-equivalent, from Eskay Creek waste

Skeena Resources (TSX: SKE; NYSE: SKE) continued to find good grades as it completed the second phase of drilling at the Albino waste facility at the Eskay Creek gold-silver project in B.C.’s Golden Triangle. The best assay was 10.13 g/t gold-equivalent over 16.8 metres.

Drilling at the Albino waste facility consisted of 212 metres in 12 vertical holes dug by an air rotary drill rig mounted on a floating barge. The drill program has increased the area of interest to 350 metres by 125 metres and the assays were in line with those from the first phase of drilling in early 2021.

Here are the highlights:

• Hole SK-21-899: 16.8 metres grading 5.9 g/t gold and 317 g/t silver (10.13 g/t gold-equivalent);
• Hole SK-21-901: 12.2 metres at 4.53 g/t gold and 168 g/t silver (6.77 g/t gold-equivalent);
• Hole SK-21-903: 13.7 metres at 5.84 g/t gold and 222 g/t silver (8.8 g/t gold-equivalent);
• Hole SK-21-908: 16.8 metres at 3.39 g/t gold and 156 g/t silver (5.47 g/t gold-equivalent); and
• Hole SK-21-909: 16.8 metres grading 3.76 g/t gold and 151 g/t silver (5.77 g/t gold-equivalent).

The two drill programs have intersected a mineralized horizon 13.2 metres (true thickness) across a total of 20 holes. The length-weighted average from all holes is 4.03 g/t gold and 163 g/t silver (6.21 g/t gold-equivalent).

Skeena says the Albino waste facility was used by former Eskay Creek operators for the sub-aqueous disposal of development waste rock and mill tailings. It is situated west of the mine site.

The company released a pre-feasibility study for the project in July 2021. It outlined an average grade of 4.57 g/t gold-equivalent for an open pit mine. and estimated the preproduction capital cost at $488 million. The after-tax net present value with a 5% discount rate was $1.5 billion with an internal rate of return of 56%, and a 1.4-year payback.

Skeena is planning to advance Eskay Creek to full feasibility by the first quarter next year.

Technical reports about the project are available on www.SkeenaResources.com.