Long intervals of high-grade gold from Eskay Creek ahead of resource update

Drill Helpers at Eskay Creek Drill Shack – Image courtesy of Skeena Resources

The last batch of infill results from Skeena Resources’ (TSX: SKE) second-phase infill program at the past-producing Eskay Creek project in B.C.’s Golden Triangle includes long intervals of near-surface, high-grade gold-silver mineralization.

The latest results include assays for drillholes completed at the 21C and HW zones. Drill highlights from the 21C zone include 49 metres of 2.82 g/t gold and 57 g/t silver (3.58 g/t gold-equivalent) starting at 98 metres; and 26.8 metres of 5.45 g/t gold and 12 g/t silver (5.61 g/t gold-equivalent) from 201.7 metres. Notable intercepts from the HW zone include 16.4 metres of 6.06 g/t gold and 11 g/t silver (6.21 g/t gold-equivalent) from 45.6 metres.

In addition to returning strong infill grades, the 49-metre intercept above has also expanded mineralization at depth in the 21C zone and two additional intercepts (7.6 metres of 2.5 g/t gold-equivalent and 10.3 metres of 2.42 g/t gold-equivalent) suggest potential for supplementary near-surface gold-silver mineralization in the HW zone, outside of the current resource blocks.

Skeena has also completed a 5,000-metre near-mine exploration program around Eskay Creek – results are expected shortly.

Last year, between exploration and infill work, Skeena drilled 83,000 metres at the project. A resource update is expected in the spring, which would be followed by a prefeasibility study in the second quarter.

Current open-pit resources at Eskay Creek include 12.7 million indicated tonnes at 4.3 g/t gold and 110 g/t silver for a total of 1.7 million oz. of gold and 44.7 million oz. of silver. Additional inferred pit resources total 14.4 million tonnes at 2.3 g/t gold and 47 g/t silver for 1.1 million gold oz. and 21.7 million silver oz.

A 2019 preliminary economic assessment on Eskay Creek outlined an open pit mine producing an average of 306,000 gold-equivalent oz. annually at all-in sustaining costs of US$757 per oz.

Between 1994 and 2008, Eskay Creek produced 3.3 million gold oz. and 160 million oz. of silver from head grades of 45 g/t gold and 2,224 g/t silver.

(This article first appeared in the Canadian Mining Journal)

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