The following article is a condensed version of the company’s July 9th, press release. It’s been edited by me with some commentary in bold. The original press release can be found here. Please read both my article and the original press release for a more complete picture of what’s going on. Said another way, I took out some of the big words and the names of various drill holes. This editing and commentary is entirely my own opinion and not that of anyone contacted to Skeena or its management and Board.
VANCOUVER, BRITISH COLUMBIA–FOLLOW UP ON – Skeena Resources (TSX VENTURE:SKE) announced that drilling is underway with two drills at the Company’s high-grade Spectrum gold project in northwest British Columbia. The core is being logged and sampled and assays will be released in batches throughout the field season. [Skeena is working on its dream list of targets. Fully funded for the next 12-18 months even with fairly aggressive drilling in 2015 & 2016. Liquidity runway is a major factor in getting Skeena into drilling so soon after the capital raise.]
The first hole was completed to a depth of 278 m and drilled at dip of -51 degrees due west. It is designed to cross five mineralized structures up-dip of known intersection from prior drilling. Recall that the last hole drilled by Skeena in October, 2014 returned several promising intervals. See January 14, 2015 Skeena News Release for details. Two additional holes are planned for this section and will test the mineralized structures closer to surface.
As of this press release, our first hole in this campaign had been drilled to a depth of 170 m and is designed to test all five structures. Several historic holes on this section were reported to have encountered strong mineralization. [there will be a number of step-out holes, that could make the maiden Ni 43-101 resource of Indicated and Inferred ounces a strong one, in my opinion only).
A total of 12,000 m of drilling in 60 NQ holes is planned for this field season, with holes averaging 200 m and varying from 50 to 350 m in depth. The drill program has been designed to expand the historic resource at the 500 Colour and Central zones, the latter of which includes the QC 1, QC 2, Porphyry 1, and Porphyry 2 structures. Other holes will test other outlying targets. [A prime example of why Skeena’s extensive historical data base has been, and will continue to be, invaluable. Skeena is more than merely an early-stage exploration company, my opinion only. If some good assays are reported later this year, the goal of reaching 1 million ounces of Indicted & Inferred will be more likely. Even if the 1 million ounces is not delivered in the maiden resource, Skeena is comfortably funded for a second drill campaign in 2016.]
An updated drill plan map, cross sections and several new photos of the project will be posted to the Company’s website at www.Skeenaresources.com. [the photos are very high quality and worthy of viewing.]
Spectrum is a structurally-hosted, high-grade, gold deposit located in the prolific Golden Triangle of northwestern British Columbia. This area hosts other world-class gold and gold-copper mines and projects including Valley of the Kings (Pretivm), KSM (Seabridge), Galore Creek (Teck-Novagold), Snip (Barrick), Eskay Creek (Barrick) and Red Chris (Imperial). Infrastructure in the area has been greatly improved by the 2014 completion of BC Hydro’s Northwest Transmission Line and Red Chris – Iskut Extension power line, which passes within 30 km of the Spectrum property. [Recall that Chairman Netolitzky was instrumental in the development of both Snip and Eskay, now controlled by Barrick.
Skeena’s corporate goal is to establish a 43-101 compliant, two to three million ounce, high-grade gold resource in multiple, closely spaced, steeply dipping, parallel zones. [But first the 1 million ounce target !! my opinion only] The Spectrum property includes 13 known gold prospects most of which have received no previous drilling. The Central and 500 Colour zones are the most advanced, with nearly 100 drill holes and a historical gold resource of 614,000 tonnes grading 12.3 g/t Au at a 5.0 g/t cut-off, for 7550 Kg Au (243,600 ounces). The zones are open along strike in both directions, and at depth. Please note that the 243,600 historic ounces is NON NI 43-101 compliant.
Skeena Resources Limited is a junior Canadian mining exploration company involved in the acquisition, exploration and development of prospective base and precious metal properties throughout British Columbia. The Company’s primary activities at present are the evaluation of the high-grade Spectrum Gold property. Skeena’s management includes a highly experienced team of mine-finders, including Ron Netolitzky, Chairman, who was inducted into the Canadian Mining Hall of Fame in 2015.