Yet another solid project update on Skeena’s Spectrum Project in NW British Columbia
News from Skeena Resources (SKE.V) (SKREF) has been coming more frequently, each press release with important Company updates. On September 14th, the Company reported that,
“New high-grade rock sampling results and the advancement of several prospecting discoveries and geochemical anomalies will lead to drill target status. Nine targets have been identified or improved upon by our prospecting work, resulting in an expansion of the known mineralized system and providing new opportunities for drilling high-grade gold mineralization away from the known mineralized zones.”
A highlight of the press release is that, “Three bedrock grab samples of weathered quartz-sulphide vein in a 5 by 3 m area assayed 52.5 g/t Au, 17.4 g/t Au, and 1.10 g/t Au.”
The September 14th press release follows two others dated September 8th and August 20th. Significant additional news flow is expected over the next few months. Progress and execution of Skeena’s exploration plan this year has been flawless, no red flags, no question marks. Excitement and optimism among management, consultants and the Board is running high. The hope is that new and existing shareholders, including institutions, will also recognize the significant progress being made. In Skeena’s latest press release CEO Walter Coles commented,
“This is a large, robust system of mineralization. We keep finding more high-grade prospects that should allow for more chances to discover and drill shallow high-grade resources. That’s how we are going to build ounces.”
“These nine targets are very exciting as they appear to represent parallel, high-grade gold zones, similar to the Central and 500 Colour zones, where we have focused most of our drilling this season. This activity should drive us towards our goal of publishing a 43-101 compliant resource in Q1 of 2016.”
Second batch of drill results and ongoing soil & rock sampling continue to impress
Skeena Resources (SKE.V) (SKREF) reported results from a second batch of 15 holes at the Company’s Spectrum Gold Project, in NW British Columbia. Please see a remarkable, CEO.CA sponsored, 4 minute video. 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 a historical, non 43-101 compliant gold resource on the central zone alone of 614,000 tonnes grading 12.3 g/t Au at a 5.0 g/t cut-off, for 243,600 ounces. Including 6 holes reported on August 20th, assays on 21 holes have been announced and 22 more cores are in the lab. The second largest shareholder and Chairman, award winning Geologist, Ron Netolitzky commented,
“Over 80% of the 2015 holes for which we have assays yielded high-grade gold intervals. Due to the positive results, the 2015 drilling campaign will be expanded to 16,000 m from the original plan of 10,000 to 12,000 m.”
Also noteworthy is the updated description of soil and rock sampling from the August 20th press release to that of September 8th. From August 20th,
“Soil sampling and prospecting have focused on possible extensions to the known mineralized structures. The most promising is Target A…”
From September 8th, “The Company is also pleased to report partial prospecting results that confirm the significance of strong gold in soil values on, “Target A.”
As a reminder, headline grabbing lead Geologist Mr. Netolitzky, is surrounded by a very impressive team, please visit team bios.
Soil sampling is undertaken to better ascertain possible locations and shapes of obscured mineralized structure(s) to identify higher grade sections. Simply put, a successful soil sampling program results in more accurate drill-hole targeting. This is exactly what Skeena is experiencing. A large number of soil samples exhibited high-grade gold values, further soil sampling, and subsequently 24 rock samples, confirmed that the very high-grade soil sampling was no fluke.
Combined, existing and ongoing soil and rock sampling, the historical database, drill results from 2014 & 2015 and a highly skilled technical team, is a very meaningful aid in choosing targets. A great deal of money can be wasted drilling an anomaly only to realize that the highest grade zones are confined entirely to narrow areas of the structure. Skeena remains well suited in many key respects to possibly make Spectrum a high-grade mine with a small footprint, low cap-ex and op-ex. This could result in attractive all-in costs and a profitable company, including compelling blue-sky potential.
Rarely does one SEE visible gold in core samples
Again from September 8th, “Visible gold has been identified in 13 of 43 cores of the completed holes. “Unsurprisingly, visible gold correlates well with high-grade deposits and is further evidence of a potential sleeping giant. Skeena is on the hunt with substantial cash reserves, ~44 assays yet to come this year and cash left over for drilling into next year. That’s a tremendous amount of drilling for a company the size of Skeena. Why deploy most of its cash cushion on the next 9 months of drilling? Netolitzky and his technical team must have strong feelings as to what could be next from their considerable efforts. Actions speak louder than words.
Therefore, in 2015 alone the Spectrum Gold deposit has received and reported on 21 assays, 80% of which had high-grade intervals, and ~ 25% with portions of visible gold in cores and spectacular (my subjective word) soil & rock samples. Consider that, 168 soil samples reported, all in mineralization, with the highest assaying 19.5 g/t Au, followed by 24 rock samples with grades as high as 52g/t Au.
This is blockbuster stuff, ignored by the market, but exactly what one should be thrilled to find at this early stage. Make no mistake, management is excited even if investors are sitting on the sidelines. Skeena Resources can afford both the time and money to conduct a major drill campaign this year, of which only a quarter is assayed to date. Including the one you’re reading now, this is my 7th article on Skeena, the company continues to execute without missing a beat, a formidable accomplishment in this otherwise dreadful sector.
Actions speak louder than words, Skeena scaling up the drilling based on positive results to date
Skeena acquired the Spectrum property on October 28th, 2014 – barely eleven months ago. Since then, Skeena has raised $11 million for exploration funding 90% of which went into the ground. In one of the worst junior company bear markets, when most companies are forced to conserve cash and wait and wait for a change in sentiment or a higher gold price, Skeena Resources has two rigs churning full time. Make no mistake, hundreds of junior mining companies are yet to fail, but they will next year. Skeena will remain among the living and exit this dark period all the stronger.
Data from 21 holes has been impressive enough to give management the confidence to increase planned drilling of 10,000 meters by 60% to 16,000 meters. Actions speak louder than words. For most juniors, there’s no option to drill. For many, seemingly promising large, low-grade deposits might never get back into the money. Skeena has without doubt made very significant progress, especially compared to peers. Please visit this Mining.com article dated September 1st, for an entertaining and informative read.
Another important bit of news from the Company’s September 8th press release is that a new and expanded NI 43-101 compliant mineral resource is expected in Q1, 2016. This is quite exciting given that Skeena has increased its 2015 drill campaign by 60%. All 16,000 meters, and some of the Company’s legacy historical data, will be incorporated into this maiden resource. In my opinion, the chances of that resource figure approaching a NI 43-101 compliant 1 million ounces is a lot higher today than it was just a month ago. Even if the maiden resource disappoints, Skeena has the capital to commence drilling again in 2016, with a subsequent resource report to be delivered before the end of 2016.
Walter Coles, CEO & President, reminds readers that, “It’s still early days for exploration at Spectrum,” but adds,”… Nevertheless, this project continues to surprise us in positive ways.”
Disclosure: Small market cap stocks are highly speculative, not suitable for all investors. I, Peter Epstein, own shares of Skeena. Mr. Epstein is not a licensed financial advisor. Readers should take that fact into careful consideration before buying or selling any stock mentioned. Readers are encouraged to consult with their own investment advisors before buying or selling any stock, especially speculative ones. At the time that this article was posted, Skeena Resources is a sponsor of: http://EpsteinResearch.com. Please consider visiting: http://EpsteinResearch.com for free updates on Skeena Resources and other companies across a range of sectors. While at http://EpsteinResearch.com, please enter an email for instant delivery of my work. Thank you for your support.