Skeena Retains 100% Ownership of the Snip Gold Project

Rhea-AI Summary

Skeena Resources Limited has regained 100% ownership of the Snip Gold Project after Hochschild Mining PLC terminated its option to earn a 60% stake. Hochschild has invested at least C$15 million into the project, fulfilling the minimum annual expenditure requirements. The transfer allows Skeena to manage the Snip Project and utilize it to potentially extend the life of the Eskay Creek mine by processing Snip ore at its mill. Skeena's feasibility study indicates an after-tax NPV of C$1.4 billion with a 50% IRR based on a gold price of US$1,700/oz.

Positive

• Skeena regains 100% ownership of the Snip Gold Project.
• Hochschild has invested at least C$15 million in the project.
• Potential to extend the Eskay Creek mine life by processing Snip ore.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / April 5, 2023 / Skeena Resources Limited (TSX:SKE)(NYSE:SKE) ("Skeena" or the "Company") announces that, effective immediately, Hochschild Mining PLC ("Hochschild") has terminated its option to earn into 60% of the Snip Gold Project ("Snip" or the "Project") in the Golden Triangle of British Columbia, Canada. This results in Skeena reassuming management of the Project and retaining 100% ownership.

Hochschild informed Skeena that they have satisfied the minimum annual expenditure requirements as highlighted in Skeena's September 19, 2018 news release. This implies that, at minimum, Hochschild has spent C$15 million on Snip to date. Skeena will receive all data and information generated by Hochschild since their notification of intent to earn into a 60% interest on October 15, 2021.

Randy Reichert, Skeena's President & CEO, commented "We are thrilled to have 100% of Snip back in our portfolio. In the months ahead, Skeena plans to investigate opportunities to bolster the Eskay Creek mine life by processing Snip ore at the Eskay Creek mill."

About Skeena

Skeena Resources Limited is a Canadian mining exploration and development company focused on revitalizing the past-producing Eskay Creek gold-silver mine located in Tahltan Territory in the Golden Triangle of northwest British Columbia, Canada. The Company released a Feasibility Study for Eskay Creek in September 2022 which highlights an after-tax NPV5% of C$1.4B, 50% IRR, and a 1-year payback at US$1,700/oz Au and US$19/oz Ag.

On behalf of the Board of Directors of Skeena Resources Limited,

Walter Coles Jr.	Randy Reichert
Executive Chairman	President & CEO

Contact Information

Investor Inquiries: info@skeenaresources.com
Office Phone: +1 604 684 8725
Company Website: www.skeenaresources.com

Qualified Persons

In accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects, Paul Geddes, P.Geo., Senior Vice President, Exploration & Resource Development, is the Qualified Person for the Company and has prepared, validated, and approved the technical and scientific content of this news release. The Company strictly adheres to CIM Best Practices Guidelines in conducting, documenting, and reporting the exploration activities on its projects.

Cautionary note regarding forward-looking statements

Certain statements and information contained or incorporated by reference in this news release constitute "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation (collectively, "forward-looking statements"). These statements relate to future events or our future performance. The use of words such as "anticipates", "believes", "proposes", "contemplates", "generates", "targets", "is projected", "is planned", "considers", "estimates", "expects", "is expected", "potential" and similar expressions, or statements that certain actions, events or results "may", "might", "will", "could", or "would" be taken, achieved, or occur, may identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements. Specific forward-looking statements contained herein include, but are not limited to, statements regarding the results of the Feasibility Study, processing capacity of the mine, anticipated mine life, probable reserves, estimated project capital and operating costs, sustaining costs, results of test work and studies, planned environmental assessments, the future price of metals, metal concentrate, and future exploration and development. Such forward-looking statements are based on material factors and/or assumptions which include, but are not limited to, the estimation of mineral resources and reserves, the realization of resource and reserve estimates, metal prices, taxation, the estimation, timing and amount of future exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory approvals, environmental risks, title disputes and the assumptions set forth herein and in the Company's MD&A for the year ended December 31, 2022, its most recently filed interim MD&A, and the Company's Annual Information Form ("AIF") dated March 21, 2023. Such forward-looking statements represent the Company's management expectations, estimates and projections regarding future events or circumstances on the date the statements are made, and are necessarily based on several estimates and assumptions that, while considered reasonable by the Company as of the date hereof, are not guarantees of future performance. Actual events and results may differ materially from those described herein, and are subject to significant operational, business, economic, and regulatory risks and uncertainties. The risks and uncertainties that may affect the forward-looking statements in this news release include, among others: the inherent risks involved in exploration and development of mineral properties, including permitting and other government approvals; changes in economic conditions, including changes in the price of gold and other key variables; changes in mine plans and other factors, including accidents, equipment breakdown, bad weather and other project execution delays, many of which are beyond the control of the Company; environmental risks and unanticipated reclamation expenses; and other risk factors identified in the Company's MD&A for the year ended December 31, 2022, its most recently filed interim MD&A, the AIF dated March 21, 2023, the Company's short form base shelf prospectus dated January 31, 2023, and in the Company's other periodic filings with securities and regulatory authorities in Canada and the United States that are available on SEDAR at www.sedar.com or on EDGAR at www.sec.gov.

Readers should not place undue reliance on such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and the Company does not undertake any obligations to update and/or revise any forward-looking statements except as required by applicable securities laws.

SOURCE: Skeena Resources Limited

View source version on accesswire.com:
https://www.accesswire.com/747670/Skeena-Retains-100-Ownership-of-the-Snip-Gold-Project

FAQ

What recent change occurred regarding the Snip Gold Project and Skeena Resources?

Skeena Resources regained 100% ownership of the Snip Gold Project after Hochschild Mining terminated its option to earn a 60% stake.

How much has Hochschild invested in the Snip Gold Project?

Hochschild has invested at least C$15 million to satisfy the minimum annual expenditure requirements.

What is the potential impact of the Snip Gold Project on Eskay Creek mine?

Skeena plans to investigate opportunities to bolster Eskay Creek's mine life by processing Snip ore at its mill.

What are the financial metrics reported for the Eskay Creek feasibility study?

The feasibility study shows an after-tax NPV of C$1.4 billion and a 50% IRR based on a gold price of US$1,700/oz.

What does the termination of the option imply for Skeena Resources?

Skeena Resources will now manage the Snip Gold Project independently, retaining full ownership and control.