Skeena Discovers New In-Pit Mineralization at Eskay Creek Including 4.80 g/t AuEq over 30.50 metres

Rhea-AI Summary

Skeena Resources Limited (SKREF) announced significant progress from its Phase 2 drilling at the Eskay Creek Project, completing an infill program aimed at resource category conversions for a Pre-Feasibility Study.

Highlights include the discovery of a new mineralization zone (21C-HW) with high gold and silver grades, particularly 4.65 g/t Au over 30.50 m. The 21E Zone also showed promising results, with samples yielding up to 27.13 g/t Au over 10.00 m. The findings suggest an expanded resource base for future updates.

Positive

• New mineralization zone (21C-HW) discovered with high-grade results: 4.65 g/t Au over 30.50 m.
• Impressive grades in the 21E Zone, including 27.13 g/t Au over 10.00 m, indicating potential resource expansion.
• Positive implications for resource development as previously considered waste rock may now be reclassified as mineralized.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / February 17, 2021 / Skeena Resources Limited (TSX:SKE)(OTCQX:SKREF) ("Skeena" or the "Company") is pleased to report additional diamond drill core results from the Phase 2 campaign of definition and exploration drilling at the Eskay Creek Project ("Eskay Creek" or the "Project") located in the Golden Triangle of British Columbia. The Phase 2 infill program, focused upon resource category conversions for the Pre-Feasibility Study ("PFS") on open-pit constrained resources, is now complete. The Company has also recently completed a 5,000 m near-mine exploration program at Eskay Creek and is awaiting results. Reference images are presented at the end of this release as well as on the Company's website.

Eskay Creek Infill Drilling Highlights

New 21C-HW Zone:

• 4.33 g/t Au, 13 g/t Ag (4.50 g/t AuEq) over 20.05 m (SK-20-692)
• 4.65 g/t Au, 11 g/t Ag (4.80 g/t AuEq) over 30.50 m (SK-20-780)

21C Zone:

• 3.87 g/t Au, 7 g/t Ag (3.96 g/t AuEq) over 24.70 m (SK-20-721)
• 2.69 g/t Au, 30 g/t Ag (3.09 g/t AuEq) over 33.92 m (SK-20-735)
• 3.20 g/t Au, 83 g/t Ag (4.31 g/t AuEq) over 29.35 m (SK-20-748)

21E Zone:

• 3.34 g/t Au, 160 g/t Ag (5.48 g/t AuEq) over 24.50 m (SK-20-742)
• 5.68 g/t Au, 38 g/t Ag (6.18 g/t AuEq) over 28.02 m (SK-20-752)
• 4.11 g/t Au, 164 g/t Ag (6.30 g/t AuEq) over 28.09 m (SK-20-757)
• 3.85 g/t Au, 53 g/t Ag (4.55 g/t AuEq) over 26.10 m (SK-20-759)
• 2.49 g/t Au, 213 g/t Ag (5.34 g/t AuEq) over 25.50 m (SK-20-763)
• 3.14 g/t Au, 114 g/t Ag (4.65 g/t AuEq) over 40.89 m (SK-20-764)

21B, HW Zones:

• 3.92 g/t Au, 26 g/t Ag (4.27 g/t AuEq) over 25.00 m (SK-20-754)
• 5.35 g/t Au, 113 g/t Ag (6.86 g/t AuEq) over 15.50 m (SK-20-773)

Gold Equivalent (AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 75]. True widths range from 70-100% of reported core lengths. Length weighted AuEq composites are constrained by geological considerations. Grade-capping of individual assays has not been applied to the Au and Ag assays informing the length-weighted AuEq composites. Metallurgical processing recoveries have not been applied to the AuEq calculation and are taken at 100%. Samples below detection limit were nulled to a value of zero.

New In-Pit Mineralization Discovered Above the 21C Zone

Situated within the open-pit contemplated by the Company's 2019 Preliminary Economic Assessment, a previously unrecognized zone of mineralization has been discovered above the 21C Zone. Examples of this recently drilled mineralization (21C-HW Zone) include 4.65 g/t Au, 11 g/t Ag (4.80 g/t AuEq) over 30.50 m (SK-20-780), 4.33 g/t Au, 13 g/t Ag (4.50 g/t AuEq) over 20.05 m (SK-20-692), and 1.39 g/t Au, 8 g/t Ag (1.49 g/t AuEq) over 29.25 m (and SK-20-698).

A subvertical, reactivated synvolcanic structure, this newly documented zone of discordant, replacement-style mineralization occurs uncharacteristically in the hanging-wall andesites and interflow sediments above the historically mined Contact Mudstones. To date, the 21C-HW Zone mineralization has been outlined over a strike length of 160 m and is open for expansion along strike and dip. Prior to the discovery of this mineralization, the only other occurrence of an economically mineralized synvolcanic structure in the hanging wall rocks of the Eskay Creek deposits occurs at the fittingly named HW (Hanging Wall) Zone, which is situated stratigraphically above the Contact Mudstones of the 21B Zone.

"Although this newly developing zone is in its infancy, there are many positive implications associated with this finding from both a resource development and exploration perspective" comments Paul Geddes, the Company's Vice President of Exploration and Resource Development. "Firstly, this portion of the pit constrained resource was considered unmineralized waste rock due to a lack of drill hole sampling by previous operators and it will now likely translate into additional resources in the Company's upcoming resource update, which is expected to be released this spring. Secondly, this new information clearly demonstrates that the Eskay Creek mineralizing events in the hanging wall rocks were not constrained to a single locale as exemplified by the original HW Zone. This discovery fortifies the sizable exploration potential of this large-scale mineralizing system for both near mine and regional resource expansion."

21E Zone Continues to Validate High Tenor of Pit Constrained Mineralization

Equally as impressive are the tenor and widths that have recently been drilled in the 21E Zone as is highlighted by 27.13 g/t Au, 271 g/t Ag (30.74 g/t AuEq) over 10.00 m (SK-20-746) including impressive subintervals grading 109.00 g/t Au, 199 g/t Ag (111.65 g/t AuEq) over 1.00 m and 89.10 g/t Au, 2,450 g/t Ag (121.77 g/t AuEq) over 0.80 m. This intercept represents a 20 m step out and potential expansion of in-pit resources due to its location outside the limits of the existing resource model. The 21E Zone is situated on the eastern flank of the Eskay Creek deposits and represent a combination of primary exhalative mineralization overprinted and enriched by auriferous fluids during protracted reactivation of synvolcanic structures.

About Skeena

Skeena Resources Limited is a Canadian mining exploration 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 robust Preliminary Economic Assessment in late 2019 and is currently focused on infill and exploration drilling to advance Eskay Creek to full Feasibility by the end of 2021. Additionally, Skeena continues exploration programs at the past-producing Snip gold mine.

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

Walter Coles Jr.
President & CEO

Contact Information

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

Qualified Persons

Exploration activities at the Eskay Creek Project are administered on site by the Company's Exploration Managers, Raegan Markel, P.Geo. and Adrian Newton, P.Geo. In accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects, Paul Geddes, P.Geo. Vice President Exploration and 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.

Quality Assurance - Quality Control

Once received from the drill and processed, all drill core samples are sawn in half, labelled and bagged. The remaining drill core is subsequently securely stored on site. Numbered security tags are applied to lab shipments for chain of custody requirements. The Company inserts quality control (QC) samples at regular intervals in the sample stream, including blanks and reference materials with all sample shipments to monitor laboratory performance. The QAQC program was designed and approved by Lynda Bloom, P.Geo. of Analytical Solutions Ltd., and is overseen by the Company's Qualified Person, Paul Geddes, P.Geo, Vice President Exploration and Resource Development.

Drill core samples are submitted to ALS Geochemistry's analytical facility in North Vancouver, British Columbia for preparation and analysis. The ALS facility is accredited to the ISO/IEC 17025 standard for gold assays and all analytical methods include quality control materials at set frequencies with established data acceptance criteria. The entire sample is crushed and 1 kg is pulverized. Analysis for gold is by 50 g fire assay fusion with atomic absorption (AAS) finish with a lower limit of 0.01 ppm and upper limit of 100 ppm. Samples with gold assays greater than 100 ppm are re-analyzed using a 50 g fire assay fusion with gravimetric finish. Analysis for silver is by 50 g fire assay fusion with gravimetric finish with a lower limit of 5ppm and upper limit of 10,000 ppm. Samples with silver assays greater than 10,000 ppm are re-analyzed using a gravimetric silver concentrate method. A selected number of samples are also analyzed using a 48 multi-element geochemical package by a 4-acid digestion, followed by Inductively Coupled Plasma Atomic Emission Spectroscopy (ICP-AES) and Inductively Coupled Plasma Mass Spectroscopy (ICP-MS) and also for mercury using an aqua regia digest with Inductively Coupled Plasma Atomic Emission Spectroscopy (ICP-AES) finish. Samples with sulfur reporting greater than 10% from the multi-element analysis are re-analyzed for total sulfur by Leco furnace and infrared spectroscopy.

Cautionary note regarding forward-looking statements

Certain statements made and information contained herein may constitute "forward looking information" and "forward looking statements" within the meaning of applicable Canadian and United States securities legislation. These statements and information are based on facts currently available to the Company and there is no assurance that actual results will meet management's expectations. Forward-looking statements and information may be identified by such terms as "anticipates", "believes", "targets", "estimates", "plans", "expects", "may", "will", "could" or "would". Forward-looking statements and information contained herein are based on certain factors and assumptions regarding, among other things, 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 other matters. While the Company considers its assumptions to be reasonable as of the date hereof, forward-looking statements and information are not guarantees of future performance and readers should not place undue importance on such statements as actual events and results may differ materially from those described herein. The Company does not undertake to update any forward-looking statements or information except as may be required by applicable securities laws.

Neither the Toronto Stock Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Table 1: Eskay Creek Project 2020 Length-Weighted Drill Hole Gold and Silver Composites:

Hole-ID	From (m)	To (m)	Core Length	Au (g/t)	Ag (g/t)	AuEq (g/t)	Zone
SK-20-692	78.40	98.45	20.05	4.33	13	4.50	21C
Including	79.40	80.40	1.00	9.89	19	10.14	21C
SK-20-698	79.05	108.30	29.25	1.39	8	1.49	21C
SK-20-698	120.25	135.30	15.05	1.77	71	2.72	21C
SK-20-720	121.65	160.00	38.35	2.43	33	2.86	21C
Including	142.94	143.82	0.88	21.20	8	21.31	21C
and	143.82	145.00	1.18	9.99	13	10.16	21C
SK-20-721	127.30	152.00	24.70	3.87	7	3.96	21C
Including	138.24	139.07	0.83	15.10	<5	15.10	21C
and	139.07	139.72	0.65	10.05	<5	10.05	21C
and	139.72	140.37	0.65	10.60	<5	10.60	21C
and	140.37	141.36	0.99	13.90	7	13.99	21C
SK-20-722	123.66	129.50	5.84	1.15	14	1.34	21C
SK-20-722	137.00	152.00	15.00	3.38	10	3.52	21C
Including	138.00	138.50	0.50	49.30	27	49.66	21C
SK-20-723	18.00	21.10	3.10	3.37	100	4.70	21E
SK-20-723	27.80	40.86	13.06	1.54	109	2.99	21E
Including	37.00	37.50	0.50	2.59	1515	22.79	21E
SK-20-724	20.00	24.26	4.26	4.27	110	5.73	21E
Including	22.00	23.00	1.00	7.81	199	10.46	21E
SK-20-724	35.50	46.00	10.50	1.77	258	5.21	21E
Including	45.00	45.50	0.50	3.36	3050	44.03	21E
SK-20-726	162.00	172.06	10.06	0.75	5	0.82	21C
SK-20-726	175.00	179.03	4.03	1.24	5	1.31	21C
SK-20-727	119.12	134.50	15.38	1.18	11	1.32	21E
SK-20-727	143.50	153.00	9.50	0.70	40	1.23	21E
SK-20-728	112.00	126.50	14.50	1.12	31	1.53	21E
SK-20-728	129.50	150.00	20.50	1.17	107	2.60	21E
Including	136.87	137.50	0.63	1.84	999	15.16	21E
SK-20-729	141.72	147.52	5.80	1.32	8	1.43	21C
SK-20-731	7.64	22.85	15.21	1.43	370	6.36	HW
Including	13.00	16.00	3.00	2.55	1475	22.22	HW
SK-20-731	32.58	45.00	12.42	0.66	35	1.12	HW
SK-20-732	8.70	17.42	8.72	6.33	884	18.11	HW
Including	8.70	10.00	1.30	11.05	5460	83.85	HW
and	10.00	11.00	1.00	12.75	253	16.12	HW
and	11.00	12.50	1.50	13.85	128	15.56	HW
SK-20-732	20.50	23.00	2.50	0.73	20	0.99	HW
SK-20-732	27.00	38.00	11.00	0.82	9	0.94	HW
SK-20-735	126.00	134.23	8.23	4.51	480	10.91	21C
Including	127.00	128.00	1.00	7.03	923	19.34	21C
and	128.00	128.97	0.97	0.99	1180	16.72	21C
and	130.20	131.00	0.80	3.70	932	16.13	21C
and	131.00	131.60	0.60	16.85	966	29.73	21C
and	132.10	133.10	1.00	7.73	172	10.02	21C
SK-20-735	147.80	159.00	11.20	4.23	231	7.31	21C
Including	147.80	148.80	1.00	1.04	759	11.16	21C
and	148.80	149.80	1.00	1.30	1030	15.03	21C
and	149.80	150.53	0.73	1.50	768	11.74	21C
and	154.23	155.00	0.77	31.00	46	31.61	21C
and	155.00	156.00	1.00	13.05	13	13.22	21C
SK-20-735	162.08	196.00	33.92	2.69	30	3.09	21C
Including	176.50	178.00	1.50	23.00	90	24.20	21C
and	178.00	178.50	0.50	7.36	225	10.36	21C
SK-20-735	200.50	207.96	7.46	0.96	7	1.04	21C
SK-20-735	210.50	215.00	4.50	1.39	5	1.46	21C
SK-20-736	47.50	52.00	4.50	3.82	211	6.63	21E
SK-20-736	55.55	58.50	2.95	0.61	113	2.12	21E
SK-20-737	67.45	74.21	6.76	1.40	15	1.60	21E
SK-20-737	92.45	105.50	13.05	1.03	141	2.91	21E
Including	102.50	104.00	1.50	1.26	1040	15.13	21E
SK-20-738	109.00	135.45	26.45	2.53	42	3.09	21E
SK-20-739	53.81	56.00	2.19	1.56	6	1.64	21E
SK-20-740	100.64	115.50	14.86	8.02	541	15.23	21E
Including	106.50	107.97	1.47	17.80	4820	82.07	21E
and	107.97	109.50	1.53	20.10	387	25.26	21E
and	111.00	112.50	1.50	13.15	7	13.24	21E
and	112.50	114.00	1.50	12.90	13	13.07	21E
SK-20-741	65.00	67.27	2.27	1.34	10	1.47	21E
SK-20-741	148.50	160.00	11.50	1.74	21	2.01	21E
SK-20-742	4.76	14.25	9.49	1.36	26	1.71	21E
SK-20-742	22.00	30.52	8.52	0.57	48	1.21	21E
SK-20-742	53.00	56.00	3.00	1.12	7	1.21	21E
SK-20-742	60.00	84.50

FAQ

What are the highlights from Skeena Resources' February 2021 drilling results at Eskay Creek?

Key highlights include the discovery of the 21C-HW zone with grades up to 4.65 g/t Au and significant results from the 21E zone with up to 27.13 g/t Au.

What does the new mineralization discovery at Eskay Creek mean for Skeena Resources (SKREF)?

The new discovery may increase the previously estimated resources, as areas thought to be waste could now contribute to mineral resources.

How does the recent drilling at Eskay Creek affect the Pre-Feasibility Study for Skeena Resources?

The results will likely enhance the resource base considered in the upcoming Pre-Feasibility Study, impacting future project economics.

What is the location of the Eskay Creek Project?

The Eskay Creek Project is located in the Golden Triangle region of British Columbia.

When is Skeena Resources expected to release its resource update?

The resource update is anticipated to be released in spring following the findings from the latest drilling results.