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Skeena Update on Flotation Studies and Drilling at Spectrum Gold

20.07.2015  |  Marketwired

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jul 20, 2015) - Skeena Resources Ltd. (TSX VENTURE:SKE) ("Skeena" or the "Company") is pleased to provide an update on metallurgical studies, and progress of drilling and other exploration activities at the high-grade Spectrum gold project in north-western British Columbia.

Flotation Studies

The Company reports additional bench-scale metallurgical results further to those discussed in News Release NR: 15-07, May 14, 2015 wherein excellent gold recovery results were observed when utilizing combined gravity concentration and cyanide leaching. Further bench scale test work, completed at the facilities of the Saskatchewan Research Council under the direction of Michael Yakimchuk P. Eng., has shown that the mineralized rock also returns high gold recovery when using a flotation process. While all metallurgical tests were performed on the discrete zones, the mineralized rock from these two areas is well suited for blending in order to be processed together. These results for both the QC and Porphyry Structures can be summarized as follows:

QC Structure

Gravity Concentration and Cyanide Leaching

  • The composite head feed sample was calculated to be 13.96 g/t Au as compared to the weighted average of the drill core samples of 13.50 g/t Au.
  • Gravity gold recovery test yielded a gold recovery 56.4%.
  • An overall gold recovery of 98.8% when both gravity and subsequent cyanide leaching were performed.

Flotation Test

  • The composite head grade of the flotation test was 9.44 g/t. The concentrate was upgraded to an average of over 22 g/t.
  • The average overall recovery in the QC zone was 85% with multiple tests yielding gold recoveries over 95%.
QC Composite Sample
Feed Au g/t Conc g/t (%) recovery
9.44 22.83 85.04

Porphyry Structure

Gravity Concentration and Cyanide Leaching

  • The composite head feed sample was calculated to be 8.76 g/t Au as compared to the weighted average of the drill core samples of 10.55 g/t Au.
  • Gravity gold recovery test yielded a gold recovery 24.6%.
  • An overall gold recovery of 91.6% when both gravity and subsequent cyanide leaching were performed.

Flotation Test

  • The composite head grade of the flotation test was 9.69 g/t. The concentrate was upgraded to an average of over 36.4 g/t.
  • The average overall recovery in the Porphyry zone was 92.8% with multiple tests yielding gold recoveries over 95%.
Porphyry Composite Sample
Feed Au g/t Conc g/t (%) recovery
9.69 36.4 92.8

The positive results from each of gravity, cyanidation and flotation demonstrate there is flexibility for future mineral processing of the mineralization. More definitive metallurgical studies will commence on the completion of this season's field program.

Drilling Program

To date, a total of 2205 m in 10 drill holes has been completed using two drills. Core is being logged and cut on site and 3 shipments of half core samples have been sent to the lab. Assays are pending and will be reported in batches once results are received and checked for quality control. The following table gives the status of drill holes to date:

Coords (UTM NAD 83 Z9) Depth (m)
Hole # E N Section # Azimuth Dip Actual (planned) Status
S15-010 411331 6394751 4750N 270 -52 278 Completed
S15-011 411317 6394808 4810N 270 -45 223.5 Completed
S15-012 411317 6394808 4810N 270 -55 251 Completed
S15-013 411280 6394752 4750N 270 -45 200 Completed
S15-014 411280 6394752 4750N 270 -58 217.5 Completed
S15-015 411368 6394850 4850N 270 -50 259 Completed
S15-016 411270 6394806 4810N 270 -48 176 Completed
S15-017 411409 6395101 5095N 270 -55 193 Completed
S15-018 411163 6395035 5035N 270 -45 243 (270) In progress
S15-019 411354 6394892 4890N 270 -50 164 (200) In progress

An updated drill plan and cross sections have been posted to the Company website at www.Skeenaresources.com. A total of 10,000 to 12,000 m of drilling in 50 to 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.

Property Exploration

A 17-square kilometre area in the core of the property has been covered with 1:5000 scale geological mapping by Dr. Jim Oliver, P.Geo. This work has greatly improved the understanding of the rock types, alteration, structure and controls on mineralization and will help guide exploration going forward.

A total of 166 samples of split drill core have been collected from historic core stored on the property and sent for fire assay. This work has targeted intervals with >1 g/t Au and will be used to confirm previous results for the resource model. In addition, about 600 core samples from 2014 are being re-run by enhanced fire assay methods in order to provide higher precision analyses for resource studies.

Prospecting and soil sampling has focused on possible extensions to the know mineralized structures, especially south and northeast of the Central Zone, and in the East Creek, Skarn and other peripheral targets. Some 166 prospecting rock samples and 535 soil samples have been collected and shipped to the lab. Additional prospecting is planned once initial results are received.

Ronald Netolitzky, Skeena's Chairman commented "The positive metallurgical tests bode well for the success of the project, and we are excited to start receiving assays from the aggressive 2015 drilling campaign, which we expect will lead to a significant 43-101 resource in Q1 2016".

The Qualified Person responsible for reviewing the metallurgical data in this news release is Michael Yakimchuk, P.Eng. The geological information in this news release has been reviewed by Michael S. Cathro, MSc, PGeo, Skeena's vice-president of operations and a qualified person as defined by National Instrument 43-101.

Spectrum is a structurally-hosted, high-grade, mesothermal 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 powerline, which passes within 30 km of the property.

Skeena's corporate goal is to establish a 43-101 compliant, high-grade gold resource in multiple, closely spaced, steeply dipping, parallel structures. 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. The reader is cautioned that the historical estimate is not current and a Qualified Person has not done sufficient work to classify the historical estimate. Skeena is not treating the historical estimate as a current resource estimate.

About Skeena

Skeena Resources Ltd. 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.

ON BEHALF OF THE BOARD OF DIRECTORS OF

SKEENA RESOURCES LIMITED

Walt Coles Jr., President & CEO

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

To view the maps associated with this release, please visit the following link: http://file.marketwire.com/release/Skeenamaps6.pdf



Contact

Skeena Resources Ltd.
Walt Coles Jr.
President & CEO
(604) 684-8725
Skeena Resources Ltd.
Tony Perri
Investor Relations, Manager
(604) 684-8725
(604) 669-2543
tperri@skeenaresources.com


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