Skeena updates GJ resource, plans next moves in British Columbia’s Golden Triangle

POSTED ON January 15, 2016 BY James Kwantes
CATEGORY Stories,

Skeena Resources (SKE-V), Ron Netolitzky’s British Columbia gold developer, published an updated resource estimate Thursday morning for two deposits on its GJ property, purchased from Teck and NGEx last October.

GJ adjoins Skeena’s flagship Spectrum project in B.C.’s northwestern Golden Triangle, providing a valuable land bridge between Highway 37 and Spectrum.

The Donnelly and North Donnelly copper-gold deposits host an updated resource of 133.67 million tonnes grading 0.32% copper and 0.36 g/t gold, using a 0.2% copper cut-off, for a total of about 940 million pounds of copper and 1.56 million ounces of gold in the Measured and Indicated categories. In the Inferred category, there’s a further 312 million pounds copper and 570,000 ounces of gold at a 0.2% cut-off.

Contained pounds of copper and ounces of gold in the measured and indicated categories have increased by 12% each, compared to a 2007 estimate done by Canadian Gold Hunter Corp. Inferred pounds of copper and ounces of gold have increased by 200% and 280% respectively.

While the GJ deposits don’t generate much interest in this market of depressed metals prices, they could eventually be a great complement to a mining operation at higher-grade Spectrum, Skeena CEO Walter Coles told me in a phone interview from Toronto. Spectrum could be the higher-grade project that gets a mine going, with GJ deposits feeding the mill later on.

“Although metal prices are not favourable for development of the GJ property at this current time, we view the deposits at GJ as an inexpensive long term call option on copper and gold prices, with very low holding costs,” Coles said.

The GJ deposits are located in mountainous terrain - as is Spectrum - but the land package includes flat areas that could potentially host a mill and tailings facility, Coles said. And the GJ deposits have similar grades as Imperial Metals’ nearby Red Chris mine to the east - with exploration upside, he pointed out.

Coles said he expected Skeena’s Spectrum resource estimate - promised for the first quarter - to land within the next month or so. Skeena completed a 17,000-metre-plus summer drill program that yielded high-grade gold hits in several zones on the property as well as longer hits of 1 g/t material that suggest a porphyry system.

If Spectrum hosts high-grade pods within a gold-rich porphyry envelope, it’s a deposit that could be amenable to some type of bulk mining method, Coles said. The resource will guide a summer program that will likely include trenching.

An updated resource is also what several funds have told the CEO they are waiting for before deciding whether to invest in Skeena, which remains fairly well-capitalized after closing a $4.7-million financing in November.

“My expectation is that a resource at Spectrum opens up more doors to us in terms of capital,” Coles said.

The GJ property is vast, covering 38,374 hectares, and Skeena plans a property-wide target review to evaluate the exploration potential of other porphyrys and high-grade vein systems, Coles said.

Coles and Netolizky were in Toronto for the Canadian Mining Hall of Fame’s annual dinner and induction ceremony. Netolitzky, credited with discovering the high-grade Eskay Creek and Snip gold mines in the late 1980s, was inducted into the hall of fame last year.

Skeena has a market capitalization of about $19.5 million and working capital of about $6 million.

Disclaimer: Certain company information is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to the results of the Company's exploration and the Company's beliefs, plans, expectations, anticipations, estimates and intentions. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company's expectations as of the date of this news release and accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, it does not undertake to update this information at any particular time. Nothing in this article is intended to be investment or professional advice of any kind. Skeena Resources is a client of Pacific Website Company Inc., CEO.CA's publisher. Always do your own due diligence and consult a licensed investment advisor prior to buying or selling any security. Read Skeena’s profile on www.SEDAR.com for important risk disclosures.

James Kwantes

James Kwantes is an editor and mining reporter from Vancouver, Canada. He spent the last decade with Vancouver Sun, covering investing, mining and other business topics. James is the founder of the World of Mining blog and is the editor of Resource Opportunities, a subscriber supported investment newsletter covering compelling early stage mining companies. More →

Twitter: @https://twitter.com/jameskwantes

worldofmining@gmail.com

James Kwantes

Twitter: @https://twitter.com/jameskwantes

worldofmining@gmail.com

Disclaimer:

Readers are advised that the material contained herein is solely for information purposes. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice. Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities. The information contained herein is based on sources which the publisher believes to be reliable, but is not guaranteed to be accurate, and does not purport to be a complete statement or summary of the available data. Any opinions expressed are subject to change without notice. The owner, editor, writer and publisher and their associates are not responsible for errors or omissions. They may from time to time have a position in the securities of the companies mentioned herein, and may change their positions without notice. (Any significant positions will be disclosed explicitly. This article is not intended to meet your specific individual investment needs and it is not tailored to your personal financial situation. Nothing contained herein constitutes, is intended, or deemed to be — either implied or otherwise — investment advice. Thomas Humphreys, Pacific Website Company Inc., and other entities in which he has an interest, employees, officers, family, and associates may from time to time have positions in the securities or commodities covered in these publications or web site. We reserve the right to buy and sell such securities or commodities without notice to readers. While the information herein is believed to be accurate and reliable it is not guaranteed or implied to be so. The information herein may not be complete or correct; it is provided in good faith but without any legal responsibility or obligation to provide future updates. Neither Thomas Humphreys, nor anyone else, accepts any responsibility, or assumes any liability, whatsoever, for any direct, indirect or consequential loss arising from the use of the information in these publications or web site.

Forward-Looking Statements: This article may include certain "forward-looking information" within the meaning of Canadian securities legislation. Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "forecast", "expect", "potential", "project", "target", "schedule", budget" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the potential of the Company's properties are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on a number of material factors and assumptions. Important factors that could cause actual results to differ materially from Company's expectations include actual exploration results, changes in project parameters as plans continue to be refined, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, delays or inability to receive required approvals, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking statements which speak only as of the date of this article. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Always do your own due diligence. We seek safe harbor.