Skeena Resources: Updated Resource Estimate for GJ Project

Skeena Resources (TSXV:SKE) released a resource estimate for its Donnelly and North Donnelly copper-gold deposits for its GJ property in the Golden Triangle of north-western British Columbia.
As quoted in the press release:

The Donnelly and North Donnelly deposits host an updated measured and indicated resource, using a 0.2% copper cut-off, of 133.67 million tonnes grading 0.32% copper and 0.36 grams per tonne gold for a total of 940.23 million pounds of copper and 1.56 million troy ounces of gold. In addition, 53.69 million tonnes grading 0.26% copper and 0.33 grams per tonne gold has been estimated in the inferred category, using a 0.2% copper cut-off, for a total of 312.53 million pounds of copper and 0.57 million troy ounces of gold.

Further highlights were as follows:

• The overall tonnage of resources in the measured and indicated categories has increased by 9%, at a 0.2% copper cut-off and slightly higher average grade, in comparison with the 2007 resource by Canadian Gold Hunter Corp. (see technical report by D.T. Mehner, G.H. Giroux and G.R. Peatfield, April 30, 2007). A significant proportion of the resource has been upgraded to the measured category. At the same 0.2% copper cut-off, the inferred tonnage has increased by 234%. The measured material is all within the Main Donnelly zone while the increase in indicated resource is a combination of converting inferred to indicated within the Main Donnelly zone and adding the North Donnelly zone, the latter of which was not estimated in 2007.
• Contained pounds of copper and ounces of gold in the measured and indicated categories have increased by 12% each, in comparison to the 2007 estimate. Inferred pounds of copper and ounces of gold have increased by 200% and 280% respectively.
• The Donnelly and North Donnelly zones have a width of 340 metres, a strike length of 1600 metres and an average depth of 200 metres below surface.
• Good potential exists for resource expansion to the west and at depth on the Donnelly deposits. It is recommended that drill targets be selected following a detailed review of available geological, geophysical and geochemical data.
• The report authors also recommend resource modelling the nearby GJ deposit which is not included in the current resource estimate, and completing a property wide target review to evaluate exploration potential of other porphyry and high-grade vein prospects. The Company has engaged Mr. David Mehner, P.Geo., to complete this target review.

Walter Coles, Skeena president and CEO, said:

The deposits at GJ in conjunction with the Spectrum deposit, all of which are open for expansion, form the foundation of a district-scale development project, located close to electrical power and roads in a mining friendly jurisdiction.
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. Having said that, it is worth noting that the grade of the current resource at GJ is comparable to the nearby Red Chris mine of Imperial Metals which began operation in February 2015 with a reserve of 301.5 million tonnes grading 0.359% copper and 0.274 grams per tonne gold (Imperial Metals website).
The proximity of the GJ property to our higher-grade, gold-rich Spectrum deposit offers synergy, scale and flexibility for future development. We are excited about the opportunities to expand these deposits, and to renew exploration on other nearby bulk tonnage and high-grade targets on this very large property package.

Click here for the full press release.