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Monday, October 03, 2016 Derek Macpherson

Skeena Releases Good Drill Results from Snip


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Skeena Resources Ltd. (TSXV:SKE) announced drill results from six holes from its ongoing 6,000m drill program at its Snip property in British Columbia. Results were highlighted by 16.01 g/t Au over 4.7m (S-16-11) and 47 g/t over 0.7m (S-16-10). These results along with those recently released suggest that the previous operators may have left additional high-grade gold structures unmined. Skeena expects to complete the work commitment portion of its earn-in by the end of October, at which point the company expects to begin drilling from the existing underground workings. In our view, Skeena’s current valuation is only reflective of its Spectrum and GJ properties and does not appear to account for Snip’s potential or the recent acquisition of the Porter Idaho Silver project.


Snip drill results continue to highlight the potential for additional high-grade ounces. These results, along with the prior release in September, continue to suggest the existence of new high-grade veins at this brownfield project. These new results, combined with historic drilling suggests the high-grade structural corridor extends down-dip for at least 250m and remains open at depth and along strike (Figure 1). Because of the above average grades, the definition of even a small resource has the potential to yield an economic project.


Valuation does not appear to include Snip’s potential. Skeena currently trades at $11/oz AuEq versus peers at $76/oz. In our view, this valuation appears to exclude the potential of Snip and the recently acquired Porter Idaho Silver project. The active drill program at Snip and a PEA planned for Spectrum-GJ may provide the catalysts necessary to close the valuation gap to peers.

Company Description: Skeena Resources Limited is a junior Canadian mining exploration company focused on developing prospective base and precious metal properties in the Golden Triangle region of northwest British Columbia, Canada. The Company’s primary activities are the evaluation and development of the Spectrum-GJ gold-copper project as well as exploration on the recently optioned past-producing Snip gold mine, acquired from Barrick Gold, and the past-producing Porter Idaho silver mine.

Derek Macpherson | VP Mining Analysis
Victoria Ellis Hayes | Associate
RCKSTalk@RedCloudKS.com
www.redcloudks.com/rcks-talk

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