VANCOUVER - Skeena Resources Limited (TSX:SKE)(NYSE:SKE) has disclosed the completion of their 2023 exploration drilling program at the Eskay Creek Gold-Silver Project in northwest British Columbia. The results have identified new gold-silver mineralization occurrences, particularly in the vicinity of the 22 Zone and the Eskay Deeps area.
The near mine exploratory drilling, which included 13 surface drillholes, followed up on intersections discovered in 2022. The highlight was drillhole SK-23-1203, which intersected 19.87 grams per tonne (g/t) gold (Au) and 59.1 g/t silver (Ag) over 2.95 meters, including a high-grade interval of 64.80 g/t Au and 132.0 g/t Ag over 0.85 meters. However, these new intersections are not anticipated to significantly impact the current open-pit Resources and Reserves at the 22 Zone.
The Eskay Deeps Phase I exploration program, completed in the fourth quarter of 2023, aimed to test for high-grade Contact Mudstone mineralization in the down-dip extension of the Eskay Rift. The program consisted of 8 drillholes and 2 wedge branches, totaling 13,787 meters. Despite the drillholes intersecting anomalous trace mineralization in the Contact Mudstone, a high-grade expression at this location has yet to be encountered.
In addition to the drilling results, Skeena has announced plans for a seismic survey in Summer 2024. The survey aims to better define the rift and Contact Mudstone at depth, which is critical for hosting Eskay Creek style deposits. The results from the seismic survey will guide additional Eskay Deeps drilling.
Furthermore, Skeena is preparing for a large airborne magnetics survey and data compilation for the newly staked 74,633-hectare Hoodoo Project, which shows promise for alkalic porphyry deposits. Exploration in the second half of 2024 will focus on drilling targets on the KSP and Hoodoo properties, with a budget of 14,000 meters for the regional program.
Skeena Resources is known for its focus on revitalizing the Eskay Creek and Snip Projects, which are located in Tahltan Territory. The company's Definitive Feasibility Study for Eskay Creek, released in November 2023, projected an after-tax net present value (NPV) of C$2 billion and an internal rate of return (IRR) of 43% based on gold prices of US$1,800/oz and silver prices of US$23/oz.
The technical content of this news release has been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects. This article is based on a press release statement from Skeena Resources Limited.
InvestingPro Insights
As Skeena Resources Limited (TSX:SKE)(NYSE:SKE) continues to explore and expand its gold-silver mineralization projects, investors are keeping a close watch on the company's financial health and stock performance. Here are some insights from InvestingPro that could provide a clearer picture of Skeena's current financial standing:
With a market capitalization of 391.74 million USD, Skeena holds more cash than debt on its balance sheet, which is a positive sign for stakeholders concerned about the company's financial resilience. However, it's important to note that the company is quickly burning through cash and suffers from weak gross profit margins. This is reflected in the negative P/E ratio of -5.12, which indicates that the company is not currently profitable.
Despite these challenges, Skeena has experienced a strong return over the last three months, with a 27.94% price total return. This suggests that while the company faces near-term financial hurdles, its stock price has been resilient in recent months. Additionally, Skeena does not pay a dividend, which is common for companies in the exploration and development phase of their lifecycle.
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