Eskay Creek NI 43 101 Resource Estimate

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# Eskay Creek NI 43 101 Resource Estimate

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# Eskay Creek NI 43 101 Resource Estimate
Independent Technical Report
on the Eskay Creek Au-Ag
Project, Canada
Prepared for
Skeena Resources Limited
Prepared by
SRK Consulting (Canada) Inc.
Effective Date: April 7, 2021
Issue Date: May 21, 2021
2CS042.010
Independent Technical Report
on the Eskay Creek Au-Ag Project, Canada
Effective Date: April 7, 2021
Issue Date: May 21, 2021
Prepared for Prepared by
Skeena Resources Limited SRK Consulting (Canada) Inc.
650 – 1021 West Hastings Street 2200 – 1066 West Hastings Street
Vancouver, BC V7V 3J3 Vancouver, BC V6E 3X2
Canada Canada
Tel: +1 604 684 8725 Tel: +1 604 681 4196
Web: www.skeenaresources.com Web: www.srk.com
Authored by
Sheila Ulansky, PGeo Grant Carlson, PEng
SRK Consulting (Canada) Inc. SRK Consulting (Canada) Inc.
Project No: 2CS042.010
File Name: Skeena_Eskay Creek_NI43-101 Report_2CS042.010_20210521.docx
Copyright © SRK Consulting (Canada) Inc., 2021
SRK Consulting
Skeena Resources Limited
NI 43-101 Eskay Creek, Canada Page ii
Important Notice
This report was prepared as a National Instrument 43-101 Technical Report for Skeena Resources
Limited (Skeena) by SRK Consulting (Canada) Inc. (SRK). The quality of information, conclusions,
and estimates contained herein is consistent with the level of effort involved in SRK’s services,
based on: i) information available at the time of preparation, ii) data supplied by outside sources,
and iii) the assumptions, conditions, and qualifications set forth in this report. This report is intended
for use by Skeena subject to the terms and conditions of its contract with SRK and relevant
securities legislation. The contract permits Skeena to file this report as a Technical Report with
Canadian securities regulatory authorities pursuant to National Instrument 43-101, Standards of
Disclosure for Mineral Projects. Except for the purposes legislated under provincial securities law,
any other uses of this report by any third party is at that party’s sole risk. The responsibility for this
disclosure remains with Skeena. The user of this document should ensure that this is the most
recent Technical Report for the property as it is not valid if a new Technical Report has been issued.
Copyright
© 2021 SRK Consulting (Canada) Inc.
This report is protected by copyright vested in SRK Consulting (Canada) Inc. It may not be
reproduced or transmitted in any form or by any means whatsoever to any person without the
written permission of the copyright holder, other than in accordance with stock exchange and other
regulatory authority requirements.
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SRK Consulting
Skeena Resources Limited
NI 43-101 Eskay Creek, Canada Page iii
Executive Summary
1.1 Introduction
The Eskay Creek Project is a precious and base metal-rich volcanogenic massive sulphide (VMS)
deposit, located in the Golden Triangle of northwestern British Columbia, Canada. Skeena is a
Canadian junior mining exploration company focused on developing prospective precious and base
metal properties in the Golden Triangle of northwest British Columbia, Canada.
In January 2021, Skeena commissioned SRK to provide Skeena with support and review of an
updated resource model, together with an NI 43-101 compliant resource estimate and an NI 43-
101 report on the Eskay Creek Project. The services were rendered between January and May
2021 leading to the preparation of the mineral resource statement reported herein that was
disclosed publicly by Skeena in a news release on April 7, 2021. The effective date of this Technical
Report is May 21, 2021.
The updated 2021 Mineral Resource Estimate (MRE) has a larger component of pit constrained
resources than the 2019 MRE as the NEX zone, which was previously reported as underground
resources, has now been incorporated into the pit constrained resource base. Remaining
mineralization below the optimized resource reporting pit shell with reasonable prospects of
economic extraction by underground mining methods, is reported in addition as underground
resources.
This Technical Report documents a mineral resource statement for the Eskay Creek Project
validated by SRK. It was prepared following the guidelines of the Canadian Securities
Administrators’ National Instrument 43-101 and Form 43-101F1. The Mineral Resource Statement
reported herein was prepared in conformity with generally accepted CIM “Estimation of Mineral
Resources and Mineral Reserves Best Practice Guidelines”.
1.2 Property Description and Location
The Eskay Creek Project is located in the Pacific Northwest region of British Columbia, 83 km
northwest of Stewart, BC in the Unuk and Iskut River region.
The Project covers a total of 5,093.81 hectares, consisting of 40 mineral claims (3,263.55 ha) and
eight (8) mineral leases (1,830.26 ha). There are five net smelter return (NSR) royalty obligations
to four third parties on the property.
1.3 Accessibility, Climate, Local Resources, Infrastructure, and Physiography
Access to the property is via Highway 37 (Steward Cassiar Highway). The Eskay Mine Road is an
all-season gravel road that connects to Highway 37 approximately 135 km north of Meziadin
Junction. The Eskay Mine Road is a 54.5 km private industrial road that is operated by Altagas Ltd.
(0 km to 43.5 km) and Skeena Resources Limited (43.5 km to 54.5 km).
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Skeena Resources Limited
NI 43-101 Eskay Creek, Canada Page iv
Support services for mining and other resource sector industries in the region are provided primarily
from the communities of Smithers (pop. 5,400) and Terrace (pop. 11,500). Both communities are
accessible by commercial airlines with daily flights to and from Vancouver.
The mean annual total precipitation at the former mine site is estimated to be 2,500 +/- 500 mm.
About 55-71% of precipitation falls as snow. The average temperature range is from -10.4o C in
January to +15 o C in July. Exploration activities can sometimes be curtailed by extreme local
weather conditions. The previous mining operation was conducted on a year-round basis and it is
expected that any future operations will also be year-round.
The region is supported by the Provincial power grid. A 287 kV transmission line extends from a
grid connection at Terrace to Bob Quinn, primarily following Highway 37. Power supply
opportunities exist close to the Eskay Creek mine site. The Forest Kerr, McLymont, and Volcano
Creek hydroelectric plants are within 20 km of the Eskay Creek Mine site and collectively produce
up to 277 MW, which is fed to the provincial grid via transmission lines that extend along the Eskay
Creek Mine Road.
Eskay Creek lies in the Prout Plateau, a rolling subalpine upland, located on the eastern flank of
the Boundary Ranges. The Plateau is characterized by northeast trending ridges with gently sloping
meadows occupying valleys between the ridges. Relief over the Plateau ranges from 500 m in the
Tom MacKay Lake area to over 1,000 m in the Unuk River and Ketchum Creek valleys. Mountain
slopes are heavily forested, and scenic features of glacial origin, such as cirques, hanging valleys
ad over-steepened slopes are present throughout. The Plateau is surrounded by high serrate peaks
containing cirque and mountain glaciers.
1.4 History
The Eskay Creek Project has undergone exploration activity dating back to 1932 when prospectors
looking for precious metals were first attracted by the gossanous bluffs extending for over seven
kilometers beside Eskay and Coulter Creeks. The Tom Mackay Syndicate undertook the first
staking in 1932 near the southern end of the claim group. During the period from 1935 to 1938,
Premier Gold Mining Company Ltd. held the property under option and were responsible for the
definition of 30 zones of surface mineralization including the 21 Zone. This was followed in 1939
by the driving of the 85 m Mackay Adit into the hillside three kilometers south of the current 21A/B
Zones by the Tom Mackay Syndicate.
During World War II, from 1940 to 1945, exploration was halted and from 1946 through to 1963
only minor work was done on the property. This work included some minor re-staking along with
various changes in claim title.
Western Resources drove the Emma Adit in 1963 with drifting and crosscuts totalling 146 m. In
1964, the property was registered under Stikine Silver Limited.
Seven different options were undertaken on the property between 1964 and 1987. Exploration
continued with geological mapping, geochemical and geophysical surveys, trenching, and diamond
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NI 43-101 Eskay Creek, Canada Page v
drilling looking for precious metal and VMS-style targets. During this period, in 1986, the company
was renamed Consolidated Stikine Silver.
In 1988, Calpine Resources Inc. signed an option agreement to earn a 50% beneficial interest in
the TOK and KAY claims by spending $900,000 over a three-year period. Six diamond drill holes
were undertaken in the fall of 1988 near the old 21 Zone trenches. The 21A Zone was discovered
with an intercept of 25.78 g/t Au and 38.74 g/t Ag over 29.4 m in drill hole DDH CA88-6. Continued
drilling in 1988 and 1989 outlined the 21A Zone and defined the 21B Zone, some 200 m to the
north. Prime Resources acquired a controlling interest in Calpine in 1989 and took over managing
the Eskay Creek Project. Once their obligations were complete, Prime merged with Calpine in April
1990. At the same time, Homestake Canada Inc. acquired an equity position in Consolidated
Stikine Silver and eventually acquired the property. 21B Zone underground development began in
1990-91; a feasibility study was undertaken in 1993 and the Eskay Creek Mine was officially
opened in 1995.
From 1995 through 2001, Homestake Canada operated the mine and continued exploration on the
surrounding claims with geological mapping, geochemical and geophysical surveys, and diamond
drilling.
In 2002 Barrick Gold Corp. assumed control of the Eskay Creek mine, continuing with mining
operations and exploration until the mine closed in 2008. Since 2008, the property has been under
a state of reclamation, care and maintenance.
Skeena entered into an Option Agreement for the Eskay Creek Property with Barrick in 2017, which
affects all mineral claims and mineral leases that comprise the Eskay Creek Property. This
Agreement allowed Skeena the option to acquire all of Barrick’s rights, title, and interest in, and to,
the Eskay Creek Assets by incurring $3.5 million of exploration expenditures in the Project area by
December 18, 2020.
In 2018, Skeena completed a 7,737 m surface diamond drilling program targeting the 22, 21A, and
21C Zones as well as flew a LiDAR and photography survey over the Eskay Creek property. In
September 2018, Skeena released its Maiden Resource estimate based solely on legacy data
using a predominantly underground and minor Pit mining scenario.
On February 28, 2019, Skeena released an updated resource estimate, this time including most
resources into a predominantly Pit mining scenario with a minor underground component. In 2019,
Skeena completed 14,092 m drill holes to upgrade the Inferred mineral resources in the proposed
pit area, and to expand current resources. A small prospecting program was undertaken in the Tom
MacKay area, as well the Eskay Porphyry and Tip Top areas.
In 2020, Skeena undertook a large surface diamond drill program to convert Indicated to Inferred
resources in the pit area, as well as test exploration t

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