Skeena Resources (TSX: SKE | NYSE: SKE) has updated the mineral resource estimate (MRE) for its wholly-owned Snip Gold Project in the Golden Triangle of British Columbia, Canada. As of 5 September, the MRE incorporates an additional 307 drillholes of 46,268m, enhancements to the geological interpretation, resource estimation methods, long hole mining method parameters, and updated metallurgical process recoveries.
The ounces in its indicated resource have shown an increase of 237% from the initial estimate made in 2020. The total ounces in the indicated category are now 823,000oz Au in 2.7Mt grading 9.35g/t Au. The bulk of the gold was found in the Main S zones (513,000oz), Main V zone (262,000oz), and the Twin West zone (48,000oz).
“With the successful conversion of over 570,000oz Au to the indicated category, we are very pleased with the updated MRE for Snip. This resource will form the basis of a detailed engineering study with project economics, which we anticipate being released in H1 2024,” commented Skeena CEO and president, Randy Reichert.
“The study will demonstrate the potential benefits of adding Snip mineralization to the Eskay Creek Project as a satellite operation, likely including an increased mine life and improved concentrate payabilities at Eskay Creek. We look forward to continuing to unlock value for all stakeholders as we advance the project.”
The increased tonnage in the indicated resource comes as the inferred resource shrinks to 499,000oz of gold. That is down 72% from the previous estimate of contained gold ounces. The inferred category contains 499,000t grading 7.10g/t Au.
Snip is a former gold producer which operated from 1991 to 1999, producing about 1.0Moz of gold with an average grade of 27.5g/t. Skeena continues to drill Snip and a definitive feasibility study for redeveloping an underground mine that will feed the Eskay Creek mill is due by the end of this year.
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