Skeena Resources (TSXV: SKE; US-OTC: SKREF) has updated the resource estimate for the Donnelly and North Donnelly copper-gold deposits on its GJ property, in the prolific Golden Triangle of northwestern B.C.
The junior acquired the 383 sq. km GJ property last October from joint-venture partners Teck Resources (TSX: TCK.B; NYSE: TCK) and NGEx Resources (TSX: NGQ; US-OTC: NGQRF).
NGEx — a reincarnation of Canadian Gold Hunter (CGH) and Curator Resources — held a 49% in GJ, while Teck was the majority owner.
The Donnelly and North Donnelly deposits now host 133.7 million measured and indicated tonnes at 0.3% copper and 0.36 gram gold per tonne for 940.2 million lb. copper and 1.56 million oz. gold, using a 0.2% copper cut-off.
Compared to CGH’s 2007 resource of 123 million indicated tonnes at 0.3% copper and 0.35 gram gold for 852 million lb. copper and 1.39 million oz. gold, contained copper and gold have increased 10.4% and 12%. Tonnage has improved 9%, at the same cut-off.
Skeena notes that all the measured material — 213.95 lb. copper and 341,000 oz. gold — is within the Main Donnelly zone, explaining the increase in indicated resource came from upgrading inferred to indicated within the Main Donnelly zone, and adding the North Donnelly zone.
The latter zone was not part of the 2007 resource.
The two deposits also contain 53.7 inferred tonnes at 0.3% copper and 0.33 gram gold for 312.5 million lb. copper and 570,000 oz. gold.
Compared to the 2007 inferred resource, tonnage has climbed 234%, and contained copper and gold have grown 200% and 280%.
The new resource estimate, which has an effective date of Sept. 9, 2015, includes 126 holes (35,000 metres) in the Main Donnelly zone, and 46 holes (11,000 metres) in the Donnelly zone.
CGH did most of this drilling between 2004 and 2007, while three of the holes drilled by Teck between 2011 and 2013 intersected the deposits, with two hitting the Main Donnelly zone and the other hitting the Donnelly zone.
The two zones are 340 metres wide, with a 1.6 km strike length, and an average 200-metre depth below surface.
While Skeena points out that developing the deposits at GJ is “not favourable” at current metal prices, it says the deposits are an “inexpensive long-term call option on copper and gold prices, with low holding costs.”
It adds that the current resource’s grade is comparable to Imperial Metals’ (TSX: III; US-OTC: IPMLF) large Red Chris copper-gold mine, 25 km away. Imperial started the mine last February, with a 301.5-million-tonne reserve at 0.4% copper and 0.274 gram gold.
The GJ property — which includes the GJ deposit — is next to Skeena’s high-grade, gold-rich Spectrum deposit, where the junior drilled 17,400 metres in 61 holes last year.
A resource estimate for Spectrum is due in March.
Walter Coles, Skeena’s president and CEO, said in a release that the deposits at GJ and Spectrum are all open for expansion and “form the foundation of a district-scale development project, located close to electrical power and roads in a mining-friendly jurisdiction.”
The junior closed its financing without completing the last $1.3-million tranche, raising $4.8 million in December 2015.
It ended Jan. 14 flat at 6¢ per share, within a 52-week window of 5.5¢ to 12.5¢.
I think you need a decimal point in front of the 2% cutoff grade? Should be 0.2% in para 3. Unless its a high grade cap….