Mr. Walter Coles Jr. reports
SKEENA ANNOUNCES PROCEEDS OF C$30.4 MILLION FROM WARRANT EXERCISE
Skeena Resources Ltd. has received approximately $30.4-million from the exercise of 2,812,500 warrants held by Barrick Gold Corp. The warrants were originally issued to Barrick with an exercise price of $10.80 on Oct. 5, 2020, in connection with Skeena acquiring 100 per cent of the Eskay Creek gold-silver project located in the Golden Triangle of British Columbia, Canada.
Proceeds from the exercise of these warrants will be used by the company to finance 60,000 metres of exploration drilling planned for Eskay Creek in 2022. A skid-based drilling program is expected to commence on the project in April, followed by a helicopter-supported drilling program consisting of eight diamond drill rigs in June. The fully financed exploration program will focus on supplementing the existing mine plan with additional near-surface mineralization amenable to open-pit mining methods and will be paralleled by exploratory drill testing of the deep Mudstone extensions north of the former Eskay Creek mine. Allocation of metreage will remain results-driven. Expansion and delineation drilling will also occur in the new 21A West zone as well as the recently discovered 23 zone.
About Skeena Resources Ltd.
Skeena Resources is a Canadian mining exploration and development company focused on revitalizing the past-producing Eskay Creek gold-silver mine located in Tahltan territory in the Golden Triangle of northwestern British Columbia, Canada. The company released a prefeasibility study for Eskay Creek in July, 2021, which highlights an open-pit average grade of 4.57 grams per tonne gold equivalent, an after-tax net present value at a 5-per-cent discount of $1.4-billion, 56-per-cent internal rate of return and a 1.4-year payback at $1,550 (U.S.) per ounce Au. Skeena is currently completing both infill and exploration drilling to advance Eskay Creek to a full feasibility study in 2022.
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