Exhibit 99.2
Independent Technical Report for
the Snip Project, Canada
Prepared for
Skeena Resources Ltd
Prepared by
SRK Consulting (Canada) Inc.
| Effective Date: |
September 05, 2023 |
| Issue Date: |
September 26, 2023 |
| Project: |
CAPR002721 |
Independent
Technical Report for the Snip Project, Canada
Effective Date:
September 05, 2023
Release Date: September 26, 2023
| Prepared for |
Prepared by |
| |
|
|
Skeena Resources Ltd
650 – 1021 West Hastings Street
Vancouver, BC, V6E 0C3
|
SRK Consulting (Canada) Inc.
2700 - 320 Granville Street
Vancouver, BC, V6C 1S9
Canada |
| |
|
|
Tel: +1 604-684-8725
Web: www.skeenaresources.com |
Tel: +1 604 681 4196
Web: www.srk.com |
Authored By
| Sheila Ulansky, PGeo |
Jeff Austin, P.Eng |
| |
|
| SRK Consulting (Canada) Inc. |
International Metallurgical and Environmental Inc. |
| Project No: | |
CAPR002721 |
| | |
|
| File Name: | |
Skeena Resources_Snip_NI43-101_Report_CAPR002721_20230926.docx |
Cover image: Snip camp. Courtesy of R. Markel 2021.
Copyright © SRK Consulting (Canada) Inc., 2023
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page i |
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
©
2023 SRK Consulting (Canada) Inc.
This document 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.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page ii |
The Snip Project, located
in northwest British Columbia (BC), is a past producing underground mine that hosts high-grade structurally controlled mineralized veins
in a brittle-ductile shear zone system. 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 June 2023, Skeena
commissioned SRK to provide resource estimation technical support and validation for an updated Mineral Resource Estimate on the Snip
deposit, as well as provide a NI-43101 compliant Technical Report. The effective date of the 2023 Mineral Resource is September 05,
2023.
The services were rendered
between June and September 2023 leading to the preparation of the Mineral Resource Statement that was disclosed publicly by
Skeena in a news release on September 05, 2023. The effective date of the 2020 NI 43-101 Technical Report is September 26,
2023.
The Technical Report 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
Location and Ownership |
The Snip Project occurs within
the Iskut River region of the Golden Triangle in British Columbia. Stewart, BC, is the nearest district municipality, 105 km to the south
southeast. The property is located wholly within NTS map sheet 104B/11 as well as on the Tahltan National Traditional Territory.
The Project covers a total
of 4,724.07 hectares (11,673.43 acres) and consists of nine (9) mineral claims and one (1) mineral lease.
In July 2017, Skeena
exercised their right to acquire all of Barrick Gold Inc.’s (“Barrick”) 100% “right, title and interest in and
to the Property and the Permits” (the “Original Snip Property”), subject to the retention by Barrick of a 51% Back-In
Right. In September 2018, Skeena and Hochschild entered into an option agreement for Hochschild to earn in a 60% undivided interest
in the Original Snip Property by spending twice the amount Skeena had spent since it originally optioned the Original Snip Property from
Barrick. In October of 2021 Hochschild gave notice of its intention to start its earn in. On April 5th, 2023, Hochschild
terminated its option to earn 60% of the Snip Gold Project resulting in Skeena reassuming management of the Project and retaining 100%
ownership.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page iii |
| 1.3 | Accessibility,
Climate, Local Resources, Infrastructure and Physiography |
Access to the Snip Property
can be gained either by direct air or boat transportation to the 1.5 km long Bronson Airstrip on the Iskut River. Direct charter flights
by fixed wing aircraft can land at the Bronson airstrip maintained by SnipGold Corp., a subsidiary of Seabridge Gold. Vehicle access
from Smithers can be achieved by route of Hwy 16 to Kitwanga, then north along highway 37 to the Eskay Mine Road, 3 km south of Bob Quinn.
Road access to the McLymont staging area is 45 km west of Bob Quinn and requires a road usage permit from AltaGas. From McLymont, it
is a 10-minute helicopter flight to the Snip camp.
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 Snip property lies within
the Coast Mountains. The dominant feature of the region is the Stikine Icecap which is centered 80 km to the NW of the property along
the Alaska border. The Snip Property lies between the Iskut River, Craig River and Bronson Creek within the Stikine Watershed.
The property lies within the
Coastal Western Hemlock zone. The Snip property has almost no alpine vegetation, with sub-alpine flora dominated by scattered Sitka Spruce,
with transition to Engelmann Spruce, farther East. At the Bronson Creek level, natural vegetation is Western Hemlock and Sitka Spruce,
with riparian populations of cottonwood and spruce. Natural regrowth is rapid, with hemlock and spruce growing to 5 m within 20 years.
| 1.4 | History,
Exploration and Drilling |
The history of the camp goes
back to the early 1900’s when the Iskut Mining Company staked the first claims on the west side of Bronson Creek in 1907. Following
this, the Red Bluff claims were staked in 1909. The first mining was completed between 1908 and 1911 when several short adits were driven
into the Red Bluff Porphyry to obtain a bulk sample. The area saw limited work until 1929 when Cominco Ltd. staked 42 claims, however
little of interest was found and the claims were abandoned.
Thirty-five years would pass
before the Tuksi Mining Company acquired crown grants in 1964. In the same year Jodee Exploration company, Cominco Ltd. and Copper Soo
Mining company all staked claims around Tuksi’s grants. In 1965 the Snip discovery outcrop was made by geologists who were surveying
a creek gully; the outcrop contained visible gold in a vein. The following year, in 1966, channel sampling on the vein returned assays
up to 244 ppm Au over 1.2 m.
The area once again lay dormant
for nearly a decade and a half until 1980 when Cominco Ltd. restaked the discovery outcrop on the Snip claims. Between 1980 to 1986,
grass roots exploration, soil sampling and trenching were conducted by Cominco. In 1986, Cominco signed a JV agreement with Delaware
Resources Corp., who provided funding for the project, and over two years, drilled over 15,000 m. The work outlined the Main Twin Zone
on 50 m centers.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page iv |
In 1988, a decision was made
to go underground via a portal at the 300 m elevation. An additional 6,800 m of surface drilling, coupled with underground development
and related drilling on 12.5 m centers, was completed and by 1989 the first reserve estimate for the Main Twin Zone was calculated at
940,000 tonnes grading 28.5 g/t Au.
The Snip Mine operated between
January 1991 and June 1999, first by Cominco Ltd. and then, beginning in 1996, by Homestake Canada Inc. The mine was successfully
closed in October 1999. In 2001, the property was acquired by Barrick Gold Inc. (Barrick) as part of its acquisition of Homestake
Canada Inc.
The property lay dormant until
2016 when Skeena entered into an agreement with Barrick granting an option to acquire 100% interest in the past producing gold mine and
mineral claims.
In 2016, Skeena completed
7,422 m of diamond drilling in 28 holes, collected 668 soil samples and completed 171-line kilometers of airborne magnetic surveying.
The majority of drilling was completed on the portion covering the mining lease and was designed to test the targets in the Main Twin
and Twin West zones as well as regional targets located on the mineral claims portion of the property. Infill soil sampling was conducted
to test the continuity of historical gold anomalies and to add multi-element data in areas which previously only had gold.
In 2017, Skeena acquired 100%
right, title and interest in and to the Property and Permits and worked entirely on the mining lease. Work focused on camp expansion
along with reopening the 300-portal access road and rehabilitation of the underground. A total of 8,703 m from 62 holes were drilled
from underground testing targets including the Main Twin Zone, 150 Veins, 412 Corridor and other footwall structures. In addition, Skeena
commissioned a surface mapping LiDAR survey of the property having 25 cm pixel resolution.
In 2018, Skeena completed
6 surface holes totalling 2,121 m targeting the Jim Porphyry and Sky Creek Shear zone, as well as below the western vein extension of
the Main Twin Zone. In addition, 46 holes totalling 9,088 m targeting the Main Twin Zone, 412 Corridor and the 200 Footwall Zone was
completed to further delineate areas of known mineralization with increased drill density, to expand new zones and confirm historical
drilling.
In 2019 Skeena drilled 8 surface
holes totalling 1,816 m targeting the 200 Footwall Zone and footwall veins. They were successful in intersecting the footwall, as well
as identifying mineralization 75 m deeper. A petrography study to compare biotitic phyllite and Biotite Spotted Unit (BSU) was conducted
to test composition relations.
In 2020, Skeena drilled 9
surface holes totaling 5,327 m some of which were designed as infill holes and others to test vein extensions. The main targets were
the 130 and 150 veins, and the Main Twin zone.
In 2021, Skeena drilled 95
surface holes totaling 14,608 m and 134 underground holes totaling 15,955 m. The objective was two-fold: to infill drill areas and to
test vein extensions predominantly in the S-Veins. This campaign included 8 drill holes that that corresponded spatially in 3-D orientation
to 8 historical holes being no more than several meters in 3-D separation. These holes (known as “Twin Holes”) were designed
to validate historical drilling at the Snip Mine. The remaining holes targeted the 130 and 150 veins, the 200 Footwall corridor, the
412-corridor, the Main Twin zone, and other footwall structures.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page v |
In September 2018, Skeena
granted Hochschild an option to earn in 60% of the Original Snip Property and Hochschild gave notice in October of 2021 of its intention
to start earning-in 60% of Skeena’s interest in the Original Snip Property.
In 2022, Hochschild completed
68 underground holes totaling 9,876 meters. This campaign included 20 drill holes that corresponded spatially in 3-D orientation to 20
historical holes being no more than several meters in 3-D separation. These Twin Holes were designed to validate historical drilling
at the Snip Mine. An additional 48 holes were drilled to infill untested areas and to evaluate for vein extensions in the S-Veins and
deeper footwall structures. One surface hole totalling 501 m was drilled to target the deep, western down hole extents of the V-Vein
sets.
On April 5th,
2023, Hochschild terminated its option to earn 60% of the Snip Gold Project resulting in Skeena reassuming management of the Project
and retaining 100% ownership.
| 1.5 | Geology
and Mineralization |
The Snip Au (Cu-Mo-Zn) deposit,
located within the economically important “Golden Triangle” region, is a structurally controlled mineralized vein and brittle-ductile
shear zone system, hosted within a sequence of laminated turbidites of the Upper Triassic Stuhini Group. Mineralization has both Orogenic
style gold characteristics as well as mineralogical and paragenetic similarities to porphyry related vein systems, being contemporaneous
with the adjacent Early Jurassic Red Bluff porphyry, a calc-alkaline, I-type, magnetite-series intrusion of quartz monzodioritic
composition.
Regional investigations have
indicated the importance of the Stuhini Group unconformity with the overlying Lower Jurassic Hazelton Group and a major northwest-southeast
trending zone, the Bronson corridor. Throughout the “Golden Triangle” major deposits, including the Snip deposit, occur within
2.5 km of this unconformity and numerous mineral occurrences are associated with the Bronson corridor, characterized by the Sky fault
system. This wide fault zone likely formed close to the boundary of a rift-type basin, controlled plutonism, fluid circulation and mineralization.
Gold mineralization at the
Snip Project has been reported from at least six historical zones, the Main Twin Zone, the 150 Vein, the 130 Vein, the Hangingwall Zone,
the Footwall Zone, and the Twin-West Zone. The Main Twin Zone shear-vein system which averages 2.5 m in width and dips 30-60°to the
southwest is characterized by mineralogical banding of chlorite-biotite, calcite, quartz, and pyrrhotite-pyrite, with wallrock alteration
dominated by inner biotite and outer K-feldspar-calcite-quartz-sericite. Metal association and the importance of potassic alteration
suggest a magmatic origin for the ore fluid, supported by the proximity of the Main Twin Zone to the Red Bluff porphyry and lead-isotopic
data. More distal veins to the Red Bluff porphyry contain higher zinc, lead and silver contents as expected in a zoned porphyry system.
The distribution and abundance of biotite in areas distal to the Red Bluff porphyry and extensive areas containing mineralized veins,
suggest a more regional fluid source, possibly an underlying batholithic parent to the Red Bluff porphyry.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page vi |
A distinctive unit at Snip
is the Biotite Spotted Unit, a basic to intermediate biotitic dyke that has intruded the vein mineralization. Widths range from several
decimeters up to five m with an average width of 2.5-3 m. Although it is unmineralized, it is moderately to strongly altered and biotitized
with calcite-pyrite-quartz-sericite-chlorite alteration and is considered to have been emplaced late in the deformation history, after
ore formation, but during the waning stages of the hydrothermal system.
In addition to the Red Bluff
porphyry other intrusives recognised on the property include the Bronson stock, a poorly documented heterogeneous, medium-grained equigranular
plagioclase-rich clinopyroxene-amphibole bearing diorite; the Jim Porphyry stock, interpreted solely from drill hole information comprising
both felsic extrusive and intrusive units; and recent lamprophyre and basalt dykes.
| 1.6 | Metallurgical
Test Work |
The objective of the metallurgical
testing program was to quantify the metallurgical response of samples from the Snip deposit. The programs were designed with the intent
to confirm the parameters for process design criteria. The 2020 metallurgical program was completed at Base Metallurgical Laboratories
Ltd. (BaseMet Labs) in Kamloops, BC as Project BL661. The testing scope included chemical composition, mineralogy, comminution testing,
flotation and gravity testing on two composite samples. Both samples showed excellent gold recovery of 96% and 98%. A Phase
1 metallurgical program was completed in 2021 at BaseMet Labs in Kamloops, BC as Project BL891. The testing scope included mineralogy,
gravity concentration testing, flotation and leaching testing on a single composite sample. The sample showed high amenability to gravity
concentration, flotation and leaching. The Phase 2 was performed in 2022 also at BaseMet identified as BL1002 on 18 samples. Samples
were designed to represent a range of potential mining options and, the range of expected grades. The testing scope included mineralogy,
comminution tests, gravity concentration, flotation, leach tests and cyanide destruction tests. The samples showed high resistance to
impact breakage and medium hardness in ball mill grinding. Scaled up gravity gold recoveries ranged from 28% to 37%. Combined gravity
and flotation gold recoveries ranged from 85% to 96%. Combined gravity and leach gold extractions averaged 96.9% from all samples. Average
reagent consumptions included 0.49 kg/t for sodium cyanide and 0.57 kg/t for hydrated lime. Review of the leach test results showed
a minor relationship between head grade and leach residue grade but showed no relationship between head grade and recovery. A constant
recovery was estimated for economic analysis. The overall plant gold recovery used in the economic analysis is 96%.
| 1.7 | Mineral
Resource and Mineral Reserve Estimates |
The Mineral Resource Estimate
for the Snip Project (the “2023 Mineral Resource Estimate”) herein was prepared by Skeena Resources using all available information
and reviewed and validated by Ms. S. Ulansky, Professional Geologist of SRK Consulting (Canada).
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page vii |
The resource is based on historical
surface and underground diamond drilling completed by previous Operators in addition to holes drilled on surface and underground by Skeena
(2016 to 2021) and Hochschild (2022). The database used to estimate the Snip resource contains a total of 3,999 drill holes for 355,388
m of drilling. Of this total amount, historical holes total 3,542 for a meterage of 279,971 m. Skeena has drilled a total of 388 holes
totalling 65,040 m, and Hochschild has drilled 69 holes totalling 10,377 m. All historical and recent drilling was audited by SRK. SRK
believes that the drilling information is sufficiently reliable to interpret with confidence the boundaries for gold mineralization domains,
and that assay data is sufficiently reliable to support estimating mineral resources.
In the opinion of SRK, the
block model resource estimates reported herein are a reasonable representation of the global gold mineral resources found on the Snip
Project at the current level of sampling. Mineral resources are reported in accordance with the guidelines of the Canadian Securities
Administrators National Instrument 43-101; and have been estimated in conformity with generally accepted CIM “Estimation and Mineral
Resource and Reserve Best Practices” guidelines (CIM, 2019). Mineral resources are not mineral reserves and do have demonstrated
economic viability.
The vein model was created
in Leapfrog GeoTM using economic composite intervals greater than or equal to 1.0 g/t Au if following interpreted structures
and displaying mineralization continuity. Locally, lower grades were included in the veins if continuity was displayed. Local minor edits
were performed in Maptek Vulcan software. Ninety-four high-grade veins were created to constrain the block model estimate. These were
combined into three broad and distinct zones (V-Veins, S-Veins, and TW-Veins), which are unique in orientation, structural interpretation,
and statistics; therefore, they were made discrete for resource estimation purposes.
Mineral resources were estimated
using Maptek’s Vulcan® software. Two block models were created for computer efficiency: (1) the Main block model, which
encompasses the V- and S- Veins and the (2) Twin West block model which encompasses the TW-Veins. Both models were created with
4 m x 4 m x 4 m parent block sizes and 0.5 m x 0.5 m x 0.5 m sub blocks sizes. The models were unrotated.
Assays were composited to
1.5 m using distributed tails methodology within the wireframes, which were also length weighted during estimation. Outlier composites
were capped prior to estimation with gold capping values of 350 g/t Au, 100 to 215 g/t Au and 45 to 110 g/t Au in the V-, S- and TW-
Veins, respectively.
Variograms were used to determine
nuggets, sills and ranges used during estimation as well as for search orientations. In the V-
and -S veins that were continuous and greater than 235,000 tonnes, and TW-veins greater than 100,000 tonnes, a dynamic anisotropy (DA)
surface was utilized during estimation to honour locally varying vein orientations. Gold grades were estimated in three progressively
larger passes using Ordinary Kriging, along with inverse distance squared and polygonal methods for comparisons and validation. The models
were validated using visual and statistical methods as well as swath plots. Block tonnages were estimated from volumes using a density
of 2.91 g/cm3 within the veins, except for the unmineralized BSU (Biotite Spotted Unit) which used a density of 2.84 g/cm3.
The historical holes were validated from a set of twin holes drilled by Skeena and Hochschild in 2021 and 2022. Comparative statistics
showed good correlations between the historical and the twin hole gold assays. Blocks within the BSU were coded as waste. Mineral resources
have been depleted to account for past production as well as exclude mineralization within a 1 m buffer around historical underground
development.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page viii |
Classification followed CIM
guidelines (CIM, 2019) and Indicated and Inferred resources were classified as follows.
| · | The
Indicated category is defined by blocks interpolated during Pass 1 and 2 only, using a minimum
of 3 drill holes, and an average distance of less than 35 meters (approximately 70% of the
average variogram range). |
| · | The
Inferred category is defined by blocks interpolated during Pass 1, 2 and 3, using a minimum
of 2 drill holes and an average distance less than 75 meters (approximately 50% more than
the average variogram range) |
| · | Blocks
were locally reclassified to reduce ‘spotted’ Indicated resources within Inferred
resources, and vice versa. |
The calculated underground
cut-off grade was determined to be 2.5 g/t Au. Reasonable prospects for eventual economic extraction were determined by means of applying
reasonable stope optimizer parameters in Deswik® software. The resources are reported in-situ and undiluted within the
veins in potentially economical and minable underground long hole stope shapes.
The Snip Project contains
2.739 million tonnes grading 9.35 g/t Au in the Indicated category and 0.499 million tonnes grading 7.10 g/t Au in the Inferred category.
The mineral resources as estimated and reported on September 05, 2023, are summarized in Table 1-1.
Table
1-1: Mineral Resource Statement*, Snip Project, Iskut River Region, SRK Consulting, effective date September 05, 2023
| Category | |
Zone | |
Tonnes
(000) | | |
Contained
Grade
Au (g/t) | | |
Contained
Ounces
Au (000) | |
| | |
Main – V | |
| 850 | | |
| 9.59 | | |
| 262 | |
| Indicated | |
Main – S | |
| 1,718 | | |
| 9.28 | | |
| 513 | |
| | |
Twin West | |
| 171 | | |
| 8.69 | | |
| 48 | |
| Total Indicated | |
| |
| 2,739 | | |
| 9.35 | | |
| 823 | |
| | |
Main – V | |
| 115 | | |
| 7.38 | | |
| 27 | |
| Inferred | |
Main – S | |
| 323 | | |
| 6.22 | | |
| 65 | |
| | |
Twin West | |
| 61 | | |
| 11.02 | | |
| 22 | |
| Total Inferred | |
| |
| 499 | | |
| 7.10 | | |
| 114 | |
*Notes to accompany the Mineral
Resource Estimate statement:
| · | Mineral
resources are not mineral reserves as they do not have demonstrated economic viability. |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page ix |
| · | As
defined by NI 43-101, the Independent and Qualified Person is Ms. S. Ulansky, PGeo of
SRK Consulting (Canada) who has reviewed and validated the Mineral Resource Estimate. |
| · | The
effective date of the Mineral Resource Estimate is September 05, 2023. |
| · | The
number of metric tonnes and ounces were rounded to the nearest thousand. Any discrepancies
in the totals are due to rounding. |
| · | Reasonable
prospects for eventual economic extraction were determined by means of applying stope optimization
parameters summarized in Table 14-14. Resources are reported in-situ and undiluted within
the veins contained in potentially economical and minable underground long hole stope shapes. |
| · | Cut-off
grades are based on a price of US$1,700 per ounce of gold. |
| · | Estimates
use metric units (meters, tonnes and g/t). Metals are reported in troy ounces (metric tonne
* grade / 31.10348) |
| · | CIM
definitions were followed for the classification of mineral resources. |
| · | Neither
the company nor SRK is aware of any known environmental, permitted, legal, title-related,
taxation, socio-political, marketing or other relevant issue that could materially affect
this mineral resource estimate. |
| 1.8 | Interpretations
and Conclusions |
Key interpretations and conclusions
are based on SRK’s development of the Mineral Resource estimate, knowledge of the Snip mineralization system, as well as from site
visit evaluations conducted in July 2020:
| · | Gold
mineralization occurs in structurally controlled mineralized veins in a brittle-ductile shear
zone system, hosted within a sequence of laminated turbidites of the Upper Triassic Stuhini
Group. Mineralization has both Orogenic style gold characteristics as well as mineralogical
and paragenetic similarities to porphyry related vein systems, being contemporaneous with
the adjacent Early Jurassic Red Bluff porphyry, a calc-alkaline, I-type, magnetite-series
intrusion of quartz monzodioritic composition. |
| · | Ninety-four
narrow, high-grade lodes were modelled, which were combined into three distinct zones based
on structure and orientation (V-, S-, TW- Veins). |
| · | The
understanding of the regional geology and lithological and structural controls of mineralization
are sufficient to support estimation of Mineral Resources. |
| · | The
quantity and quality of the lithological, collar and down-the-hole survey data collected
are sufficient to support Mineral Resources. Sample data density and distribution is adequate
to build meaningful litho-structural models reflective of the overall deposit type. |
| · | SRK
reviewed the database and is of the opinion that the current sample preparation, security,
and analytical procedures meet industry-standard practices. SRK also believes that the Skeena
validated database is of a standard that is acceptable for creating an unbiased, representative
Mineral Resource Estimate of the Snip deposit. |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page x |
| · | SRK
reviewed the analytical quality control data accumulated by Skeena during 2016 to 2021 and
Hochschild in 2022. SRK confirms that gold grades are reasonably well reproduced and reliable
for resource estimation purposes. Similarly, a QA/QC analysis showed no obvious bias or errors. |
| · | Twin
drill hole evaluations of historical and recent drill holes show comparable gold intercepts
and grade, allowing the historical dataset to be utilized without any constraints. |
| · | Geostatistical
analyses were carried out on the composite data to select capping levels and derive estimation
parameters. Gold was estimated into the block model using Ordinary Kriging informed from
capped, composited data. Density, used for deriving tonnages, was coded into each block based
on specific gravity measurements in select lithology groupings. |
| · | Mineral
Resources were estimated and classified following CIM best practices. |
| · | The
2023 Mineral Resource demonstrates that the project has development potential as an underground
mining operation. Stope optimized shapes were created using reasonable assumptions for long
hole mining with a cut-off grade of 2.5 g/t Au. |
| · | Modelled
veins delineate in-situ gold grade and do not consider minimum width or potential planned
mining dilution, which would be considered during conversion of mineral resources to mineral
reserves. |
| · | Indicated
Mineral Resources are estimated to be 2.739 million tonnes grading 9.35 g/t Au. |
| · | Inferred
Mineral Resources are estimated to be 0.499 million tonnes grading 7.10 g/t Au. |
| · | Approximately
one tenth of the resource is classified as Inferred. It is reasonable to expect that part
of the Inferred mineral resource may be upgraded to the Indicated mineral resource category
with continued drilling. |
| · | Additionally,
it is reasonable to expect an increase to the Inferred category if future exploration campaigns
test underexplored areas and/or the continuity of sparsely drilled regions. |
The 2023 Mineral Resource
Estimate involves several key changes when compared to the 2020 Mineral Resource Estimate. The changes are as follows:
| · | Additional
drill holes included. |
| · | Expanded
and updated mineralization vein model volumes. |
| · | Overall
reduction in grade in the additional drill holes. |
| · | Twin
drilling program validation of all historical holes. |
| · | Lifting
of the 2020 40-meter omnidirectional 3-D buffer for the Indicated category due to the twin
drilling program. |
| · | Stope
optimizer adjustments. |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page xi |
| · | Additional
specific gravity measurements collected and used to update the model density values. |
In reviewing the compiled
drill hole database, geological interpretation and mineral resource estimate for the Snip Project, SRK makes the following recommendations:
| · | The
intimate association of biotite with shear zones and veining and overall homogeneity of potassic
(biotitic) alteration suggests that the alteration envelope may help constrain fluid and
mineralization pathways. It is recommended that alteration data are used to investigate the
potential to delineate alteration domains and generate alteration models to identity potential
ore shoots within the shear zone system. This should be completed as a part of the standard
geological logging and mapping observations, and as such, does not need a separate budget. |
| · | All
occurrences and locations of visible gold should be standardized and combined with drill
hole data to generate a high-grade gold model. This should be used to define zones of high
grade that can potentially be used as a predictive tool to delineate further zones of higher-grade
gold and/or ore shoots within the shear zone system. This will assist in improved local resolution
of high-grade zones for resource estimation. This should be completed as a part of the standard
geological logging and mapping process, and as such, would not require a separate budget. |
| · | A
detailed vein model was constructed in Leapfrog Geo®. To further substantiate the model
and elucidate the finer project scale structural details that are relevant to Snip mineralization,
an onsite structural mapping survey is recommended. Budget recommendations are provided in
Table 18-1. |
| · | Regional
geology and structure play a significant role in interpreting exploration geological datasets.
To effectively understand geological context within the broader district, an improved regional
geology map needs to be sourced and included into the Leapfrog Geo® model. |
| · | The
existing LiDAR survey covers the mineral lease area only. To extract subtle property-wide
structural details, which may be applied to regional exploration, an expanded LiDAR survey
that covers the entire property is recommended with an appropriate structural interpretation: |
| – | In
tandem with the LiDAR survey, a high-resolution magnetics survey using drone surveying technologies
would enhance future structural interpretations. This geophysical survey may be combined
with the regional LiDAR survey to reduce exploration costs. Costs associated with this LiDAR-add
one have not been included. |
| · | Knowing
that Snip ore is structurally controlled, advancing the project depends heavily on understanding
the structural complexities of the deposit. Oriented core drilling facilitates measurements
of the directional properties in the rock and is used to measure bedding, foliation, vein
orientations, shear fabrics and other kinematic indicators. SRK recommends the use of oriented
core drilling for future drilling campaigns. |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page xii |
| · | Limited
drilling has been conducted on the Jim Porphyry and Jim Porphyry south areas which exhibit
similar alteration and lithological similarities with the Main Twin Zone. Knowing the narrow
and variable nature of mineralization on the property, an additional 2 holes are recommended
to fully test these targets. |
| · | The
grade appropriate standard needs to be inserted into the sample series. This is particularly
important for the high-grade standards where they should, ideally, be inserted into a series
of high-grade intervals only. |
| · | Preparation
and pulp duplicates are inserted by the lab at a sequence that the lab defines. Additional
preparation and pulp duplicates should be requested at intervals defined by Skeena to avoid
intralab bias and to reflect the entire gold range that defines the Snip Project. This should
be completed as a part of the standard sampling process, and as such, does not need a separate
budget. |
| · | External
check samples need to be consistently taken and processed at SGS Canada in a timely manner.
This should be completed as a part of the standard sampling process, and as such, does not
need a separate budget. |
| · | Sample
rejects and pulps are not currently saved and stored. In the event of core damage, loss or
tampering, rejects and pulps will serve to validate the deposit’s primary asset –
the assay database. Therefore, sample rejects and pulps should be stored as a part of the
standard QA/QC process, and as such, does not need a separate budget. |
| · | Due
to the high degree of grade variability within the Snip deposit, SRK recommends conducting
a conditional simulation study to assess the impact of localized grade variability within
the mineral resource estimate and on future mine design and production planning. The simulated
model could also be used to reconcile against historical production based on available historical
stope and underground development wireframes. |
| 1.9.4 | Historical
Confirmation |
| · | A
basic property survey was conducted in 2017, whereby a new survey control point network was
established. Differential GPS points from the 300-level portal were expanded underground
and traversed up the ramp using a total station. To further this survey and to validate the
volume of depleted material, a study to determine the accuracy of the levels relative to
the historical wireframes is recommended. This should be completed as part of the standard
data management process for the Snip Project, and as such, does not need a separate budget: |
| – | Depending
on the outcome of the study, and if there are major differences in elevation and position,
a more detailed survey will need to be undertaken. |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page xiii |
| – | Measured
blocks have not been accounted for in the 2023 Mineral Resource Statement due to Client-specific
requests. However, blocks that qualify in terms of having quantity, grade or quality, densities,
shape and physical characteristics that are estimated with confidence to allow the application
of modifying factors, are currently accessible. To convert additional areas from Indicated
to Measured, having approximately 12.5 m centers, updated classification parameters need
to be generated in future resource model runs. This process may be conducted as part of SRK’s
proposed resource model conditional simulation study, whereby mineral resource classification
criteria are reassessed to potentially support Measured resources. |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page xiv |
Table of Contents
| 1 |
Executive Summary |
ii |
| |
1.1 |
Introduction |
ii |
| |
1.2 |
Property Location and Ownership |
ii |
| |
1.3 |
Accessibility, Climate, Local Resources, Infrastructure and Physiography |
iii |
| |
1.4 |
History, Exploration and Drilling |
iii |
| |
1.5 |
Geology and Mineralization |
v |
| |
1.6 |
Metallurgical Test Work |
vi |
| |
1.7 |
Mineral Resource and Mineral Reserve Estimates |
vi |
| |
1.8 |
Interpretations and Conclusions |
ix |
| |
1.9 |
Recommendations |
xi |
| |
|
1.9.1 |
Geology/Exploration |
xi |
| |
|
1.9.2 |
Sampling |
xii |
| |
|
1.9.3 |
Resource Model |
xii |
| |
|
1.9.4 |
Historical Confirmation |
xii |
| 2 |
Introduction and Terms of Reference |
1 |
| |
2.1 |
Scope of Work |
1 |
| |
2.2 |
Work Program |
2 |
| |
2.3 |
Basis of Technical Report |
2 |
| |
2.4 |
Qualifications of SRK and SRK Team |
3 |
| |
2.5 |
Site Visit |
4 |
| |
2.6 |
Acknowledgement |
4 |
| |
2.7 |
Declaration |
4 |
| 3 |
Reliance on Other Experts |
5 |
| 4 |
Property Description and Location |
6 |
| |
4.1 |
Mineral Tenure |
8 |
| |
4.2 |
Underlying Agreements |
11 |
| |
4.3 |
Barrick Agreement |
11 |
| |
4.4 |
Hochschild Option |
11 |
| |
4.5 |
Historical NSR |
12 |
| |
4.6 |
Environmental Issues |
12 |
| 5 |
Accessibility, Climate, Local Resources, Infrastructure and Physiography |
13 |
| |
5.1 |
Accessibility |
13 |
| |
|
5.1.1 |
Aircraft Infrastructure |
13 |
| |
|
5.1.2 |
Road Access |
15 |
| |
5.2 |
Local Resources and Infrastructure |
15 |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page xv |
| |
5.3 |
Climate and Vegetation |
15 |
| |
|
5.3.1 |
Climate |
15 |
| |
|
5.3.2 |
Vegetation |
16 |
| |
5.4 |
Physiography |
16 |
| 6 |
History |
18 |
| |
6.1 |
Exploration, 1900 - 1987 |
18 |
| |
6.2 |
Development and Mining, 1988 – 1999 |
19 |
| |
6.3 |
Post Mining, 1999-2016 |
25 |
| |
6.4 |
Mine Closure |
25 |
| |
6.5 |
Environmental Monitoring |
26 |
| 7 |
Geological Setting and Mineralization |
27 |
| |
7.1 |
Regional Geology |
27 |
| |
7.2 |
Property Geology |
29 |
| |
|
7.2.1 |
Lithology |
31 |
| |
7.3 |
Structure |
33 |
| |
7.4 |
Mineralization |
34 |
| 8 |
Deposit Types |
36 |
| 9 |
Exploration |
38 |
| |
9.1 |
2016 |
38 |
| |
|
9.1.1 |
Geochemistry |
38 |
| |
|
9.1.2 |
Geophysics |
41 |
| |
9.2 |
2017 |
41 |
| |
|
9.2.1 |
LiDAR Survey |
41 |
| |
9.3 |
2019 |
41 |
| |
|
9.3.1 |
Petrography |
41 |
| 10 |
Drilling |
44 |
| |
10.1 |
Historical Drilling (pre-1999) |
44 |
| |
10.2 |
Skeena Resources Drilling (2016 to 2021) |
47 |
| |
10.3 |
Hochschild Drilling (2022) |
47 |
| |
10.4 |
Drill Coordinates, Downhole Surveys and Contractors |
48 |
| |
|
10.4.1 |
Historical |
48 |
| |
|
10.4.2 |
Skeena Drilling |
48 |
| |
|
10.4.3 |
Hochschild Drilling |
49 |
| |
10.5 |
Drill Hole Logging |
50 |
| |
10.6 |
Recovery |
50 |
| |
10.7 |
Completion of Drilling |
50 |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page xvi |
| |
10.8 |
Skeena Drilling |
50 |
| |
|
10.8.1 |
2016 – Surface Drilling |
50 |
| |
|
10.8.2 |
2017 – Underground Drilling |
51 |
| |
|
10.8.3 |
2018 – Surface Drilling |
54 |
| |
|
10.8.4 |
Skeena Underground Drilling, 2018 |
54 |
| |
|
10.8.5 |
Skeena Surface Drilling, 2019 |
56 |
| |
|
10.8.6 |
Skeena Surface Drilling, 2020 |
56 |
| |
|
10.8.7 |
Skeena Surface Drilling, 2021 |
56 |
| |
|
10.8.8 |
Skeena Underground Drilling, 2021 |
57 |
| |
|
10.8.9 |
Hochschild Surface Drilling, 2022 |
57 |
| |
|
10.8.10 |
Hochschild Underground Drilling, 2022 |
57 |
| |
10.9 |
SRK Comments |
57 |
| 11 |
Sample Preparation, Analyses, and Security |
59 |
| |
11.1 |
Sample Preparation, Analysis, and Security |
59 |
| |
|
11.1.1 |
Drill Hole Sampling |
59 |
| |
|
11.1.2 |
Sample Preparation and Analysis by Analytical Laboratory |
61 |
| |
|
11.1.3 |
Specific Gravity and Bulk Density |
62 |
| |
11.2 |
Quality Assurance and Quality Control |
62 |
| |
11.3 |
Qualified Person’s Opinion on Quality Assurance and Quantity Control |
76 |
| 12 |
Data Verification |
78 |
| 13 |
Mineral Processing and Metallurgical Testing |
83 |
| |
13.1 |
Introduction |
83 |
| |
13.2 |
Metallurgical Test Work |
83 |
| |
|
13.2.1 |
Historical Operations at the Snip Mine |
83 |
| |
|
13.2.2 |
2020 Metallurgical Test Work Program |
83 |
| |
|
13.2.3 |
2021 Phase 1 Metallurgical Test Work Program |
87 |
| |
|
13.2.4 |
Phase 2 2022 Metallurgical Testing Program |
91 |
| |
13.3 |
Deleterious Elements |
104 |
| |
13.4 |
Recovery Estimates |
104 |
| 14 |
Mineral Resource Estimates |
105 |
| |
14.1 |
Introduction |
105 |
| |
14.2 |
Resource Database |
106 |
| |
14.3 |
Solid Body Modelling |
109 |
| |
|
14.3.1 |
Geological Modelling |
109 |
| |
|
14.3.2 |
Mineralization Model |
109 |
| |
|
14.3.3 |
Historical Mining Zones |
112 |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page xvii |
| |
|
14.3.4 |
Underground Workings |
114 |
| |
14.4 |
Data Analysis |
116 |
| |
|
14.4.1 |
Sample length |
116 |
| |
|
14.4.2 |
Assay Grade Summary |
117 |
| |
|
14.4.3 |
Unsampled Intervals |
117 |
| |
14.5 |
Compositing |
118 |
| |
14.6 |
Evaluation of Outliers |
119 |
| |
14.7 |
Statistical Analysis and Variography |
123 |
| |
14.8 |
Specific Gravity |
128 |
| |
14.9 |
Block Model and Grade Estimation |
129 |
| |
14.10 |
Model Validation |
133 |
| |
|
14.10.1 |
Block Model Visual Validation |
133 |
| |
|
14.10.2 |
Global Grade Bias Check |
137 |
| |
|
14.10.3 |
Local Grade Bias Check |
137 |
| |
14.11 |
Mineral Resource Classification |
141 |
| |
14.12 |
Mineral Resource Statement |
143 |
| |
14.13 |
Comparison to Previous Mineral Resource Estimate |
149 |
| |
14.14 |
Factors that May Affect the Mineral Resource Estimates |
150 |
| |
14.15 |
Responsibility for the Snip Resource Estimate |
151 |
| 15 |
Adjacent Properties |
152 |
| |
15.1 |
SnipGold Corp. (a Subsidiary of Seabridge Gold) |
152 |
| |
|
15.1.1 |
Stonehouse Deposit |
152 |
| |
|
15.1.2 |
Bronson Slope |
154 |
| 16 |
Other Relevant Information |
155 |
| |
16.1 |
Road Access |
155 |
| |
16.2 |
Hydroelectric Infrastructure |
155 |
| 17 |
Interpretation and Conclusions |
156 |
| |
17.1 |
Mineral Tenure, Surface Rights, Agreements, and Royalties |
156 |
| |
17.2 |
Geology and Mineralization |
156 |
| |
17.3 |
Data Analysis |
156 |
| |
17.4 |
Mineral Resource Estimation |
157 |
| 18 |
Recommendations |
158 |
| |
18.1 |
Geology/Exploration |
158 |
| |
18.2 |
Sampling |
159 |
| |
18.3 |
Resource Model |
159 |
| |
18.4 |
Historical Confirmation |
159 |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page xviii |
| 19 |
Acronyms and Abbreviations |
161 |
| 20 |
References |
162 |
| 21 |
Date and Signature Page |
166 |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page xix |
List of Tables
| Table 1-1: Mineral Resource Statement*, Snip Project |
viii |
| |
|
| Table 2-1: Qualified Persons who prepared or contributed to the Technical Report |
3 |
| |
|
| Table 2-2: Other Experts who assisted the Qualified Persons |
3 |
| |
|
| Table 4-1: Mineral claim information |
10 |
| |
|
| Table 4-2: Mineral lease information |
10 |
| |
|
| Table 6-1: Snip Mine production by zone (Homestake, 1998) |
21 |
| |
|
| Table 6-2: Snip Mine production by mining method |
21 |
| |
|
| Table 6-3: Plant production annual summaries |
22 |
| |
|
| Table 7-1: Mineralization types in the Main Twin Zone (Rhys, 1993) |
35 |
| |
|
| Table 10-1: Summary of historical surface and underground holes drilled by year |
44 |
| |
|
| Table 10-2: Skeena surface and underground drill hole targets |
47 |
| |
|
| Table 10-3: Skeena surface and underground drill hole targets |
47 |
| |
|
| Table 10-4: Significant Intercepts from the 2016 drill program |
51 |
| |
|
| Table 10-5: Significant Intercepts from the 2019 drill program |
56 |
| |
|
| Table 11-1: Sample preparation and analytical methods conducted on Snip Project |
61 |
| |
|
| Table 11-2: Specific gravity measurements between 2016 and 2022 |
62 |
| |
|
| Table 11-3: Summary of field control samples per assay year |
65 |
| |
|
| Table 11-4: Standards utilized between the 2016 and 2022 drilling campaigns |
66 |
| |
|
| Table 11-5: Summary of standards inserted per assay year, including failure results |
66 |
| |
|
| Table 11-6: Blank failures per assay year |
72 |
| |
|
| Table 11-7: No. of duplicates and percentages per year |
74 |
| |
|
| Table 13-1: 2020 Samples - Chemical Analysis |
84 |
| |
|
| Table 13-2: Bond Mill Work Index Determination Determined at 106 microns Classification Size |
85 |
| |
|
| Table 13-3: Rougher/Gravity results |
86 |
| |
|
| Table 13-4: 2021 Master Composite Sample Assays |
88 |
| |
|
| Table 13-5: 2021 Master Composite Sample - Bulk Mineralogy Analysis |
88 |
| |
|
| Table 13-6: 2021 Master Composite Sample Sulphur Deportment Results |
89 |
| |
|
| Table 13-7: Snip 2021 E-GRG Test Results |
89 |
| |
|
| Table 13-8: Snip Phase 1 Leach Test Conditions |
90 |
| |
|
| Table 13-9: Snip 2021 Leach Test Results |
90 |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page xx |
| Table 13-10: Snip 2021 Combined Gravity/Flotation Leach Test Results |
90 |
| |
|
| Table 13-11: 2022 Metallurgical Samples |
91 |
| |
|
| Table 13-12: Snip Phase 2 Sample Assays |
94 |
| |
|
| Table 13-13: 2022 Samples Bulk Mineralogy Analysis (BMA) |
95 |
| |
|
| Table 13-14: Snip Comminution Tests Results |
97 |
| |
|
| Table 13-15: Snip Phase 2 E-GRG Test Results |
97 |
| |
|
| Table 13-16: Snip 2022 Flotation Tests Results |
98 |
| |
|
| Table 13-17: 2022 Leach Test Results |
99 |
| |
|
| Table 13-18: 2022 Variability Samples Leach Test Result |
100 |
| |
|
| Table 13-19: Snip Pre-Leach Dynamic Thickening Results |
103 |
| |
|
| Table 13-20: Snip Pre-Leach Thickener Underflow Rheology Test Results |
103 |
| |
|
| Table 14-1: Skeena drill hole database |
106 |
| |
|
| Table 14-2: Zone volume difference between 2020 and 2023 |
109 |
| |
|
| Table 14-3: Model naming convention and volumes |
110 |
| |
|
| Table 14-4: Zones, number of veins, and associated historical name equivalents |
112 |
| |
|
| Table 14-5: Summary statistics of length-weighted gold assays by zone |
117 |
| |
|
| Table 14-6: Number of meters and percent of non-sampled meters within each of the zones |
118 |
| |
|
| Table 14-7: Comparison of assay data to 1.5 m gold composites by domain |
119 |
| |
|
| Table 14-8: Outlier threshold values and summary statistics of 1.5 m gold composites |
120 |
| |
|
| Table 14-9: Gold variogram parameters per domain |
124 |
| |
|
| Table 14-10: Specific gravity by lithology |
128 |
| |
|
| Table 14-11: Block model details and specifications |
129 |
| |
|
| Table 14-12: Estimation parameters |
132 |
| |
|
| Table 14-13: Global gold grade bias |
137 |
| |
|
| Table 14-14: Assumptions considered for stope optimization |
143 |
| |
|
| Table 14-15: Snip underground Mineral Resource Statement as of September 05, 2023. |
144 |
| |
|
| Table 14-16 Mean assay grade comparison |
149 |
| |
|
| Table 14-17: Percent difference between the 2020 and 2023 MRE’s |
150 |
| |
|
| Table 18-1: Estimated Cost for the Exploration Program Proposed for the Snip Project |
160 |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page xxi |
List of Figures
| Figure 4-1: General location of the Snip Project |
7 |
| |
|
| Figure 4-2: Land tenure map |
9 |
| |
|
| Figure 5-1: Project access |
14 |
| |
|
| Figure 5-2: View of the Snip Project looking south west |
17 |
| |
|
| Figure 6-1: Snip mining operation, circa 1998, looking southwest |
20 |
| |
|
| Figure 6-2: Recovery of gold from historical Snip Mine, circa 1998 |
22 |
| |
|
| Figure 6-3: Mining at the historical Snip Mine, circa 1998 |
23 |
| |
|
| Figure 6-4 Snip Mine underground mine workings |
24 |
| |
|
| Figure 7-1: Regional Geology of the Bronson corridor area (Kyba and Nelson, 2015) |
28 |
| |
|
| Figure 7-2 Property geology map |
30 |
| |
|
| Figure 8-1: Schematic Geologic History of the Iskut River |
37 |
| |
|
| Figure 9-1: Gold soil survey sample locations in ppb |
40 |
| |
|
| Figure 9-2: 2016 geophysical survey magnetics, total field intensity |
42 |
| |
|
| Figure 9-3: LiDAR survey map of Twin West and the Main Twin Zone area |
43 |
| |
|
| Figure 10-1 Distribution of surface drilling on the Snip Project |
45 |
| |
|
| Figure 10-2 Distribution of underground drilling at the Snip Project |
46 |
| |
|
| Figure 10-3: Cross section 4895E of the unmined eastern Main Twin Zone |
52 |
| |
|
| Figure 10-4: Cross section 4475E of the lower unmined Main Twin Zone |
53 |
| |
|
| Figure 10-5: Cross section 4850E of the eastern Main Twin Zone |
55 |
| |
|
| Figure 10-6: Cross section 4850E of the 412 area showing expansion of the veins from the 2021 drill program |
58 |
| |
|
| Figure 11-1: Snip camp site core shack |
59 |
| |
|
| Figure 11-2: Drill core cross piles at the Snip camp (photograph courtesy of C. Chung, 2020) |
60 |
| |
|
| Figure 11-3: Routine quality control flow chart |
63 |
| |
|
| Figure 11-4: Quarterly quality control flow chart |
64 |
| |
|
| Figure 11-5: 2021 and 2022 gold control chart for standard CDN-GS-7J |
68 |
| |
|
| Figure 11-6: 2021 and 2022 gold control chart for standard CDN-GS-25A |
69 |
| |
|
| Figure 11-7: 2021 and 2022 gold control chart for standard CDN-GS-2W |
70 |
| |
|
| Figure 11-8: 2021 and 2022 gold control chart for standard CDN-ME-1709 |
71 |
| |
|
| Figure 11-9: 2020 to 2021 marble garden rock blanks |
72 |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page xxii |
| Figure 11-10: 2022 certified blank material (CDN-BL-10 Coarse) |
73 |
| |
|
| Figure 11-11: 2022 prep duplicate scatter plot |
74 |
| |
|
| Figure 11-12: 2022 pulp duplicate scatter plot |
75 |
| |
|
| Figure 11-13: 2022 resample duplicate scatter plot |
75 |
| |
|
| Figure 11-14: 2022 check assay chart |
76 |
| |
|
| Figure 12-1: Log Q-Q plot of historical holes (Y axis) |
78 |
| |
|
| Figure 12-2: Down dip view of all twin holes (in black) in relation to all Snip drilling |
79 |
| |
|
| Figure 12-3. Equivalent vein intercepts for a twin pair |
80 |
| |
|
| Figure 12-4. Thompson Howarth plot of all the equivalent vein intercept pairs |
81 |
| |
|
| Figure 13-1: Sample Locations of the 2020 Metallurgical Intervals. Red = Composite 1 and Blue = Composite 2 |
84 |
| |
|
| Figure 13-2: 2021 Snip Metallurgical Drill Hole Locations |
87 |
| |
|
| Figure 13-3: Snip Phase 2 Metallurgical Test Samples Locations; Part 1 |
93 |
| |
|
| Figure 13-4: 2022 Metallurgical Test Samples Locations; Part 2 |
93 |
| |
|
| Figure 13-5: 2022 Comminution Test Samples Locations |
94 |
| |
|
| Figure 13-6: 2022 Leach Tests Recovery as a Function of Head Grade |
101 |
| |
|
| Figure 13-7: Dynamic Thickening Test Apparatus |
102 |
| |
|
| Figure 14-1: Plan view of drill hole traces in the Snip database, excluding furthermost holes |
107 |
| |
|
| Figure 14-2: Plan view of the new drill holes used in the updated 2023 MRE |
108 |
| |
|
| Figure 14-3: Oblique view of the Snip vein model showing the V-veins |
111 |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page xxiii |
| Figure 14-4: Oblique view showing the V- and S- vein domains in relation to historical areas |
113 |
| |
|
| Figure 14-5: Section 4500E showing historical underground development |
115 |
| |
|
| Figure 14-6: Histogram statistics of vein-coded assay sample lengths |
116 |
| |
|
| Figure 14-7: Log probability curve |
117 |
| |
|
| Figure 14-8: V-veins cumulative log probability showing the chosen capping threshold for each domain |
121 |
| |
|
| Figure 14-9: S-veins cumulative log probability plot showing the chosen capping thresholds for each domain |
122 |
| |
|
| Figure 14-10: TW-veins cumulative log probability plot showing the chosen capping thresholds for each domain |
123 |
| |
|
| Figure 14-11: V-veins experimental variograms and models |
125 |
| |
|
| Figure 14-12: S-vein experimental variograms and models in domain 201 only |
125 |
| |
|
| Figure 14-13: S-vein experimental variograms and models vein in domain 202 only |
126 |
| |
|
| Figure 14-14: S-vein experimental variograms and models in domain 203 only |
126 |
| |
|
| Figure 14-15: S-vein experimental variograms and models in domain 200 (all remaining veins) |
127 |
| |
|
| Figure 14-16: TW experimental variograms and models |
127 |
| |
|
| Figure 14-17: Snip Project block model extents for the Main and Twin West block model areas |
130 |
| |
|
| Figure 14-18: Visual validation of blocks grades versus composites on Section 4540E, looking west |
134 |
| |
|
| Figure 14-19: Visual validation of blocks grades versus composites on Section 4470E, looking west |
135 |
| |
|
| Figure 14-20: Visual validation of blocks grades versus composites on Section 4775E, looking west |
136 |
| |
|
| Figure 14-21: Swath plots for the domains 101 (left) and 102 (right) of the V-veins. Black= OK model, blue= ID2 model, yellow =NN_declus model |
138 |
| |
|
| Figure 14-22: Swath plots for the domains 201 (left), 202 (middle), and 203 (right) domains of the S-veins. Black= OK model, blue= ID2 model, yellow =NN_declus model |
139 |
| |
|
| Figure 14-23: Swath plots for the domains 301 (left) and 300 (right) domains of the TW-Veins. Black= OK model, blue= ID2 model, yellow =NN_declus model |
140 |
| |
|
| Figure 14-24: Plan view of the distribution of Indicated and Inferred classed blocks |
142 |
| |
|
| Figure 14-25 Plan view and view looking west (inset) of the distribution of potentially economical minable underground stope shapes (orange) |
146 |
| |
|
| Figure 14-26 Oblique view looking west of the reported resources within the stope optimized shapes in the Main Model |
147 |
| |
|
| Figure 14-27: Oblique view of the distribution of the reported resources within the stope optimized shapes in the Twin West Model. |
148 |
| |
|
| Figure 15-1: Adjacent properties to the Snip Project |
153 |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 1 |
| 2 | Introduction
and Terms of Reference |
The Snip Project, located
in northwest BC, is a high-grade underground gold deposit that has been historically partially mined. The Project is located in the Iskut
River region in the Golden Triangle of British Columbia.
Skeena, a junior Canadian
mining exploration company focused on developing prospective precious and base metal properties in the Golden Triangle of northwest British
Columbia, Canada, owns 100% of the Snip Project.
On June 07, 2023, Skeena
commissioned SRK to provide technical support and validation of the updated in-house resource model for the Snip Project, together with
an NI 43-101 compliant resource estimate and report. The services were rendered between June and September 2023 leading to
the preparation of the mineral resource statement reported herein that was disclosed publicly by Skeena in a news release on September 05,
2023 with a release date of September 26, 2023 for the Technical Report.
This Technical Report documents
the mineral resource statement for the Snip 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”.
The scope of work, as defined
in a letter of engagement executed on June 07, 2023 between Skeena and SRK, was to provide Skeena with ongoing support and validation
of an updated in-house resource estimate that will be used for future preliminary engineering, accompanied by the preparation of an independent
technical report published by SRK in compliance with National Instrument 43-101. This work involved the creation, review, and assessment
of the following aspects of this project:
| · | Perform
a thorough review of the Client-provided database and quality control and quantity control
(QA/QC) data and assess for errors or flaws that may hinder the mineral resource estimation
process. |
| · | Review
the twin drilling data to assess for gold assay and mineralized interval similarities or
differences. From the results, evaluate the risk of allowing all historical drill holes (without
a 40 m buffer constraint) into the Indicated category, if fulfilling the additional class
requirements. |
| · | Review
the Snip deposit estimation domains ensuring that they are consistent and appropriate for
the underlying interpretation of lithology and mineralization. |
| · | Provide
resource estimate guidance and complete an independent check model on the Snip deposit. SRK
will suggest appropriate exploratory data analysis values and estimation input parameters. |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 2 |
| · | Fulfill
Reasonable Prospects of Eventual Economic Extraction (RPEEE) criteria by running a stope
optimizer on the underground resources. |
| · | Review,
update, validate and sign-off on a NI 43-101 compliant technical report. |
| · | Recommendations
for additional work. |
The mineral resource statement
reported herein is a collaborative effort between Skeena and SRK personnel. The exploration database was compiled and maintained by Skeena
and was subsequently audited by SRK. The geological structural model and mineralization domains were initially constructed by SRK in
2020 but have subsequently been updated by Skeena with the 2020 to 2022 drilling data. In the opinion of SRK, the geological model is
a reasonable representation of the distribution of the targeted mineralization at the current level of sampling. The geostatistical analysis,
variography and grade models were validated by SRK during the months July and August 2023. The mineral resource statement reported
herein was disclosed publicly in a news release dated September 05, 2023
The mineral resource statement
reported herein was prepared in conformity with generally accepted CIM “Exploration Best Practices” and “Estimation
of Mineral Resource and Mineral Reserves Best Practices” guidelines. This technical report was prepared following the guidelines
of the Canadian Securities Administrators National Instrument 43-101.
The technical report was assembled
in the SRK Vancouver office during the month of September 2023.
| 2.3 | Basis
of Technical Report |
This report is based on information
provided by Skeena throughout the course of SRK’s investigations. SRK performed a site visit to the Snip Project on July 27
to July 30, 2020 and has no reason to doubt the reliability of the information provided by Skeena. This technical report is based
on the following sources of information:
| · | Regional
geological maps, papers and assessment reports; |
| · | Property
geology maps, papers, assessment reports and data; |
| · | Rhys
(1993) Master’s Thesis; |
| · | Discussions
with Skeena personnel; |
| · | Inspection
of the Snip Project area, including portals, outcrop and drill core surface collars; and |
| · | Drill
core evaluations and inspection. |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 3 |
| 2.4 | Qualifications
of SRK and SRK Team |
The SRK Group comprises over
1,000 professionals, offering expertise in a wide range of resource engineering disciplines. The SRK Group’s independence is ensured
by the fact that it holds no equity in any project and that its ownership rests solely with its staff. This fact permits SRK to provide
its clients with conflict-free and objective recommendations on crucial judgment issues. SRK has a demonstrated track record in undertaking
independent assessments of Mineral Resources and Mineral Reserves, project evaluations and audits, technical reports and independent
feasibility evaluations to bankable standards on behalf of exploration and mining companies and financial institutions worldwide. The
SRK Group has also worked with a large number of major international mining companies and their projects, providing mining industry consultancy
service inputs.
The resource evaluation work
and the compilation of this technical report was completed by Ms. Kathi Dilworth, GIT under the supervision of the Qualified Person,
Ms. Sheila Ulansky, PGeo [EGBC#36085] (Table 2-1). By virtue of her education, membership to a recognized professional association
and relevant work experience, Ms. Ulansky is an independent Qualified Person as this term is defined by National Instrument 43-101.
The names and details of Other Experts who have contributed to this Technical Report are listed in Table 2-2. Mr. Andre Deiss, Pr.Sci.Nat
Principal Resource Geologist with SRK, reviewed and provided guidance with estimation parameters. He also reviewed drafts of this technical
report prior to delivery to Skeena as per SRK internal quality management procedures.
Table
2-1: Qualified Persons who prepared or contributed to the Technical Report
| Qualified
Person |
Company |
Responsibility
/
Role |
Site
Visit |
Report
Section(s) |
| Sheila
Ulansky, P.Geo. |
SRK |
Mineral
Resource Estimation |
July 2020 |
1
to 12, 14 to 18 |
| Diana
Nakou, P.Eng. |
SRK |
Stope
Optimization |
n/a |
14 |
| Andre
Deiss, Pr,Sci.Nat. |
SRK |
Peer
Review |
n/a |
All |
| Jeff
Austin, P.Eng. |
International
Metallurgical and Environmental Inc. |
Metallurgy |
n/a |
13 |
Table
2-2: Other Experts who assisted the Qualified Persons
| Expert |
Company
|
Position |
Report
Sections |
| Katherine
(Kathi) Dilworth GIT |
Skeena
Resources |
Director:
Resources and Reserves |
1
to 10, 14 to 16 |
Michael
Mayer,
ADP GIS |
Skeena
Resources |
Manager,
Technical Services |
Maps
and Figures |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 4 |
In accordance with National
Instrument 43-101 guidelines, Ms. Ulansky visited the Snip Project between July 27 and July 31, 2020 accompanied by Ms. Dilworth
of Skeena Resources.
The purpose of the site visit
was to ground truth historical and current surface collar locations, examine drill core intervals within the main lodes, and collect
all relevant information for the compilation of this technical report.
During the visit, attention
was given to geological and structural controls on the distribution of gold mineralization to validate the extent that mineralization
had been extended in the three-dimensional gold mineralization vein model.
SRK was given full access
to relevant data and conducted interviews with Skeena’s personnel to obtain information on past exploration work, and to understand
procedures used to collect, record, store and analyze historical and current exploration data.
SRK would like to acknowledge
the support and collaboration provided by Skeena personnel for this assignment. Their collaboration was greatly appreciated and instrumental
to the success of this project.
SRK’s opinion contained
herein and effective September 05, 2023, is based on information collected by SRK throughout the course of SRK’s investigations,
which in turn reflect various technical and economic conditions at the time of writing. Given the nature of the mining business, these
conditions can change significantly over relatively short periods of time. Consequently, actual results may be significantly more or
less favorable.
This report may include technical
information that requires subsequent calculations to derive sub-totals, totals and weighted averages. Such calculations inherently involve
a degree of rounding and consequently introduce a margin of error. Where these occur, SRK does not consider them to be material.
SRK is not an insider, associate,
or an affiliate of Skeena and neither SRK nor any affiliate has acted as advisor to Skeena, its subsidiaries, or its affiliates in connection
with this project. The results of the technical review by SRK are not dependent on any prior agreements concerning the conclusions to
be reached, nor are there any undisclosed understandings concerning any future business dealings.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 5 |
| 3 | Reliance
on Other Experts |
Skeena contributors to this
report include Ms. Dilworth and Mr. Mayer. Not all the authors of this report have met the current requirements of a “Qualified
Person”, but all work has been performed under the supervision of independent Qualified Persons.
SRK has not performed an independent
verification of land title and tenure information as summarized in Section 4.1 of this report. SRK did not verify the legality of
any underlying agreements(s) that may exist concerning the permits or other agreement(s) between third parties.
SRK was informed by Skeena
that there are no known litigations potentially affecting the Snip Project.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 6 |
| 4 | Property
Description and Location |
The Snip Property is located
in the Golden Triangle region of British Columbia, Canada, 105 km north north-west of Stewart and 330 km northwest of Smithers (Figure
4-1). The Snip Project is located at an elevation of 150 m at it’s lowest level to 500 m at it’s highest point above sea
level, centered at latitude 56° 39’ 51.35” and longitude 131° 07’ 32.00” or UTM 6282650 N and 369390
E (NAD 83, Zone 9N) (Figure 4-1). The property is located wholly within NTS map sheet 104B/11.
The Snip Project is located
on the south side of the Iskut River, 2.0 km south of its confluence with Bronson Creek (Figure 5-1). It is accessible by a 58.5 km,
all-weather road, which departs from the Stewart-Cassiar Highway (Highway 37) just south of the Bob Quinn airstrip to McLymont Staging
area. From McLymont, it is a 15-minute helicopter flight to the Snip camp location. The mill and mine site were previously located within
the Bronson Creek Valley, 1.5 km northeast of the deposit and 120 m above sea level (ASL).
There are no known federal,
provincial or regional parks, wilderness or conservancy areas, ecological reserves, or recreational areas near the Snip Property. The
area is within the Traditional Territory assertions of the Tahltan Central Government.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 7 |
Figure
4-1: General location of the Snip Project
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 8 |
The status of all mining titles
was verified using Mineral Titles Online (“MTO”), the British Columbia government’s online mineral titles administration
system at:
http://www2.gov.bc.ca/gov/content/industry/mineral-exploration-mining/mineral-titles/mineral-placer-titles/mineraltitlesonline.
The Snip Project covers a
total of 4,724.07 hectares (11,673.43 acres) and is comprised of the following (Figure 4-2).
| · | Nine
(9) mineral claims totaling 4,242 hectares (10,482.21 acres) (Table 4-1); and |
| · | One
(1) mineral lease totaling 482.07 hectares (1,191.22 acres) (Table 4-2). |
All nine mineral claims and
the mineral lease are 100% registered to Skeena Resources Limited.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 9 |
Figure
4-2: Land tenure map
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 10 |
Table 4-1: Mineral claim information
Tenure
Number |
Claim
Name |
Description |
Issue
Date |
Good
to Date |
Area
(Hectares) |
Owner
Name |
No. of
Owners |
| 222219 |
SKY
3 |
Four
Post Claim |
1982-09-13 |
2029-07-15 |
500 |
SKEENA
RESOURCES LIMITED |
1 |
| 222347 |
SNIP
3 |
Four
Post Claim |
1983-10-20 |
2029-07-15 |
75 |
SKEENA
RESOURCES LIMITED |
1 |
| 300552 |
JIM
1 |
Four
Post Claim |
1986-07-22 |
2029-07-15 |
500 |
SKEENA
RESOURCES LIMITED |
1 |
| 300553 |
JIM
2 |
Four
Post Claim |
1986-07-22 |
2029-07-15 |
375 |
SKEENA
RESOURCES LIMITED |
1 |
| 1056547 |
WESTSIDE |
Mineral
Cell Title Submission |
2017-11-21 |
2029-05-22 |
925.13 |
SKEENA
RESOURCES LIMITED |
1 |
| 1056548 |
CLEA |
Mineral
Cell Title Submission |
2017-11-21 |
2029-05-22 |
1617.85 |
SKEENA
RESOURCES LIMITED |
1 |
| 1056595 |
PHIZGAP |
Mineral
Cell Title Submission |
2017-11-22 |
2029-05-22 |
53.32 |
SKEENA
RESOURCES LIMITED |
1 |
| 1069071 |
SNIP
4 |
Mineral
Cell Title Submission |
2019-06-11 |
2024-06-11 |
17.78 |
SKEENA
RESOURCES LIMITED |
1 |
| 1095324 |
TRAPPER
DAVE |
Mineral
Cell Title Submission |
2022-04-24 |
2024-04-24 |
177.92 |
SKEENA
RESOURCES LIMITED |
1 |
Table 4-2: Mineral lease information
| Tenure
Number |
Issue
Date |
Good
to Date |
Term
Expiry |
Area
(Hectares) |
Owner
Name |
No. of
Owners |
| 226132 |
1989-07-21 |
2024-07-21 |
2039-07-21 |
482.07 |
SKEENA
RESOURCES LIMITED |
1 |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 11 |
The Snip Property is comprised
of 9 mining claims and 1 mining lease that cover a total area of 4,724.07 hectares (Figure 4-2, Table 4-1, and Table 4-2). The property
is contiguous except for a small outlier remnant of Mining Lease 226132 from an earlier claim swap with Skyline Gold Corp., a predecessor
of Seabridge Gold Inc. In March 2016, Skeena Resources Ltd. entered into an option agreement with Barrick Gold Inc. for the Mining
Lease and the four easternmost claims (222219, 222347, 300552, 300553). Three mining claims acquired in late 2017 (1056547, 1056548,
1056595), one mining claim acquired in 2019 (1069071), and one claim acquired in 2022 (1095324), expanded the property to the west; however,
they are not subject to the terms of the agreement with Barrick Gold Inc.
The initial expenditure requirements
of the agreement with Barrick were satisfied by Skeena in July 2017, at which time Skeena exercised their right to acquire all of
Barrick Gold Inc.’s 100% “right, title and interest in and to the Property and the Permits”, subject to the retention
by Barrick of a 51% Back-In Right exercisable upon definition of a Mineral Resource, or extraction from the property, of 2 million ounces
of contained gold or gold equivalent and a 1% NSR Royalty. The “Back In Agreement” requires a repayment to Skeena of an amount
three times their cumulative expenditures by Barrick.
In September 2018, Skeena
and Hochschild entered into an option agreement for Hochschild to earn a 60% undivided interest in the Snip Project by spending twice
the amount Skeena has spent since it originally optioned Snip from Barrick. Hochschild had three years to provide notice to Skeena of
its intention to exercise the Option which it did on October 14th, 2021. To earn in its interest Hochschild was required
to:
| · | Incur,
over a three-year period (the “Option Period”), expenditures on Snip that are
no less than twice the amount of such expenditures incurred by Skeena from March 23,
2016 up until the time of exercise of the Option by Hochschild; |
| · | Incur
no less than C$7.5 million in exploration or development expenditures on Snip in each 12-month
period of the Option Period; and |
| · | Provide
60% of the financial assurance required by governmental authorities for the Snip mining properties;
after completing a minimum spend of CAD $22,500,000, Hochschild may extend the Option Period
by a further period of 12 months by making a cash payment to Skeena of CAD $1.0 million. |
On April 5th,
2023, Hochschild terminated its option to earn 60% of the Snip Gold Project resulting in Skeena reassuming management of the Project
and retaining 100% ownership.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 12 |
The historical property purchase
“buy-out” agreement executed in March 1996 between owners Cominco Ltd. and Prime Resource Group (now Teck and Barrick,
respectively) included a 5% net smelter return retained by Cominco from the sale or disposition of 60% of the gold recovered from ore,
containing 0.3 ounces per ton or greater, mined from the Snip Property after December 31, 1995 which ore is in excess of 480,660
tonnes. The reported total of proven, probable, and possible reserves tonnages on January 01, 1996 were 480,672 tonnes (Minfile
104B 250).
Skeena is not aware of any
environmental issues or liabilities that may directly affect exploration efforts on the property. Historical mine closure, reclamation,
remediation, and monitoring programs have been carried out responsibly (Sibbick and MacGillivray, 2006), and ongoing monitoring indicates
that there are no current issues with the tailings dam or water discharge at the site (Hull and Wickland, 2014; Shelbourne, 2015).
A multi-year exploration permit
for surface work was issued by the BC Ministry of Energy and Mines in June 2020 (Permit MX-1-959) and expires in March 2025.
Underground exploration of up to 200 holes and surface disturbance up to 120.96 hectares is currently granted on the mining lease under
Ministry of Mines Permit Approving Mine Plan and Reclamation Program (M190).
This permit does not expire
and is subject to amendment from time to time to accommodate company plans for further exploration and development.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 13 |
| 5 | Accessibility,
Climate, Local Resources, Infrastructure and Physiography |
| 5.1.1 | Aircraft
Infrastructure |
Access to the Snip Property
can be gained either by direct air to the 1.6 km long Bronson Airstrip or by boat transportation along the Iskut River (Figure 5-1).
Charter fixed wing flights are available from nearby centers, such as Smithers and Stewart, to the unpaved 1,600 m Bronson airstrip immediately
adjacent to the property, which is managed and maintained by Snip Gold Corp, a subsidiary of Seabridge. Rotary wing aircraft can also
be chartered from numerous available operators in northwestern British Columbia. Staging of equipment and supplies takes place from the
McLymont staging area near the westernmost end of an access road for the AltaGas Run of River Hydroelectric Project. The Snip camp is
a ten-minute helicopter flight (19 km) from the McLymont staging area.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 14 |
Figure
5-1: Project access
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 15 |
The nearest road access to
the Snip Property is McLymont road, located due east approximately 19 km upstream on the Iskut River to the McLymont Creek Run of River
Hydroelectric Power Station, owned and operated by AltaGas Ltd (Figure 5-1). From Smithers, McLymont Road can be reached by following
Highway 16 west for 111 km to Highway 37, near Kitwanga, then taking Highway 37 north for 295 km to the Eskay Creek Mine Road turnoff,
which is 3 km south of Bob Quinn. Access to the further 45 km of road to the Staging Area at McLymont Creek requires a road usage permit
from AltaGas.
| 5.2 | Local
Resources and Infrastructure |
The Snip Project is located
in the Pacific Northwest region of British Columbia, Canada. Support services for mining and other resource sector industries in the
region are provided primarily by the communities of Smithers (pop. 5,400) and Terrace (pop. 11,500) (https://www12.statcan.gc.ca),
which are both accessible by commercial airlines with daily flights to and from Vancouver. Volume freight service in the region is supported
by rail connections that extend from tidewater ports in Prince Rupert and Vancouver. The closest tidewater port to the project is in
Stewart, approximately 260 km from the Snip Project. Stewart is an ice-free shipping location and provides access for bulk shipping 365
days/year.
Road infrastructure in the
region is well developed. Highway 16 (Yellowhead Highway) extends from Prince George in central British Columbia, through several communities
including Smithers and Terrace, and terminates at the Port of Prince Rupert. Highway 37 (Stewart Cassiar Highway) connects to Highway
16 at Kitwanga and extends to the Alaska Highway in the Yukon. The Eskay Mine Road connects to Highway 37 roughly 295 km from Kitwanga.
Driving time from either Smithers or Terrace to the Eskay Creek Mine is approximately 5 hours.
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 Snip Project. The Forest Kerr, McLymont, and Volcano Creek hydroelectric plants are
within 20 km and collectively produce up to 277 MW (www.altagas.ca).
Services, workforce, supply
chains, and infrastructure are all well established in the region to support mining operations.
| 5.3 | Climate
and Vegetation |
There are no long-term weather
datasets available for the region. Data recorded from a weather station located on the Bronson airstrip from 1994 to 1998 (Lawrence and
Seen, 2009) recorded annual precipitation between 1,300 and 2,100 mm, of which 30% fell as snow. Precipitation levels were highest in
September and October and lowest in May through August. Mean daily temperatures were highest in July and August reaching
approximately 16° C, and lowest in January falling to -15° C. The highest temperature recorded on site over the 5-year period
was 31° C and the lowest temperature recorded was -32° C.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 16 |
For a review of flora and
fauna, the reader is directed to the report by Burgoyne (2010), which provides a list covering species on and around Johnny Mountain.
The property lies within the
Coastal Western Hemlock zone and a small portion of the eastern property is mapped as Mountain Hemlock. The Snip property has almost
no alpine vegetation, with sub-alpine flora dominated by scattered Sitka Spruce transitioning to Engelmann Spruce further east.
At lowermost elevations, at
the Bronson Creek level, the natural vegetation is Western Hemlock and Sitka Spruce with riparian populations of cottonwood and spruce.
Devil’s club and slide alder can be thick in low to moderate elevations and disturbed areas are overrun with the same vegetation.
Huckleberry, blueberry, grouseberry and mountain arnica grow at various elevations. Natural regrowth is rapid, with hemlock and spruce
growing to five meters within 20 years.
The Snip Property lies within
the Coast Mountains, a major regional chain extending from Alaska through British Columbia and into Washington State, U.S.A. The dominant
feature of the region is the Stikine Icecap, which is centered 80 km to the Northwest of the Snip Property along the Alaska border. The
Snip Property lies between the Iskut River, Craig River and Bronson Creek within the Stikine Watershed.
Local elevations vary from
just over 100 m ASL at Bronson Creek, to 900 m ASL in the subalpine located in the far south-eastern portion of the property.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 17 |
Figure
5-2: View of the Snip Project looking south west - the Red Bluff Porphyry is shown in the foreground
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 18 |
| 6.1 | Exploration,
1900 - 1987 |
The history of the Snip property
and adjacent surrounding area was previously provided in detail by Nichols and Giles (2017) and Moors (2018).
The Iskut area has been subjected
to extensive exploration dating back well over 100 years. In 1907, a prospecting syndicate from Wrangell Alaska termed the “Iskut
Mining Company” recorded claims on Bronson Creek. These claims would later become Crown Granted and still exist to this day. In
1909, the Red Bluff claims were staked, and from 1908 to 1911, several short adits were driven into the Red Bluff porphyry to obtain
a bulk sample (King, 1988).
From 1911 to 1920, the Iskut
Mining Company reported trenching, stripping and drifting on a number of gold bearing veins on the Red Bluff and Iskut claims on, and
adjacent to, the current Snip property. Extracted material from the original Iskut claims assayed 0.06 oz Au, 44.2 oz Ag and 12.4% Cu
(King, 1988).
In 1929 Cominco Ltd. staked
42 claims on Johnny Mountain, however these claims lapsed soon after and the area experienced no recorded work until 1954 (King, 1988).
Geologist Forrest Kerr mapped
portions of the Iskut River region from 1926-1929, and published GSC map 311A in 1935. Kerr's memoir 246 on the area was published posthumously
in 1948. The Geological Survey of Canada's "Operation Stikine" in 1956 mapped the Stikine-Iskut area on a regional basis, publishing
it as GSC Map 9-1957 (Nichols, 1989).
From 1954 to 1960, Hudson
Bay Mining and Smelting Co. Ltd.’s drilling resulted in copper discoveries on, and near, the Johnny Mountain Gold Mine. In 1964,
Cominco Ltd. targeting copper, optioned claims from Tuksi Mining Company and Jodi Explorations Ltd. and in 1965 completed drilling on
the Red Bluff claim north and east of the property. In 1973 and 1974, the same property was examined by Texas Gulf Sulphur Inc. for its
copper and base metal content (King, 1988).
In 1964, the Tuksi Mining
Co. acquired Crown Grants, and Jodi Exploration Co., Cominco Ltd. and Copper Soo Mining Co. staked claims around Tuksi’s property.
Further work at that time discussed the regional geology of the Iskut area, details of which may be found in Mawer (1964), Parsons (1965),
Nagy (1966) and Bagshaw (1968). The following year Cominco Ltd. concentrated an exploration program on the Red Bluff porphyry copper
deposit and discovered visible gold in a vein exposed in a nearby creek bed. In 1966, channel sampling on the vein returned assays up
to 244 ppm Au over 1.2 m.
From 1980 to 1986, grass roots
exploration, soil sampling and trenching were conducted on the Snip property by Cominco. In 1986, Cominco signed a JV agreement with
Delaware Resources Corp., who provided the funding for the project, and over two years, drilled over 15,000 m. The work outlined the
Main Twin Zone, and a decision was made to go underground in 1988, via a portal at 300 m ASL elevation. An additional 6,800 m of surface
drilling, coupled with underground development and related drilling at 12.5 m centers, produced a first reserve estimate for the Main
Twin Zone of 940,000 tonnes grading 28.5 g/t Au (Nichols, 1989).
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 19 |
| 6.2 | Development
and Mining, 1988 – 1999 |
The history of development
and mining on the Snip property area has been covered by many authors and is summarized hereafter. The Snip Mine operated between January 1991
and June 1999. A photo of the mine circa 1998 is shown in Figure 6-1. Prime Resources Group Inc. assimilated Delaware Resources
in 1995 then bought Cominco’s 60% interest of the Snip Property in March 1996. Homestake Canada Inc. owned a controlling interest
in Prime Resource Group at the time and operated the mine until closure and reclamation. In 2001 the property was acquired by Barrick
Gold Inc. (Barrick) as part of its acquisition of Homestake Canada Inc.
All historical reports of
resources and reserves, including statements of grades and tonnages, were prepared internally by Cominco Ltd. in 1989 prior to the implementation
of National Instrument 43-101 standards and should not be relied upon. Past production figures are from audited company records and government
sources, including Canada Revenue Agency and BC Mines Branch, and may be relied upon.
The Snip Mine went into production
in January 1991 and officially opened on July 25th. Gold ore was mined using conventional shrinkage and cut and
fill methods in the lower parts of the orebody, while mechanized cut and fill methods were used in the upper, wider parts of the orebody.
Initial plant design was planned
for a daily production of 300 tonnes. Diluted ore reserves at start-up using a 12 g/t gold cut-off totalled 940,000 tonnes grading 28.5
g/t, with a mine life of 10 years at an annual output of 2.9 million grams (93,000 oz).
In the first year, mine production
totalled 119,812 ounces from 122,648 tonnes mined. That same year, the first resource estimate on the 150 Vein was calculated at 46,300
tonnes grading 32.0 g/t Au. Peak total ounces produced occurred in 1992 with 165,713 tonnes grading 31.6 g/t (168,011 ounces). A peak
production rate of 470 tonnes per day (172,254 tonnes) at an average grade of 25.3 g/t Au occurred two years later.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 20 |
Figure
6-1: Snip mining operation, circa 1998, looking southwest
The Snip Mine consisted of
an underground mining operation, mill, tailings impoundment and ancillary facilities. The mine was a fly-in/fly-out operation which was
serviced by air flights from Wrangell, Alaska, Bob Quinn Lake and Smithers to the Bronson airstrip located adjacent to the Snip Mine.
Access to the underground
workings was provided by a series of portals that accessed the Main Twin Zone (130, 180, 300, 340, 400, 420, 440, and 520 portals) and
Twin West Zone (150 and 225 portals). Access and haulage from the Main Twin Zone workings were provided by the 130 and 180 portals. The
mill and ancillary facilities were located north of the mine between Monsoon and Bronson Creeks. The tailings impoundment was constructed
in the saddle of a narrow valley forming the headwaters to both Monsoon Creek and Sky Creek. Dams were constructed at each end to form
a tailings impoundment approximately 150 m wide and 800 m long. Discharge from the impoundment was directed towards Sky Creek (Sibbick
and MacGillivray, 2006).
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 21 |
Ore was mined predominantly
by the “cut and fill” method in the wider, generally higher elevation parts of the ore-body where mechanized drilling and
mucking occurred, while the narrowest parts saw conventional jack-leg drilling and slushers. Veins intermediate in thickness saw various
combinations of these methods. Broken ore was sent down ore-passes to haulage trucks and taken predominantly via the 130 haulage level
to the mill. The proportion of mechanized/semi mechanized mining relative to conventional mining dropped significantly over the lifetime
of the mine, from 81% of the total mining in 1991, to 42% in 1994, to 16% in 1998 (final full year of production). Annual production
rate totals by the various veins is provided in Table 6-1 and production summaries by mining method and recovered gold in Table 6-2 and
Table 6-3, respectively. Photos from underground during mining are shown in Figure 6-3.
Table
6-1: Snip Mine production by zone (Homestake, 1998)
| Zone | |
Tonnes | | |
Tonnes
(%) | | |
Grade
(g/t) | | |
Grade
(oz/t) | | |
Total
Grams | | |
Total
Ounces | | |
Ounces
% | |
| Main Twin | |
| 762,437 | | |
| 61 | % | |
| 28.95 | | |
| 0.93 | | |
| 22,070,709 | | |
| 709,601 | | |
| 64 | % |
| 150 Vein | |
| 277,926 | | |
| 22 | % | |
| 25.41 | | |
| 0.82 | | |
| 7,060,746 | | |
| 227,012 | | |
| 21 | % |
| HW min | |
| 89,288 | | |
| 7 | % | |
| 26.86 | | |
| 0.86 | | |
| 2,398,031 | | |
| 77,100 | | |
| 7 | % |
| FW min | |
| 67,712 | | |
| 5 | % | |
| 28.31 | | |
| 0.91 | | |
| 1,916,875 | | |
| 61,630 | | |
| 6 | % |
| 130 Vein | |
| 26,582 | | |
| 2 | % | |
| 19.90 | | |
| 0.64 | | |
| 528,929 | | |
| 17,006 | | |
| 2 | % |
| Twin-West | |
| 9,668 | | |
| 1 | % | |
| 18.10 | | |
| 0.58 | | |
| 174,967 | | |
| 5,625 | | |
| 1 | % |
| Misc | |
| 16,585 | | |
| 1 | % | |
| 16.01 | | |
| 0.51 | | |
| 265,536 | | |
| 8,537 | | |
| 1 | % |
| Total | |
| 1,250,198 | | |
| 100 | % | |
| 27.53 | | |
| 0.88 | | |
| 34,415,793 | | |
| 1,106,510 | | |
| 100 | % |
Table
6-2: Snip Mine production by mining method
| Mine Production | |
1991 | | |
1992 | | |
1993 | | |
1994 | | |
1995 | | |
1996 | | |
1997 | | |
1998 | |
| Ore Tonnes Milled | |
| 122,648 | | |
| 165,731 | | |
| 170,566 | | |
| 172,254 | | |
| 170,180 | | |
| 154,859 | | |
| 150,190 | | |
| 145,723 | |
| Average Head Grade (g/t Au) | |
| 30.38 | | |
| 31.60 | | |
| 29.80 | | |
| 25.30 | | |
| 25.80 | | |
| 26.92 | | |
| 26.80 | | |
| 23.82 | |
| Production (tpd, 365 days/year) | |
| 335 | | |
| 450 | | |
| 470 | | |
| 470 | | |
| 465 | | |
| 425 | | |
| 410 | | |
| 400 | |
| Conventional (slusher) Stopes | |
| 18.8 | % | |
| - | | |
| - | | |
| 42.0 | % | |
| - | | |
| - | | |
| - | | |
| 84.2 | % |
| Mech. & Semi-mech. Stopes | |
| 81.2 | % | |
| - | | |
| - | | |
| 58.0 | % | |
| - | | |
| - | | |
| - | | |
| 15.8 | % |
| Active Stopes | |
| 14 | | |
| 20 | | |
| 21 | | |
| 25 | | |
| 31 | | |
| 45 | | |
| 46 | | |
| 57 | |
| Average Tonnes per Stope | |
| 8,761 | | |
| 8,287 | | |
| 8,122 | | |
| 6,890 | | |
| 5,490 | | |
| 3,441 | | |
| 3,265 | | |
| 2,557 | |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 22 |
Table
6-3: Plant production annual summaries
| Plant Production | |
1991 | | |
1992 | | |
1993 | | |
1994 | | |
1995 | | |
1996 | | |
1997 | | |
1998 | |
| Au Gravity Recovery (%) | |
| 21.4 | | |
| 24.9 | | |
| 36.0 | | |
| 36.6 | | |
| 34.0 | | |
| 34.1 | | |
| 34.1 | | |
| 34.1 | |
| Au Floatation Recovery (%) | |
| 68.9 | | |
| 66.4 | | |
| 55.6 | | |
| 54.8 | | |
| 57.4 | | |
| 57.4 | | |
| 57.4 | | |
| 57.4 | |
| Au Recover (%) | |
| 90.3 | | |
| 91.3 | | |
| 91.6 | | |
| 91.4 | | |
| 91.4 | | |
| 91.5 | | |
| 91.5 | | |
| 91.5 | |
| Ounces as Bullion | |
| 28,272 | | |
| 34,900 | | |
| 58,830 | | |
| 51,282 | | |
| 47,995 | | |
| 45,664 | | |
| 44,057 | | |
| 38,022 | |
| Tonnes Concentrate | |
| 5,719 | | |
| 8,322 | | |
| 8,897 | | |
| 8,150 | | |
| 8,124 | | |
| 7,393 | | |
| 7,170 | | |
| 6,956 | |
| Ave. Concentrate Grade (g/t) | |
| 432 | | |
| 417 | | |
| 319 | | |
| 295 | | |
| 323 | | |
| 310 | | |
| 310 | | |
| 310 | |
The milling operation consisted
of a ball mill with gravity jig and a sulphide flotation circuit. Free milling gold came from a gravity jig on the ball mill and separated
from the other heavy minerals on a shaker table (Figure 6-2). Gold ore bars were then poured and flown off site. The remaining portion
of the gold associated with the sulphide minerals was recovered via flotation resulting in a concentrate containing upwards of 300 g/t
gold.
The concentrate was shipped
in 1.5 tonne “heavy bags” by hovercraft along the Iskut and Stikine Rivers to Wrangell, Alaska (Figure 6-2). Hovercraft shipments
were augmented by air cargo flights through the early years of operation until the hovercraft was phased out completely in 1997 due to
high operating costs and inoperability through the winter months. Cargo aircraft capacity was then correspondingly increased to satisfy
shipment schedules. Diesel fuel for power transmission at the mine was brought in on the return leg of these trips.
Figure
6-2: Recovery of gold from historical Snip Mine, circa 1998. (Left) Free gold on shaker table, (Right) Heavy bags of sulphide concentrate
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 23 |
Figure
6-3: Mining at the historical Snip Mine, circa 1998. (Left) Jumbo mechanized drilling, (Right) scoop tram exiting 180 level portal
Mine waste generated during
operations included waste rock and tailings. During operation, limited waste rock (180,000 Mt) was stockpiled in dumps adjacent to five
portals (130, 180, 300, 440 and 150). The majority of the waste rock was ground down and used as hydraulic backfill (280,000 Mt), or
placed directly as rock fill underground (344,648 Mt). Tailings were discharged to the tailings pond (Sibbick and MacGillivray, 2006).
When mining ceased in June 1999,
the total production of gold from the Snip property was 1,106,510 ounces of gold in 1,250,198 tonnes of rock at an average grade of 27.53
g/t (Black, 1999).
The British Columbia Government
reports slightly different totals than company records: “From 1991 to 1999, the Snip Mine produced 32.093 million grams of gold
(1,031,822 ounces troy), 12.183 million grams of silver (391,696 ounces) and 249,276 kilograms of copper from about 1.2 million tonnes.”
(MEMBC Minfile 104B 250).
The total gold production
at closure was roughly 30% greater than the gold resources defined at opening. A significant portion of these extra ounces came from
the 150 and 130 footwall veins as they were not part of the initial resource and delineated after production commenced.
An oblique longitudinal section
displaying all mined out areas in the Main and Twin West mines are shown in Figure 6-4.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 24 |
Figure 6-4 Snip Mine underground
mine workings
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 25 |
| 6.3 | Post
Mining, 1999-2016 |
No further mining or mineral
exploration work occurred on the property after mine closure until the option agreement was reached in March 2016 between Skeena
Resources and Barrick Gold Corp; the owner of the property since assimilation of Homestake Canada Inc. in 2001. Work performed by Skeena
since the agreement is described in Sections 9 (Exploration) and 10(Drilling).
Sibbick and MacGillivray (2006)
provide a detailed description of the Snip Property mine closure process.
Closure of the mine was initiated
following the completion of mining and the suspension of production in June 1999. Site closure operations were completed in October 1999.
The isolated location of the mine and its restricted access posed several challenges for closure. Therefore, a comprehensive program
was developed to ensure that the site closure could be sustained long-term with minimal post-closure maintenance. Key activities for
closure were the:
| · | Sealing
of the underground workings; |
| · | Decommissioning
of the waste dumps; |
| · | Reclamation
of the tailings impoundment; and |
| · | Demolition
of the site buildings and structures. |
Reclamation activities were
successfully completed by the end of 1999.
The underground workings contained
backfill and rock surfaces considered to be potentially acid generating. Therefore, to minimize the potential for acid generation, the
mine was flooded to the 300 level, the highest elevation possible. Concrete bulkheads were installed in the 130 and 180 portals to prevent
discharge of mine water. The 340, 400, 420, 440, and 520 portals were sealed with a mixture of waste rock and concrete to limit airflow
and prevent public access into the mine.
Waste rock dumps that were
identified as being potentially acid generating were dismantled and either placed in the subsequently flooded portion of the underground
or encapsulated within the tailings pond. The two dumps that were determined to be non-acid generating, the 150 and 180, were used as
cover material for the tailings pond. The 300 dump, also non acid generating, was left in place to provide access to the 300 portal,
the location of the underground mine drainage.
The tailings were regraded
to promote drainage towards Sky Creek, and then capped with a layer of non-acid generating waste rock from the 150 and 180 dumps. A spillway
was built at the south end of the impoundment to allow discharge into Sky Creek. The spillway elevation was constructed to maintain the
water level within the waste rock layer capping the tailings. A coarse rock blanket was placed in the spillway to prevent potential damming
as a result of beaver dam construction. Subsequent settlement of the tailings has resulted in the formation of shallow ponding behind
the embankment which ensures saturation during drier periods. Consolidation of the tailings and the migration of vegetation onto the
cap have resulted in the development of a naturally formed wetland.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 26 |
The mill and all ancillary
buildings were dismantled and salvaged or buried on site. Small volumes of hydrocarbon contaminated soils were excavated and continue
to be land farmed on a lined facility at the old mill site. Recontouring and seeding was carried out on the building areas and roads;
revegetation to date has been highly successful.
| 6.5 | Environmental
Monitoring |
Sibbick and MacGillivray (2006)
provide a detailed description of environmental monitoring on the Snip Property.
Barrick maintained a rigorous
monitoring program as part of its Closure Management Manual for the site that includes water quality sampling, geotechnical inspections
of the tailings dam and underground portal plugs, aquatic resource monitoring, and land use inspections.
The compliance monitoring
point for the Snip Mine site is the tailings pond discharge (TPD) into Sky Creek. This site has been sampled 54 times since closure.
Water quality of the discharge has been well below the permitted levels.
Based on the current success
of the closure works, and continued success throughout 2006, a reduction in frequency and parameters analyzed for, will be pursued, if
prudent. Geotechnical monitoring will also be conducted for the long-term; however, continued consolidation of the tailings over time
further mitigates against future potential tailings facility stability issues.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 27 |
| 7 | Geological
Setting and Mineralization |
The Iskut River area witnessed
an abundance of geological and metallogeny studies from the late 1980’s through the early 1990’s following numerous discoveries
and exploration campaigns, becoming known as the “Golden Triangle”.
Earliest work by Tipper and
Richards, (1976), Anderson (1989), and MacDonald et al. (1992) among others, established the Triassic (Stuhini Group) and Jurassic (Hazelton
Group) stratigraphy of the area, within the Intermontane Belt on the western margin of the Stikine terrane. The unconformity separating
the two groups was mapped throughout the “Golden Triangle” by Kyba and Nelson (2015), who established that most of the major
deposits in the region, including the Snip deposit, occur within 2.5 km of the unconformity.
Numerous intrusive suites
were identified, with the metallogenetically important Texas Creek Plutonic Suite considered coeval with volcanic components of
the Hazelton Group. Further regional work by Kyba and Nelson (2015), coinciding with increasing exploration in 2014, resulted in the
Bronson corridor map (Figure 7-1) showing the Hazelton and Stuhini Groups intruded by the Lehto plutonic suite.
The Snip property lies at
the western margin of their study with applicable portions of their summary and interpretations provided below. In general, strata are
gently dipping, as shown by major contacts that follow topographic contours, interrupted by minor, steep, northeast-striking faults.
Stuhini Group rocks at the base of the Snippaker Ridge section consist of laminated to thick-bedded greywacke, argillite, siltstone,
sandstone, crystal tuff, and rare fossiliferous limestone. Most common are grey-green, fine-grained, locally graded, tuffaceous volcanic
wackes containing subhedral to anhedral plagioclase feldspar and up to 10% mafic minerals (replaced by chlorite) and rare detrital quartz
(Kyba and Nelson, 2015).
Intrusive rocks in greater
Iskut River region comprize five plutonic suites. The Stikine plutonic suite is represented by Late Triassic calc-alkaline intrusions
which are coeval with group strata. Copper Mountain, Texas Creek and Three Sisters plutonic suites are variable in composition but are
roughly coeval and co-spatial with Hazelton Group volcanic strata. The Tertiary age Coast Plutonic Complex is represented by predominantly
granodioritic to monzonitic Eocene intrusions of the Hyder plutonic suite, exposed 12 km south of the Bronson Slope deposit (Britton
et al., 1990).
The age, mineralogy and texture
of the adjacent Red Bluff porphyry stock (associated with the adjacent Bronson Slope deposit), suggest that it belongs to the economically
important Early Jurassic Texas Creek plutonic suite (see Alldrick, 1985; Alldrick et al, 1987; Brown, 1987). Plutons of this suite are
located in the Stewart, Iskut River region and range in age from 196 to 185 My (Anderson, 1993; MacDonald et al., 1992., Alldrick
et al., 1990).
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 28 |
Figure
7-1: Regional Geology of the Bronson corridor area (Kyba and Nelson, 2015) . Note the distribution of the Early Jurassic Lehto plutonic
suite. Red diamonds show locations of U-Pb ages, blue dots represent fossil localities
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 29 |
Kyba and Nelson (2015) noted
the spatial relationship of many mineral showings and deposits in the region, and in particular large zones of “quartz-sericite-pyrite”
(QSP) alteration, with a major northwest-southeast trending structure named the “Sky fault system” (Figure 7-1). Their interpretation
impacts on the Snip Property geology as the western extension of this fault system and broad zones of QSP are found within its boundaries.
“Our analysis of
the Sky fault system suggests that the Bronson corridor of alteration and mineralization (Metcalfe and Moors, 1992) was controlled by
regional structures. Normal faulting, emplacement of Lehto intrusive rocks, and alteration appear to be genetically related, as indicated
by synkinematic dikes and the increased intensity of QSP alteration, polymetallic mineralization, and dike density at the Inel and Khyber
prospects toward the Sky fault system.
In this study, we have
observed many instances of normal sense motion on strands of the Sky fault system. However, the stress regime during the Early Jurassic
may not have been purely extensional. There is limited evidence of dextral sense motion on the Sky fault south of Mt. Johnny. Detailed
underground structural study of the Snip vein showed that it formed during normal-oblique (dextral) motion on the minor west-northwesterly,
southeast-dipping fault zone that hosts it (Rhys, 1995). Northeasterly faults and trends of intrusions and alteration zones are an important
feature of the Bronson corridor” (Kyba, J. and Nelson, J.L., 2015).
“The Lehto pluton,
as shown in the Lewis (2013) compilation, is a large, northeast-trending, uniform intrusive body. More detailed observations show a wider
diversity of phases, and distribution of Lehto plutonic rocks throughout the belt in small, high-level intrusive centers (e.g., Snippaker
Ridge and Mt. Johnny) and as dikes near the Sky fault system. Analysis of the Sky fault system indicates that early normal faults, likely
genetically related to alteration, mineralization, and Lehto plutonism, reactivated in a thrust sense during post- Early Jurassic regional
shortening. The Sky fault system likely formed close to the boundary of a rift-type basin and enhanced circulation of hydrothermal fluids
generated during Lehto suite plutonism to form the deposits of the Bronson corridor” (Kyba, and Nelson, 2015).
Extensive geological work
was performed on the property through its early exploration and production period. Studies focused on structural geology, alteration
and mineralization as they were the principal controls on ore development. The Master’s Thesis by Rhys (1993) from the University
of British Columbia remains the most systematic and detailed evaluation of the property.
A property geology map accurately
representing historical and more recent work was produced by Nichols and Giles (2017) (Figure 7-2). It is discussed in subsequent sections.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 30 |
Figure
7-2 Property geology map
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 31 |
| 7.2.1.1 | Triassic
Stuhini Group |
The Stuhini Group that hosts
the Snip mineralization was described in detail by Rhys (1993). Rocks exposed in the Snip mine workings were interpreted to represent
strata from a stratigraphically intermediate position in the clastic lower succession of Johnny Mountain likely representing turbidites
proximal to a volcanic source. Between 70 and 850 m of true thickness in the sequence has been intersected by the Snip underground workings
and drilling, measured from west of the 130 portal adjacent to the Red Bluff porphyry to drilling in the south central end of 180 level.
Bedding dips moderately to
steeply north to northwest with younging directions, determined from laminated graded beds, are upright and face north. Dips range from
60 to 80 degrees north on 180 level to shallower dips of between 30 to 50 degrees on the 230 to 340 levels. Bedding dips are variable
but generally steeply to the north to northwest above the 340 level and on surface above the workings.
Rocks consist primarily of
grey weathering massive fine to medium grained poorly sorted and feldspathic to lithic greywacke. Laminated and graded beds of siltstone
and mudstone comprizes between 3 and 15% of the sequence with massive coarse-grained greywacke comprising 5-10%. Less abundant matrix
supported volcanic conglomerate also occurs throughout. Greywackes sediment comprizes plagioclase (mainly albitic), quartz, K-feldspar,
siltstone/mudstone and volcanic rock fragments. The coarser-grained greywackes and the lithic greywackes often contain 0.5-10 cm-sized
subrounded biotized mafic minerals and K-feldspar porphyritic intermediate to mafic volcanic clasts, and clasts of tan coloured siltstone
or dark grey mudstone. Clasts constitute generally less than 10% by volume.
| 7.2.1.2 | Red
Bluff Porphyry and associated alteration |
The Red Bluff Porphyry lies
between 500 and 800 m northeast of the Snip deposit and is considered significant in the alteration and mineralization on the Snip Property
(Rhys, 1995) (Figure 7-2). It is approximately 2 km long and 250 m wide, and trends northwest along the northeast edge of Johnny Ridge.
Contact relationships with the country rock are poorly defined but where intersected by drilling and mine development, are faulted or
intrusive.
The Red Bluff Porphyry is
a hydrothermally altered K-feldspar megacrystic, plagioclase porphyritic intrusion of probably quartz diorite to quartz monzodiorite
composition. The porphyry and adjacent rocks are affected by several styles of alteration and veining that are dominated by pervasive
potassic alteration and associated quartz-magnetite-hematite veins. Veinlet and brown biotite ± pyrite occurs broadly and abundantly
throughout the greywacke sequence of northern and western Johnny Mountain. Biotite abundance is greatest over an approximately 15 km2
zone in the greywackes within the Snip mine workings, the southernmost kilometer of the Bronson stock, the northwestern end of
Snippaker Ridge, and in greywacke and volcanic conglomerate units along the west side of Johnny Mountain.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 32 |
The possible genetic relationship
interpreted by Rhys between the Red Bluff porphyry, alteration and mineralization is important to consider during further exploration
of the Snip Property. Rhys’ conclusions are based upon spatial association, alteration assemblages, mineralization and metal zoning,
structural fabrics and kinematics, and temporal relationships between alteration, intrusion and mineralization.
Taken together, these relationships
suggest that: (1) mineralized structures on Johnny Mountain characterised by Early Jurassic galena Pb isotopic signatures, formed
during one magmatically driven hydrothermal event that was synchronous with deformation; (2) metals were not mobilized into the
structures by later fluid circulation during a younger phase of hydrothermal activity or deformation; (3) hydrothermal activity
and mineralization in the Red Bluff porphyry and the Main Twin Zone were synchronous, and thus the Red Bluff porphyry is a potential
local fluid source for the Main Twin Zone; and (4) the biotite envelopes on the Main Twin Zone and shear veins are contemporaneous
with potassic alteration on the property.
The distribution and abundance
of biotite in areas distal to the Red Bluff porphyry along the west side of Johnny Mountain and the extensive area containing mineralized
veins, suggests a more regional fluid source, possibly an underlying batholithic parent to the Red Bluff porphyry (Rhys, 1995) rather
than an origin related solely to the Red Bluff hydrothermal system.
| 7.2.1.3 | Biotite
Spotted Unit |
A distinctive unit at Snip
Mine is the Biotite Spotted Unit, or ‘BSU’. This distinctive dike, that is often found in the core of the principal vein,
divides it into two “Twin” portions.
Nichols and Giles (2017) described
the unit as a non-mineralized basic to intermediate biotitic dyke that has intruded the vein mineralization. Mining revealed that it
mostly followed the plane of the Main Twin Zone, with dips from 50°-70° at the lower and upper elevations, with shallower dips
at mid-elevations. Widths range from several decimeters up to 5 m with an average width of 2.5-3 m. It is moderately to strongly biotitized
and hosts calcite-pyrite-quartz-sericite-chlorite alteration minerals. Biotite content ranges from 2 to 20% as disseminations, veins
and fracture infill.
A small portion of the Snip
Property overlies an intrusive body that forms the hillside on the opposite side of a large fault gully to the northwest of the historic
Snip mine, termed the “Bronson Stock” described in Nichols and Giles (2017).
The Bronson Stock is a poorly
documented heterogeneous, medium-grained equigranular plagioclase-rich clinopyroxene-amphibole bearing diorite. The stock has a poorly
constrained Late Triassic U-Pb zircon age of between 197 Ma and 225 Ma obtained from a K-feldspar and plagioclase phyric monzodiorite
phase of this unit (Macdonald et al, 1992). It has also been noted by various authors that the stock has been intruded by several dykes,
sills; and small stocks, of unknown age and intermediate to mafic composition.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 33 |
Contacts of the stock with
country rocks are not well defined, but where observed in drill core, are either faulted or intrusive. The southwest and northeast contacts
appear to be southwesterly dipping. Screens of altered greywacke up to 40 m wide are common throughout the intrusion.
The Jim Porphyry has been
interpreted solely from drill hole information as there is very limited outcrop in the southwest portion of the property. Geophysics
does not provide strong evidence for an intrusive body of significant size. 2016 drilling on the Jim claims intersected an extrusive
unit and possibly an associated intrusive unit. Rocks are described as feldspar-phyric, feldspar-quartz rich pyroclastic fall, ash-lapilli,
agglomeratic, debris flow and volcaniclastic sections intruded by mineralogically similar dykes and sills.
Feldspar porphyroblastic dacitic
intrusions may have been intersected in previous holes (based on conclusions, and inferences drawn from 2016 core, past drill logs and
Rhys (1997) reported images) with some intercepts suggesting they could represent additional porphyry copper targets. Their extents are
unknown due to lack of outcrop and drill density and it is conceivable that they may represent Hazelton Group equivalent rocks. Rhys
(1997), suggests some of the feldspar porphyroblastic dykes ascribed to the loosely termed and even more loosely defined ‘Jim Porphyry
system’, are related to the Jurassic age Texas Creek Plutonic suite. His generalized definition of the ‘Jim Porphyry System’
is based on examination of over a dozen holes. A quartz (vein) stockwork is near ubiquitous in drill holes with several intersecting
megacrystic K-feldspar porphyry dykes. Alteration is an assemblage of quartz-sericite-chlorite-albite-pyrite-carbonate. (Nichols and
Giles, 2017).
| 7.2.1.6 | Recent
Lamprophyre and Basalt dykes |
Undeformed lamprophyre dykes
of probable Tertiary (Oligocene) age have been mapped and seen in drill core at several locations on the property, as have basalt dykes,
possibly correlative with recent volcanism.
Rhys (1993) provides a very
thorough and detailed analysis of the structural geology of the Snip Project and surrounding area and its role in focusing fluid flow
and mineralization. His work was accurately summarized by Nichols and Giles, 2017.
Several periods of deformation
and veining have affected the Snip Mine sequence. Earliest quartz calcite veining is superseded by a (single) shear vein phase, followed
by extensional veining. These features are cut by northwest dipping gouge filled faults that have oblique right lateral displacements.
At least one set of the extension veins displays reverse shear sense relative to shear veining.
Rhys (1993) cites “consistency
of mineralogy, identical progression of the same alteration facies from vein to wallrock, and the continuity of structural thickness
from biotite-pyrite veinlets to shear veins suggest that these structures were formed during the same hydrothermal event.” The
intimate association of biotite to shears, veining and the overall homogeneity of the alteration envelope are suggestive of a close relationship
to the same event. Ore type formation and alteration were in his words, ‘synchronous and part of a protracted process’. Evidence
for this is:
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 34 |
| | · | Deformed
and undeformed auriferous quartz and sulphide veins in single exposure, and deformed veins
cross-cutting foliation. |
| | · | Stacked
repetitive sets of quartz and sulphide veins. |
| | · | Biotitic
envelopes on deformed and shear veins suggesting alteration from the time of vein formation
and continuing after the intrusion of the BSU. |
| | · | Multiple
quartz-sulphide veining with various styles and clear cross-cutting relationships. |
Rhys (1993) concluded the
BSU dyke was intruded late in the deformation history of the Main Twin Zone, after ore formation, but during the waning stages of the
hydrothermal system. Importantly, displacement on the Main Twin Zone and shear veins during the event that offset the extension veins,
must have had only minor offset since there is no offset along the dyke, which predates the extension veins. The displacement of the
extension veins must thus define a late reactivation of the shear veins that is minor and temporally unrelated to the main period of
offset on the Main Twin Zone (Nichols and Giles, 2017).
Gold mineralization at the
Snip Mine has been reported from at least six historical zones including the Main Twin Zone, the 150 Vein, the Hangingwall Zone, the
Footwall Zone, the 130 Vein and the T-West (‘Twin West”) Zone.
Gangue mineralization is predominately
calcite, iron-carbonate, quartz, pyrite, chlorite, and biotite in decreasing order.
Mineralization was divided
into the following four types by Rhys (1993):
| | · | Carbonate
Type: Banded to laminated calcite and chlorite/biotite with up to 70% carbonate. Quartz
is disseminated to vein(let) in nature. Sulphides are trace to approximately 5%. |
| | · | Chlorite-Biotite
Type: Up to 60% phyllosilicates and 30-40% calcite. Minor to moderate to predominant
quartz with significant vein-type or ‘augen’ quartz. Sulphides approximately
5% (pyrite and pyrrhotite). |
| | · | Sulphide
Type: Pyrite, chalcopyrite, pyrrhotite, arsenopyrite, galena, sphalerite can occur in
varying percentages and combinations, as threads, veinlets, vein, semi- massive concentrations
or disseminations. |
| | · | Quartz
Type: Banded-parallel or ‘foliation-parallel’ white to milky in colour, with
sulphides as in previous types. Pyrrhotite and chalcopyrite were reported as more abundant
than in the Sulphide Type. Veins were also reported as commonly fractured with quartz and
Fe-carbonate infill. |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 35 |
The mineral association and
occurrence of gold within the different types is summarized in Table 7-1.
Table
7-1: Mineralization types in the Main Twin Zone (Rhys, 1993)
| Type |
Mineral
Association |
Gold
Occurrence |
| Sulphide
Type |
Pyrite,
chalcopyrite, pyrrhotite, magnetite, arsenopyrite, chlorite, biotite, tellurides, sulfosalts, native bismuth |
Enclosed
in, within fractures, or rimming sulphide grains; also free in gangue with chlorite or biotite. Often intergrown with tellurides,
native bismuth, tetrahedrite or chalcopyrite |
| Quartz
Type |
Pyrite,
chalcopyrite, pyrrhotite, chlorite |
Rimming
or spatially associated with these minerals, but less commonly occurs without them free in quartz |
| Carbonate
and Biotite/Chlorite Type |
Pink
carbonate with fine-grained biotite; chlorite, molybdenite; associated with and alteration of biotite to chlorite, calcite and rarer
actinolite |
Streaked
on chlorite foliation surfaces; or as coarse flakes and seams spatially associated with pink carbonate. Commonly intergrown with
or rimmed by molybdenite |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 36 |
Mineralization on the Snip
property is unique as it displays structural geological similarities to many Orogenic style gold occurrences yet displays mineralogical
and paragenetic similarities to porphyry related veins deposits. An excellent summary classification of the deposit style on the Snip
property was provided in Sillitoe and Thompson (1998).
The Snip Au-Cu-Mo-Zn deposit,
in the Stewart-Iskut River area of northwestern British Columbia, lies adjacent to the Red Bluff porphyry, an Early Jurassic calc-alkaline, I-type,
magnetite-series intrusion of quartz monzodioritic composition. The porphyry hosts a quartz-magnetite-hematite stockwork containing a
low-grade gold-copper resource (Rhys, 1995), Similar intrusions associated with porphyry copper-gold mineralization occur throughout
the region and were emplaced over an approximately 10 Ma time period in the Early Jurassic (Macdonald et al., 1996). The lead-isotopic
signatures of the intrusions, porphyry mineralization and related veins fall in a tight cluster (Godwin et al., 1991).
The Snip deposit exploits
the Main Twin Zone shear-vein system, which starts approximately 600 m from the Red Bluff intrusion and extends for >1000 m to the
west-northwest. The vein, hosted by Triassic sedimentary rocks, averages 2.5 m in width and dips 30-60° to the southwest (Rhys, 1995).
The vein system is characterized by internal mineralogical banding, typically parallel layers of chlorite-biotite, calcite, quartz and
pyrrhotite-pyrite, with wallrock alteration dominated by inner biotite and outer K-feldspar-calcite-quartz-sericite (Rhys, 1995).
The historical mining and
reserve grades averaged 27–30 g/t Au, with elevated copper (0.15–0.5 %), minor molybdenum (0.01– 0.05 %) and zinc (Zn:
Cu<5:1) (Rhys, 1995).
Structural features in the
Main Twin Zone indicate oblique-directed shearing under semi-brittle conditions (Rhys,1995). The shear fabrics associated with the gold
mineralization in the Main Twin Zone are similar to those described from many orogenic vein gold deposits. The metal association in the
veins (Au-Cu-Mo-Zn) and the importance of potassic alteration suggest a magmatic origin for the ore fluid. This is supported by the proximity
of the Main Twin Zone to the Red Bluff porphyry as well as the lead-isotopic data (Rhys, 1995). Veins more distal with respect to the
Red Bluff porphyry contain higher zinc, lead and silver contents as expected in a zoned porphyry system. The veins in the district can
therefore be classified as porphyry related, similar to those in many other porphyry copper systems, although the Main Twin Zone is unusual
because of its economic grades and widths, the metal suite and the synchronicity of mineralization and semi-brittle deformation.
The relation of the Snip Property
style of gold mineralization relative to the many other styles in the Stewart-Iskut River area was portrayed in Macdonald (1996). His
diagram depicting the metallogenetic evolution of the area is provided in Figure 8-1.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 37 |
Figure
8-1: Schematic Geologic History of the Iskut River area and relation to the Snip mineralization (MacDonald, 1996)
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 38 |
A significant amount of historical
exploration work has been conducted on the Snip Property to date. Knowing that mineralization in the region is typically discontinuous
and narrow in nature, a unique strategy of discovering an ore body of economic significance is needed. For example, the Main Twin Zone
produced greater than 700,000 ounces of gold from a tabular body of rock with dimensions of roughly 2.5 m thick by 200 m across by 500
m in length. Seeing as zones of significant ore can be hidden so surreptitiously, additional holes should be planned for every primary
drill target, to fully consider and cover the area of interest. Furthermore, due to the variable nature of these gold deposits, drill
hole spacing distances should be as low as possible for effective mineral resource classification.
Exploring for high-grade targets
like the Main Twin Zone, which has a small footprint with limited surface expression is hampered by its poor response to geophysical
surveys and the area’s thick vegetation and local glacial overburden cover.
Previous work has indicated
that high grade mineralization on the Snip Property is contemporaneous with the emplacement of the Red Bluff Porphyry and that, on a
broad scale, base metal (Cu-Zn) content in associated veins increases with distance from the porphyry at the expense of gold and silver.
The Jim Porphyry to the west represents the only known other intrusive body on the property with a possible affinity to the Red Bluff
Porphyry and is a possible exploration target.
Since acquiring the project
in 2016, Skeena Resources has focussed exploration efforts on: (1) confirming the existence of gold mineralization previously defined
by historical drilling, and (2) delineating further mineralization both proximal and distal to the historical orebody. Skeena has
performed surface geochemistry, airborne geophysical surveys and surface and underground diamond drilling (using historical underground
workings).
Details of the soil sampling
survey are provided in Nichols and Giles (2017).
Reconnaissance soil sampling
was conducted on the Jim and West Monsoon Lake grids, whereby a total of 668 samples were collected. Of these, 556 covered portions of
the Jim 1, Jim 2, Sky 3 and Snip 3 mineral claims, while 112 were sampled on mining lease 226132 (Figure 9-1).
The programme was designed
to expand previous geochemical coverage of the property, specifically over westernmost portions sampling north and north-west of the
Twin West Zone, and westward from the easternmost portions of the Jim claims. Stations along GPS navigated lines were at approximately
25 m intervals, with some variance due to topography and extensive forest cover. Line spacing was approximately 100 to 125 m, with consideration
for slope of terrain and areas with prominent drainage. Individual sample sites were flagged and marked with respective location numbers.
Sample depth was very much dependent on the depth of organic (‘A’ horizon) material, which, in this area can be considerable.
A well-developed ‘B’ horizon was sampled, albeit with variable oxidation. Traverses and sample locations were recorded on
handheld Garmin GPS instruments. For all samples, sample depth, basic colour, local topography, outcrop and drainage information, were
recorded. Several areas planned for sampling were covered with recent sediments and/or were poorly drained; these stations were not sampled.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 39 |
Analysis of the soil samples
suggested the following:
| · | There
was no linear correlation between gold and silver; |
| · | West
central areas returned poor results, in part due to higher clay-silt content in the substrate
(notably around the pond north of Sky Creek); |
| · | Highest
gold values may be associated with anomalous Zinc, Copper, Bismuth and Tungsten, and to a
lesser extent, Boron and Cadmium, this assessment based on a review of the ICP analyses; |
| · | In
general, multi-element anomalies suggest orogenic gold targets with a minor contribution
from late stage high-level base metal enriched fluids; |
| · | Epithermal
targets signatures, arguably defined by As-Sb-Cd-Hg-(Au)-(Ag), do not necessarily appear,
although re-analysing for Hg by a more appropriate method is required (Nichols and Giles,
2017). |
| · | Heberlein
(2017) compiled the geochemistry surveys and recommended that the Ah soil horizon be sampled
when at elevations below the treeline. This will limit the “noise” from substrate
variability (i.e. till) and more accurately represent bedrock metal content. |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 40 |
Figure
9-1: Gold soil survey sample locations in ppb
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 41 |
Airborne Geophysical surveying
of the Snip Property was carried out in 2016 with a C-824 Cesium Magnetometer using a 10Hz sampling rate. It was flown at 100 m spacing
on a heading of 045°/225° with 1000 m spaced tie lines. A total of 171 line-km of data was collected.
Results provide a broad correlation
with mapped geology on the property, however topography and thick overburden cover on the southwest portion of the property masked the
geophysical response of the area. Figure 9-2 shows the results of the Geophysical Magnetics survey.
Skeena commissioned a surface
mapping LiDAR (Light Detection and Ranging) survey of the property in 2017 at a density of 16 points per square m resulting in a 25 cm
pixel resolution. The portion of the survey over the Main Twin Zone is provided in Figure 9-3.
In January and February 2019,
four polished thin sections were sent to Oliver Geoscience International Ltd. for petrography analysis to compare a biotitic phyllite
and BSU units (Oliver, 2019). Biotitic phyllites observed near the Jim Porphyry were thought to be related to the BSU at Snip as they
were compositionally similar.
The study highlighted the
following points with regards to biotite grain morphology:
| · | Mafic
intrusions, although they may have extensively recrystallized biotite grains within their
matrix, are likely to have weaker foliation or compositional layers as defined by the alignment
of biotite grains; |
| · | Mafic
intrusions, even when extensively re-crystalized, may have stronger evidence for blunt shaped,
biotite replaced, clinopyroxene grains within the matrix; and |
| · | The
colour of biotite will likely differ between biotite rich rocks derived from mafic intrusions
versus biotite hosted within biotitic phyllites. The biotite formed in biotite recrystallized
mafic intrusions will be medium green-brown in colour. The sample overall will have a greenish
cast to the matrix. Biotite associated with biotitic phyllites, however, will be medium to
rich brown in colour. |
The study concluded that that
the biotite phyllites were not related to the BSU unit.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 42 |
Figure
9-2: 2016 geophysical survey magnetics, total field intensity
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 43 |
Figure
9-3: LiDAR survey map of Twin West and the Main Twin Zone area
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 44 |
Surface drilling on the Snip
Property has been carried out by multiple operators, with the first drill hole by Cominco in 1986. Since that time, 456 diamond drill
holes totalling 102,976 m have been drilled from surface. Figure 10-1 shows the locations of all surface diamond drill holes.
Underground drilling began
in 1988. A total of 3,543 underground drill holes have been drilled totalling 252,411 m. Figure 10-2 shows the locations of all underground
diamond drill holes.
| 10.1 | Historical
Drilling (pre-1999) |
309 surface holes totalling
71,181 m were drilled between 1986 and 1998 (Figure 10-1) and 3,233 underground drill holes totalling 208,790 m were drilled from 1988
to 1999 (Figure 10-2). A summary of all historical holes drilled by year on surface and underground is presented in Table 10-1.
Table
10-1: Summary of historical surface and underground holes drilled by year
| Historical Surface |
| Year | |
No. of Holes | | |
Length | |
| 1986 | |
| 13 | | |
| 1,621.00 | |
| 1987 | |
| 69 | | |
| 13,253.90 | |
| 1988 | |
| 24 | | |
| 7,059.30 | |
| 1989 | |
| 2 | | |
| 283.50 | |
| 1993 | |
| 20 | | |
| 3,896.20 | |
| 1994 | |
| 41 | | |
| 10,985.20 | |
| 1995 | |
| 76 | | |
| 17,244.40 | |
| 1996 | |
| 33 | | |
| 8,639.10 | |
| 1997 | |
| 30 | | |
| 7,330.50 | |
| 1998 | |
| 1 | | |
| 867.50 | |
| TOTAL | |
| 309 | | |
| 71,181.60 | |
| Historical Underground |
| Year | |
No. of Holes | | |
Length | |
| 1988 | |
| 146 | | |
| 11,328.80 | |
| 1989 | |
| 492 | | |
| 29,481.02 | |
| 1991 | |
| 88 | | |
| 3599.20 | |
| 1992 | |
| 191 | | |
| 16,294.48 | |
| 1993 | |
| 292 | | |
| 15,164.90 | |
| 1994 | |
| 361 | | |
| 19,126.47 | |
| 1995 | |
| 293 | | |
| 15,787.55 | |
| 1996 | |
| 530 | | |
| 33,763.45 | |
| 1997 | |
| 567 | | |
| 47,217.25 | |
| 1998 | |
| 249 | | |
| 16,415.94 | |
| 1999 | |
| 24 | | |
| 610.75 | |
| Total | |
| 3,233 | | |
| 208,789.80 | |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 45 |
Figure
10-1 Distribution of surface drilling on the Snip Project
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 46 |
Figure
10-2 Distribution of underground drilling at the Snip Project
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 47 |
| 10.2 | Skeena
Resources Drilling (2016 to 2021) |
Since the resumption of exploration
on the Snip Property in 2016 until 2021, Skeena have drilled a total of 388 holes totaling 64,040m (Table 10-2). This includes 146 surface
drill holes totalling 31,294 m and 242 underground drill holes totalling 33,746 m (Table 10-2), Figure 10-1 and Figure 10-2 respectively).
Table
10-2: Skeena surface and underground drill hole targets
| Skeena Surface |
| Year | |
No. of Holes | | |
Length | | |
Target |
| 2016 | |
| 28 | | |
| 7,422 | | |
412 Corridor, Twin West, 200 Footwall, 130 Vein, |
| | |
| | | |
| | | |
Gold Ring and Jim Porphyry |
| 2018 | |
| 6 | | |
| 2,121 | | |
Lower Main Twin Zone |
| | |
| | | |
| | | |
Jim Claim and Sky Creek Shear |
| 2019 | |
| 8 | | |
| 1,816 | | |
200 Footwall |
| 2020 | |
| 9 | | |
| 5,327 | | |
Main Twin Zone, 130 and 150 veins |
| 2021 | |
| 95 | | |
| 14,608 | | |
Infill drilling of the S-Veins including the 130 and 150 veins and 412 corridor |
| Subtotal | |
| 146 | | |
| 31,294 | | |
- |
| Skeena Underground |
| Year | |
No. of Holes | | |
Length | | |
Target |
| 2017 | |
| 62 | | |
| 8,703 | | |
Eastern Main Twin Zone, 150 Vein, 130 Vein, |
| | |
| | | |
| | | |
412 Corridor and 200 Footwall |
| 2018 | |
| 46 | | |
| 9,088 | | |
Main Twin Zone, 200 Footwall, 412 Corridor |
| 2021 | |
| 134 | | |
| 15,955 | | |
Infill drilling of the S-Veins including the 130 and 150 veins, 412 corridor |
| Subtotal | |
| 242 | | |
| 33,746 | | |
- |
| 10.3 | Hochschild
Drilling (2022) |
During 2022, Hochschild drilled
a total of 69 holes totaling 10,377 m (Table 10-2). This includes 1 surface drill holes totalling 501 m and 68 underground drill holes
totalling 9,876 m (Table 10-3, Figure 10-1 and Figure 10-2 respectively).
Table 10-3: Skeena surface
and underground drill hole targets
| Hochschild Surface |
| Year | |
No. of Holes | | |
Length | | |
Target |
| 2022 | |
| 1 | | |
| 501 | | |
Deep down dip extensions of the western V- and S-veins |
| Subtotal | |
| 1 | | |
| 501 | | |
|
| Hochschild Underground |
| Year | |
No. of Holes | | |
Length | | |
Target |
| 2022 | |
| 68 | | |
| 9,876 | | |
Main Twin Veins, infill of S-Veins and twin drilling |
| Subtotal | |
| 68 | | |
| 9,876 | | |
|
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 48 |
| 10.4 | Drill
Coordinates, Downhole Surveys and Contractors |
The Snip Mine closed prior
to the implementation of NI 43-101 compliance requirements. Reclamation of the mine in 1999 included the disposal of drill core, and
all documentation of procedures and methods of drilling, contractors and core size from previous operators.
Omineca Drilling of Burns
Lake, BC used a Multi Power Discovery 2 drill to drill HQ-sized core. A Geologist determined the azimuth and inclination of the hole
using a hand-held compass. Down hole surveys were conducted by the drilling contractor using a Reflex EZ-Shot® tool. At the completion
of the drilling program, all collars were digitally surveyed by Meridian Mapping of Nanaimo, B.C. Equipment using a Trimble® Pro6
using H-Star for post processing differential correction, and a Trimble R8 GNSS Model 2 for the Base Station position.
DMAC Drilling of Langley,
BC used two 600V, 100 HP electric hydraulic Hydracore 2000® underground drill rigs, equipped with fire suppression, to drill HQ-sized
drill core. Downhole surveying was completed at the end of a hole using a Reflex EZ-Shot tool. All collar surveys were obtained by Skeena
staff using a Total Station Theodolite in conjunction with a regular array of permanent ground control stations that were established
by Progressive Survey Solutions in 2017.
DMAC Drilling of Langley,
BC and Hy-Tech drilling of Smithers, BC were both contracted to perform the drilling work using NQ2-sized drill core (excepting one drill
hole S18-031 which was NQ-sized). Downhole surveys were completed every 30 m using a Reflex EZ-Shot or Reflex EZ-Trac tool; measurements
of which the drilling contractors collected. Drill collars were surveyed by Skeena staff using a Trimble Geo 7X handheld GNSS system
combined with a Zephyr Model 3 Rover Antenna.
DMAC Drilling of Langley,
BC used two 600V, 100 HP electric hydraulic Hydracore 2000 underground drill rigs, equipped with fire suppression, to drill NQ2-sized
drill core. Oriented drill core was collected for holes UG18-063 to UG18-098 using the ACTIII tool. Drillers were trained to accurately
mark the bottom of the drill core run. Oriented core measurements were subsequently completed with an EZlogger® tool using a down-the-hole
right hand rule. Downhole surveying was completed every 30 m using a Reflex EZ-Shot, which was completed by the drilling contractor.
All collar surveys were obtained by Skeena staff using a total station theodolite in conjunction with a regular array of permanent ground
control stations that were established by Progressive Survey Solutions in 2017.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 49 |
Omineca Drilling of Burns
Lake, BC used one Hydracore 2000 drill rig to drill NQ-sized drill core. Downhole surveying was completed every 30 m using a Reflex-EZ-Shot;
measurements of which were taken by the drilling contractor. Drill collars were surveyed by Skeena staff using a Trimble Geo 7X handheld
GNSS system combined with a Zephyr Model 3 Rover Antenna.
Omineca Drilling of Burns
Lake was contracted to carry out the drilling work using a Hydracore 2000 drill rig to drill core using NQ-sized drill core and a combination
of HQ and NQ diameters in long holes. Down hole surveying was completed every 30 meters using a Reflex EZ-Shot or Reflex EZ-Trac tool;
measurements were collected by the drilling contractor. Drill collars were surveyed by Skeena personnel using either a Trimble Geo 7X
handheld GNSS system combined with a Zephyr Model 3 mobile antenna, or a handheld GPS.
Tahltech Drilling Services,
Konaleen Drilling Limited, Helm Diamond Drilling and Omineca Drilling were contracted to carry out the drilling work using an NQ-sized
drill core. Down hole surveying was completed every 30 m using the Reflex EZ-Shot, Reflex EZ-Trac, Devico Devishot or Devico EZ-Shot
tools; the measurements were collected by drilling contractor. Drill collars were surveyed by Skeena personnel using a Trimble Geo 7X
handheld GNSS system combined with a Zephyr Model 3 mobile antenna.
Tahltech Drilling Services,
Konaleen Drilling Limited, Helm Diamond Drilling and Omineca Drilling were contracted to carry out the drilling work using NQ-sized drill
core. Downhole surveying were collected every 30 m using a Reflex EZ-Trac or Devico Devishot tools; measurements were collected by the
drilling contractor. Drill collars were surveyed by Skeena personnel using a total station in conjunction with a regular series of permanent
ground control stations that were established by Progressive Survey Solutions in 2017.
| 10.4.3 | Hochschild
Drilling |
More Core Diamond Drilling
Service from Stewart, BC, was contracted to carry out the drilling work using an NQ-sized drill core. Down hole surveying was completed
every 30 m; measurements were collected by the drilling contractor. Drill collars were surveyed by Hochschild personnel using a Trimble
Geo 7X handheld GNSS system combined with a Zephyr Model 3 mobile antenna.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 50 |
More Core Diamond Drilling
Service from Stewart, BC were contracted to carry out the drilling work using NQ-sized drill core. Downhole surveying were collected
every 30 m by the drilling contractor. Drill collars were surveyed by Hochschild personnel using a total station in conjunction with
a regular series of permanent ground control stations that were established by Progressive Survey Solutions in 2017.
Drill core was transported
daily by truck or helicopter to the logging facility at the Snip camp. Drill core was logged and sampled at the core logging facility
located at the Snip site. Core logging was conducted in a well-lit core shack in appropriately labelled core boxes. Details on core handling
and sampling are presented in Section 11. All drill core was geotechnically assessed (recovery, RQD, faults, etc.) and geologically
logged (lithology, structure, veining, alteration, and mineralization) prior to being marked up for sampling and photography. Core logging
information was recorded in the GeoSpark® core logging software, which includes data validation, picklists, and minimum required
fields to ensure data captured was consistent and valid. Additional data validation was conducted by the Skeena’s database manager.
Diamond core recovery data
is available for all Skeena drill holes. The overall average core is excellent averaging 97.2% recovery.
| 10.7 | Completion
of Drilling |
Upon completion of surface
drilling in 2016, 2018, 2020 and 2021 casing was left in the hole. In 2019, holes that were drilled below the 300-portal level were cemented.
All man-made materials and set-up timbers were removed from the drill sites and all trees felled were cut into 1.3 to 2 m lengths. Before
and after pictures are taken at each site and then submitted to the BC Provincial Government as part of the Notice of Closure (NOC).
All drill core is stored on
the Snip site, across the road from the Snip camp.
| 10.8.1 | 2016
– Surface Drilling |
A total of 28 drill holes
totalling 7,422 m of helicopter-supported surface diamond drilling was undertaken by Skeena between early August and mid-October 2016
(Figure 10-1). The program was designed to confirm and expand historical drill results in the eastern Main Twin Zone, 130 Vein, 200 Footwall
and Twin West. In these areas, the drill program encountered many prospective intercepts greater than 10 g/t Au over widths of >2
m. The more distal Jim Porphyry and Gold Ring targets provided less prospective results with isolated values reaching a maximum of 1.44
g/t Au over a length of 1.8 m.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 51 |
Highlights of the 2016 program
confirmed and expanded significant high-grade vein structures, including the 200 Footwall zone, as shown in results in Table 10-4.
Table
10-4: Significant Intercepts from the 2016 drill program
| Drill Hole No. | |
Zone | |
From | | |
To | | |
Length | | |
Au (g/t) | |
| S16-02 | |
eastern Main Twin Zone | |
| 132.50 | | |
| 133.40 | | |
| 0.90 | | |
| 49.40 | |
| | |
| |
| 156.60 | | |
| 159.00 | | |
| 2.40 | | |
| 33.07 | |
| S16-03 | |
eastern Main Twin Zone | |
| 143.80 | | |
| 145.20 | | |
| 1.40 | | |
| 59.50 | |
| | |
| |
| 156.95 | | |
| 158.10 | | |
| 1.15 | | |
| 21.30 | |
| S16-06 | |
200 Footwall | |
| 103.50 | | |
| 117.00 | | |
| 13.50 | | |
| 16.24 | |
| including | |
| |
| 111.00 | | |
| 115.50 | | |
| 4.50 | | |
| 30.99 | |
| S16-09 | |
130 Vein | |
| 68.30 | | |
| 70.30 | | |
| 2.00 | | |
| 19.65 | |
| S16-10 | |
130 Vein | |
| 52.00 | | |
| 52.70 | | |
| 0.70 | | |
| 47.00 | |
| S16-11 | |
Twin West | |
| 88.30 | | |
| 88.80 | | |
| 0.70 | | |
| 16.01 | |
| including | |
| |
| 97.85 | | |
| 99.50 | | |
| 1.65 | | |
| 37.70 | |
| S16-16 | |
Twin West | |
| 158.50 | | |
| 161.70 | | |
| 3.20 | | |
| 24.40 | |
| including | |
| |
| 158.50 | | |
| 160.40 | | |
| 1.90 | | |
| 38.30 | |
| 10.8.2 | 2017
– Underground Drilling |
Underground access was gained
to the rehabilitated historical mine workings above the 300-level portal in October 2017. This facilitated more efficient and accurate
drilling of targeted areas within and proximal to existing historical mine workings.
Drilling priorities were fourfold:
(1) Explore prospective areas adjacent to existing underground developments for immediate resource expansion. (2) Target the
numerous mineralized footwall structures not previously included into the historical mine plan. (3) Confirm and/or define the mineralization
extents of the remaining ore left unmined in the Main Twin Zone and 150 Vein. (4) Test unmined areas deeper in the footwall including
the 130 Vein, 412 Corridor and 200 Footwall.
In total, 62 holes totaling
8,703 m was drilled, which confirmed and extended the targeted areas. Figure 10-3 and Figure 10-4 highlight the results of the 2017 underground
drilling campaign.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 52 |
Figure
10-3: Cross section 4895E of the unmined eastern Main Twin Zone and 412 Corridor, facing west (infill, confirmation and expansion drilling)
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 53 |
Figure
10-4: Cross section 4475E of the lower unmined Main Twin Zone and 150 Vein, facing west (2017 confirmation and infill drilling)
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 54 |
| 10.8.3 | 2018
– Surface Drilling |
Six drill holes totalling
2,121 m were drilled from surface collars to target the lower Main Twin Zone, Jim Claim and Sky Creek Shear Zone (Figure 10-1).
Two holes drilled on the Jim
Porphyry target were designed to test a high gold anomaly in soils, while attempting to extend a mapped potassic zone with quartz stockwork
veining to the south. A notable interval of quartz-calcite veining (>10%) was intersected in hole S18-033 from 169.00 to 212.00 m
associated with 2-10% disseminated to blebby pyrite ± galena, sphalerite, chalcopyrite and pyrrhotite. The mafic phyllite intersected
intermittently from 298.26 to 342.43 m was initially interpreted as the BSU due to its high biotite content and similar phenocryst-spotted
texture. Petrographic analysis of several samples showed that these mafic phyllites have higher iron and titanium contents reflecting
chemistry and sources differences to the BSU. No significant assay results were returned for either of these drill holes and they were
unsuccessful in extending zones of potassic alteration reported further to the south.
Hole S18-034 was drilled north
of the Sky Creek Shear Zone, close to the Bronson Stock, which targeted a high gold soil anomaly. This hole collared into a quartz monzonite
and progressed to a homogenous greywacke sequence at 24.15 m, which continued through to the end of the hole. No significant assay results
were returned.
Three deep holes were drilled
to test the western vein extension down dip of the Main Twin Zone. No significant assay results were returned.
| 10.8.4 | Skeena
Underground Drilling, 2018 |
Forty-six holes totalling
9,088 m were drilled from underground. The 2018 program was designed to: (1) further delineate areas of known mineralization with
increased drill density, and (2) expand newly modelled zones with the use of widely spaced exploratory drill step outs. The primary
targets were the eastern Main Twin Zone, the 412 Corridor and the 200 Footwall zone, as well as other footwall structures.
The eastern part of the Main
Twin Zone was less densely drill defined by the former operators and never developed. The 2018 drilling focused on infill drilling in
this drilling as well as testing depth extensions (Figure 10-5)
The 412 Corridor is characterized
by a network of discrete, structurally controlled veins geologically akin to the historically mined 130 and 150 veins.
The 200 Footwall Zone is a
parallel structure geologically and structurally analogous to the mineralization hosted in the Main Twin Zone. The Footwall received
limited underground drilling from previous operators. The lack of drilling and geological similarities to the Main Twin Zone make it
a strategic exploration target and the 2018 program was designed to expand upon this newly modelled and largely untested area.
The program demonstrated confirmation
and grade continuity in the eastern Main Twin Zone and 412 Corridor and expansion of the 200 Footwall Zone.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 55 |
Figure
10-5: Cross section 4850E of the eastern Main Twin Zone, facing west (2018 infill and expansion drilling)
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 56 |
| 10.8.5 | Skeena
Surface Drilling, 2019 |
Skeena drilled 8 surface drill
holes totalling 1,816 m targeting the 200 Footwall (further west of the holes drilled during the 2018 Program). The program was designed
to validate an isolated historical and incompletely sampled high grade intersection in the 200 Footwall zone drilled in 1997. The hole
intersected 200 Footwall mineralization, as well as identified mineralization 75 m deeper where historical holes had not formerly tested.
Significant intervals also intersected mineralization in the hanging wall of the 200 Footwall zone (Table 10-5).
Table
10-5: Significant Intercepts from the 2019 drill program
| Hole
No. |
Zone |
From
(m) |
To
(m) |
Length
(m) |
Au
(g/t) |
| S19-044 |
New
structure
75m below
200 Footwall |
249.60 |
251.10 |
1.50 |
1,131.91 |
| including |
250.10 |
250.60 |
0.50 |
3,390.00 |
| S19-035 |
130
Vein |
40.70 |
41.20 |
0.50 |
25.60 |
| S19-035 |
200
Footwall |
128.65 |
133.75 |
5.10 |
16.64 |
| including |
128.65 |
129.15 |
0.50 |
96.20 |
| 10.8.6 | Skeena
Surface Drilling, 2020 |
Nine holes totaling 5,327
m were drilled from the surface to target the eastern and western zone of the Twin South structure, with the objective to intercept the
extensions of the Main Twin Zone and the 130, 150, 200 footwall and 412 vein structures (Figure 10-5). The latter vein structures are
sub-parallel and analogous to mineralization in the Main Twin Zone.
Situated in the below the
Main Twin Zone, two new occurrences of high-grade, vein-hosted gold mineralization have been discovered during the 2020 exploration program.
Drill hole S20-049 intersected a previously unidentified zone averaging 29.52 g/t Au over 4.03 m including 65.60 g/t Au over 1.14 m and
31.10 g/t Au over 1.03 m. The second zone occurs 20 m further downhole averaging 37.78 g/t Au over 2.86 m including 29.60 g/t Au over
1.32 m and 44.80 g/t Au over 1.54 m. These new intercepts occur in an area devoid of previous drilling and are open for expansion. The
same drill hole also predictably intersected the known Main Twin Zone mineralization which graded 45.76 g/t Au over 5.60 m including
41.80 g/t Au over 0.90 m and 177.00 g/t Au over 1.16 m.
| 10.8.7 | Skeena
Surface Drilling, 2021 |
A total of 95 holes were drilled
from surface for 14,608 m of drilling (Figure 10-6). The 2021 drilling program was designed to: (1) delineate zones of known mineralization
with increased drilling density and (2) expand known orebodies. The main drilling targets were the Main Twin Zone, Corridor 412,
200 Footwall vein, the extension of the 130 and 150 veins, as well as other mineralized structures in the Footwall zone. This program
was successful in expanding veins and confirming vein interpretations through the increased drill density.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 57 |
| 10.8.8 | Skeena
Underground Drilling, 2021 |
A total of 134 holes with
15,955 m of drilling were completed from underground drilling stations located in the central and northern areas of the Project (Table
10-5). This campaign focused on the S-veins and footwall structures.
Access to the underground
workings was through the rehabilitated historical workings above level 300, this facilitated more efficient and precise drilling of specific
areas within and close to the existing historical mining workings. The priorities for this drilling campaign were fourfold: (1) explore
prospective areas adjacent to existing underground development for immediate mineral resource expansion, (2) target numerous mineralized
footwall structures that were not included in previous drilling campaigns, (3) test deeper unmined areas in the Footwall zone, including
the 130 vein, Corridor 412 and the 200 Footwall vein, and (4) twin drill 8 holes to validate the historical assays and mineralized
intervals. The program was successful in meeting its objectives.
Figure 10-6 shows an example
of the expansion of the vein system in 2023 relative to the 2020 model.
| 10.8.9 | Hochschild
Surface Drilling, 2022 |
One hole totalling 501 m was
drilled from surface to test the deep, down dip and western extension of the most western V-Veins and S-Veins. No significant assay results
were returned.
| 10.8.10 | Hochschild
Underground Drilling, 2022 |
Sixty-eight holes totalling
9,876 m were drilled. Twenty of these holes were drilled to validate historical assays and intervals.
The priorities for this drilling
campaign were to test and confirm the structures in the Footwall zone, including the 130 vein, 150 vein, 412 Corridor and the 200 Footwall
vein. The program was successful in expanding and confirming vein continuity in these zones.
Two deep drill holes (~750m)
were drilled to test for structures below the 200 Footwall. No significant assays were returned.
One shallow, long hole was
drilled towards the southeast to test the up-dip potential for veins in the hangingwall above the Main Twin Zone. No significant assays
were returned.
The QP is of the opinion that
the drilling, core logging, and sample handling procedures have been conducted using industry best practices. The appropriate level and
quality of information has been obtained to provide sufficient confidence in drill hole spatial location for 3-D geological and grade
modelling of the Snip Project. There are no apparent drilling or recovery factors that would materially impact the accuracy and reliability
of the drilling results.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 58 |
Figure
10-6: Cross section 4850E of the 412 area showing expansion of the veins from the 2021 drill program
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 59 |
| 11 | Sample
Preparation, Analyses, and Security |
Sample preparation, analysis,
and security for the years 2016 to 2022 inclusive are summarized in this section. Sample preparation and analysis information prior to
2016 were not retained by the previous owner.
| 11.1 | Sample
Preparation, Analysis, and Security |
| 11.1.1 | Drill
Hole Sampling |
Most of the samples collected
between 2016 and 2022 were from NQ or NQ2-diameter diamond drill core. Drill core was placed in core boxes at the drill rig (both on
surface and underground), with drill footage markers recorded on wooden spacers and drill hole numbers and box numbers recorded on each
box. Core boxes were nailed shut and transported via helicopter (for surface holes) or by truck (for underground holes) to Skeena’s
core logging facility at the Snip camp site (Figure 11-1). Core was then geologically and geotechnically logged and photographed prior
to being cut. Each box was marked with Dymo® tape with drill hole ID, box number and depth and stored in cross piles at
the Snip camp site (Figure 11-2).
Figure
11-1: Snip camp site core shack
Assay sample intervals were
delineated by the core logging geologist, taking geology into account. Sample intervals were generally broken at key lithological and
mineralization lode contacts using no less than 0.5 m and no more than 1.5 m lengths. Sample intervals were marked in red china marker
on the core and the corresponding sample assay tag was placed within the denoted interval to be sampled. All underground and surface
drilling were half core sampled leaving the remaining half in the core yard for reference purposes.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 60 |
Figure
11-2: Drill core cross piles at the Snip camp (photograph courtesy of C. Chung, 2020)
Geological and geotechnical
logging was performed in Geospark® software using Panasonic Toughbooks®. Geotechnical measurements included ‘from’
and ‘to’ measurements, recovery length, RQD and number of joints and longest stick. Geological attributes recorded included
lithology, alteration, veining, mineralization, faults, breccias and structures. For each attribute, an intensity range between 1 and
5 may have also been recorded.
Sampled drill core was placed
in numbered polybags with appropriate sample tags. Sample bags were then grouped and sealed in appropriately labelled rice sacks with
tie wraps, and flown via helicopter to the McLymont staging area where they were locked in a Sea-Can® container before
being shipped by ground transportation to the respective preparation facilities: ALS in Terrace, BC in 2016, Actlabs in Kamloops, BC
in 2017, ALS in Kamloops, BC between 2018, and 2022. Hard copies of sample manifests were enclosed with each shipment and emailed directly
to the sample preparation facilities ahead of shipping. Ground sample preparation using Rugged Edge Holdings picked up the samples and
delivered them to Bandstra in Smithers, BC, for shipping. The preparation facilities sent an email once samples were received and that
date was recorded.
Once the samples had been
prepared, they were sent directly to their respective analytical laboratory: ALS in North Vancouver, BC in 2016, Actlabs in Kamloops,
BC, Timmins, ON, or Thunder Bay, ON in 2017, and ALS in North Vancouver, BC between 2018 and 2022.
Skeena’s protocol is
to conduct routine laboratory site visits to address any concerns with the preparation or analytical procedures. In February 2019,
Mr. Geddes from Skeena Resources visited the ALS analytical facility in North Vancouver. He was satisfied with the condition of
the equipment, the cleanliness of the facility, the sample logging methodology, the process methodology, and overall attention to quality
control.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 61 |
| 11.1.2 | Sample
Preparation and Analysis by Analytical Laboratory |
ALS Vancouver has been the
primary analytical laboratory for the analysis of samples from the Snip Gold Project in 2016, 2018, 2019, 2020, 2021 and 2022, whereas
Activation Laboratories Ltd. (Actlabs Kamloops) was used during the 2017 drilling campaign. The umpire check analytical laboratory in
2016, 2018, and 2022 was SGS Canada Inc., and ALS Vancouver in 2017. The ALS analytical laboratory in Vancouver is an International Organization
for Standardization (ISO) 9001-2015 certified and ISO 17025:2005 United Kingdom Accreditation Service (UKAS) ref. 4028 accredited laboratory.
Actlabs has both ISO 17025:2017 and ISO 9001:2015 accreditation and SGS Mineral Services is ISO 9001:2015 certified. These laboratories
are all independent of Skeena.
The addresses of the laboratories
are as follows:
| · | ALS
Canada Ltd. - 2103 Dollarton Hwy, North Vancouver, B.C., V7H OA7, Canada |
| · | Activation
Laboratories Ltd. – 9989 Dallas Drive, Kamloops, B.C., V2C 6T4, Canada |
| · | SGS
Canada Inc. – 3260 Production Way, Burnaby, B.C., V5A 4W4, Canada |
Primary sample preparation
methods and analytical packages used for the Snip Project from 2016 to 2022 are summarized in Table 11-1.
Table
11-1: Sample preparation and analytical methods conducted on Snip Project drill samples between 2016 and 2022
| Year/Lab |
|
Sample
Preparation |
|
Gold
Analytical Methods |
| 2016/ALS |
|
1.
Crush
entire sample to 70% passing <2 mm
2.
Riffle
split
3.
Pulverize 1,000 g to 85% <75 µm (PREP33D) |
|
50
g charge weight fire assay by AA finish at 10 g/t (Au-AA24)
Au overlimit trigger at 10 g/t to
complete 50 g fire assay with gravimetric finish (Au-GRA22)
Visible gold samples bearing assayed
by metallic screen fire assay (Au-SCR24) and gravimetry finish |
| 2017/Actlabs |
|
1.
Crush
entire sample to 90% passing <2mm
2.
Riffle
split
3.
Pulverize
1,000 g to 95% passing <105 µm |
|
50
g charge weight fire assay by AA finish at 10 g/t (IA2-50)
Au overlimit trigger at 10 g/t to
complete a 50 g fire assay with gravimetric finish (IA3-50) |
2018/
2019/ 2020/ 2021/ 2022/
ALS |
|
1.
Crush
entire sample to 70% passing <2 mm
2.
Riffle
split
3.
Pulverize 1,000 g to 85% <75 µm (PREP-31B) |
|
50
g charge weight fire assay by AA finish at 10 g/t (Au-AA26)
Au overlimit trigger at 10 g/t to
complete 1 kg metallic screen fire assay (Au-SCR24) with gravimetric finish (Au-GRA22) |
Notes: AA
– Atomic Absorption Spectroscopy
After sample shipments reach
the sample preparation facility, they are in the facilities custody for sample preparation, inter-laboratory shipping, and analyses.
It is ALS’s standard operating procedure to check all samples received from Skeena against the electronic and hard copy sample
manifests, as well as for any potentially missing sample material, compromized plastic sample bags, broken zip closures, or torn/broken
rice bags upon receipt. Skeena has not been alerted to any potential sample tampering by ALS. Laboratory sample preparation and analytical
procedures have been conducted by independent accredited companies using industry standard methods. Skeena ensured quality control was
monitored through the frequent insertion of blanks, certified reference materials, and duplicates.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 62 |
| 11.1.3 | Specific
Gravity and Bulk Density |
Density determinations to
support the resource model were carried out between 2016 to 2021. A total of 3,198 specific gravity (SG) measurements from key lithologies
were collected (Table 11-2). Specific gravity measurements were conducted at the Snip core processing facility. Solid pieces of uncut
core approximately 10 to 15 cm in length were selected approximately every 20 m. Specific gravity was calculated using the water displacement
method and lithology was recorded along with the SG calculations.
Table
11-2: Specific gravity measurements between 2016 and 2022
| Year | |
No. of SG Samples |
| 2016 | |
398 |
| 2017 | |
378 |
| 2018 | |
572 |
| 2019 | |
97 |
| 2020 | |
290 |
| 2021 | |
1,463 |
| 2022 | |
0 |
| Total | |
3,198 |
| 11.2 | Quality
Assurance and Quality Control |
Skeena has designed and implemented
sampling and assay quality control guidelines for drill core programs on the Snip Project (Bloom and Jolette, 2019). Within this guideline,
QA/QC protocols include tests for data accuracy, precision, and sample cross-contamination. Field control samples are submitted together
with drill hole samples to control and assess these key indicators of database quality.
Skeena’s routine quality
control for diamond drill core is summarized in Figure 11-3, where the objective is to include 10 to 15% total quality control samples
and actively monitor the results. In addition, a check assay program using a secondary laboratory is to be conducted on a quarterly basis
to assess for bias within the primary laboratory (Figure 11-4).
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 63 |
Source: Bloom and Jolette,
2019
Figure
11-3: Routine quality control flow chart
Accuracy, a measure of the
closeness to the true value, was tested using round-robin certified standard samples that were processed with equivalent assaying techniques
to Snip Project samples. Analytical precision (repeatability of results) was checked using duplicate samples. Potential cross-contamination
between samples because of smearing of high-grade samples was checked using blank samples.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 64 |
Source: Bloom and Jolette,
2019
Figure
11-4: Quarterly quality control flow chart
SRK has formerly reviewed
all QA/QC data between 2016 and 2019; details of which have been filed in previous technical reports. SRK considers the 2016 to 2019
QA/QC data to be valid and disclosed, therefore all ensuing charts pertain to the 2020 to 2022 drilling programs only.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 65 |
QA/QC results have been monitored
and documented by Skeena geologists verifying the quality of the Snip Project assay data and its applicability for use in resource estimation.
QA/QC results for the 2017, 2018 and 2019 programs are summarized in Snip (2017), Snip (2018) and Snip (2019), respectively; three in-house
QA/QC reports. Two QA/QC reports for exploration samples during the 2020/2021 and 2022 drilling programs are summarized in Snip (2021)
and Hochschild (2022). Table 11-3 summarizes the number of quality control samples inserted per assay year (this table excludes in-lab
preparation and pulp duplicates and external lab check assays, which are presented in subsequent sections).
Table
11-3: Summary of field control samples per assay year
| Assay Year | |
No. QC Samples | |
Standards | |
Blanks | |
Duplicates |
| 2016 | |
299 | |
151 | |
90 | |
58 |
| 2017 | |
663 | |
95 | |
75 | |
493 |
| 2018 | |
1,652 | |
719 | |
437 | |
496 |
| 2019 | |
208 | |
89 | |
53 | |
66 |
| 2020 | |
288 | |
179 | |
109 | |
0 |
| 2021 | |
1,409 | |
878 | |
531 | |
0 |
| 2022 | |
3,832 | |
1,646 | |
962 | |
1,224 |
| Total QC | |
8,351 | |
3,757 | |
2,257 | |
2,337 |
Note: Assay year refers to
the date that assays were finalized, however for QC assays in progress at the end of a drill campaign, they were assigned to the following
year.
All certified reference material
was acquired from CDN Resource Laboratories having an address of:
#2, 20148 –
102nd Avenue, Langley, B.C., V1M 4B4, Canada
In 2018, additional standards
from Ore Research & Exploration Pty Ltd. (OREAS) were utilized for several months, however they were discontinued due to poor
performance. The laboratory has an address of:
37A Hosie Street,
Bayswater North, VIC 3153, Australia
The number and type of standards
utilized between 2016 to 2022 have been summarized in Table 11-4. Standards representing ultra-low, low, medium, medium-high, and high-grade
ranges in relation to the average Snip Project values were selected. A total of 20 individual standards were used between 2016 and 2022.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 66 |
Table
11-4: Standards utilized between the 2016 and 2022 drilling campaigns
| Standards |
|
Gold
Expected
Used Value (g/t) |
|
Between
Lab
Two Standard
Deviations (g/t) |
|
Method |
|
Year
|
| CDN-GS-22 |
|
22.94 |
|
1.12 |
|
30
g FA, gravimetric |
|
2016,
2017, 2018 |
| CDN-GS-40A |
|
40.31 |
|
0.79 |
|
30
g FA, gravimetric |
|
2016,
2017, 2018 |
| CDN-GS-1Q |
|
1.24 |
|
0.08 |
|
30
g FA, instrumental |
|
2016,
2017 |
| CDN-GS-5T |
|
4.76 |
|
0.21 |
|
30
g FA, instrumental |
|
2016,
2017, 2018, 2019 |
| CDN-GS-5T
(for overlimits) |
|
4.86 |
|
0.26 |
|
30
g FA, gravimetric |
|
2017,
2018, 2019 |
| CDN-GS-1T |
|
1.08 |
|
0.10 |
|
30
g FA, instrumental |
|
2018 |
| CDN-GS-16 |
|
16.48 |
|
0.63 |
|
30
g FA, gravimetric |
|
2018 |
| OREAS
601 |
|
0.780 |
|
0.062 |
|
20-40
g FA, various |
|
2018 |
| OREAS
602 |
|
1.95 |
|
0.132 |
|
20-40
g FA, various |
|
2018 |
| OREAS
603 |
|
5.18 |
|
0.302 |
|
20-40
g FA, various |
|
2018 |
| CDN-GS-12B |
|
11.88 |
|
0.57 |
|
30
g FA, gravimetric |
|
2018,
2019 |
| CDN-GS-1P5R |
|
1.81 |
|
0.14 |
|
30
g FA, instrumental |
|
2018,
2019, 2020 |
| CDN-GS-5T |
|
4.86 |
|
0.52 |
|
50
g FA, gravimetric |
|
2020 |
| CDN-GS-2W |
|
2.1 |
|
0.28 |
|
50
g FA, gravimetric |
|
2022 |
| CDN-10G |
|
9.99 |
|
1.02 |
|
50
g FA, gravimetric |
|
2022 |
| CDN-GS-25A |
|
27.7 |
|
1.8 |
|
50
g FA, gravimetric |
|
2022 |
| CDN-ME-1706 |
|
2.062 |
|
0.312 |
|
50
g FA, gravimetric |
|
2020,
2021, 2022 |
| CDN-ME-1709 |
|
0.178 |
|
0.032 |
|
50
g FA, gravimetric |
|
2021,
2022 |
| CDN-GS-12B |
|
11.88 |
|
1.14 |
|
50
g FA, gravimetric |
|
2020,
2021 |
| CDN-GS-7J |
|
7.34 |
|
0.58 |
|
50
g FA, gravimetric |
|
2020,
2021 |
Notes: FA
– fire assay
Skeena evaluated the standards
by means of using a 3 standard deviation tolerance from the expected gold value. A result in excess or below 3 standard deviations were
considered failures. Field failures whereby the QC sample was incorrectly referenced in the logging sheet were all rectified in the database
prior to being evaluated statistically.
Table 11-5 summarizes the
total number of failures per year relative to each individual standard. Field failures were resolved prior to this tabulation. Of the
3,703 QC samples evaluated between 2016 and 2022, 61 standards failed the 3 standard deviation tests. A failure percentage of 2% is overall
an acceptable amount considering that one standard (CDN-GS-40A which has been discontinued) accounted for the most failures.
Table
11-5: Summary of standards inserted per assay year, including failure results
| Year | |
Standard | |
No. of Samples | |
Failures at 3 Standard
Deviations | |
Failure % |
| | |
CDN-GS-1Q | |
27 | |
1 | |
4% |
| | |
CDN-GS-22 | |
49 | |
0 | |
0% |
| 2016 | |
CDN-GS-40A | |
27 | |
2 | |
7% |
| | |
CDN-GS-5T | |
29 | |
0 | |
0% |
| | |
CDN-GS-1Q | |
23 | |
1 | |
4% |
| | |
CDN-GS-22 | |
29 | |
0 | |
0% |
| 2017 | |
CDN-GS-40A | |
16 | |
3 | |
19% |
| | |
CDN-GS-5T | |
25 | |
0 | |
0% |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 67 |
| Year | |
Standard | |
No. of Samples | |
Failures at 3 Standard
Deviations | |
Failure % |
| | |
CDN-GS-1Q | |
46 | |
0 | |
0% |
| | |
CDN-GS-22 | |
155 | |
3 | |
2% |
| 2018 | |
CDN-GS-40A | |
70 | |
15 | |
21% |
| | |
CDN-GS-1T | |
76 | |
1 | |
1% |
| | |
CDN-GS-5T | |
110 | |
4 | |
4% |
| | |
CDN-GS-16 | |
76 | |
6 | |
8% |
| | |
OREAS 601 | |
72 | |
0 | |
0% |
| | |
OREAS 602 | |
1 | |
0 | |
0% |
| | |
OREAS 603 | |
88 | |
4 | |
5% |
| | |
CDN-GS-12B | |
11 | |
0 | |
0% |
| | |
CDN-SG-1P5R | |
5 | |
1 | |
20% |
| | |
CDN-GS-12B | |
28 | |
0 | |
0% |
| 2019 | |
CDN-SG-1P5R | |
30 | |
0 | |
0% |
| | |
CDN-GS-5T | |
31 | |
0 | |
0% |
| | |
CDN-GS-12B | |
36 | |
0 | |
0% |
| | |
CDN-GS-1P5R | |
7 | |
0 | |
0% |
| 2020 | |
CDN-GS-5T | |
8 | |
0 | |
0% |
| | |
CDN-GS-7J | |
59 | |
0 | |
0% |
| | |
CDN-ME-1706 | |
68 | |
0 | |
0% |
| | |
CDN-ME-1706 | |
388 | |
3 | |
1% |
| 2021 | |
CDN-GS-12B | |
372 | |
0 | |
0% |
| | |
CDN-GS-7J | |
369 | |
0 | |
0% |
| | |
CDN-GS-2W | |
391 | |
0 | |
0% |
| | |
CDN-GS-10G | |
391 | |
5 | |
1% |
| 2022 | |
CDN-GS-25A | |
400 | |
10 | |
3% |
| | |
CDN-ME-1709 | |
190 | |
2 | |
1% |
| Total | |
ALL | |
3,703 | |
61 | |
2% |
| Note: | Several
standards that reached the upper detection limit were not tested with overlimit methods;
these samples were removed from this tabulation. |
A total of 9 different standards
were used during the 2020, 2021 and 2022 drilling campaigns. Five different types from Skeena and 4 distinct types from Hochschild. The
standard expected value ranges cover the ultra low to ultra high gold grade ranges found at Snip. Skeena’s standard insertion protocol
is to insert five standards every 100 samples. During the 3 drilling campaigns (2020, 2021, and 2022) a total of 2,703 standard were
inserted into a total of 35,724 assays, which represents an 8% standard insertion rate. Four standards are certified for gold only, while
3 are certified for gold and silver. One standard (CDN-ME-1709) is a polymetallic standard.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 68 |
Skeena adopts the procedure
to fail a standard if the results fall outside the 3 standard deviation limits. In most failure cases, the standard had been wrongly
labelled and the sample is simply reassigned the correct standard code. For those samples that failed for other reasons, Skeena requested
that the lab re-assay approximately 9 shoulder samples before and after the failed standard within the assay certificate. Re-assay results
were routinely conducted on failed samples, except when a high standard was in and amongst a series of low gold grades as re-assaying
would likely result in a second failure. Constant monitoring of assay grades at the time of inserting the appropriate standard is the
best course of action for preventing failures of this nature. Skeena monitored the re-assay results in 2020 to 2021 and ensured that
they passed the second time around before finalizing the database.
A selection of standards representing
ultra-low, low, medium, medium-high, and high-grade gold values for the years 2020 to 2022 are discussed and presented below.
Standards from 2020 all passed
the 3 standard deviation limits; therefore, charts have not been displayed for this time frame. In addition, obvious biases were not
observed.
Gold standard CDN-GS-7J, utilized
during the 2021 drilling campaign represents the medium-grade samples having an expected value of 7.34 ± 0.29 g/t Au. Figure 11-5
display the actual values in relation to the expected value and standard deviation limits. This medium-grade gold standard is unbiased
and falls within an acceptable tolerance range.
Figure
11-5: 2021 and 2022 gold control chart for standard CDN-GS-7J
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 69 |
Gold standard CDN-GS-25A was
inserted primarily during the 2022 drilling campaigns and represent the high-grade range of the Snip deposit, having an expected value
of 27.7 ± 0.9 g/t Au. Figure 11-6 displays the actual values in relation to the expected value and standard deviation limits.
The high-grade gold standard is unbiased and falls generally within an acceptable tolerance range. There are, however, several failed
samples, two of which assay higher than the 3 standard deviation limit, and 7 assaying lower than the 3 standard deviation limits. Inserting
appropriate standards depending on the assay grade range in the sample series is of primary importance, especially for high grade standards
which require specific analytical techniques. Adopting this strategy will likely reduce the number of failures for standard CDN-GS-25A.
Figure
11-6: 2021 and 2022 gold control chart for standard CDN-GS-25A
Gold standard CDN-GS-2W was
inserted during the 2021 and 2022 drilling campaigns and represents the low-grade range of the Snip deposit, having an expected value
of 2.1 ± 0.14 g/t Au. Figure 11-7 displays the actual values in relation to the expected value and standard deviation limits.
The low-grade gold standard is unbiased and falls within an acceptable tolerance range.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 70 |
Figure
11-7: 2021 and 2022 gold control chart for standard CDN-GS-2W
Multielement standard CDN-ME-1709
was inserted during the 2021 and 2022 drilling campaigns and represents the ultra low-grade range of the Snip deposit, having an expected
value of 0.178 ± 0.016 g/t Au. Figure 11-8 displays the actual values in relation to the expected value and standard deviation
limits. The low-grade gold standard is unbiased and falls within an acceptable tolerance range.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 71 |
Figure
11-8: 2021 and 2022 gold control chart for standard CDN-ME-1709
A total of 1,602 blanks have
been inserted into the sample stream by Skeena and Hochschild between 2020 and 2022 (Table 11-3), representing 4% of the total samples
assayed during 2020 to 2022. Blank material has come from 3 sources: (1) a certified powder purchased from CDN Resource Laboratories
(CDN-BL-10), (2) certified coarse rock purchased from CDN Resource Laboratories (CDN-BL-10 Coarse), and (3) a marble garden
rock obtained from Home Hardware in Smithers, BC, otherwise called “Rock Blanks”.
Skeena considered a blank
sample to have failed when the result was greater than 10x the lower detection limit (>0.025 g/t Au). Table 11-6 summarizes the number
of failures and failure percent per drilling year. All failed results were re-assayed in the same manner as standard samples, whereby
approximately 9 shoulder samples before and after the failed blank within a certificate were re-analyzed. Should the re-assayed shoulder
samples differ >10% from the original result then the Geospark® database was updated accordingly.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 72 |
Table
11-6: Blank failures per assay year
| Assay
Year |
|
No. Samples |
|
No. of
Failures |
|
Failure
Percent |
| 2020 |
|
109 |
|
0 |
|
0.0% |
| 2021 |
|
681 |
|
3 |
|
0.4% |
| 2022 |
|
812 |
|
3 |
|
0.4% |
| Total |
|
1,602 |
|
6 |
|
0.4% |
The certified blank powder
comes in two forms (CDN-BL-10 and CDN-BL-10 Coarse). Seeing that the pulp form of this blank material (CDN-BL-10) misses the crushing
stage, it is important to continue to use CDN-BL-10 Coarse so that the sample is passed through the crusher, the stage most likely to
detect contamination. Figure 11-9 depicts the marble garden rock results used in the 2020 to 2021 drilling campaigns, whereas Figure
11-10 depicts the coarse certified powder used during 2022 (CDN-BL-10 Coarse).
Figure
11-9: 2020 to 2021 marble garden rock blanks
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 73 |
Figure
11-10: 2022 certified blank material (CDN-BL-10 Coarse)
Duplicate samples encompass
several terms, including core, preparation (prep), and pulp duplicates, all of which are inserted at the sampling stage by Skeena or
Hochschild. In addition, preparation and pulp duplicates are routinely inserted by the laboratory and are known as “internal duplicates”.
The main goal of these duplicates is to monitor for precision or sample repeatability.
Field control analysis refer
to the sample whereby one half of the core is bagged and tagged as the original, and the remaining half core was quartered and separately
bagged and tagged as the duplicate; these are referred to as core duplicates. Between 2016 to 2018 overall core duplicate precision was
low, likely reflecting the strong nugget effect at the Snip Project. The practice of inserting core duplicates was halted in early 2018
due to the high nugget effect at Snip; preparation and pulp duplicates and check assays were relied on after this time to monitor repeatability.
Prep repeats refer to the
sample whereby a second split from the reject is taken and pulverized every 50th sample. A pulp repeat is a duplicate of the
same pulp analyzed immediately after the original sample. Skeena inserted core duplicates, prep, and pulp repeats into their sample stream
during the 2017 to 2019 drilling campaigns. For the 2020 to 2021 drilling campaign, Skeena relied on the internal prep and pulp duplicates
from ALS Laboratories; a total of 1,815 internal prep and pulp duplicates were analyzed at ALS (Snip, 2021).
For the 2022 drilling campaign,
Hochschild inserted their own prep (coarse), pulp (fine), and twin (resample) duplicates, in addition to the internal duplicates automatically
conducted by ALS. Table 11-7 summarizes the total number of external duplicates analyzed between 2016 and 2022.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 74 |
Table
11-7: No. of duplicates and percentages per year
| Year |
|
No. Samples |
|
Core
Duplicates |
|
Prep
Repeat |
|
Pulp
Repeat |
|
Resample |
| 2016 |
|
2,635 |
|
58 |
|
not
available |
|
not
available |
|
|
| 2017 |
|
1,678 |
|
36 |
|
69 |
|
388 |
|
|
| 2018 |
|
12,424 |
|
86 |
|
91 |
|
319 |
|
|
| 2019 |
|
1,622 |
|
0 |
|
7 |
|
59 |
|
|
| 2020 |
|
0 |
|
0 |
|
0* |
|
0* |
|
|
| 2021 |
|
0 |
|
0 |
|
0* |
|
0* |
|
|
| 2022 |
|
1,224 |
|
0 |
|
409 |
|
408 |
|
407 |
| Total |
|
19,583 |
|
180 |
|
576 |
|
1,174 |
|
407 |
*Skeena relied on ALS’s
internal prep and pulp duplicates
Figure 11-11, Figure 11-12,
and Figure 11-13 depict scatter plots for the 2022 prep, pulp, and resample duplicates, respectively. The overall scatter is high for
the lower grades, however duplicate pair correlation improves significantly for the higher grades. Overall, the duplicate pairs are acceptable
considering the nuggety nature of the Snip deposit.
Figure
11-11: 2022 prep duplicate scatter plot
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 75 |
Figure
11-12: 2022 pulp duplicate scatter plot
Figure
11-13: 2022 resample duplicate scatter plot
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 76 |
A total of 139 interlaboratory
check samples were completed for the 2022 drilling campaign and the results were deemed acceptable (Figure 11-14). In addition, for the
2022 drilling campaign, 14 check standards and blanks were re-processed at an independent lab and all results fell within the respective
accepted limits.
A total of 311 additional
check samples submitted by Skeena are pending at SGS Laboratories at the time writing this report. The pulps that are currently being
processed are from the 2022 drilling campaign. All 2021 pulps were disposed while being managed by Hochschild, and as a result, check
assays could not be processed for the 2021 drilling campaign.
Figure
11-14: 2022 check assay chart
| 11.3 | Qualified
Person’s Opinion on Quality Assurance and Quantity Control |
Skeena adopted a rigorous
QA/QC program whereby field failures were corrected promptly, and re-assays were conducted where standards or blanks failed within the
grade range of interest. Hochschild monitored their QC samples in a manner consistent with industry best practises. All QA/QC data and
internal QA/QC reports were analyzed and disclosed to the QP.
Original assay certificates
were made available to the QP, as well as all certified reference material certificates; data that was interrogated and assimilated into
the QA/QC review.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 77 |
It is the QP’s opinion
that the sample preparation, sample security, analytical procedures and QA/QC are satisfactory and appropriate for generating data of
suitable quality for use in resource modelling and estimation of the Snip Project. The QP’s independent assessment of standard,
duplicate and blank charts indicate an acceptable level of accuracy across all of Skeena and Hochschild’s drill programs on the
Snip Project. Check assay results also show a lack of bias between the primary and secondary laboratories.
The QP suggests the following
QA/QC methods for future drilling campaigns at the Snip Project:
| • | At
the sampling stage, care needs to be taken to insert the most appropriate gold standard into
the sample series depending on the likely assay gold range. This is more important for the
high-grade standard: CDN-GS-25A, as it should not be inserted into a low grade sample series.
A handheld XRF calibrated for gold is one way to aid the selection process. |
| • | Continue
to use the blank material: CDN-BL-10 Coarse, as this sample will be processed at the crushing
stage; the crucial stage for monitoring possible contamination. |
| • | Preparation
and pulp duplicates are inserted by the lab at a sequence that the lab defines. Additional
preparation and pulp duplicates should be requested at intervals defined by Skeena to avoid
intralab bias and to reflect the entire gold range that defines the Snip Project. |
| • | The
submittal of check samples to SGS Canada should be consistent and timely, so that there is
no time lag between drilling campaigns. |
| • | Sample
rejects and pulps are not consistently saved and stored. In the event of core damage, loss
or tampering, rejects and pulps will serve to validate the deposit’s primary asset
– the assay database. Therefore, sample rejects and pulps should be stored. |
| • | Continue
to collect SG measurements for every drill campaign. In 2022 SG samples were not collected
and the reason for this oversight is not clear. |
| • | SG
samples should be validated with external lab measurements during each drilling campaign. |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 78 |
Due to the absence of QA/QC
data for all the historical holes, SRK considered it a risk to include them into a classification category higher than Inferred. However,
between 2016 and 2019 Skeena drilled 44 surface and 110 underground drill holes on the Snip Property, all of which have validated QA/QC
samples. For the 2020 MRE, SRK considered an area within a “40 m buffer” around these recent holes to be a reasonable distance
for upgrading material into the Indicated category, if satisfying additional classification criteria (see Section 14.11).
To substantiate this upgrade
in classification, SRK compared the historical gold data distribution versus the 2016 to 2019 gold assay distribution within this 40
m buffer zone, outside of any depleted areas. The overall distribution between historical and the 2016 to 2019 drill holes was found
to be comparative (Figure 12-1).
Figure
12-1: Log Q-Q plot of historical holes (Y axis) and Skeena (2016-2019) drilled holes (X axis) within the 40 m buffer zone outside of
the depleted areas
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 79 |
For
the 2023 MRE, Skeena had access to 28 twin drill holes (for a total meterage of 3,318 m) that were drilled in similar 3-D orientation,
and with less than 2 m in separation distance, to the nearest historical hole. Eight of the holes were drilled by Skeena in 2021 and
20 of the holes were drilled by Hochschild in 2022. These holes (known as “Twin Holes”) were designed to validate the rest
of the historical drilling at the Snip Mine. Figure 12-2 displays the twin holes (in black) in relation to all holes drilled at Snip.
Figure
12-2: Down dip view of all twin holes (in black) in relation to all Snip drilling
The twin drilling results
were compared directly by means of coding true width equivalent intervals with matching twin hole and historical hole intercepts (Figure
12-3). A total of 31 equivalent intervals were generated and their length weighted gold grades were calculated. For the twin holes an
accumulated length-weighted grade of 15.73 g/t Au was calculated, whereas for the historical holes an accumulated length weighted grade
of 13.09 g/t was calculated. This amounts to a 20% difference between the original and twin pairs. In addition, the twin pairs had analogous
coefficient of variation results.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 80 |
Figure
12-3. Equivalent vein intercepts for a twin pair
For the combined mineralization
intercepts, the historical holes assayed lower overall than the twin holes. On a twin-pair basis, significant variability in weighted
gold values was noted. For the historical holes the lowest and highest weighted gold grade was 1.08 g/t Au and 54.50 g/t Au, respectively.
For the twin holes the lowest and highest weighted gold grade was 1.30 g/t Au and 113.63 g/t Au, respectively. Seeing that the nugget
effect is high at the Snip mine (more than 30%) because of visible gold, it is not surprising to see large differences several meters
apart.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 81 |
The measure of precision for
the historical and twin pairs were displayed on a Thompson-Howarth plot where the x-axis denotes the mean of the paired data, and the
y-axis denotes the absolute difference of the pairs (Figure 12-4). The results show that all but 4 twin pairs fall below the +20% line.
In addition, the correlation coefficient (R) has a value of 0.77; reasonable variability for a gold deposit of this nature.
Figure
12-4. Thompson Howarth plot of all the equivalent vein intercept pairs
The twin drilling results
were successful in:
| • | Validating
historical drill hole mineralized intervals; |
| • | Validating
equivalent gold grades between the twin and historical holes; |
| • | Validating
similar variability that exists throughout the dataset; |
| • | Demonstrating
that the historical holes were not biased towards the high grades; |
| • | Demonstrating
that the assay techniques used in the 1990’s are consistent with assay techniques conducted
in modern accredited and certified laboratories; |
| • | Demonstrating
that the historical assays used suitable assaying techniques for the type and style of gold
mineralization found at Snip. |
There are, however, inherent
risks to using historical data where no stored evidence remains. Skeena is advized to continue to drill in areas as access is gained
to levels currently inaccessible where twin drilling has not been conducted.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 82 |
In summary, seeing that the
twin drilling program was justified in terms of data precision for the twin pairs, it is reasonable to lift the classification constraint
previously used.
Ms. Ulansky has been
involved with the evaluation of the Snip Project since 2019 and has conducted a site visit to the Snip Property between July 27
and July 31, 2020. During her site visit, Ms. Ulansky reviewed surface and underground drill core to confirm the presence and
nature of the mineralization and appropriateness of the interpreted geological framework. She observed abundant visible gold intersections
in drill core, verifying the presence, and nature of gold mineralization at the Snip Project.
Sufficient checks have been
completed to satisfy Ms. Ulansky that the Snip Project drilling and sampling data and geological interpretations are of suitable
quality and robustness for resource modelling and estimation. She has verified Skeena’s drilling, sample preparation, handling,
security, and chain of custody procedures, QA/QC procedures and results, as well as surface drill hole locations and core logs. She has
also reviewed Snip’s database integrity and data quality for use in resource estimation (see Section 11). Ms. Ulansky
has reviewed and been involved in all stages of the geological modelling and domain definition for the Snip Deposit and has assessed
the applicability and robustness of these interpretations from the available drill core and drill logs. Ms. Ulansky completed the
twin drilling data review and assessment.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 83 |
| 13 | Mineral
Processing and Metallurgical Testing |
The Snip deposit has a history
of being a past gold-producer and Skeena Resources is looking toward to resuming mining and processing operations at the Snip deposit.
Newly discovered gold zones have been subject to metallurgical testing to determine processing requirements and the expected gold recoveries
from these newly discovered zones. The first metallurgy program was undertaken in 2020 at Base Metallurgical Laboratories Ltd. (Base
Met Labs) in Kamloops, BC as project BL661 by Skeena. The program was intended to assess the metallurgical performance of samples from
Snip using conventional processes of gravity and floatation. In 2021 and 2022, two more studies were undertaken at Basemet Labs as projects
BL891 and BL1002 respectively by Hochschild. These programs were completed to evaluate the gold and silver recovery from the Snip materials
and to evaluate the quality of concentrates produced. The Snip Gold Mine was previously operated by Cominco.
| 13.2 | Metallurgical
Test Work |
| 13.2.1 | Historical
Operations at the Snip Mine |
Skeena Resources has not been
able to access previous metallurgical studies related to the Snip deposit. Cominco operated the Snip mine from approximately 1991 to
1999, including an underground mining operation and a simple gravity and flotation plant, to recover gold and silver. The operation recovered
approximately a million ounces of gold contained in gravity and flotation concentrates. The mine production and feed to the processing
plant was approximately 27g/t gold and overall gold recoveries were in the range of 91 percent.
| 13.2.2 | 2020
Metallurgical Test Work Program |
The 2020 metallurgical testing
program was completed at Base Met Labs using two composite samples. The scope of the program, identified as BL661, included:
| 13.2.2.1 | Metallurgical
Samples 2020 |
Two composite samples were
generated for metallurgical testing: Composite 1 and Composite 2. Composite 1 consisted of six intervals from four holes and Composite
2 consisted of 4 intervals from 4 drill holes. The location of the intervals is spatially shown in Figure 13-1.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 84 |
Source: Skeena 2023
Figure
13-1: Sample Locations of the 2020 Metallurgical Intervals. Red = Composite 1 and Blue = Composite 2
| 13.2.2.2 | Chemical
Composition |
Detailed head assays were
performed on each composite and is shown in Table 13-1.
Table
13-1: 2020 Samples - Chemical Analysis
| Composite |
Assay |
Cu
% |
Fe
% |
Au
g/t |
Ag
g/t |
As
g/t |
Sb
g/t |
S
% |
| Composite
1 |
0.15 |
14.8 |
8.15 |
15 |
138 |
11 |
11.6 |
| Composite
2 |
0.06 |
4.3 |
7.52 |
5 |
40 |
4 |
1.86 |
Mineral content and sulphide
distribution of the composites were determined using a bulk mineral analysis (BMA) routine via quantitative evaluation of minerals by
scanning electron microscopy (QEMSCAN). The sulphide mineral content was dominated by pyrite, with minor amounts of chalcopyrite, galena
and sphalerite. Composite 1 measured significantly more pyrite. The non-sulphide suite of minerals varied for the two composites but
were mainly dominated by quartz, feldspars, and biotite/phlogopite.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 85 |
| 13.2.2.4 | Communication
Testing |
Composite 1 was determined
to be 12.8 kW-hr/tonne and Composite 2 was determined to be 12.4 kW-hr/tonne. These values indicate it would be considered moderately
soft. The results are shown in Table 13-2.
Table
13-2: Bond Mill Work Index Determination Determined at 106 microns Classification Size
| Sample |
WiBM
kW-hr/tonne |
| Composite
1 |
12.4 |
| Composite
2 |
12.8 |
| 13.2.2.5 | Metallurgical
Testing |
Each of the two composites
were tested using a standard bulk sulphide flotation process similar to the process used previously at the Snip operation. A second test
was conducted on each composite which also included a gravity recovery stage to determine if the inclusion of a gravity recovery stage
would benefit the overall gold and silver recovery. Results are shown in Table 13-3 below. Both samples showed very high gold recoveries
and about 33 percent of the gold was recovered to a gravity concentrate. The inclusion of a gravity stage did not appreciably increase
gold recovery.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 86 |
Table
13-3: Rougher/Gravity results
| Composite |
Test |
Product |
Mass |
Assay
g/t |
Distribution
% |
| % |
Au |
Ag |
As |
Sb |
S |
Au |
Ag |
As |
Sb |
S |
| Composite
1 |
1 |
Pan
Con |
|
|
|
|
|
|
|
|
|
|
|
| Ro
Con |
28.3 |
46.8 |
40 |
364 |
31 |
31.4 |
98.5 |
88.7 |
99.3 |
78.7 |
99.3 |
| Ro
Tail |
71.7 |
0.28 |
2 |
1 |
3 |
0.09 |
1.5 |
11.3 |
0.7 |
21.3 |
0.7 |
| 3 |
Pan
Con |
0.7 |
552 |
166 |
519 |
112 |
50.9 |
36.1 |
9.5 |
4.9 |
5.1 |
4.4 |
| Ro
Con |
22.9 |
30.3 |
44 |
317 |
55 |
35.3 |
61.7 |
78.6 |
93.9 |
77.5 |
94.3 |
| Combined
Con |
23.7 |
46.5 |
48 |
323 |
56 |
35.8 |
97.9 |
88.1 |
98.8 |
82.6 |
98.7 |
| Ro
Tail |
76.3 |
0.32 |
2 |
1 |
4 |
0.15 |
2.1 |
11.9 |
1.2 |
17.4 |
1.3 |
| Composite
2 |
2 |
Pan
Con |
|
|
|
|
|
|
|
|
|
|
|
| Ro
Con |
13.5 |
52.8 |
36 |
272 |
18 |
14.5 |
96.1 |
73.9 |
93.9 |
54.3 |
98.6 |
| Ro
Tail |
86.5 |
0.33 |
2 |
3 |
2 |
0.03 |
3.9 |
26.1 |
6.1 |
45.7 |
1.4 |
| 4 |
Pan
Con |
0.8 |
280 |
158 |
931 |
106 |
52.3 |
30.7 |
19.6 |
19.5 |
14.3 |
21.1 |
| Ro
Con |
10.7 |
45 |
32 |
272 |
36 |
14.3 |
65.5 |
53.2 |
75.5 |
64.3 |
76.5 |
| Combined
Con |
11.5 |
61.4 |
41 |
318 |
41 |
17 |
96.2 |
72.8 |
95 |
78.6 |
97.6 |
| Ro
Tail |
88.5 |
0.32 |
2 |
2 |
1 |
0.06 |
3.8 |
27.2 |
5 |
21.4 |
2.4 |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 87 |
| 13.2.3 | 2021
Phase 1 Metallurgical Test Work Program |
The 2021 Phase 1 metallurgical
testing program was completed at BaseMet Labs in Kamloops, BC Canada using a single composite sample. The scope of the program, identified
as BL891, included:
| 13.2.3.1 | Metallurgical
Samples 2021 |
A single composite sample
from eleven drill holes was generated for metallurgical testing. These holes are spatially shown in Figure 13-2. These samples are considered
widely dispersed and representative of the deposit.
Source: Hochschild 2022
Figure
13-2: 2021 Snip Metallurgical Drill Hole Locations
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 88 |
Sample assays for the 2021
Master Composite sample are shown in Table 13-4.
Table
13-4: 2021 Master Composite Sample Assays
| |
Analyte |
|
| Sample |
Au
(g/t) |
Ag
(g/t) |
ST
(%) |
SO42-
(%) |
S2-
(%) |
As
(g/t) |
C
(%) |
TOC
(%) |
| Master
Composite |
5.31 |
5.6 |
2.22 |
<0.01 |
2.22 |
39 |
2.55 |
0.01 |
| 13.2.3.3 | Sample
Mineralogy for 2021 Master Composite |
The Master Composite sample
was submitted for bulk mineral analysis (BMA) using QEMSCAN. A summary of the BMA results is shown in Table 13-5.
The BMA results indicate that
pyrite is by far the most significant sulphide mineral and represents about 95 percent of all the contained sulphides. A breakdown of
the sulphide mineral distribution is shown in Figure 13-7 and confirms that pyrite is the predominant sulphide mineral in the Snip materials,
with lesser amounts of chalcopyrite.
Table
13-5: 2021 Master Composite Sample - Bulk Mineralogy Analysis
| Mineral
Abundance (% w/w) |
Master
Composite |
| Pyrite |
4.26 |
| Pyrrhotite |
0.02 |
| Chalcopyrite |
0.22 |
| Sphalerite |
0.05 |
| Other
Sulphides |
0.01 |
| Quartz |
11.6 |
| Plagioclase |
33.9 |
| K-Feldspar |
5.08 |
| Sericite/Muscovite |
4.67 |
| Biotite/Phlogopite |
16.8 |
| Chlorite |
2.74 |
| Clays |
1.38 |
| Other
Silicates |
3.57 |
| Oxides |
0.23 |
| Carbonates |
14.5 |
| Apatite |
0.88 |
| Other |
0.06 |
| Total |
100 |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 89 |
Table
13-6: 2021 Master Composite Sample Sulphur Deportment Results
| Mineral |
Sulphur
Distribution (% Normalized) |
| Pyrite |
95.8 |
| Pyrrhotite |
0.30 |
| Chalcopyrite |
3.07 |
| Sphalerite |
0.66 |
| Galena |
0.01 |
| Other
Sulphides |
0.14 |
| Total |
100 |
| 13.2.3.4 | Gravity
Separation |
A gravity separation test
work program was completed on the Master Composite sample to investigate the efficacy of gravity-based gold separation.
A single gravity recovery
test was completed, and results are summarized in Table 13-7. The gravity test work results indicate that a significant portion of the
gold is amenable to being recovered in a gravity process and estimates of a gold recovery in a production setting are estimated at 30
to 50 percent of a very high-grade gold concentrate.
Table
13-7: Snip 2021 E-GRG Test Results
| Sample |
Cum.
Mass Recovery
(%) |
Combined
Conc.
Assay (g/t Au) |
Cum.
Recovery
(% Au) |
| Master
Composite |
1.39 |
255 |
59.8 |
| 13.2.3.5 | Flotation
Testing |
Three flotation tests were
conducted on the Master Composite sample including 2 rougher tests and 1 open-circuit cleaner test. Rougher kinetics tests applied standard
reagent conditions with 22 minutes of retention, 200 g/t of potassium amyl xanthate (PAX) collector to evaluate grind sizes of k80’s
of 100 and 75 um. The 75 um grind was selected for a 3-stage batch cleaner test with the objective of producing a trade-off between mass
rejection and gold loss. All flotation tests included an initial gravity concentration stage which included initial concentration through
a Knelson concentrator with the concentrate upgraded to a low weight concentrate (0.05%) on a Mozley Super Panner.
Rougher flotation tests on
gravity tailings showed overall recovery of 92% Au (13.7% mass) at 100 µm and 96.5% Au (14.5% mass) at 75 µm. Batch cleaner
tests showed overall recovery of 92% Au (gravity plus flotation) when reground to 25 µm in a single stage of cleaning. Mass recovery
was reduced to 6%. Locked cycle tests were not completed in this test work program.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 90 |
| 13.2.3.6 | Cyanide
Leach Test |
Cyanide leach tests were conducted
on gravity tailings, rougher flotation concentrate and rougher flotation tailings samples. Test conditions are shown in Table 13-8.
Table
13-8: Snip Phase 1 Leach Test Conditions
| Sample |
Grind
(k80, µm) |
Leach
Time (hours) |
Cyanide
Conc.
(g/L NaCN) |
| Gravity
Tail |
75 |
48 |
1.0 |
| Rougher
Conc. |
As
Is |
48 |
2.0 |
| Rougher
Tail |
As
is |
24 |
1.0 |
Cyanide leach test results
are shown in Table 13-9. Results show high leach extractions with rapid kinetics. The low-grade flotation tailings sample also had high
leach extraction despite its low head grade of 0.44 g/t Au.
Table
13-9: Snip 2021 Leach Test Results
| Leach
Extractions (% Au) |
| Sample |
2
hours |
6
hours |
24
hours |
48
hours |
| Rougher
Conc. |
67.2 |
88.8 |
92.3 |
94.9 |
| Rougher
Tail |
65.0 |
83.0 |
87.5 |
- |
| Rougher
Tail |
82.3 |
92.8 |
93.5 |
94.1 |
Overall gravity, flotation
and leach extraction results are shown in Table 13-10. Gravity/leach produced superior results overall. The gravity and cleaner flotation
results replicate the original Snip flowsheet which produced gold doré from gravity concentrate and shipped a high-grade pyrite
concentrate. The rougher concentrate leach and tailings leach produced good results, even without regrinding of the flotation concentrate
prior to leaching. Optimization work with respect to primary grind size distribution is recommended to maximize flotation and leaching
recoveries.
Table
13-10: Snip 2021 Combined Gravity/Flotation Leach Test Results
| |
Recovery
(% Au) |
|
| Sample |
Gravity |
Flotation |
Leach |
Overall |
| Grav./Flot.
Conc. Leach/Flot. Tails Leach |
29.9 |
- |
63.4 |
93.3 |
| Gravity/Cleaner
Flotation |
45.9 |
45.3 |
- |
91.3 |
| Gravity/Leach |
30.1 |
- |
65.8 |
95.9 |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 91 |
| 13.2.4 | Phase
2 2022 Metallurgical Testing Program |
The 2022 Phase 2 metallurgical
testing program was completed at BaseMet Labs in Kamloops, B.C. on 10 comminution samples and 18 metallurgical samples. The scope of
the program, identified as BL1002, included:
| • | Extended
gravity recoverable gold (E-GRG) testing. Flotation testing. |
| • | Solids-liquids
separation testing. |
| 13.2.4.1 | Phase
2 Metallurgical Samples |
The 2022 program included
18 composite samples from eleven drill holes for the metallurgical testing program and 10 comminution samples from 10 drill holes. The
list of samples and their acronyms are shown in Table 13-11. The samples were selected to represent underground mining. Drill hole locations
are shown in Figure 13-3 and Figure 13-4. The location of the comminution samples is shown in Figure 13-5. The flotation and metallurgical
test samples are a combination of drill core and coarse assay rejects. Assay rejects were inspected for any oxidation or alteration effects
prior to their use; none were found. The primary flowsheet development composites used were TMPC for the leach flowsheet and FTMPC for
the flotation flowsheet.
Table
13-11: 2022 Metallurgical Samples
| Sample |
Acronym |
| Twin
Main Pit Flotation Variability Sample 2 |
FTMPV2 |
| Twin
Main Pit Flotation Variability Sample 1 |
FTMPV1 |
| Twin
Main Pit Flotation Low-Grade Sample |
FTMPLG |
| Twin
Main Pit Flotation Underground Low-Grade Sample |
FTMUGLG |
| Twin
Main Pit Flotation Medium-Grade Sample |
FTMPMG |
| Twin
Main Pit Flotation Underground Medium-Grade Sample |
FTMUGMG |
| Twin
Main Pit Flotation High-Grade Sample |
FTMPHG |
| Twin
Main Pit Flotation Very High-Grade Sample |
FTMPVHG |
| Twin
Main Pit Flotation Main Composite Sample |
FTMPC |
| Twin
Main Pit Variability Sample 2 |
TMPV2 |
| Twin
Main Pit Variability Sample 1 |
TMPV1 |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 92 |
| Sample |
Acronym |
| Twin
Main Pit Low-Grade Sample |
TMPLG |
| Twin
Main Pit Underground Low-Grade Sample |
TMUGLG |
| Twin
Main Pit Medium-Grade Sample |
TMPMG |
| Twin
Main Pit Underground Medium-Grade Sample |
TMUGMG |
| Twin
Main Pit High-Grade Sample |
TMPHG |
| Twin
Main Pit Very High-Grade Sample |
TMVHG |
| Twin
Main Pit Composite Sample |
TMPC |
| Twin
Main Pit Comminution Sample 1 |
MCOM1 |
| Twin
Main Pit Comminution Sample 2 |
MCOM2 |
| Twin
Main Pit Comminution Sample 3 |
MCOM3 |
| Twin
Main Pit Comminution Sample 4 |
MCOM4 |
| Twin
Main Pit Bond Work Index Variability Sample 1 |
MP1 |
| Twin
Main Pit Bond Work Index Variability Sample 2 |
MP2 |
| Twin
Main Pit Bond Work Index Variability Sample 3 |
MP3 |
| Twin
Main Pit Bond Work Index Variability Sample 4 |
MP4 |
| Twin
West Pit Bond Work Index Variability Sample 1 |
TWP1 |
| Twin
West Pit Bond Work Index Variability Sample 2 |
TWP2 |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 93 |
Source: Hochschild, 2020
Figure
13-3: Snip Phase 2 Metallurgical Test Samples Locations; Part 1
Source: Hochschild 2022
Figure
13-4: 2022 Metallurgical Test Samples Locations; Part 2
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 94 |
Source: Hochschild 2022
Figure
13-5: 2022 Comminution Test Samples Locations
| 13.2.4.2 | 2022
Sample Assays |
Sample assays are shown in
Table 13-12. Sulphur occurs primarily as sulphide Sulphur (S2-) in all samples. Gold head grades range from 1.33 g/t to 22.2 g/t. Copper
and arsenic concentrations are low and non-problematic. Mercury concentrations are very low and will not require capture within the process.
Table
13-12: Snip Phase 2 Sample Assays
| |
Analyte |
|
| Sample |
Au
(g/t) |
Ag
(g/t) |
ST
(%) |
S042
(%) |
S2-
(%) |
As
(g/t) |
Cu
(%) |
Fe
(%) |
Hg
(mg/t) |
| FTMPV2 |
5.97 |
3.6 |
2.47 |
0.03 |
2.44 |
144 |
0.031 |
5.44 |
11 |
| FTMPV1 |
2.59 |
3.6 |
1.08 |
0.03 |
1.05 |
16.8 |
0.065 |
4.00 |
15 |
| FTMPLG |
1.33 |
0.8 |
0.75 |
0.01 |
0.74 |
13.6 |
0.009 |
3.40 |
6 |
| FTMUGLG |
4.11 |
2.3 |
1.88 |
0.04 |
1.84 |
30.4 |
0.029 |
4.72 |
16 |
| FTMPMG |
3.90 |
4.5 |
3.89 |
0.04 |
3.85 |
158 |
0.043 |
6.84 |
17 |
| FTMUGMG |
22.2 |
2.9 |
1.06 |
0.04 |
1.02 |
29.5 |
0.014 |
4.72 |
<
5 |
| FTMPHG |
7.44 |
5.8 |
2.68 |
0.05 |
2.63 |
124 |
0.043 |
4.64 |
40 |
| FTMPVHG |
9.94 |
3.2 |
2.55 |
0.01 |
2.54 |
50.5 |
0.029 |
5.00 |
15 |
| FTMPC |
16.1 |
2.4 |
1.06 |
0.03 |
1.03 |
19.3 |
0.014 |
4.20 |
92 |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 95 |
| |
Analyte |
|
| Sample |
Au
(g/t) |
Ag
(g/t) |
ST
(%) |
S042
(%) |
S2-
(%) |
As
(g/t) |
Cu
(%) |
Fe
(%) |
Hg
(mg/t) |
| TMPV2 |
3.72 |
2.3 |
1.97 |
0.04 |
1.93 |
14.3 |
0.021 |
4.76 |
12 |
| TMPV1 |
7.05 |
2.0 |
1.79 |
0.03 |
1.76 |
38.7 |
0.037 |
4.72 |
<
5 |
| TMPLG |
2.24 |
0.4 |
0.91 |
0.03 |
0.88 |
17.9 |
0.010 |
3.20 |
<
5 |
| TMUGLG |
3.07 |
2.3 |
1.74 |
0.05 |
1.69 |
16.3 |
0.024 |
4.52 |
17 |
| TMPMG |
4.02 |
3.1 |
3.10 |
0.04 |
3.06 |
143 |
0.033 |
5.76 |
11 |
| TMUGMG |
20.7 |
5.4 |
3.40 |
0.04 |
3.36 |
14.2 |
0.018 |
4.08 |
11 |
| TMPHG |
5.80 |
1.8 |
0.95 |
0.05 |
0.90 |
1415 |
0.084 |
5.84 |
12 |
| TMVHG |
10.7 |
2.9 |
1.94 |
0.04 |
1.90 |
43.0 |
0.028 |
4.48 |
26 |
| TMPC |
6.11 |
4.0 |
2.62 |
0.05 |
2.57 |
46.9 |
0.029 |
5.48 |
20 |
| 13.2.4.3 | 2022
Sample Mineralogy |
Three Twin Pit samples were
submitted for BMA using QEMSCAN to determine major mineral species and sulphide mineral speciation. The results are presented in Table
13-13. Key observations related to mineral abundance include:
| • | Sulphides
are present primarily as pyrite, with minor amounts of chalcopyrite. |
| • | Non-sulphide
gangue is predominately comprised of Plagioclase, Biotite/Phlogopite, and Calcite. The Calcite
will provide some neutralization of potential acid generation in tailings. |
Table
13-13: 2022 Samples Bulk Mineralogy Analysis (BMA)
| Mineral
Abundance (% w/w) |
TMPC |
TMPHG |
TMPLG |
| Chalcopyrite |
0.07 |
0.19 |
0.02 |
| Pyrite |
3.79 |
1.88 |
1.63 |
| Pyrrhotite |
0.00 |
0.08 |
0.02 |
| Arsenopyrite |
0.00 |
0.01 |
0.19 |
| Sphalerite |
0.10 |
0.04 |
0.00 |
| Galena |
0.06 |
0.02 |
0.00 |
| Other
Sulphides |
0.00 |
0.01 |
0.00 |
| Quartz |
12.6 |
15.3 |
16.6 |
| Plagioclase |
33.0 |
19.0 |
29.0 |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 96 |
| Mineral Abundance (% w/w) |
TMPC |
TMPHG |
TMPLG |
| K-Feldspar |
6.63 |
16.6 |
11.5 |
| Biotite |
20.5 |
18.1 |
21.6 |
| Sericite/Muscovite |
6.27 |
14.6 |
10.1 |
| Chlorite |
2.07 |
0.78 |
0.31 |
| Clays |
0.61 |
0.97 |
1.06 |
| Other Silicates |
0.76 |
0.36 |
0.42 |
| Fe Oxides |
0.02 |
0.01 |
0.17 |
| Rutile |
0.37 |
0.34 |
0.19 |
| Ilmenite |
0.11 |
0.12 |
0.00 |
| Calcite |
11.5 |
9.88 |
5.92 |
| Other Carbonates |
0.81 |
0.76 |
0.57 |
| Apatite |
0.70 |
0.74 |
0.62 |
| Other |
0.00 |
0.04 |
0.02 |
| Total |
100 |
100 |
100 |
Approximately 90 percent of
the sulphide minerals are being reported as pyrite in the three BMA analysis contained above. This is consistent with previous analysis
and supports the concept of using a bulk sulphide flotation process to recovery sulphide minerals.
Comminution Testing
Comminution test samples were
selected from drill core received. The program included:
| 1. | SMC
(completed at -31.5/+26.5mm) tests on 4 of the composite samples. |
| 2. | Bond
rod mill (RWI), ball mill (BWI) and abrasion index (AI) tests on the four Twin Pit Main comminution
samples |
| 3. | Bond
ball mill work index tests on four Twin Pit Main and two Twin Pit West variability samples. |
Results are summarized in
Table 13-14 and indicate the materials are considered hard or competent in terms of SAG mill characterization and moderate in terms of
Ball Mill Work index characterization.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 97 |
Table
13-14: Snip Comminution Tests Results
| JK
Parameter |
|
| Description |
Rel.
Density |
A
x b |
(kWh/t) |
RWI
(kWh/t) |
BWI
(kWh/t) |
AI(g) |
| Average |
2.83 |
35.0 |
23.1 |
15.5 |
12.9 |
0.088 |
| 75th
Percentile |
2.85 |
32.5 |
24.8 |
15.8 |
13.8 |
0.123 |
| Median |
2.82 |
33.4 |
23.8 |
15.5 |
13.3 |
0.084 |
| Maximum |
2.92 |
32.2 |
26.4 |
15.9 |
16.4 |
0.147 |
| 13.2.4.4 | Phase
2 Gravity Separation |
Gravity separation test work
was completed on the TMPC composite to investigate the potential of gravity-based gold separation. The extended gravity recoverable gold
procedure (E-GRG) was used for the testing as described in 13.2.2.4.
The E-GRG test results are
shown in Table 13-15. The cumulative recovery of 49.9% Au was slightly lower than the Phase 1 recovery of 54.4% Au.
Table
13-15: Snip Phase 2 E-GRG Test Results
| Composite |
Cum. Mass Recovery
(%) |
Combined Conc. Assay
(g/t Au) |
Cum. Recovery
(% Au) |
| TMPC |
1.53 |
223 |
49.9 |
The 2021 and 2022 GRG test
results were provided to FLS for review and modeling of the expected gold recovery when translated to an operating plant. FLS (Knelson)
has developed a size-by-size mathematical model to predict gravity recovery within a grinding circuit, called KC MOD*Pro. The FLS modelling
results show that the 2021 sample had a GRG content of 56% Au and the Phase 2 sample had a GRG content of 51% calibrated against the
FLS database. These values are considered a moderate GRG content.
Modeling results show that:
| 1. | Treating
33% of cyclone underflow (based on 350% circulating load) will result in 28% Au recovery. |
| 2. | Treating
56% of ball mill discharge (based on 350% circulating load) will result in 33% Au recovery. |
| 3. | Treating
90% of ball mill discharge (based on 350% circulating load) will result in 37% Au recovery. |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 98 |
| 13.2.4.5 | 2022
Flotation Testing |
Flotation tests were completed
on each of the TMPC samples. Test procedures followed on the 2021 test procedures and results. These tests included a gravity concentration
stage prior to rougher flotation and targeted a mass recovery of 0.05% to a gravity concentrate. The rougher flotation concentrate was
reground to a k80 of 25 microns and upgraded in dilution cleaning stages. of the results showed that a single cleaner stage was sufficient
to reduce concentrate mass and produce high Au concentrate grade. Conditions testing for the TMPC composite were applied for variability
testing that included gravity separation followed by a single cleaner flotation stage following concentrate regrind to a k80
Test results are presented
in Table 13-16. Observations on the results include the following:
| 1. | Overall
high combined gravity plus flotation gold recoveries, ranging from 85.1% to 96.4%. |
| 2. | Gravity
gold recoveries ranged from 16.7% to 61.3%. |
| 3. | Cleaner
concentrate gold grades ranged from 28.8 g/t to 106 g/t. Range of mass recoveries to first
cleaner concentrates was between 3.1% and 10.0%. |
The results demonstrate that
producing a gravity concentrate and doré on site and shipping high-grade clean pyrite concentrates is a viable flowsheet, as per
the historical operation. Additional flotation test work is recommended including locked cycle testing and optimization of flotation
cleaning conditions.
Table
13-16: Snip 2022 Flotation Tests Results
| Composite
|
Gravity
Gold
Conc. |
First
Cleaner Concentrate |
Flotation
Tail
(Au, g/t) |
Head
Grade
Au (g/t) |
Estimated
Recovery
Au (%)* |
| (g/t) |
(%
rec.) |
Mass
(%) |
(g/t) |
(%
rec.) |
S
(%) |
| TMPC |
718 |
21.4 |
5.9 |
59.0 |
66.8 |
37.7 |
0.54 |
5.21 |
88.2 |
| FTMPC |
1,202 |
35.2 |
3.1 |
106 |
56.4 |
31.2 |
0.39 |
5.88 |
91.5 |
| FTMPVHG |
6,416 |
61.3 |
5.9 |
83.7 |
34.1 |
42.2 |
0.47 |
14.5 |
95.4 |
| FTMPHG |
1,491 |
41.9 |
6.1 |
73.3 |
52.3 |
40.2 |
0.41 |
8.55 |
94.2 |
| FTMPUGMG |
3,759 |
55.5 |
4.8 |
148 |
40.9 |
17.9 |
0.29 |
17.2 |
96.4 |
| FTMPMG |
1,216 |
35.2 |
10.0 |
37.9 |
56.3 |
36.1 |
0.33 |
6.76 |
91.6 |
| FTMUGLG |
267 |
20.0 |
5.2 |
43.1 |
74.2 |
32.6 |
0.16 |
2.99 |
94.3 |
| FTMPLG |
128 |
16.7 |
3.5 |
28.8 |
68.4 |
22.1 |
0.20 |
1.45 |
85.1 |
| FTMPV1 |
515 |
28.6 |
4.4 |
36.4 |
66.1 |
25.9 |
0.13 |
2.44 |
94.7 |
| FTMPV2 |
896 |
34.3 |
7.3 |
42.6 |
57.0 |
33.9 |
0.48 |
5.46 |
91.3 |
*Estimated recovery is based
on open circuit tests and not locked cycle testing.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 99 |
Cyanide leaching of the 2022
samples was completed using standard bottle roll test procedures. All tests included a gravity concentration stage prior to leaching
with a target 0.05% mass recovery to a gravity concentrate. The tailings from the gravity tests were subsequently leached under the following
conditions:
| 1. | Gravity
concentration prior to leach targeting 0.05% mass recovery. |
| 2. | Primary
grinds evaluated K80 of 60, 75 and 90 µm. |
| 4. | Leach
times of 36 hours with kinetic samples at 8, 12, 24 and 30 hours. |
| 5. | Cyanide
concentration of 1.0 g/L NaCN. |
Leaching conditions were determined
to include grinding the sample material to a k80 of 75 µm, 30 hours leach retention time and a cyanide concentration of 0.5 g/L.
These process conditions are industry standard. The results from tests at the selected grind and retention time of 30 hours for the TMPC
sample and various cyanide concentrates are shown in Table 13-17. Results showed high gold recoveries, under all cyanide concentrations,
ranging from 96.4% to 97.4%.
Table
13-17: 2022 Leach Test Results
| Sample |
NaCN
(g/L) |
Grind
(k80, µm) |
Consumptions
(kg/t) |
Head
Grade |
Leach
Residue |
Recovery
(%Au) |
| NaCN |
CaO |
Direct
(g/t Au) |
Calc.
(g/t Au) |
Grade
(g/t Au) |
Grav.
Conc. |
Total |
| TMPC |
1.00 |
75 |
0.67 |
1.16 |
6.11 |
5.89 |
0.16 |
19 |
97.4 |
| TMPC |
0.50 |
75 |
0.63 |
0.94 |
6.11 |
6.00 |
0.22 |
23 |
96.4 |
| TMPC |
0.75 |
75 |
0.90 |
0.84 |
6.11 |
5.94 |
0.19 |
27 |
96.9 |
| TMPC1 |
0.50 |
75 |
0.96 |
0.32 |
6.11 |
6.12 |
0.18 |
34 |
97.1 |
Note: 1. Bulk leach test used
for cyanide detox testing.
The optimized TMPC conditions
were used to evaluate response from the variability samples. The results are shown in Table 13-18. Average gold recovery is 96.9%, ranging
from 95.5% to 98.3%. The sample with the lowest recovery, TMPHG, had a head grade lower much lower than expected. Average gold recovery
from the variability sample tests is 96.9%.
Silver was monitored in the
variability sample leach tests with an average recovery of 75.7% from the eight samples with a silver average head grade of 2.96 g/t.
Sodium cyanide and lime consumptions
ranged from 0.31 kg/t to 0.79 kg/t and 0.35 kg/t to 0.94 kg/t respectively. These are in line for samples from similar deposits. Future
testing will include testing to optimize cyanide consumption.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 100 |
Table
13-18: 2022 Variability Samples Leach Test Result
| Sample |
Grind
(k80, µm) |
Consumptions
(kg/t) |
|
Head
Grade |
Leach
Residue |
Recovery
(% Au) |
| NaCN |
CaO |
Direct
(g/t Au) |
Calc.
(g/t Au) |
S
(%) |
Grade
(g/t Au) |
Grav.
Conc. |
Total |
| TMPC |
75 |
0.63 |
0.94 |
6.11 |
6.00 |
2.62 |
0.22 |
23.4 |
96.4 |
| TMPVHG |
75 |
0.49 |
0.65 |
10.7 |
7.71 |
1.94 |
0.16 |
44.3 |
97.9 |
| TMPHG |
75 |
0.31 |
0.76 |
5.80 |
3.67 |
0.95 |
0.17 |
24.9 |
95.5 |
| TMUGMG |
75 |
0.79 |
0.50 |
20.7 |
6.48 |
3.40 |
0.25 |
21.7 |
96.1 |
| TMPMG |
75 |
0.56 |
0.49 |
4.02 |
4.52 |
3.10 |
0.19 |
29.6 |
95.8 |
| TMUGLG |
75 |
0.34 |
0.50 |
3.07 |
3.74 |
1.74 |
0.09 |
35.7 |
97.7 |
| TMPLG |
75 |
0.43 |
0.35 |
2.24 |
1.15 |
0.91 |
0.03 |
25.0 |
97.4 |
| TMPV1 |
75 |
0.34 |
0.44 |
7.05 |
6.18 |
1.79 |
0.19 |
24.8 |
97.0 |
| TMPV2 |
75 |
0.49 |
0.47 |
3.72 |
3.83 |
1.97 |
0.07 |
41.5 |
98.3 |
Leach residues for all tests
are very low in terms of contained gold and cyanide leaching may have a significant metallurgical advantage over flotation processes
for the recovery of gold and silver.
Figure 13-6 shows recovery
as a function of head grade. The average gold recovery from the leach tests at optimum conditions is 96.9%. It is recommended that typical
plant losses be applied to this recovery for process design and financial evaluation.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 101 |
Figure
13-6: 2022 Leach Tests Recovery as a Function of Head Grade
| 13.2.4.7 | Cyanide
Detoxification Testing |
Cyanide destruction tests
were performed using the SO2/air process. Sulphur dioxide (SO2) plus air oxidizes cyanide into cyanate and is catalyzed by the presence
of copper ions. Typical retention times to achieve <5 mg/L weak acid dissociable cyanide (CNWAD) are 1 to 2 hours, at pH levels of
8.2 to 8.4.
This SO2/air process can achieve
discharge concentrations of less than one milligram per litre CNWAD. The addition rate of SO2 to cyanide is optimized for consumption
and desired discharge cyanide concentration.
Process development testing
for the SO2/air process is completed in two stages. The first stage is batch testing, followed by a second stage of continuous testing.
A 1 L reactor was used for both batch and continuous tests. For the continuous tests, an overflow nozzle on the reactor transferred treated
slurry to a storage tank. The target cyanide concentration for the detox program is <1 mg/L CNWAD. Initial concentrations to cyanide
detox were 434 mg/L CNT and 244 mg/L CNWAD.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 102 |
The first part of the program
included eight batch tests to evaluate retention time, and reagent additions. All tests were run at a slurry density of 40% solids by
weight. The optimal results were achieved in the final three runs with the following results:
| 1. | Retention
time = 60 minutes with an SO2:CNWAD addition rate of 8:1 g/g |
| 2. | Retention
time = 90 minutes with an SO2:CNWAD addition rate = 5:1 g/g |
| 3. | Copper
addition = 150 mg/L Cu2+ solution concentration; and |
| 4. | Cyanide
concentrations in effluent were 0.3 mg/L CNWAD and 1.7 mg/L CNT. |
| 13.2.4.8 | Solids-Liquids
Separation Testing |
Static Settling Tests
Solids-liquids separation
testing to support selection of the pre-leach thickener. Static settling tests (Standard Kynch) were completed on a TMPC sample and evaluated
flocculant dosages using AN913SH and MF10, feed solids were diluted to approximately 15% solids with water. Static testing suggested
thickening operating parameters of 30 g/t of AN913SH to achieve maximum thickened solids. Static test results and conditions formed the
basis to commence optimization at the dynamic thickening level.
Dynamic Thickening
The results of the preliminary
static settling-thickening data formed the basis to determine the pre-optimized conditions for dynamic testing. Semi-continuous dynamic
testing was conducted using a custom test unit which consisted of a 100 mm diameter laboratory thickener, shown in Figure 13-7 equipped
with feed well, dilution system, rakes and pumps.
Figure
13-7: Dynamic Thickening Test Apparatus
General conditions established
during static testing were applied for optimization during dynamic testing. The feedwell solids density was diluted with fresh water
and set prior to introducing feed continuously; recycled overflow for auto- dilution was not tested.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 103 |
Criteria tested included feed
flux loading rate and flocculant dosage, key thickener design criteria for sizing data (unit areas, hydraulic loading, reagent consumptions),
as well as residence times (rise rate) is summarized by test in Table 13-19.
Table
13-19: Snip Pre-Leach Dynamic Thickening Results
| Test |
Slurry
Density
(%) |
Flocculant |
|
| Feed |
U/F |
Type |
Dosage
(g/t) |
pH |
Rise
Rate
(m/h) |
Loading
Rate
(t/m2/h) |
Turbidity
(mg/L) |
| D1-A |
15 |
64.5 |
AN913SH |
30 |
8.2 |
1.8 |
0.3 |
126 |
| D1-B |
15 |
61.9 |
AN913SH |
30 |
8.2 |
3.1 |
0.5 |
183 |
| D1-C |
15 |
60.6 |
AN913SH |
30 |
8.2 |
4.3 |
0.7 |
242 |
| D1-D |
15 |
58.4 |
AN913SH |
50 |
8.2 |
3.1 |
0.5 |
160 |
| D1-E |
15 |
60.1 |
AN913SH |
10 |
8.2 |
3.0 |
0.5 |
220 |
Dynamic thickening testing
was performed at the same AN913SH dosage of 30 g/t at different loading rate, ranging from 0.3 to 0.7 t/m2/h. Underflow densities from
61.9% to 64.5% solids were achieved across three tests. Lower loading rate produced lower turbidity. The highest loading rate of 0.7
t/m2/h resulted in high turbidity which would be problematic. The higher flocculant addition rate of 50 g/t resulted in a higher rise
rate and acceptable overflow turbidity but lower underflow density of 58.4% solids.
Rheology Tests
The rheology tests were performed
on the underflow samples generated under optimized settling conditions. Unsheared yield stress measurements were conducted on settled
solids with a Brookfield DV2T viscometer using a vane spindle.
All the underflow samples
displayed Bingham plastic behavior and the controlled shear deformation (CSD) for all five samples varied between 58.4 to 64.5% solids.
Expected operation of the thickener will be in the range of 50% to 55% solids, below plastic flow behavior. Results are shown in Table
13-20.
Table
13-20: Snip Pre-Leach Thickener Underflow Rheology Test Results
| Test |
CSD
(wt % solids) |
Yield
Stress (Pa)
Unsheared |
| V1-A |
64.5 |
94 |
| V1-B |
61.9 |
87 |
| V1-C |
60.6 |
75 |
| V1-D |
58.4 |
86 |
| V1-E |
60.1 |
45 |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 104 |
The metallurgical testing
showed that no deleterious elements were present that should impact marketability of the pyrite concentrates, if this flowsheet were
selected.
The various metallurgical
programs demonstrated that good metallurgical performance can be expected from the newly discovered gold zones of the Snip deposit. The
results align well with the historical metallurgical performance.
Overall gold recovery is expected
to be in the range of 90 to 96 percent of overall contained gold. Approximately 20 to 30 percent of the contained gold is recoverable
to a high-grade gold concentrate.
In addition, the Snip samples
showed very good gold extractions when using a traditional sodium cyanide leach process. Estimates of the recovery of gold using cyanide
leaching process are in the range of 95.5 to 98.3 %.
Additional metallurgical work
is recommended as the project is developed.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 105 |
| 14 | Mineral
Resource Estimates |
The Mineral Resource Statement
presented herein represents the updated mineral resource estimate prepared for the Snip Project.
The mineral resource model
was prepared by Skeena and independently validated and signed off by SRK. SRK assessed all top capping values, experimental variograms,
estimation input parameters, and performed a check block model estimate with results comparable to Skeena’s Mineral Resources.
Gold was the sole element estimated. The resource model considers 3,542 historical drill holes, 388 drill holes drilled by Skeena from
2016 to 2021 and 69 holes drilled by Hochschild during 2022. The resource estimation work was completed by Ms. K. Dilworth, GIT
and was reviewed and accepted by Ms. S. Ulansky, PGeo (EGBC#36085), Senior Resource Geologist with SRK, a Qualified Person as this
term is defined in NI 43-101. The effective date of the resource statement is September 05, 2023.
This section describes the
resource estimation methodology and summarizes the key assumptions considered by SRK. In the opinion of SRK, the mineral resource estimate
reported herein is a reasonable representation of the global gold mineral resource found within the Snip Project at the current level
of sampling. The mineral resources have been estimated in conformity with generally accepted CIM “Estimation of Mineral Resource
and Mineral Reserves Best Practices” guidelines and are reported in accordance with the Canadian Securities Administrators’
National Instrument 43-101. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty
that all or any part of the mineral resource will be converted into mineral reserve.
The database used to estimate
the Snip Project Mineral Resources was audited by SRK and has a close out date of June 29, 2023. SRK is of the opinion that the
current drilling information is sufficiently reliable to confidently interpret the mineralized domains of the Snip Project mineralization
and that the assay data are sufficiently reliable to support mineral resource estimation.
Leapfrog GeoTM
(version 2022.1) was used to construct the litho-structural model and mineralization domains that define the gold lodes in the Snip model.
Snowden Supervisor® (version 8.14) was used to conduct geostatistical analyses, variography and a portion of the block model validation.
For block modelling, Maptek Vulcan® (version 2023.3) software was used to prepare assay data for geostatistical analysis, construct
the block model, estimate gold grades and to tabulate the mineral resources. The validation of the gold grade estimates was carried out
by SRK using HxGN MinePlan TM 3-D (version 16.1.0). Deswick® software (version 2023.1 and DSO v. 5) was used for stope
optimization to fulfill reasonable prospects for eventual economic extraction requirements.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 106 |
Gold was the sole element
estimated in the Snip Project resource model. To the extent currently known, there are no processing factors or deleterious elements
that could have a significant impact on the mineral resources.
The Snip Project drill hole
database contains 3,542 historical holes for a meterage of 279,971 m, 388 Skeena holes for a meterage of 65,041 m, and 69 Hochschild
holes for a meterage of 10,377 m. The combined number of drill holes on the Snip Project is 3,999 for a total meterage of 355,388 m (Table
14-1 and Figure 14-1). An additional 307 drill holes for 46,267 m has been added to the database since the 2020 model. Figure 14-2 shows
the distribution of post-2020 surface and underground drill holes that were included into the 2023 updated Mineral Resource Estimate
(MRE).
Table
14-1: Skeena drill hole database
| Program |
Location |
Year |
No. of
Holes |
Length
(m) |
| Historical |
Surface |
pre-1999 |
309 |
71,181 |
| Underground |
pre-1999 |
3,233 |
208,790 |
| Skeena/Hochschild |
Surface |
2016 |
28 |
7,422 |
| 2108 |
6 |
2,121 |
| 2019 |
8 |
1,816 |
| 2020 |
9 |
5,327 |
| 2021 |
95 |
14,608 |
| 2022 |
1 |
501 |
| Underground |
2017 |
62 |
8,703 |
| 2018 |
46 |
9,088 |
| 2021 |
134 |
15,955 |
| 2022 |
68 |
9,876 |
| Total |
ALL |
ALL |
3,999 |
355,388 |
Snip drill holes were designed
to intersect mineralized zones at right angles, where possible. Most of the surface drill holes are drilled towards the north on 50 m
spacings, whereas underground holes are drilled towards the north and north-northeast on 12.5 m spacings. Drill hole spacing varies from
as little as a few meters, where underground production drilling was drilled on a fan, up to 150 m, where exploration drilling tests
the lateral extents of the deposit. The average drill hole spacing in the vicinity of the mine workings is approximately 10 to 15 m.
Historically, sampling at Snip was selective and primarily based on visual estimation of sulphide content, therefore, numerous historical
drill hole intervals were not sampled. For these missing intervals a gold grade of 0.001 g/t was assigned.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 107 |
Figure
14-1: Plan view of drill hole traces in the Snip database, excluding furthermost holes
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 108 |
Figure
14-2: Plan view of the new drill holes used in the updated 2023 MRE
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 109 |
| 14.3.1 | Geological
Modelling |
Most of the Snip deposit is
hosted within a complex interbedded sequence of siltstone and greywacke units. This complexity prohibited the various sedimentary facies
from being subdivided in the model.
The Biotite Spotted Unit (BSU),
manifests as a non-mineralized basic to intermediate biotitic dyke that intrudes Main Twin Zone mineralization and, to a lesser degree,
the 200 Footwall mineralization in the Main Twin Zone. The BSU was modelled as a barren dyke, which overprints mineralization.
| 14.3.2 | Mineralization
Model |
The modeling of the lodes
at Snip was performed using the vein modeling tool in Leapfrog Geo® (version 2022.2), using the entire drilling dataset. The mineralized
zones were interpreted with the Leapfrog Geo Economic Compositing tool where composites were generated using a minimum grade threshold
of 1.0 g/t over a minimum length of 1.5 m following interpreted structures and displaying mineralization continuity. Locally, lower grades
were included in the veins if continuity was displayed. Local minor edits were done in Vulcan. The selection of the 1.0 g/t Au threshold
corresponds to an inflection point on the gold assay log probability plot.
Ninety-four gold lodes were
interpreted that were combined into “domains” and “zones” (Table 14-3) in two block models: Main and Twin West.
Twin West is separated from the Main model by the Monsoon Fault, which has a (dextral?) displacement of 700 m towards the southwest.
The “zone” naming
term represents the three major vein groupings based on orientation and structural interpretation. The 100, 200, and 300 series veins
are V-Veins, S-Veins, and TW-Veins, respectively. The veins were further subdivided into “domains” based on overall orientation
and volume of gold vein. Domain groups were used for topcapping and variogram analysis, whereas “veins” were used during
estimation to prohibit blocks from grabbing composites outside of their designated wireframe (Table 14-3) .Figure 14-3 shows a plan and
oblique view of the three zones (V, S, and TW)
The 2020 to 2022 infill drilling
programs increased the number of veins from 72 to 94 between the 2020 and 2023 mineralization models. The additional veins increased
the volume of the veins by 25%, with most of the increase occurring within the S-veins (Table 14-2).
Table
14-2: Zone volume difference between 2020 and 2023
| Zone | |
Volume 2020 | | |
Volume 2023 | | |
% Difference | |
| V-Veins | |
| 1,127,998 | | |
| 1,221,478 | | |
| 8 | % |
| S-Veins | |
| 1,458,369 | | |
| 2,069,402 | | |
| 42 | % |
| TW | |
| 186,753 | | |
| 171,918 | | |
| -8 | % |
| Total | |
| 2,773,120 | | |
| 3,462,798 | | |
| 25 | % |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 110 |
Table
14-3: Model naming convention and volumes
| Model |
Zone |
Zone
|
Domain |
Volume |
%
Volume
|
Veins |
| MAIN |
V-Veins |
100 |
100 |
162,552 |
13% |
104 |
107 |
109 |
111 |
113 |
| 106 |
108 |
110 |
112 |
|
| 101 |
839,827 |
69% |
101 |
103 |
|
|
|
| 102 |
|
|
|
|
| 102 |
219,099 |
18% |
105 |
|
|
|
|
| S-Veins |
200 |
200 |
1,010,164 |
49% |
204 |
222 |
237 |
251 |
267 |
| 205 |
224 |
238 |
252 |
270 |
| 206 |
225 |
239 |
253 |
271 |
| 207 |
226 |
240 |
254 |
272 |
| 209 |
227 |
241 |
255 |
273 |
| 210 |
228 |
242 |
256 |
275 |
| 211 |
229 |
243 |
257 |
276 |
| 215 |
230 |
244 |
258 |
|
| 216 |
231 |
245 |
259 |
|
| 217 |
232 |
246 |
260 |
|
| 218 |
233 |
247 |
261 |
|
| 219 |
234 |
248 |
262 |
|
| 220 |
235 |
249 |
264 |
|
| 221 |
236 |
250 |
266 |
|
| 201 |
286,764 |
14% |
201 |
202 |
203 |
|
|
| 202 |
363,207 |
18% |
208 |
213 |
223 |
|
|
| 203 |
409,267 |
20% |
212 |
214 |
|
|
|
| TWIN
WEST |
TW-Veins |
300 |
300 |
133,595 |
77% |
302 |
306 |
310 |
|
|
| 303 |
307 |
|
|
|
| 304 |
308 |
|
|
|
| 305 |
309 |
|
|
|
| 301 |
38,323 |
23% |
301 |
|
|
|
B |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 111 |
Figure
14-3: Oblique view of the Snip vein model showing the V-veins, S-veins and TW-vein zones, looking west
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 112 |
| 14.3.3 | Historical
Mining Zones |
Historically, the lodes at
Snip were referred to as the Main Twin Zone, 130 Vein, 150 Vein, Hangingwall, Footwall, 412 Corridor and Twin West. Due to the high cut-off
grade at the time (24 g/t Au) these veins were modelled as continuous veins at a specific orientation. The 130 and 150 veins were named
for the orientation that the vein followed.
In 2023, a nominal cut-off
grade of 1.0 g/t Au was used to constrain mineralization, where many individual veins were interpreted to follow distinct structural
pathways. Due to the number of additional veins modelled, assigning historical vein names became increasingly challenging because the
original naming convention was largely constrained and subjective. Seeing that the historical naming convention was too restrictive it
was updated to the V-, S- and TW- vein systems. The 2023 zones, along with equivalent historical mining areas, are summarized in Table
14-4 and shown in Figure 14-4.
Table
14-4: Zones, number of veins, and associated historical name equivalents
| Zone |
Number
of Veins |
Mine
Equivalent Zone |
| V-Veins
|
13 |
Main
Twin Zone |
| S-Veins
|
71 |
130
Vein, 150 Vein, Footwall, Hanging wall and 412 Corridor |
| TW-Veins
|
10 |
Twin
West |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 113 |
Figure
14-4: Oblique view showing the V- and S- vein domains in relation to historical areas , looking southeast
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 114 |
| 14.3.4 | Underground
Workings |
The historical underground
workings are a combination of stopes, lifts, and development drives. Two solid meshes representing historical stopes were independently
constructed using AutoCAD® and MEDsystem® and subsequently combined into a single wireframe using Leapfrog
Geo®. The MEDsystem mesh appears to represent an earlier period of mining than the AutoCAD mesh, where the former has a resolution
of approximately 6 m, while the latter mesh has a resolution of approximately 15 m.
Skeena confirmed the location
of underground drill holes in relation to underground workings in Maptek Vulcan® software and found no obvious spatial errors. As
a measure of caution against possible discrepancies and unconfirmed ground conditions, a 1 m exclusion zone (alternatively named the
1 m buffer zone) around all underground workings were used to deplete the resources when reporting resources. An example of the underground
workings and 1 m buffer zone used to deplete the model are shown in Figure 14-5.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 115 |
Figure
14-5: Section 4500E showing historical underground development in relation to the 1 m buffer zone, looking west. The V- and S-vein
wireframes are shown for reference purposes
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 116 |
Assays were assigned to domain,
zone, and vein codes by back-flagging the intercepts to the applicable vein wireframes. The process was then viewed in 3-D to ensure
that coding had been correctly applied. The domain code was used as the primary field to analyse assay and composite statistics and variography.
Analysis of assay sample length
was conducted to determine the most suitable composite length. The most common assay length within the vein sets was determined to be
1.0 m (Figure 14-6). The length selected for compositing was 1.5 m to best represent the cumulative log probability of 90% or greater
(Figure 14-7).
Assay interval lengths are
variable within the database, ranging from as little as 0.04 m to a maximum of 6.6 m. During the process of back flagging, some intervals
were truncated artificially if the interval had not been previously snapped to the drill hole; this caused a few assay intervals to be
clipped smaller than 0.1 m.
Figure
14-6: Histogram statistics of vein-coded assay sample lengths
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 117 |
Figure
14-7: Log probability curve
| 14.4.2 | Assay
Grade Summary |
A total of 23,492 assay sample
intervals are contained within the zones. Table 14-5 summarizes the statistical analysis of length-weighted gold assays by zone.
Table
14-5: Summary statistics of length-weighted gold assays by zone
| Zone |
No. Assays |
Mean
(g/t) |
CV |
Minimum
(g/t) |
Median
(g/t) |
Maximum
(g/t) |
| V-
Veins |
9,738 |
15.42 |
3.5 |
0 |
2.6 |
2,610 |
| S-
Veins |
12,946 |
9.17 |
4.5 |
0 |
1.9 |
3,390 |
| TW-
Veins |
808 |
7.79 |
2.9 |
0 |
2.3 |
417.7 |
| 14.4.3 | Unsampled
Intervals |
Historical drill holes on
the Snip Property were selectively sampled, where singular intervals down the hole were assayed without testing adjacent shoulder samples
to gauge gold grade variances outside of the vein of interest. Furthermore, many sample intervals that pierce the currently defined ore
zone over significant widths are missing. Understanding historical sample selection criteria and processes is challenging and likely
fruitless; however, it is known that gold in the 1990’s was at market prices far below prices currently assessed in 2023 and likely
factored into sample selection during that timeframe.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 118 |
Handling of these unsampled
intervals is critical for mineral resource estimation at Snip as there is a danger of overestimating the deposit significantly if left
as missing. To err on the side of caution, all unsampled intervals were given a default gold value of 0.001 g/t during compositing Table
14-6 shows the number of meters and percent of unsampled meters within each of the zones.
Table
14-6: Number of meters and percent of non-sampled meters within each of the zones
| Zone |
Meters
of
Assayed Intervals |
Meters
of Non-
Sampled intervals |
Total
meters |
Percent
of Unsampled
meters (%) |
|
| |
| V-
veins |
9,969 |
253 |
10,231 |
3% |
|
| S-
veins |
11,821 |
618 |
12,433 |
5% |
|
| TW-
veins |
650 |
20 |
670 |
3% |
|
| Total |
22,440 |
891 |
23,334 |
4% |
|
To minimize bias due to assay
sample length variances, compositing to 1.5 m intervals honouring relevant mineralization boundaries, was performed. Sample intervals
less than 1.5 m represent 90% of all sample lengths, confirming that 1.5 m was the optimal composite interval for the Snip Project database.
Assays were composited to 1.5 m using the distributed tails methodology, whereby samples that fell short of half the composite length
were equally distributed within the vein.
Composites were assigned codes
on a majority basis corresponding to the domain, zone, and lode in which they occur. The compositing and coding processes were viewed
in 3-D to ensure that coding had been applied correctly.
A total of 16,652 composites
were processed, during which all unsampled intervals were given a default value of 0.001 g/t. Summary statistics for length-weighted
assays and 1.5 m composites are shown in Table 14-7. The 1.5 m composites were used in geostatistical analysis, top cutting, variography,
and block model estimation.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 119 |
Table
14-7: Comparison of assay data to 1.5 m gold composites by domain
| |
|
|
Assays |
1.5
m Composites |
| Zone |
Veins |
Domain |
No. of
Assays |
Mean
(g/t) |
CV |
No. of
Composites |
Mean
(g/t) |
CV |
| V-
Veins |
Remaining
Veins |
100 |
395 |
14.30 |
10.6 |
343 |
13.60 |
10.8 |
| 101,102,103 |
101 |
7,653 |
16.52 |
2.8 |
5,606 |
16.19 |
2.2 |
| 105 |
102 |
1,690 |
10.21 |
3.2 |
1,156 |
9.81 |
2.3 |
| S-
Veins |
Remaining
Veins |
200 |
6,908 |
7.19 |
3.9 |
4,942 |
6.81 |
2.6 |
| 201,
202, 203 |
201 |
3,022 |
14.26 |
3.1 |
1,993 |
13.94 |
2.4 |
| 208,
213, 223 |
202 |
2,406 |
8.49 |
4.9 |
1,454 |
8.98 |
4.2 |
| 212,214 |
203 |
610 |
9.81 |
10.4 |
637 |
7.03 |
3.4 |
| TW-
Veins |
Remaining
Veins |
300 |
573 |
6.09 |
2.3 |
353 |
5.977 |
1.5 |
| 301 |
301 |
235 |
11.85 |
3.0 |
168 |
10.28 |
2.5 |
| Total |
|
|
23,492 |
|
|
16,652 |
|
|
| 14.6 | Evaluation
of Outliers |
Block grade estimates may
be overly affected by very high-grade assays. Grade capping is a technique used to mitigate the effect that a small population of high-grade
sample outliers may have during grade estimation. These high-grade samples are considered not to be representative of the general sample
population and are therefore “capped” to a level that is more representative of the general data population. Although subjective,
grade capping is commonly used by industry professionals when performing grade estimation.
An analysis of sample length
versus gold grade shows that effort was taken to select samples based on visible mineralization. Seeing that gold grades are highest
in the smallest sample intervals; capping was applied after compositing.
Outlier analysis was conducted
for each domain. Cumulative log probability plots, histograms, CV values and percent metal loss were used for determining capping thresholds.
Capping values for the domains in the V-, S- and TW-veins, are shown in Table 14-8. Figure 14-8, Figure 14-9, and Figure 14-10 display
cumulative log probability plots along with the selected capped value denoted by a red line.
Percent differences of mean
capped composite grades to uncapped composites is approximately equal to the amount of metal removed by capping. Metal loss ranged from
-1% to -63% (Table 14-8). Metal loss for one lode within the V-vein set was high due to the capping of one extreme high-grade samples
that contained 56% of the metal. All composites were capped prior to grade estimation.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 120 |
Table
14-8: Outlier threshold values and summary statistics of 1.5 m gold composites
| Zone |
Veins |
Domain |
Number |
Cap
Value
(g/t) |
No. Cut |
%
Cut |
Uncapped
Mean (g/t) |
Uncapped
CV |
Capped
mean
(g/t) |
Capped
CV |
%
Metal
Lost |
| V-
Veins |
Remaining
Veins |
100 |
343 |
40 |
5 |
1.5 |
13.60 |
10.8 |
4.77 |
1.4 |
-65% |
| 101,102,103 |
101 |
5,606 |
350 |
10 |
0.2% |
16.19 |
2.2 |
16.038 |
2.1 |
-1% |
| 105 |
102 |
1,156 |
110 |
9 |
0.8% |
9.81 |
2.3 |
9.23 |
1.9 |
-6% |
| S-
Veins |
Remaining
Veins |
200 |
4,942 |
150 |
10 |
0.2% |
6.81 |
2.6 |
6.53 |
2.2 |
-4% |
| 201,
202, 203 |
201 |
1,993 |
215 |
14 |
0.7% |
13.94 |
2.4 |
13.47 |
2.2 |
-3% |
| 208,
21, 223 |
202 |
1,454 |
170 |
7 |
0.5% |
8.98 |
4.2 |
7.77 |
2.4 |
-13% |
| 212,214 |
203 |
637 |
100 |
9 |
1.4% |
7.03 |
3.4 |
5.86 |
2.3 |
-17% |
| TW-
Veins |
Remaining
Veins |
300 |
353 |
45 |
4 |
1.1% |
5.977 |
1.5 |
5.86 |
1.4 |
-2% |
| 301 |
301 |
168 |
110 |
2 |
1.2% |
10.28 |
2.5 |
9.40 |
1.9 |
-9% |
| Total |
|
|
16,652 |
|
70 |
0.4% |
|
|
|
|
|
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 121 |
Figure
14-8: V-veins cumulative log probability showing the chosen capping threshold for each domain
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 122 |
Figure
14-9: S-veins cumulative log probability plot showing the chosen capping thresholds for each domain
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 123 |
Figure
14-10: TW-veins cumulative log probability plot showing the chosen capping thresholds for each domain
| 14.7 | Statistical
Analysis and Variography |
Normal-scores experimental
variograms were used to assess the nugget effect, grade continuity, and spatial variability of the estimation domains to produce variogram
models representative of each gold zone.
Spatial continuity was assessed
using variogram maps and 3-D representations of grade continuity. The most suitable orientation was selected based on the best structural
interpretation of each zone. Downhole variograms were calculated to characterize the nugget effect. Normal score variogram models were
back transformed to Maptek Vulcan® software format for final rotation values. The spherical variogram models used for determining
grade continuity are summarized in Table 14-9 and shown in Figure 14-11, Figure 14-12, and Figure 14-16 for the V-, S- and TW- veins,
respectively.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 124 |
Table
14-9: Gold variogram parameters per domain
| Zone |
Veins
used for
Variogram |
Domain |
Structure |
Nugget |
Sill |
Major
(Y) |
Semi
(X) |
Minor
(Z) |
Final
Rotation
(YXZ) |
| V-
Veins |
101,
102, 103* |
101 |
1 |
0.365 |
0.511 |
15 |
10 |
5 |
59.7/30/-35.3 |
| 2 |
0.124 |
50 |
35 |
15 |
| S-
Veins |
201,
202, 203 |
201 |
1 |
0.367 |
0.402 |
25 |
15 |
5 |
95.6/38.9/-42.5 |
| 2 |
0.232 |
55 |
30 |
15 |
| 208,
213, 223 |
202 |
1 |
0.36 |
0.576 |
20 |
20 |
5 |
81.8/29.5/-42.4 |
| 2 |
0.064 |
55 |
35 |
15 |
| 212,214 |
203 |
1 |
0.55 |
0.456 |
35 |
15 |
5 |
90/0/-60 |
| 2 |
0.189 |
50 |
35 |
15 |
| Remaining
Veins |
200 |
1 |
0.456 |
0.459 |
15 |
15 |
5 |
81.7/29.5/-42.4 |
| 2 |
0.0847 |
40 |
30 |
15 |
| TW-
Veins |
301** |
301 |
1 |
0.269 |
0.289 |
30 |
15 |
10 |
82.2/32.8/-40.1 |
| 2 |
0.442 |
45 |
40 |
15 |
| *variogram
for all V-Veins |
|
|
|
|
|
|
|
| **variogram
for all TW-Veins |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 125 |
Figure
14-11: V-veins experimental variograms and models
Figure
14-12: S-vein experimental variograms and models in domain 201 only
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 126 |
Figure
14-13: S-vein experimental variograms and models vein in domain 202 only
Figure
14-14: S-vein experimental variograms and models in domain 203 only
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 127 |
Figure
14-15: S-vein experimental variograms and models in domain 200 (all remaining veins)
Figure
14-16: TW experimental variograms and models
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 128 |
Densities are used to calculate
tonnages within the estimated volumes derived from the resource-grade block model. Specific gravity was measured by Skeena at their core
logging facility using a standard weight in water/weight in air methodology on drill core.
Specific gravity was determined
for all lithologies using 3,198 samples projected within the MRE model extent. Samples were measured using the buoyancy method by Skeena
staff during the 2016 to 2021 drilling campaigns. Siltstones and greywackes are the most abundant host rock on the Snip Project. Seeing
that other lithologies, barring the distinctive BSU, play a minor role in terms of significance, additional lithological subdivisions
were not made and an average SG value of 2.78 g/cm3 was applied to all lithologies (Table 14-10). Within the BSU, a density
of 2.84 g/cm3 was used. The average density within the veins was determined to be 2.91 g/cm3.
Table
14-10: Specific gravity by lithology
| Litho
Code |
Description |
No
Samples |
Density |
| ARN |
Arenite |
44 |
2.74 |
| AT |
Ash
Tuff |
18 |
2.73 |
| BC
SCHT |
Biotite
Chlorite Schist |
3 |
2.86 |
| BSU |
Biotite
Spotted Unit |
12 |
2.84 |
| CGL |
Conglomerate |
10 |
2.76 |
| CT |
Cherty
Tuff |
2 |
2.78 |
| DAC |
Dacite |
3 |
2.67 |
| DC/RDC |
Dacite/Rhyodacite |
3 |
2.78 |
| FESED |
Ferriginous
Sediment |
1 |
2.93 |
| FLT |
Fault |
1 |
2.65 |
| FP |
Feldspar
Porphyry |
19 |
2.72 |
| FPD |
Feldspar
Porphyry |
2 |
2.78 |
| GRWK |
GreyWacke |
1,952 |
2.79 |
| GRWK-SLST |
Interbedded
Greywacke/Siltstone |
390 |
2.76 |
| K-PORPH |
Potassium
Porphyry |
10 |
2.75 |
| LAMP |
Lamprophyre |
14 |
2.78 |
| LMPR |
Lamprophyre |
2 |
2.76 |
| LT |
Lithic
Tuff |
2 |
2.84 |
| LTHWCKE |
Lithic
Wacke |
237 |
2.8 |
| MD |
Mafic
Dyke |
1 |
2.87 |
| MS |
Mafic
Dyke |
1 |
3.77 |
| PT |
Lapilli
Tuff |
14 |
2.76 |
| QMONZ |
Quartz
Monzonite |
1 |
2.69 |
| RDC |
Rhyodacite |
3 |
2.77 |
| SHRZ |
Shear
Zone |
2 |
2.81 |
| SILT |
Siltstone |
1 |
2.65 |
| SLST |
Siltstone |
144 |
2.81 |
| SMS |
Interbedded
Siltstone/Mudstone |
1 |
2.56 |
| TON |
Tonalite |
1 |
2.67 |
| VCL |
Volcaniclastic |
52 |
2.8 |
| VCSB |
Volcaniclastic |
3 |
2.9 |
| VWCK |
Volcaniclastic Wacke |
5 |
2.76 |
| WCK |
Wacke |
180 |
2.78 |
| XT |
Crystal
Tuff |
1 |
2.85 |
| |
Unknown |
63 |
2.77 |
| Total |
3,198 |
|
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 129 |
| 14.9 | Block
Model and Grade Estimation |
Two block models were constructed
in Maptek Vulcan® software for the 2023 Snip MRE, with details provided in Table 14-11 and displayed in Figure 14-17. The deposit
was divided into two separate block models for data processing space efficiency: (1) Main model, which includes the V- and S-veins,
and (2) Twin West model, which includes the TW-veins. Neither block model was rotated.
Table
14-11: Block model details and specifications
| |
Description |
Easting
X |
Northing
Y |
Elevation
Z |
| |
| MAIN |
Block
Model Origin (Lower left corner) |
3766 |
1648 |
-80 |
| Parent
Block Dimension |
4 |
4 |
4 |
| Sub
Block Dimension |
0.5 |
0.5 |
0.5 |
| Number
of Blocks |
425 |
187 |
215 |
| Rotation |
None |
| TWIN
WEST |
Block
Model Origin (Lower left corner) |
2980 |
1430 |
-80 |
| Parent
Block Dimension |
4 |
4 |
4 |
| Sub
Block Dimension |
0.5 |
0.5 |
0.5 |
| Number
of Blocks |
185 |
100 |
87 |
| Rotation |
None |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 130 |
Figure
14-17: Snip Project block model extents for the Main and Twin West block model areas
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 131 |
Three interpolation passes
were used to estimate gold grades using the parameters outlined in Table 14-12. The search ellipse ranges and orientations were derived
from the variogram models. Pass 1 equaled 2/3 of the variogram range, Pass 2 equalled the variogram range and Pass 3 equalled two times
the variogram range. A 4th Pass at four times the variogram range was used for validation purposes only.
During estimation, all composites
were length weighted to the composite interval since a number of small composites (less than 0.75 m) were picked up where the vein narrowed
or pinched-out. In addition, composite intervals less than 0.1 m, resulting from back-flagged clipping, were excluded during estimation.
Individual lodes within the zones were estimated independently to mitigate against cross-sharing of sample intervals within the search
ellipse boundary. All grade within the BSU were coded to a waste grade of 0.001 g/t.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 132 |
Table
14-12: Estimation parameters
| Veins |
Domain |
Search
Pass |
Search
Radii |
Orientation |
Dynamic
Anisotropy |
Number
of Composites |
Max
composites
per drill hole |
| X |
Y |
Z |
Minimum |
Maximum |
| 101,102,103 |
101 |
1 |
33.5 |
18 |
10 |
|
Yes |
9 |
15 |
3 |
| 2 |
50 |
35 |
15 |
60
/ 30 / -35 |
4 |
10 |
3 |
| 3 |
100 |
70 |
30 |
|
3 |
7 |
3 |
| 105 |
102 |
1 |
33.5 |
18 |
10 |
|
Yes |
9 |
15 |
3 |
| 2 |
50 |
35 |
15 |
60
/ 30 / -35 |
4 |
10 |
3 |
| 3 |
100 |
70 |
30 |
|
3 |
7 |
3 |
| Remaining
Veins |
100 |
1 |
33.5 |
18 |
10 |
|
No |
9 |
15 |
3 |
| 2 |
50 |
35 |
15 |
60
/ 30 / -35 |
4 |
10 |
3 |
| 3 |
100 |
70 |
30 |
|
3 |
7 |
3 |
| 201,
202, 203 |
201 |
1 |
37 |
20 |
10 |
|
Yes |
9 |
15 |
3 |
| 2 |
55 |
30 |
15 |
59
/ 24 / -39 |
4 |
10 |
3 |
| 3 |
64 |
64 |
24 |
|
3 |
7 |
3 |
| 208,
21, 223 |
202 |
1 |
37 |
23.5 |
10 |
|
Yes |
9 |
15 |
3 |
| 2 |
55 |
35 |
15 |
95
/ 17 / -58* |
4 |
10 |
3 |
| 3 |
110 |
70 |
30 |
|
3 |
7 |
3 |
| 212,214 |
203 |
1 |
33.5 |
18 |
10 |
|
Yes |
9 |
15 |
3 |
| 2 |
50 |
35 |
15 |
76
/ 18 / -36 |
4 |
10 |
3 |
| 3 |
100 |
70 |
30 |
|
3 |
7 |
3 |
| Remaining
Veins |
200 |
1 |
27 |
20 |
10 |
|
No |
9 |
15 |
3 |
| 2 |
40 |
30 |
15 |
59
/ 24 / -39 |
4 |
10 |
3 |
| 3 |
80 |
60 |
30 |
|
3 |
7 |
3 |
| 301 |
301 |
1 |
30 |
27 |
10 |
|
Yes |
9 |
15 |
3 |
| 2 |
45 |
40 |
15 |
82
/ 33 / -40 |
4 |
10 |
3 |
| 3 |
90 |
80 |
30 |
|
3 |
7 |
3 |
| Remaining
Veins |
300 |
1 |
30 |
27 |
10 |
|
No |
9 |
15 |
3 |
| 2 |
45 |
40 |
15 |
82
/ 33 / -40 |
4 |
10 |
3 |
| 3 |
90 |
80 |
30 |
|
3 |
7 |
3 |
*Vulcan rotation YXZ
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 133 |
| 14.10.1 | Block
Model Visual Validation |
All zones were validated by
completing a series of visual inspections in plan and sectional view to provide a local visual assessment of the interpolated blocks
in relation to the nearest composite. Good agreement between the composite grades and block estimates was observed as shown in Figure
14-18, Figure 14-19 and Figure 14-20.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 134 |
Figure
14-18: Visual validation of blocks grades versus composites on Section 4540E, looking west
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 135 |
Figure
14-19: Visual validation of blocks grades versus composites on Section 4470E, looking west
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 136 |
Figure
14-20: Visual validation of blocks grades versus composites on Section 4775E, looking west
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 137 |
| 14.10.2 | Global
Grade Bias Check |
Inverse Distance (ID2)
and Nearest Neighbour (NN) models were completed to check for global biases against the Ordinary Kriging model. In addition, a NN declustered
estimate (NN_declus) using 1.5 m composites and a block grid of 1.5 m x 1.5 m x 1.5 m was performed to infer accurate declustered composite
means for the 3 zones, which have highly variable drill spacings. Global bias tabulations showing declustered composites, ID2,
NN_declus, and OK estimation results is summarized in Table 14-13. Overall bias was kept to a minimum and resulted in less than 6% difference
for all zones; results which are within acceptable limits.
Table
14-13: Global gold grade bias
| Domain |
OK |
ID2 |
NN_declus |
OK/NN_declus |
OK/ID |
| 101 |
15.32 |
15.25 |
15.72 |
-3% |
0% |
| 102 |
6.72 |
6.81 |
6.92 |
-3% |
-1% |
| 100 |
4.99 |
4.97 |
5.05 |
-3% |
0% |
| 201 |
11.02 |
10.86 |
11.86 |
-7% |
2% |
| 202 |
6.00 |
5.96 |
6.03 |
-1% |
1% |
| 203 |
7.27 |
7.66 |
7.93 |
-8% |
-5% |
| 200 |
6.03 |
6.01 |
6.34 |
-5% |
0% |
| 301 |
8.56 |
8.56 |
8.54 |
0% |
0% |
| 300 |
6.58 |
6.60 |
7.19 |
-9% |
0% |
| 14.10.3 | Local
Grade Bias Check |
Swath plot analysis of grade
profiles between OK, NN_declus and ID2 estimates in each domain were generated to assess the model for local bias along north-south,
east-west and horizontal swaths (Figure 14-21, Figure 14-22 and Figure 14-23). The observed trends show reasonable comparison between
estimation methods.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 138 |
Figure 14-21: Swath plots for
the domains 101 (left) and 102 (right) of the V-veins. Black= OK model, blue= ID2 model, yellow =NN_declus model
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 139 |
Figure
14-22: Swath plots for the domains 201 (left), 202 (middle), and 203 (right) domains of the S-veins. Black= OK model, blue= ID2
model, yellow =NN_declus model
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 140 |
Figure
14-23: Swath plots for the domains 301 (left) and 300 (right) domains of the TW-Veins. Black= OK model, blue= ID2 model, yellow
=NN_declus model
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 141 |
| 14.11 | Mineral
Resource Classification |
As mineral resource classification
is typically a subjective concept, industry best practices suggest that resource classification should consider both the confidence in
the geological continuity of the mineralized structures, the quality and quantity of exploration data supporting the estimates and the
geostatistical confidence in the tonnage and grade estimates. Appropriate classification criteria should aim at integrating both concepts
to delineate regular areas at similar resource classification. SRK is satisfied that the geological modelling honours the current geological
information and knowledge. The location of the samples and the assay data are sufficiently reliable to support resource estimation.
Block model quantities and
grade estimates for the Snip Project were classified according to the CIM Definition Standards for Mineral Resources and Mineral Reserves
(CIM, 2014). Mineral resources for the Snip Project have been classified as either Indicated or Inferred mineral resources. No Measured
mineral resource has been defined for this deposit.
SRK considers that for those
blocks estimated at an adequate drill hole spacing with accurately located and reliable sampling information, up to the full variogram
ranges (pass 1 and 2) may be classified as Indicated. For those blocks, SRK considers that the level of confidence is sufficient to allow
appropriate application of technical and economic parameters to support mine planning and to allow evaluation of the economic viability
of the deposit. Furthermore, blocks estimated during the third estimation pass considering search neighbourhoods set at twice the variogram
range may be appropriately classified in the Inferred category because confidence in the estimate is insufficient to allow for meaningful
application of technical and economic parameters, or to enable an evaluation of economic viability.
Indicated and Inferred resources
are depicted in Figure 14-24 and were classified as follows:
| • | For
the Indicated category, all blocks estimated with at least 3 drill holes extending no more
than 35 m maximum (approximately 70% of the range were classified as Indicated resources; |
| • | Inferred
resources were partitioned using a minimum of 2 drill holes at a maximum range of 70 m (1.5
x the variogram range) range; |
| • | Blocks
were locally reclassified to reduce ‘spotted’ Indicated resources within Inferred
resources, and vice versa. |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 142 |
Figure
14-24: Plan view of the distribution of Indicated and Inferred classed blocks
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 143 |
| 14.12 | Mineral
Resource Statement |
The QP for the mineral resource
estimate is Ms. S. Ulansky, Senior Resource Geologist, PGeo (EGBC#36085), an employee of SRK Consulting (Canada).
CIM Definition Standards for
Mineral Resources and Mineral Reserves (May 2014) defines a mineral resource as:
“(A) concentration
or occurrence of diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious
metals, coal, and industrial minerals in or on the Earth’s crust in such form and quantity and of such a grade or quality that
it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral
Resource are known, estimated or interpreted from specific geological evidence and knowledge”.
The “reasonable prospects
for eventual economic extraction” requirement generally implies that the quantity and grade estimates meet certain economic thresholds
and that the mineral resources are reported at an appropriate cut-off grade taking into account extraction scenarios and processing recoveries.
In order to meet this requirement, SRK considers that portions of the Snip Project are amenable for underground mining.
In order to determine the
quantities of material offering “reasonable prospects for eventual economic extraction” underground, SRK used a stope optimizer
and reasonable mining assumptions to evaluate the proportions of the block model (Indicated and Inferred blocks) that could be “reasonably
expected” to be mined from an underground scenario.
The optimization parameters
were selected based on experience and benchmarking against similar projects as shown in (Table 14-14). The reader is cautioned that the
results from the optimization are used solely for the purpose of testing the “reasonable prospects for eventual economic extraction”
by underground long hole stoping and do not represent an attempt to estimate mineral reserves. There are no mineral reserves on the Snip
Project. The results are used as a guide to assist in the preparation of a mineral resource statement and to select an appropriate resource
reporting cut-off grade.
Table
14-14: Assumptions considered for stope optimization
| Input
Parameters |
Value |
Unit |
| Gold
Price |
1,700
|
US
Dollars per Ounce |
| Exchange
Rate |
1.3 |
CAD:USD |
| Metallurgical
Recovery |
96
|
Percent |
| Royalty |
1 |
Percent |
| Selling
Cost |
18.50
|
CAD
Dollars per Ounce |
| Mining
Cost |
115 |
CAD
Dollars per Tonne |
| Process
Cost |
29 |
CAD
Dollars per Tonne |
| G&A
Cost |
17 |
CAD
Dollars per Tonne |
| All-in
Cost |
161 |
CAD
Dollars per Tonne |
| Mining
Method |
N/A
|
Longhole:
10 m H x 5 m L x 2 m W
Dip: 55 – 90 degrees
1 m offset to UG workings |
| Cut-off
Grade |
2.5
|
Grams
per tonne (g/t) |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 144 |
SRK considers that the blocks
located within the stope optimized shapes, as shown in Figure 14-25, show “reasonable prospects for eventual economic extraction”
and can be reported as a mineral resource.
The cut-off grade was determined
to be 2.5 g/t Au. The resources have been stated as in-situ, undiluted and in the veins contained within these potentially economical
minable underground stope shapes (Table 14-15) (Figure 14-26) (Figure 14-27) and show the reported resources in the V- and S- Veins in
the Main model, and TW-Veins in the Twin West model, respectively. Mineral Resources have been depleted to account for past production
and exclude mineralization within a 1 m buffer around historical underground development. The post-mineral BSU unit has been nulled to
a waste grade of 0.001 g/t.
Table
14-15: Snip underground Mineral Resource Statement as of September 05, 2023.
| Category |
Zone |
Tonnes
(‘000) |
Contained
Grade
Au (g/t) |
Contained
Ounces
Au (‘000) |
| Indicated |
Main
- V |
850 |
9.59 |
262 |
| Main
- S |
1,718 |
9.28 |
513 |
| Twin
West |
171 |
8.69 |
48 |
| Total
Indicated |
2,739 |
9.35 |
823 |
| Inferred |
Main
- V |
115 |
7.38 |
27 |
| Main
- S |
323 |
6.22 |
65 |
| Twin
West |
61 |
11.02 |
22 |
| Total
Inferred |
499 |
7.10 |
114 |
*Notes to accompany the Mineral
Resource Estimate statement:
| • | Mineral
resources are not mineral reserves as they do not have demonstrated economic viability. |
| • | As
defined by NI 43-101, the Independent and Qualified Person is Ms. S. Ulansky, PGeo of
SRK Consulting (Canada) who has reviewed and validated the Mineral Resource Estimate. |
| • | The
effective date of the Mineral Resource Estimate is September 05, 2023. |
| • | Estimates
use metric units (meters, tonnes and g/t). Metals are reported in troy ounces (metric tonne
* grade / 31.10348) |
| • | The
number of metric tonnes and ounces were rounded to the nearest thousand. Any discrepancies
in the totals are due to rounding. |
| • | Reasonable
prospects for eventual economic extraction were determined by means of applying stope optimization
parameters summarized in Table 14-4. Resources are reported in-situ and undiluted within
the veins contained within potentially economical and minable underground long hole stope
shapes. |
| • | Mineral
Resources have been depleted to account for past production and exclude mineralization within
a 1 m buffer around historical underground developments. This 1 m exclusion zone is low and
will need to be expanded in future resource estimates. |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 145 |
| • | Cut-off
grades are based on a price of US$1,700 per ounce of gold. |
| • | The
underground cut-off grade for the long hole mining method was calculated to be 2.5 g/t Au.
Cut-off grades must be re-evaluated considering prevailing market conditions (including gold
prices, exchange rates and costs). |
| • | CIM
definitions were followed for the classification of mineral resources. |
| • | Neither
the company nor SRK is aware of any known environmental, permitted, legal, title-related,
taxation, socio-political, marketing or other relevant issue that could materially affect
this mineral resource estimate. |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 146 |
Figure
14-25 Plan view and view looking west (inset) of the distribution of potentially economical minable underground stope shapes (orange)
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 147 |
Figure
14-26 Oblique view looking west of the reported resources within the stope optimized shapes in the Main Model
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 148 |
Figure
14-27: Oblique view of the distribution of the reported resources within the stope optimized shapes in the Twin West Model.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 149 |
| 14.13 | Comparison
to Previous Mineral Resource Estimate |
The 2023 Mineral Resource
Estimate involves several key changes when compared to the 2020 Mineral Resource Estimate. The changes are as follows:
| • | An
additional 307 drill holes for a total meterage of 46,268 m has been included into this estimate
since the 2020 Maiden Mineral Resource. |
| • | The
mineralization veins were updated and expanded and an additional 22 veins were identified:
3 in the V-Veins and 19 in the S-Veins. This had the net effect of increasing the volume
of the mineralized lodes by 25%. |
| • | The
number of assay intervals used in the interpretation of the S-Veins in the 2023 MRE increased
by 40% and reduced the grade by ~9%, as evidenced in the mean assay grades from 2020 to 2023
(Table 14-16). |
Table
14-16 Mean assay grade comparison
| Zone |
2020
MRE |
2023
MRE |
Difference |
| No. Assays |
Mean
(g/t) |
No. Assays |
Mean
(g/t) |
No. Assays |
Mean
(g/t) |
| V-
Veins |
9400 |
15.22 |
9738 |
15.40 |
4% |
1% |
| S-
Veins |
9,277 |
10.08 |
12,946 |
9.17 |
40% |
-9% |
| TW-
Veins |
1134 |
7.637 |
808 |
7.70 |
-29% |
1% |
| • | More
conservative capping thresholds were used in the S-veins due to subdividing the veins into
domains, rather than the more generalized zone groupings used in 2020. |
| • | In
the 2020 MRE, a 40-meter omnidirectional 3-D buffer around the QA/QC validated 2016 to 2019
Skeena only holes was utilized for Indicated resources classification. All drill holes within
this area were permitted into the Indicated class if upholding the additional classification
criteria. All historical only areas, where assay results could not be directly substantiated,
were relegated to the Inferred category if upholding all other classification criteria for
this class. The removal of the 40 m buffer upgraded a large portion of the Inferred resources
to Indicated. |
| • | During
the 2021 and 2022 infill drilling programs, 28 twin drill holes totaling 3,318 meters were
drilled to validate the historical drill intercepts. Comparative vein intervals and gold
grades were captured in both the original and twin holes. Corresponding vein intervals and
statistics demonstrated acceptable correlation between the historical and twin hole fire
assays. This enabled the historical drill hole data to be used during the classification
process without any boundary constraints. |
| • | Veins
were estimated in Skeena’s 2020 MRE using the single-search ellipsoid of the variogram.
In the 2023 update, dynamic anisotropy (“DA”) was used for the larger veins (volumetrically)
showing good continuity, whereby the search ellipse was adjusted on a block-by-block basis
using a surface that defines the overall folded orientation of the veins. DA allows the estimator
to select composite intervals that are in the most suitable orientation, thereby resulting
in an estimate that is locally more accurate and more in line with the original vein model
interpretation. |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 150 |
| • | The
stope optimizer used for reporting RPEEE used more selective stope shape parameters in 2023.
Stope dimensions of 10 H x 5 L x 2 W were utilized in 2023, whereas stope dimensions of 20
H x 10 L x 2m W were utilized in 2020. |
| • | In
the 2020 MRE, two density values were applied to the model; a value of 2.78 g/cm3
for vein mineralization, and 2.86 g/cm3 for the Biotite Spotted Unit (“BSU”).
An additional 1,770 specific gravity measurements were incorporated into the 2023 model,
which were reassessed within their appropriate lithology and vein units. The 2023 MRE utilized
a value of 2.91 g/cm3 for vein mineralization, and 2.84 g/cm3 for the
BSU. |
Percent difference comparisons
between the 2020 vs 2023 mineral resources are shown in Table 14-17.
Table
14-17: Percent difference between the 2020 and 2023 MRE’s
| Category |
Tonnes
(‘000) |
Contained
Grade
Au (g/t) |
Contained
Ounces
Au (‘000) |
| Total
Indicated |
408% |
-33% |
237% |
| Total
Inferred |
-47% |
-47% |
-72% |
| 14.14 | Factors
that May Affect the Mineral Resource Estimates |
Factors that may affect the
Mineral Resource estimates include:
| • | Metal
price and exchange rate assumptions; |
| • | Changes
to the assumptions used to generate the gold equivalent cut-off grade; |
| • | Changes
in local interpretations of mineralization geometry and continuity of mineralized zones; |
| • | Changes
to geological and mineralization shapes, and geological and grade continuity assumptions; |
| • | Density
and domain assignments; |
| • | Changes
to geotechnical assumptions including mining method; |
| • | Changes
to mining and metallurgical recovery assumptions; |
| • | Change
to the input and design parameter assumptions that pertain to the conceptual mineable shapes
constraining the estimates potentially amenable to underground mining methods; |
| • | Assumptions
as to the continued ability to access the site, retain mineral and surface rights titles,
obtain and maintain environment and other regulatory permits, and obtain the social license
to operate. |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 151 |
| 14.15 | Responsibility
for the Snip Resource Estimate |
The geological and structural
models for the Snip Project and the mineral resource estimate were completed by Skeena’s Director of Resources and Reserves, Kathi
Dilworth. The geological model and structural models and the mineral resource estimate were then reviewed and validated by Sheila Ulansky,
P.Geo of SRK Consulting (Canada). Ms. Ulansky is responsible for the resource estimate discussed herein, by virtue of her independent
review and verified work performed by Skeena.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 152 |
The area surrounding the Snip
Project saw extensive exploration throughout the 1980’s and early 1990’s. SnipGold Corp, a subsidiary or Seabridge Gold Inc.,
is the current owner of the two deposits in the immediate area (Figure 15-1). They are a public company regulated by Canadian securities
regulators. Information pertaining to their properties have been taken from documents readily available on the respective company websites
and MineFileBC. Although the information below was publicly disclosed by the Owner or Operator of the adjacent properties, the QP has
not audited the associated technical data and the information is not necessarily indicative of the mineralization on the Property that
is the subject of this Technical Report.
| 15.1 | SnipGold
Corp. (a Subsidiary of Seabridge Gold) |
The Iskut property consists
of a contiguous block of 100 BC Mineral Claims, 2 Mineral Leases and 13 Crown Grants covering 29,436 hectares (294 km2) situated
in the Liard Mining Division. The property includes the former high-grade gold Johnny Mountain Mine and the copper-gold Bronson Slope
deposit. The property was acquired by Seabridge Gold Inc. in June 2016.
Seabridge has reactivated
the property as the “Iskut Project”, exploring for a gold-copper porphyry similar to those Seabridge discovered at its nearby
KSM project. Since acquiring the property in 2016, exploration has identified the potential for large gold-copper deposits.
In 2020, a 9,000 meter drill
program tested a large intrusion system that was identified in 2019. The holes were drilled across 750 m of strike and 800 m of vertical
projection on coincident magnetic and IP anomalies below and west of the well-developed lithocap. The drill program provided further
evidence for a large gold-copper porphyry system which may lie below the drilling completed to date. The 2022 drill program focused on
zones below the Bronson Slope Deposit. The drilling encountered gold and copper in all 10 holes drilled, including the identification
of a large, mineralized breccia pipe. Hole 5 returned 174 meters at 0.86 g/t Au and 0.34% copper.
An $8 Million dollar drill
program is currently underway.
The past producing Stonehouse
deposit, or Johnny Mountain Mine, is described in BC Minfile No 104B 107. In November 1988, the company began operating the Johnny
Mountain Mine. The mine closed in mid-August of 1990 and milling operations ceased in early September. High operating costs and
low gold prices were significant factors in the closure. In 1993, a further 21,850 tonnes were milled. The total mined from 1988, 1989,
1990 and 1993 was 196,358 tonnes from which a total of 2,815,393 g of gold, 4,348,814 g of silver and 1,008,109 kg of copper were recovered.
It is a structurally disrupted mesothermal gold-bearing quartz vein deposit. Mineralization includes pyrite, chalcopyrite with some sphalerite,
galena and minor pyrrhotite within a number of sub parallel sulphide-K-feldspar-quartz veins and stock work systems occurring along a
series of northeast-trending structures in close proximity to plagioclase porphyry dykes.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 153 |
Figure
15-1: Adjacent properties to the Snip Project
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 154 |
The Bronson Slope prospect
is immediately adjacent to the Snip Project and overlies primarily the Red Bluff Porphyry; the interpreted source of gold mineralization
at Snip. It is described in BC Minfile No 104B 077. In 2008, Skyline Gold released a NI 43-101 compliant report containing updated resource
estimates for Au, Ag, Cu and Mo. Combined Measured and Indicated resources were 225.1 million tonnes grading 0.36 g/t Au, 2.22 g/t Ag,
0.14% Cu, and 0.0077% Mo. Inferred resources were 91.6 million tonnes grading 0.27 g/t Au, 1.76 g/t Ag, 0.13% Cu, and 0.0080% Mo (Burgoyne
and Giroux, 2008).
In 2010 Skyline Gold released
a NI 43-101 compliant report containing updated magnetite resource estimates. Combined Measured and Indicated resources were 163,160,000
tonnes grading 7.28 per cent Ma. Inferred resources were 6,300,000 tonnes grading 6.92 per cent Ma, calculated using a cut-off grade
of 2.00 per cent Ma (Burgoyne et al., 2010)
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 155 |
| 16 | Other
Relevant Information |
The road access and hydroelectrical
infrastructure history was previously provided in detail by Moors, 2018.
Road access to the Snip Project
site would likely be established via a proposed 23.2 km long road from the McLymont power station termed the “Bronson Connector
Road”. A design package was completed in 2017 by Tahltan-Allnorth for a 6 m wide road including nine (9) water course crossings
varying in span from 14.3 m to 66. 1m. In 2022, Knight Piesold completed a peer review of the 2017 Tahltan-Allnorth design package and
concluded that it was adequate to support Pre-Feasibility Level consideration. Budgetary estimates of the Bronson Connection Road completed
between 2020 and 2022 estimate a total cost of $30 – 46 million for construction inclusive of indirects and contingency. Further
work is required to refine cost estimates and assess opportunity for potential construction cost sharing with other parties that hold
interests in the area surrounding the Snip Project.
| 16.2 | Hydroelectric
Infrastructure |
The closest source of hydroelectric
power when the Snip Mine was operating until 1999 was the 138 kV line in Stewart, BC at a distance of 108 km as the crow flies, or more
realistically, 180 km through more amenable topography to the same power source at Meziadin Junction on BC Highway 37. At present the
nearest source of electricity for the Snip Project is the Forest Kerr power station 25 km to the east. It is supplied by both the 195-megawatt
Forest Kerr Hydroelectric Facility and the 66-megawatt McLymont Creek Hydroelectric Facility. They commenced power production in 2014
and 2015, respectively, and feed the 287 kV BC Hydro substation at Bob Quinn Lake. Construction costs for a power line linking the Snip
Project to the power station have not been estimated.
There is no other relevant
data available about the Snip Project.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 156 |
| 17 | Interpretation
and Conclusions |
The objective of SRK’s
scope of work was to provide Skeena with support and validation of the Snip resource estimate, accompanied by the preparation of an independent
technical report published by SRK in compliance with National Instrument 43-101. This technical report and the Mineral Resources presented
herein meet these objectives.
| 17.1 | Mineral
Tenure, Surface Rights, Agreements, and Royalties |
The information provided by
Skeena supports the conclusion that the mining tenure held is valid.
| 17.2 | Geology
and Mineralization |
| · | Gold
mineralization occurs in structurally controlled mineralized veins in a brittle-ductile shear
zone system, hosted within a sequence of laminated turbidites of the Upper Triassic Stuhini
Group. |
| · | Mineralization
has both Orogenic style gold characteristics as well as mineralogical and paragenetic similarities
to porphyry related vein systems, being contemporaneous with the adjacent to Early Jurassic
Red Bluff porphyry, a calc-alkaline, I-type, magnetite-series intrusion of quartz monzodioritic
composition. |
| · | ninety-four
narrow, high grade lodes were modelled which were combined into three zones based on structure
and orientation. |
| · | The
understanding of the regional geology, lithological and structural controls of the mineralization
are sufficient to support estimation of Mineral Resources. |
| · | The
quantity and quality of the lithological, collar and down-the-hole survey data collected
are sufficient to support Mineral Resources. Sample data density and distribution is adequate
to build meaningful litho-structural models reflective of the overall deposit type. |
| · | SRK
reviewed the database and is of the opinion that the current sample preparation, security
and analytical procedures meet industry-standard practices. SRK also believes that the Skeena
validated database is of a standard that is acceptable for creating an unbiased, representative
Mineral Resource Estimate of the Snip deposit. |
| · | SRK
reviewed the analytical quality control data accumulated by Skeena and Hochschild during
2020 to 2022. SRK confirms that gold grades are reasonably well reproduced and reliable for
resource estimation purposes. Similarly, a QA/QC analysis showed no obvious bias or errors. |
| · | The
2021 to 2022 twin drilling program was a success, where the 28 twin holes drilled in similar
3-D orientation and with less than 2 m separation, validated in terms of data precision and
accuracy. |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 157 |
| 17.4 | Mineral
Resource Estimation |
| · | Geostatistical
studies were carried out on the composite data to select capping levels and derive estimation
parameters. Gold was estimated into the block model using Ordinary Kriging informed from
capped, composited data. Density was coded into each block for deriving tonnages based on
the average specific gravity for the metasediments and biotite spotted unit. |
| · | Mineral
Resources were estimated and classified following CIM best practices. |
| · | The
40 m buffer constraint utilized for the 2020 MRE was lifted because the twin drilling program
confirmed equivalent mineralized intervals and gold grades with the matching historical holes. |
| · | The
2023 Mineral Resource has demonstrated that the project has development potential as an underground
mining operation. Stope optimized shapes were created using reasonable assumptions for long
hole mining with a cut-off grade of 2.5 g/t. |
| · | Modelled
veins delineate in-situ gold grade and do not consider minimum width or potential planned
mining dilution which would be considered during conversion of mineral resources to mineral
reserves. |
| · | Approximately
10% of the resource is classified as Inferred. It is reasonable to expect that part of the
Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued
drilling. |
| · | Additionally,
it is reasonable to expect an increase to the Inferred category if future exploration campaigns
test underexplored areas and/or the continuity of sparsely drilled regions . |
The 2023 Mineral Resource
Estimate involves several key changes when compared to the 2020 Mineral Resource Estimate. The changes are as follows:
| · | Additional
drill holes included. |
| · | Expanded
and updated mineralization vein model volumes. |
| · | Overall
reduction in grade in the additional drill holes. |
| · | Twin
drilling program validation of all historical holes. |
| · | Lifting
of the 2020 40-meter omnidirectional 3-D buffer for the Indicated category due to the twin
drilling program. |
| · | Stope
optimizer adjustments. |
| · | Additional
specific gravity measurements collected and used to update the model density values. |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 158 |
In reviewing the compiled
drill hole database, geological interpretation and mineral resource estimate for the Snip Project, SRK makes the following recommendations:
| · | The
intimate association of biotite with shear zones and veining and overall homogeneity of potassic
(biotitic) alteration suggests that the alteration envelope may help constrain fluid and
mineralization pathways. It is recommended that alteration data are used to investigate the
potential to delineate alteration domains and generate alteration models to identity potential
ore shoots within the shear zone system. This should be completed as a part of the standard
geological logging and mapping observations, and as such, does not need a separate budget. |
| · | All
occurrences and locations of visible gold should be standardized and combined with drill
hole data to generate a high-grade gold model. This should be used to define zones of high
grade that can potentially be used as a predictive tool to delineate further zones of higher-grade
gold and/or ore shoots within the shear zone system. This will assist in improved local resolution
of high-grade zones for resource estimation. This should be completed as a part of the standard
geological logging and mapping process, and as such, would not require a separate budget. |
| · | A
detailed vein model was constructed in Leapfrog Geo® using data provided by Skeena. To
further substantiate the model and elucidate the finer project scale structural details that
are relevant to Snip mineralization, an onsite structural mapping survey is recommended.
Budget recommendations are provided in Table 18-1. |
| · | Regional
geology and structure play a significant role in interpreting exploration geological datasets.
To effectively understand geological context within the broader district, an improved regional
geology map needs to be sourced and included into the Leapfrog Geo® model. |
| · | The
existing LiDAR survey covers the mineral lease area only. To extract subtle property-wide
structural details, which may be applied to regional exploration, an expanded LiDAR survey
that covers the entire property is recommended with an appropriate structural interpretation: |
| – | In
tandem with the LiDAR survey, a high-resolution magnetics survey using drone surveying technologies
would enhance future structural interpretations. This geophysical survey may be combined
with the regional LiDAR survey to reduce exploration costs. Costs associated with this LiDAR-add
one have not been included. |
| · | Knowing
that Snip ore is structurally controlled, advancing the project depends heavily on understanding
the structural complexities of the deposit. Oriented core drilling facilitates measurements
of the directional properties in the rock and is used to measure bedding, foliation, vein
orientations, shear fabrics and other kinematic indicators. SRK recommends the use of oriented
core drilling for future drilling campaigns. |
| · | Limited
drilling has been conducted on the Jim Porphyry and Jim Porphyry south areas which exhibit
similar alteration and lithological similarities with the Main Twin Zone. Knowing the narrow
and variable nature of mineralization on the property, an additional 2 holes are recommended
to fully test these targets. |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 159 |
| · | The
grade appropriate standard needs to be inserted into the sample series. This is particularly
important for the high-grade standards where they should, ideally, be inserted into a series
of high-grade intervals only. |
| · | Preparation
and pulp duplicates are inserted by the lab at a sequence that the lab defines. Additional
preparation and pulp duplicates should be requested at intervals defined by Skeena to avoid
intralab bias and to reflect the entire gold range that defines the Snip Project. This should
be completed as a part of the standard sampling process, and as such, does not need a separate
budget. |
| · | External
check samples need to be consistently taken and processed at SGS Canada in a timely manner.
This should be completed as a part of the standard sampling process, and as such, does not
need a separate budget. |
| · | Sample
rejects and pulps are not currently saved and stored. In the event of core damage, loss or
tampering, rejects and pulps will serve to validate the deposit’s primary asset –
the assay database. Therefore, sample rejects and pulps should be stored as a part of the
standard QA/QC process, and as such, does not need a separate budget. |
| · | Due
to the high degree of grade variability within the Snip deposit, SRK recommends conducting
a conditional simulation study to assess the impact of localized grade variability within
the mineral resource estimate and on future mine design and production planning. The simulated
model could also be used to reconcile against historical production based on available historical
stope and underground development wireframes. |
| 18.4 | Historical
Confirmation |
| · | A
basic property survey was conducted in 2017, whereby a new survey control point network was
established. Differential GPS points from the 300 level portal were expanded underground
and traversed up the ramp using a total station. To further this survey and to validate the
volume of depleted material, a study to determine the accuracy of the levels relative to
the historical wireframes is recommended. This should be completed as part of the standard
data management process for the Snip Project, and as such, does not need a separate budget: |
| – | Depending
on the outcome of the study, and if there are major differences in elevation and position,
a more detailed survey will need to be undertaken. |
| – | Measured
blocks have not been accounted for in the 2023 Mineral Resource Statement due to Client-specific
requests. However, blocks that qualify in terms of having quantity, grade or quality, densities,
shape and physical characteristics that are estimated with confidence to allow the application
of modifying factors, are currently accessible. To convert additional areas from Indicated
to Measured, having approximately 12.5 m centers, updated classification parameters need
to be generated in future resource model runs. This process may be conducted as part of SRK’s
proposed resource model conditional simulation study, whereby mineral resource classification
criteria are reassessed to potentially support Measured resources. |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 160 |
| Table
18-1: Estimated Cost for the Exploration Program Proposed for the Snip Project | |
| |
| | |
| |
| Action Item | |
Estimated Cost (CAD) | |
| Structural Geology Review | |
$ | 36,000 | |
| Desktop Interpretation (LiDAR and Geophysics Lineament Analysis) | |
$ | 24,000 | |
| LiDAR Survey (@CAD$5,625/km2 for 10km2) | |
$ | 56,250 | |
| Exploration Drilling (@CAD$475/m) | |
$ | 285,000 | |
| Oriented Drilling (@CAD$2,000/month over 4 months) | |
$ | 10,000 | |
| Conditional Simulation Study | |
$ | 26,000 | |
| Subtotal | |
| 437,250 | |
| Contingency (10%) | |
| 43,725 | |
| Total Estimated Program Costs (CAD) | |
| 480,975 | |
SRK is unaware of any other
significant factors and risks that may affect access, title, or the right or ability to perform the exploration work recommended for
the Snip Project.
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 161 |
| 19 | Acronyms
and Abbreviations |
| Distance |
|
Other |
| µm |
micron
(micrometer) |
|
°C |
degree
Celsius |
| mm |
millimeter |
|
°F |
degree
Fahrenheit |
| cm |
centimeter |
|
Btu |
British
Thermal Unit |
| m |
meter |
|
cfm |
cubic
feet per minute |
| km
|
km |
|
elev |
elevation
above sea level |
| ” |
inch |
|
masl |
m
above sea level |
| in |
inch |
|
hp |
horsepower |
| ’ |
foot |
|
hr |
hour |
| ft |
foot |
|
kW |
kilowatt |
| Area |
|
kWh |
kilowatt
hour |
| m2 |
square
meter |
|
M |
Million
|
| km2 |
square
km |
|
mph |
miles
per hour |
| ac |
acre |
|
ppb |
parts
per billion |
| Ha |
hectare |
|
ppm
|
parts
per million |
| Volume
|
|
s |
second |
| l |
litre
|
|
s.g. |
specific
gravity |
| m3 |
cubic
meter |
|
usgpm |
US
gallon per minute |
| ft3 |
cubic
foot |
|
V |
volt |
| usg |
US
gallon |
|
W |
watt |
| lcm |
loose
cubic meter |
|
Ω |
ohm |
| bcm |
bank
cubic meter |
|
A |
ampere |
| Mbcm
|
million
bcm |
|
tph |
tonnes
per hour |
| Mass
|
|
tpd |
tonnes
per day |
| kg |
kilogram |
|
mtpa |
million
tonnes per annum |
| g |
gram |
|
Ø |
diam |
| t
|
metric
tonne |
|
Acronyms |
| Kt |
kilotonne
|
|
SRK
|
SRK
Consulting (Canada) Inc. |
| lb |
pound |
|
CIM |
Canadian
Institute of Mining |
| Mt |
megatonne
|
|
NI
43-101 |
National
Instrument 43-101 |
| oz |
troy
ounce |
|
ABA |
Acid-
base accounting |
| wmt |
wet
metric tonne |
|
AP |
Acid
potential |
| dmt |
dry
metric tonne |
|
NP |
Neutralization
potential |
| Pressure |
|
NPTIC |
Carbonate
neutralization potential |
| psi |
pounds
per square inch |
|
ML/ARD |
Metal
leaching/ acid rock drainage |
| Pa |
pascal |
|
PAG |
Potentially
acid generating |
| kPa |
kilopascal |
|
non-PAG |
Non-potentially
acid generating |
| MPa |
megapascal |
|
RC |
reverse
circulation |
| Elements
and Compounds |
|
IP |
induced
polarization |
| Au |
gold |
|
COG |
cut-off
grade |
| Ag
|
silver |
|
NSR |
net
smelter return |
| Cu
|
copper |
|
NPV |
net
present value |
| Fe |
iron |
|
LOM |
life
of mine |
| S |
sulphur |
|
Conversion
Factors |
| CN |
cyanide |
|
1
tonne |
2,204.62
lb |
| NaCN |
sodium
cyanide |
|
1
oz |
31.1035
g |
| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 162 |
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| SRK Consulting (Canada) Inc Skeena Resources Limited NI 43 -101 Snip Project Canada | Page 166 |
| 21 | Date
and Signature Page |
This technical report was written by
the following “Qualified Persons” and contributing authors. The release date of this technical report is September 26,
2023
| Qualified
Person |
Signature |
Date |
| Sheila
Ulansky, P.Geo |
(signed) “Sheila Ulansky” |
September 26,
2023 |
| Jeff
Austin, P.Eng |
(signed) “Jeffrey B. Austin” |
September 26,
2023 |
Reviewed by
| |
(signed) “Andre Deiss”
|
|
| |
Andre Deiss, Pri.Sci.Nat |
|
| |
Project Reviewer |
|
All data used as source material
plus the text, tables, figures, and attachments of this document have been reviewed and prepared in accordance with generally accepted
professional engineering and environmental practices.
