VANCOUVER, BC / ACCESSWIRE / November 7, 2019 / Skeena Resources Limited (TSX.V:SKE) (OTCQX:SKREF) ('Skeena' or the 'Company') is pleased to announce the initial Preliminary Economic Assessment ('PEA') completed by Ausenco Engineering Canada Inc. ('Ausenco'), supported by SRK Consulting (Canada), and AGP Mining Consultants, for the Eskay Creek gold-silver project ('Eskay Creek' or the 'Project') located in the Golden Triangle of British Columbia.

Eskay Creek 2019 PEA Highlights:

• High-grade open-pit averaging 3.23 g/t Au, 78 g/t Ag (4.17 g/t AuEq) (diluted)
• After-tax NPV_5% of C$638M (US$491M) and 51% IRR at US$1,325/oz Au and US$16/oz Ag
• After-tax payback period of 1.2 years
• Pre-production capital expenditures (CAPEX) of C$303M (US$233M)
• After-tax NPV:CAPEX Ratio of 2.1:1
• Life of mine ('LOM') average annual production of 236,000 oz Au, 5,812,000 oz Ag (306,000 oz AuEq)
• LOM all-in sustaining costs (AISC) of C$983/oz (US$757/oz) AuEq recovered
• LOM cash costs of C$949/oz (US$731/oz) AuEq recovered
• 6,850 tonne per day (TPD) mill and flotation plant producing saleable concentrate

<sup>1. Exchange Rate (US$/C$) of 0.77
2. Cash costs are inclusive of mining costs, processing costs, site G&A, treatment and refining charges and royalties
3. AISC includes cash costs plus estimated corporate G&A, sustaining capital and closure costs
4. Gold Equivalent (AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 82.8]</sup>

Skeena's CEO, Walter Coles commented, 'Eskay Creek was a remarkable discovery that became an extraordinary underground mine in 1994 and produced until 2008. This PEA demonstrates that Eskay Creek still has a bright future ahead, revitalized as an open-pit gold and silver mine, with the additional possibility for underground mining. The Project has the potential to produce an average of 306,000 gold-equivalent ounces per year with a diluted mill feed grade of 4.17 grams per tonne gold-equivalent. Also, as a brownfield site, Eskay Creek benefits from tremendous infrastructure installed by the previous operators. Finally, by creating a gold concentrate rather than doré, we are able to keep initial capital costs very low, at US$233 million, relative to the amount of precious metals produced; this also simplifies and reduces technical risks for the Project.'

PEA Overview

The 2019 Eskay Creek PEA considers an open-pit mine with on-site treatment of the mined material by conventional milling and flotation to recover a gold-silver concentrate for provision to third-party smelters. The mine will be an owner-operated, standard truck and shovel open-pit, with a leased mining fleet. At present, no contributions from previously reported underground resources are incorporated into this study. The processing capacity of 6,850 tonnes per day will result in a production lifespan of 8.6 years. An additional 1.5 years of pre-stripping, stockpiling and mine access development is planned prior to the processing facility becoming fully operational in Year 1. The PEA leverages Eskay Creek's extensive existing infrastructure, including all-weather access roads, previously permitted tailing storage facilities (TSF) and proximity to the recently commissioned 195 MW hydroelectric facilities and linked power grid.

The PEA is derived from the Company's pit-constrained resource estimate (February 28, 2019), and does not include results from the recently initiated and ongoing 2019 Phase I infill drilling program. The effective date of the PEA is November 7, 2019 and a technical report will be filed on the Company's website and SEDAR within 45 days of this disclosure.

Mineral resources are not mineral reserves and do not have demonstrated economic viability. The PEA is preliminary in nature and includes inferred mineral resources that are too speculative to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that PEA results will be realized.

Table 1: 2019 Eskay Creek 2019 PEA Detailed Parameters and Outputs

<sup>1. Cash costs are inclusive of mining costs, processing costs, site G&A, treatment and refining charges and royalties
2. AISC includes cash costs plus corporate G&A, sustaining capital and closure costs
3. Gold Equivalent (AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 82.8]</sup>

Sensitivities

After-tax economic sensitivities to commodity prices are presented in Table 2 illustrating the effects of varying gold and silver prices as compared to the base-case. Additional Project sensitivities will be presented in the Technical Report.

Table 2: After-Tax NPV _(5%) and IRR Sensitivities to Commodity Prices

Eskay Creek Mineral Resource Estimate

The Company's current Mineral Resource Estimate (MRE; effective date of February 28, 2019) completed by SRK Consulting (Canada) forms the basis for this PEA. The MRE does not include drilling results from the Company's recently initiated and ongoing 2019 Phase I infill program.

Table 3: Pit constrained Mineral Resource Statement reported at 0.7 g/t AuEq cut-off:

Table 4: Underground Mineral Resource Statement reported at a 5.0 g/t AuEq cut-off:

		Grade			Contained Ounces
	Tonnes	AuEq	Au	Ag	AuEq	Au	Ag Share article: Watch latest videos Subscribe and Follow Get a daily dose of Boston Star news through our daily email, its complimentary and keeps you fully up to date with world and business news as well. Subscribe Now News RELEASES Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Boston Star. More Information 53 ℉ Fog in Boston Business Section European and Asian stocks rally, U.S. and UK markets closed NEW YORK, New York - Stock markets in Europe and Asia made gains on Monday, while investors and traders in ... California avocado producers to benefit from U.S.-China trade deal LOS ANGELES, California - California avocados gained access to the Chinese market as a result of the China-U.S. phase-one economic ... Nikkei 225 jumps 353 points, stocks in China struggle SYDNEY, Australia - Tokyo and Sydney shares took off on Monday, and while stocks gained in Shanghai and Hong Kong, ... Giant car rental operator bankrupt despite $1 billion in reserves ESTERO, Florida - Hertz Global Holdings, Inc.and certain U.S. and Canadian subsidiaries have filed voluntary petitions for reorganization under Chapter ... Coronavirus to impact economies of smaller Caibbean countries How can the United Nations sustainable development goals improve health and education, reduce inequality and spur economic growth while the ... Disadvantaged children engage in live video chat for Ramadan shopping DUBAI, UAE - The world's largest themed mall which caters for more than 21 million visitors a year has had ... Massachusetts Section Tensions between Beijing and Washington add to world's Covid-19 woes BEIJING, China - China said on Sunday that its relations with the United States were "on the brink of a ... How U.S. led the world in failure to prepare for pandemic On March 20, just after the World Health Organization (WHO) declared a global pandemic on March 11, the U.S. National ... Thousands Wait to Take US Citizenship Oath Amid Virus Delays BOSTON, MASSACHUSETTS - Wendy De Los Santos passed the test to become a U.S. citizen just days before government offices ... Shock defeat Mayhem in wild final to claim May Melee America The San Francisco Shock claimed first place at the American Region May Melee on Sunday, taking out the upstart Florida ... Basketball HOF making changes to ensure safe induction ceremony Enshrinement ceremonies at the Naismith Memorial Hall of Fame are set for Aug. 29, but they could be rescheduled amid ... New findings on allergies could help improve diagnosis, treatment Washington D.C. [USA], May 24 (ANI): Results from a recent study are likely to help improve the diagnosis and treatment ... Movie Review Birds of Prey (and the Fantabulous Emancipation of One Harley Quinn