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: Shares Share Tweet Share Flip Email 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 null in null Business Section US debt limit raised, but spending bill fuels fiscal concerns NEW YORK CITY, New York: With just weeks to spare before a potential government default, U.S. lawmakers passed a sweeping tax and spending... Shein hit with 40 million euro fine in France over deceptive discounts PARIS, France: Fast-fashion giant Shein has been fined 40 million euros by France's antitrust authority over deceptive discount practices... Meta hires SSI CEO Gross as AI race intensifies among tech giants PALO ALTO/TEL AVIV: The battle for top AI talent has claimed another high-profile casualty—this time at Safe Superintelligence (SSI),... Engine defect prompts Nissan to recall over 443,000 vehicles FRANKLIN, Tennessee: Hundreds of thousands of Nissan and Infiniti vehicles are being recalled across the United States due to a potential... Microsoft trims jobs to manage soaring AI infrastructure costs REDMOND, Washington: Microsoft is the latest tech giant to announce significant job cuts, as the financial strain of building next-generation... Stocks worldwide struggle to make ground Friday with Wall Street closed LONDON UK - U.S. stock markets were closed on Friday for Independence Day. Global Forex Markets Wrap Up Friday with Greeback Comeback... Massachusetts Section Engine defect prompts Nissan to recall over 443,000 vehicles FRANKLIN, Tennessee: Hundreds of thousands of Nissan and Infiniti vehicles are being recalled across the United States due to a potential... Red Sox ride hot offense, sweep Nationals (Photo credit: Rafael Suanes-Imagn Images) Trevor Story and Ceddanne Rafaela each homered to help the visiting Boston Red Sox complete... Red Sox ride hot offense in sweep of Nationals (Photo credit: Rafael Suanes-Imagn Images) Trevor Story and Ceddanne Rafaela each homered to help the visiting Boston Red Sox complete... Wizards acquire CJ McCollum, others in 3-team trade (Photo credit: Bruce Kluckhohn-Imagn Images) The Washington Wizards completed a three-team trade on Sunday, acquiring guard CJ McCollum,... Angel Reese, Alyssa Thomas among dozen All-Star Game reserves (Photo credit: Jayne Kamin-Oncea-Imagn Images) League rebounding leader Angel Reese of the Chicago Sky and assists leader Alyssa... Ace Garrett Crochet, hot-hitting Red Sox eye sweep of Nats (Photo credit: Gary A. Vasquez-Imagn Images) The visiting Boston Red Sox will look for more of the same from their offense Sunday... Movie Review The Belko Experiment