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 Los Angeles Herald 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 Los Angeles Herald. More Information 61 ℉ Mostly Cloudy in Los Angeles/Usc International Section U.S. economic downturn translates to lowest birth rate in 40 years WASHINGTON DC - Amidst the radical turndown in the American economy during the Covid lockdown, birth rates in the United ... WHO says "low confidence" in Sinopharm Covid side-effects data GENEVA, Switzerland: World Health Organization experts have said they have "very low confidence" in data received from Chinese state-owned drugmaker ... White House seeks subsidies for nuclear power in bid for clean energy WASHINGTON D.C.: The White House is talking with lawmakers to offer subsidies to the nation's nuclear power plants, in a ... Fear of Covid variants calls off Oktoberfest for 2nd year MUNICH, Germany: Authorities in Germany have called off Oktoberfest for the second straight year, saying the festival, which attracts nearly ... Police recognize wanted Mafia fugitive on YouTube from tattoos SANTO DOMINGO, Dominican Republic: Italian detectives have arrested a member of the Italian mafia after seeing him on YouTube in ... 93 policemen killed in 2020, 41 shot to death WASHINGTON D.C.: The FBI has reported that 93 police officers were killed in the line of duty in 2020.This was ... California Section Airlines, biofuel industries discuss low-cost biofuels with U.S. House WASHINGTON D.C.: As part of a larger drive by lawmakers to advance climate and energy legislation, members of a U.S. ... Push in California for more access to fresh fruit and vegetables SOUTH LOS ANGELES, California - Groups that fight hunger want local government to step in and make sure all Californians ... Google set to ensure app developers inform users about data California [US], May 8 (ANI): The Alphabet giant Google has now previewed a new section in Google Play that will ... LB Henry To'o To'o announces transfer to Alabama Tennessee linebacker Henry To'o To'o announced Saturday he will play next season at Alabama, spurning another primary suitor, Ohio State, ... Chris Paul, Suns seek sweep of Lakers, top spot in West Both the defending champion Los Angeles Lakers and the Phoenix Suns find themselves a game behind where they want to ... Tony La Russa says White Sox have no room for Albert Pujols Tony La Russa and Albert Pujols have quite a history together, but the Chicago White Sox manager says he doesn't ... Movie Review Portrait of a Lady on Fire (Portrait de la jeune fille en feu)