Mining News: Northern Neighbors: Drilling planned for historic, high-grade Snip Mine

Skeena Resources Ltd. May 17 unveiled plans for a 3,000-meter drill program at its recently acquired Snip gold property in northwestern British Columbia. Snip historically hosted a high-grade underground mine that produced 1.1 million ounces of gold from 1.25 million metric tons of ore averaging 27.5 grams per metric ton gold. The mine began production in 1991 and operated until 1999, when high operating costs, exhaustion of economic reserves, and the US$300/oz. price of gold at the time prompted Barrick Gold Corp. to shut it down. Skeena believes that current gold prices and the vastly improved infrastructure – run-of-river hydro power generated at McLymont Creek and an all-season access road now within 20 kilometers (12.5 miles) – should allow for a significantly lower mine grade cut-off. Thus, the remaining zones and high-grade targets listed below are considered to have significant upside potential. Under the direction of Skeena Chairman Ron Netolitzky, and Ron Nichols – both of whom were involved in the discovery and exploration of Snip from 1986 to 1989 – the company has undertaken a review of Barrick’s comprehensive database of historic exploration reports and operational mine information. Numerous exploration targets away from the historic mine workings have been identified: Deep Footwall; Lamp Zone; Twin West Zone; Eastern Deeps; Boundary Pond and Gold Ring; Monsoon Ridge and Jim Porphyry. Skeena says these represent excellent initial drill targets for high-grade resource definition.

- Shane Lasley