Mining News: Northern Neighbors: GJ resource updated; Spectrum estimate next

Skeena Resources Ltd. Jan. 14 released an updated resource estimate for the Donnelly and North Donnelly copper-gold deposits at its recently acquired GJ property in the Golden Triangle of northwestern British Columbia. The Donnelly and North Donnelly deposits now host 133.67 million metric tons of measured and indicated resource, using a 0.2 percent copper cut-off, grading 0.32 percent (940.23 million pounds) copper and 0.36 grams per metric ton (1.56 million ounces) gold. In addition, 53.69 million metric tons of inferred resource grading 0.26 percent (312.53 million lbs.) copper and 0.33 g/t (570,000 oz.) gold has been estimated for the deposits. Contained pounds of copper and ounces of gold in the measured and indicated categories have increased by 12 percent each, in comparison to the previous estimate calculated in 2007. Inferred pounds of copper and ounces of gold have increased by 200 percent and 280 percent respectively. The Donnelly and North Donnelly zones are meters wide, 1,600 meters long and an average of 200 meters deep. Skeena says there is good potential for resource expansion to the west and at depth on the Donnelly deposits. It is recommended that drill targets be selected following a detailed review of available geological, geophysical and geochemical data. The report authors also recommend resource modeling the nearby GJ deposit which is not included in the current resource estimate, and completing a property-wide target review to evaluate exploration potential of other porphyry and high-grade vein prospects. The GJ property, which was acquired by Skeena in October, is located adjacent to the company’s Spectrum gold project where 17,350 meters of drilling in 61 holes was completed in 2015. A resource estimated that will include that drilling is expected to be released by the end of the first quarter. Walter Coles, President and CEO of Skeena commented, “The deposits at GJ in conjunction with the Spectrum deposit, all of which are open for expansion, form the foundation of a district-scale development project, located close to electrical power and roads in a mining friendly jurisdiction,” explained Skeena President and CEO Walter Coles. “Although metal prices are not favorable for development of the GJ property at this current time, we view the deposits at GJ as an inexpensive long term call option on copper and gold prices, with very low holding costs.”

- Shane Lasley