Mining News: Northern Neighbors: Skeena buys Spectrum neighbor from Teck, NGEx

Skeena Resources Ltd. Oct. 6 reported acquisition of the GJ copper-gold property from joint venture owners Teck Resources Ltd. (51 percent) and NGEx Resources Inc. (49 percent). The 37,508-hectare (92,684 acres) GJ property lies adjacent to the eastern boundary of Skeena’s Spectrum property in the Golden Triangle of Northwest British Columbia. Crossed by Highway 37 and the recently completed 287-kilovolt Northwest Transmission Line, the infrastructure at GJ is excellent. Additionally, Skeena gets a well-maintained winterized camp as part of the purchase. Skeena President and CEO Walter Coles said, “The consolidation of the adjacent Spectrum and GJ properties will provide important access and infrastructure synergies that should lower unit exploration costs and provide flexibility for future development of Spectrum.” Under the terms of the agreement, Skeena will acquire full ownership of the GJ by: paying C$500,000 in cash and issuing C$1 million worth of Skeena common shares (based on a 10- day weighted average price) on closing; issuing C$1.5 million worth of Skeena shares by the second anniversary of the closing; issuing C$1.5 million worth of Skeena shares by the fifth anniversary of the closing; and making a C$4 million cash payment within 45 days after the start of commercial production from the GJ property. The main GJ claim block will be subject to a two percent net smelter return royalty in favor of Teck and NGEx, of which 50 percent can be purchased for a C$2 million cash payment. The northern part of the property is subject to a one percent NSR to Teck and NGEx, of which 50 percent can be purchased for a C$1 million cash payment. Northern GJ is also subject to a one percent NSR payable pursuant to a third party. The GJ property includes the Donnelly and North Donnelly porphyry copper-gold deposits which have a historic measured and indicated resource of 153.3 million metric tons, grading 0.32 percent (1.1 billion pounds) copper and 0.37 g/t (1.8 million ounces) gold, according to an NI 43-101 technical report completed in 2007. Additional drilling was completed at Donnelly by Teck between 2011 and 2013. Skeena has commissioned the original authors to prepare an updated NI 43-101 resource that incorporates the Teck drilling. In addition to the porphyry copper-gold deposits, some 14 other prospects are reported, including several high-grade gold-silver vein targets, which received only limited exploration. Skeena plans to complete a thorough compilation of all available exploration information in order to plan exploration at GJ in 2016.

- Shane Lasley