One of Canada's most active exploration companies, Skeena Resources (TSX.V: SKE) added to its land position in B.C.'s Golden Triangle with Tuesday’s announcement that it is acquiring the GJ property adjacent to its Spectrum high-grade gold project.

NR here: Skeena Acquires GJ Copper-Gold Project

Skeena is acquiring GJ from majority owner Teck Resources (51%) and 49% joint venture partner NGEx Resources. The property consists of 80 mineral claims totalling 37,508 hectares on Spectrum’s eastern boundary, and includes both high-grade gold-silver veins as well as a copper-gold porphyry.

"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," said Skeena president and CEO Walter Coles Jr. "Also, the GJ Property includes several high-grade gold-silver vein occurrences that are similar and complementary to the Spectrum gold project. Finally, the GJ Property acquisition provides Skeena with long term exposure to copper prices given that Teck and NGEx delineated a significant, near-surface porphyry copper-gold resource that has excellent expansion and development potential, especially for deep high-grade porphyry targets that remain untested."

Source: Skeena Presentation

Skeena will pay Teck and NGEx $500,000 cash and $1 million worth of Skeena shares, $1.5 million worth of Skeena shares on the second anniversary and $1.5 million Skeena shares on the fifth anniversary. A final $4-million cash payment is due on or prior to 45 days before GJ achieves commercial production.

Infrastructure and access are excellent. The GJ Property is crossed by Highway 37, several forestry roads and winter trails, and a new 287-kV power line connecting Imperial Metals’ Red Chris copper-gold mine to the provincial power grid. The property purchase includes a well-maintained winterized camp.

Skeena’s chairman is Canadian Mining Hall of Famer Ron Netolitzky, credited with discovering the Eskay Creek and Snip high-grade gold mines - two of the richest in Canadian history.

The company is likely about to conclude an aggressive 16,000 metre drill program at the Spectrum property this summer. Spectrum has a historic (non 43-101 compliant) resource estimate of about 243,000 ounces of gold and several gold prospects that have yet to be tested.

In the summer, Skeena attempted an all-share takeover of Dolly Varden Resources - another Golden Triangle play - but abandoned the bid after being rebuffed by the Dolly Varden board.

Skeena has 264,258,760 shares outstanding and closed Monday at 8 cents, for a market capitalization of about $21 million. The company had working capital of $6,943,139 as of June 30, 2015.

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NR here: Skeena Acquires GJ Copper-Gold Project

 

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