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 Pennsylvania Sun 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 Pennsylvania Sun. More Information 26 ℉ Fair in Harrisburg/Capital International Section Australian High Court to hear appeal by George Pell MELBOURNE, Victoria, Australia - The Australian High Court will hear an appeal of a decision in August by the Court ... Unrest in South America resembles Arab Spring The news that Bolivian President Evo Morales is resigning amid an election fraud scandal highlights an unfortunate reality about South ... U.S. and China could split world economy in two It's tempting to laugh off the U.S.-China trade dispute as a soap opera featuring men with big hair and bigger ... Collision between 2 trains in Bangladesh leave many dead DHAKA, Bangladesh - There has been a major loss of life and scores of people injured after a collision between ... President Trump preparing to release transcript of second call ANDREWS AIR FORCE BASE, Maryland - U.S. President Donald Trump, contrary to reports, insists he wants his impeachment hearings public.Asked ... Mixed feelings for East Germans as 30th anniversary passes Thirty years ago, on November 9, with a sense of momentous events palpable in Berlin's famous air, East Germans began ... Business Section Stocks in Asia drop as Hong Kong unrest unsettles markets SYDNEY, Australia - Stocks dropped across the board in Asia on Wednesday, with the biggest loser being Hong Kong's Hang ... 4% GDP expected for Paraguay in 2020 ASUNCION, Paraguay - An International Monetary Fund (IMF) team has concluded the economy in Parayguay, despite enduring a number of ... Trump talks up China deal, markets reply ho hum NEW YORK, New York - U.S. stocks steadied on Tuesday with little incentive to push them in either direction.U.S. President ... Australian stocks weaken, Japanese and Chinese shares steady SYDNEY, Australia - There was a lot of indecision on Asian markets Tuesday, leading to a mixed close.The Australian All ... Irish beef to be on menu for China-Ireland trade talks this week DUBLIN, Ireland - Ireland is sending a trade delegation to China this week in a bid to cement trade ties ... Wall Street slides as investors try and come to grips over trade talks NEW YORK, New York - U.S. stocks were weaker on Monday as the trade ructions with China continued, Moody's changed ... Movie Review General Idi Amin Dada: A Self-Portrait (Gnral Idi Amin Dada: Autoportrait)