|April 29, 2010|
Skeena Acquires Underlying Vendor Interest in Copper-Platinum-Palladium-Gold Tropico Project, Mexico
|News Release: 10-06|
Skeena Resources Limited (TSX.V: SKE) is pleased to announce that it has acquired a one hundred percent undivided equity interest from three underlying vendors in the previously optioned 27,329 hectare Tropico copper-platinum-palladium-gold project in Sinaloa State, Mexico. The property is well located with respect to low-cost infrastructure, being crossed by a paved highway, a major powerline, within 10 km of the coastal N-S rail line, and 25 km north of the deep water port of Mazatlan.
The Tropico property covers an east-northeast striking, 17 km long by 2 to 3 km wide, Late Jurassic to Early Cretaceous Layered Ultramafic to Mafic Igneous Complex that intrudes Paleozoic schists (metasediments). The Complex is cored by pyroxenite, or mixed pyroxenite-gabbro, which in turn is enclosed by gabbro. It is intruded by Late Cretaceous to Early Tertiary diorite, which is locally cut by quartz diorite to granodiorite (possibly part of the Sinaloa Batholith). Late stage Oligocene volcanics overlie much of the Complex.
The primary exploration targets are large tonnage, potentially open pitable, low-grade zones of disseminated copper sulphide mineralization with associated platinum, palladium and gold values.
The project area has had considerable prospecting, soil geochemistry and ground geophysics, originally by the Consejo De Recursos Minerales, by BHP Minerals and others in the late 1990's. Soil geochemistry, extensive mechanical trenching and drilling during the period 1999 to 2002 were completed by a joint venture of Virginia Energy Resources Inc. (formerly Santoy Resources Ltd.) and Almaden Minerals Ltd. of Vancouver. This latter work was largely financed by Sumitomo Metal Mining Co. Ltd. of Japan. Historic expenditures are in the order of $4.5 million.
To date, nine sulphide occurrences have been identified at Tropico, consisting of variable amounts of chalcopyrite, cubanite, chalcocite, bornite, pyrrhotite, pyrite and minor pentlandite. Some of the better mineralized trenches at the Maricela Occurrence were reported to assay 0.50 to 1.00 % copper (Cu) and up to 1 gram/tonne combined platinum (Pt) + palladium (Pd) + gold (Au) (generally with a platinum to palladium ratio in the order of 0.75:1) over widths of 15 to 160 metres. Some 39 drill holes totaling approximately 6,550 metres are reported in the Santoy-Almaden Joint Venture ("the JV") summary report (28 core holes by the JV). The best reported drill intercepts were 0.5% Cu and 0.75 g/t Pt+Pd+Au over 38.9 metres (hole M-02-08) and 0.39 % Cu and 0.55 g/t Pt+Pd+Au over 128.1 metres (hole M-01-03) at Maricela; and 0.54% Cu and 0.52 g/t Pt+Pd+Au over 47.0 metres and 0.82% Cu and 0.70 g/t Pt+Pd+Au over 15.5 metres at San Pablo (hole SP-02-01). For trench and drill results, the reader is referred to nine news releases filed under Virginia Energy on the SEDAR website between Jan. 19/01 and Dec. 20/02.
The project was terminated by the JV in December, 2002 due to depressed metal prices (copper at $0.75/lb., platinum at $590/oz., palladium at $230/oz., and gold at $345/oz.) and a proposed follow-up drill program was never initiated. The recent surge in metal prices (nearly triple the values that drove the initial rush in this area) has again made this an exciting and robust exploration play.
The majority of the Tropico Project area was acquired in two Option Agreements; the first with the Virginia Energy (60%) -- Almaden Minerals (40%) Joint Venture, and the second with privately-held Minera Cascabel SA de CV (refer to news release dated February 19, 2008). In order to effect a 100% buy-out of these two underlying Option Agreements, with no further obligations or payments by Skeena to the vendors, Skeena shall issue 8 million common shares and 4 million share purchase warrants to the 3 parties, subject to regulatory approval, as follows:
* 5-year non-transferable share purchase warrants, exercisable at $0.50/share during the first 2 years, and at $1.25/share during the last 3 years, subject to certain conditions and provisions.
A 2% NSR royalty interest is reserved for the Virginia Energy -- Almaden Joint Venture on certain of the lands within the original JV, with half of that interest purchasable for fair market value upon presentation of a feasibility study. A 2% NSR royalty interest is also reserved for Minera Cascabel on the area of that mineral concession known as San Pablo. As the Skeena and Virginia Energy boards are not fully at arm's length, this agreement has been approved by independent committees of both companies.
In 2008 the Company contracted Fugro Airborne Surveys to undertake a helicopter-borne DIGHEM multi-frequency electromagnetic and magnetic survey of the property (1,100 km of 100 metre spaced lines). The Company plans to undertake a new structural interpretation of the project area and a re-compilation of both the airborne and historic ground geophysics in preparation for expanding the property coverage by soil geochemical sampling and machine trenching. The project is expected to be at the drilling stage upon completion of this program.
The Qualified Person under Canada's National Securities Instrument 43-101 responsible for the content of this news release is the Company President and CEO, J. R. Allan, P. Geol.
On Behalf of the Board of Directors of
SKEENA RESOURCES LIMITED
J. R. Allan, P. Geol., President & CEO
Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
Contact: Tony Perri -- Investor Relations, Manager at 604-684-8725
Or Raju Wani of Wani Capital at 403-240-0555
Suite 611, 675 W. Hastings St. Vancouver, B.C., Canada V6B 1N2
Tel: (604) 684-8725 Email: email@example.com
You can view the Next News Releases item: Wed May 26, 2010, Skeena Proposes $1,000,000 Private Placement Financing
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