Re: News Release - Tuesday, February 17, 2009
Title: Skeena acquires Anglo-Rouyn Tailings Recovery Project, Saskatchewan
NR: 09-06
Skeena Resources Limited (TSX.V: SKE) is pleased to announce acquisition of the Anglo Rouyn gold-copper Tailings Recovery Project, 35 km northeast of La Ronge, Saskatchewan. The Anglo Rouyn mine, developed by Rio Algom Mines in the 1950's, and in continuous operation from 1966 to 1972, produced approximately 2 million tons of ore with an average recovered grade of 1.64% copper, 1.2 g/t gold and 5.5 g/t silver. The mine tailings were deposited on the shore of and into Lac La Ronge. During the past twenty years, numerous studies have been undertaken to reprocess the tailings for their gold, copper and magnetite content, including a program by Nelson International Sales in 1988, by AMOK Ltd. in 1989, by Cominco Engineering and by Lakefield Research in 1990, by Moen Builders in 1993, by Cameco, and a feasibility study by Boise Assayers and Metallurgy Inc. (L. F. Mashburn, P.E.) on behalf of the private Anglo Rouyn Tailings Limited Partnership ("ARTLP"). The latter program included 74 sonic drill holes, 28 backhoe test pits and a pilot plant that operated for six weeks in 1992 and processed approximately 4,300 tons of tailings. The ARTPL study indicated the presence of greater than 1.5 million tonnes of tailings of which 1.1 million tonnes were classified as being readily amenable to gravity separation, grading approximately 1 g/t gold (30,750 oz.), >3 g/t silver (144,000 oz.), 0.19% copper (4,940,000 lb.), and 4.65% magnetite (60,450 tons). (All of the historic resource estimates were prepared prior to the implementation of Canada's NI 43-101 and thus, are not compliant with today's reporting standards and requirements. A Qualified Person has not done sufficient work to verify these numbers and the reader is cautioned that they are quoted for general context only).
In 2003-4 ARTLP acquired a surface lease, permitted the tailings recovery project (including a closure and rehabilitation program), constructed a 4,800 ton/day gravity/magnetic separation plant (two parallel circuits) at a cost of $1.8 million, installed a slurry pump and 300-metre pipeline from the tailings to the plant, and installed a 21 man Atco trailer camp (including a cookhouse, office, laboratory unit, bunkhouses and washcar). Recoveries did not meet economic expectations and, after two partial operating seasons and numerous engineering modifications, the plant was mothballed with the price of gold at $330/oz.
Under the terms of an Option Agreement, subject to regulatory approval, the Company can earn a 100% undivided interest in the mine tailings, the gravity/magnetic separation recovery plant, and the 7-unit Atco trailer camp from privately held Anglo Rouyn Tailings Limited Partnership in return for the issuance of 4 million shares of Skeena over a 3 year period (2 million shares upon regulatory approval of the agreement) and $680,000 of cash payments over 3 years ($100,000 upon signing of the agreement). A 2% Net Smelter Return royalty is reserved for ARTLP, payable to a third party.
The Company is currently completing a verification program of gold grade and grain size distribution of the tailings prior to either re-engineering the plant or undertaking a low-cost, more rudimentary placer-style recovery program using a Bennett Box. The project is still fully permitted and is road accessible.
This acquisition is the Company's second gold project (see news release dated February 5, 2009) with a potential for near-term revenue with minimal capital cost and engineering. Furthermore, the Company has significant tax losses available with which to off-set any revenue.
The Qualified Person responsible for the review of this news release is Rupert Allan, P.Geol., Skeena's president and CEO.
ON BEHALF OF THE BOARD OF DIRECTORS OF
SKEENA RESOURCES LIMITED
"Rupert Allan"
J. R. Allan, P.Geol., President
Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
For Further Information Contact:
Rupert Allan or Tony Perri - Investor Relations, Manager
Suite 611, 675 W. Hastings St. Vancouver, B.C., Canada V6B 1N2
Tel: (604) 684-8725 Fax: (604) 669-2543
Email: tperri@skeenaresources.com |