Mineral Exploration

W inte r 20 17 17 PHOTO: SKEENA RESOURCES LIMITED important to BGM's exploration activities and mining operations. Engagement is an ongoing process with the intent to establish a mutually beneficial and co-operative foundation for the development of a long-term relationship between First Nations and BGM. "A framework was created with local First Nations communities for training, ongoing communication on stewardship, and opportunities for businesses within the community to participate in the exploration activities and operations. BGM is actively recruiting in our local communities." Skeena Resources Limited Skeena Resources Limited is a junior Canadian mining exploration company focused on developing prospective precious and base metal properties in the Golden Triangle region of northwest B.C. Its primary activities are exploring and developing the past-producing Snip gold mine, acquired from Barrick Gold, and the past-producing Porter Idaho silver mine. Skeena also recently announced preliminary economic assessment results for the Spectrum- GJ copper-gold porphyry project. On September 25, Skeena announced that it had signed an exploration agreement with the Tahltan Central Government. The exploration agreement will address employment and contracting opportunities, permit application reviews, environmental monitoring, protection of cultural resources, and capacity funding support as it relates to Skeena's exploration work in Tahltan traditional territory. According to Kelly Earle, Skeena's vice-president, communications, "Skeena's flagship project is the past-producing Snip gold mine located in the Golden Triangle of northwest British Columbia, where we've recently commenced drilling from underground. We acquired 100 per cent interest in the project from Barrick Gold in July of this year, so the past few months have been spent on permitting, reopening the historic[al] portals, establishing ventilation and installing ground support prior to commencing drilling. Fortunately, now that we're underground, we'll be able to drill throughout the winter, which is usually not possible in northern British Columbia. "Our Phase 1 drill program at Snip will consist of 9,000Œmetres of underground drilling over approximately 70 holes. Snip produced 1.1 million ounces of gold at an average grade of 27.5 g/t from 1991 to 1999. As the cut-o¦ grade during production rose from 12 g/t gold when the mine opened to 24 g/t gold when it closed, our thesis in acquiring the project was that a great deal of mineralization was left behind that was below the cut-o¦ grade. So, we are expecting to release some exciting, high-grade results over the winter months, which will lead to a maiden resource estimate being released in 2018." In fact, mineralization at Snip is near surface, and the orebodies were developed over a 500-metre vertical extent from a surface elevation of 700Œmetres down to the 200-metre level. All the workings are above the valley floor, which is at an elevation of 130 metres. Exploration drilling has tested the mineralization from surface at 700Œmetres down to 100Œmetres below sea level. Drilling from underground allows Skeena to drill much shorter holes than if it was drilling from surface, which saves money. The average drill hole length for Phase 1 will be 125Œmetres. Says Earle, "Our best results from our 2016 surface drill program include: 16.24 g/t gold over 13.5Œmetres, including 31.0 g/t gold over 4.5Œmetres in S-16-06; 16.0 g/t gold over 4.7Œmetres, including 37.7 g/t gold over 1.65Œmetres in hole S-16-11; and 24.4 g/t gold over 3.2Œmetres, including 38.3 g/t gold over 1.9Œmetres in hole S-16-16. "We were prohibited from drilling within 25Œmetres of the underground workings in 2016 as we had not yet acquired 100 per cent interest in the project. As such, the historical drill intercepts from underground are even more impressive. There are quite literally hundreds of high-grade historical intercepts in the database we inherited. Some of the best results, from areas that were not mined in the 1990s, include: 47.3 g/t gold over 8.1Œmetres, including 300.5 g/t gold over 1.2Œmetres in hole UG-1783; 78.1 g/t gold over 5.0Œmetres, including 198.2 g/t gold over 1.9Œmetres in hole UG-1742; and 120.4 g/t gold over 2.7Œmetres in hole UG-1356." Earle explains how important it has been to engage with First Nations, describing it as a core aspect of Skeena's business. There is a commitment to responsible development of Skeena's projects and to making a positive di¦erence to the places where the company works. In addition, Earle says Skeena is actively working toward continually increasing Indigenous representation in its workforce and contractor base. Environmental considerations Both companies profiled here are committed to protecting their natural environment. For example, Skeena considers environmental protection a very high priority. As the owner of several closed mines, it monitors all sites in accordance with the terms of their respective permits. Water quality and hydrology, toxicity testing, waste characterization, and independent facility inspections and reviews are some of the types of programs being run. Skeena is also working to develop a company-wide environmental management system that will ensure all its projects are working to meet industry best management practices for environmental protection. The last words are Layman's: "BGM's vision is to build a sustainable, low- impact mining company. We mitigate and manage disturbance from exploration drill programs by conducting ongoing reclamation of drill pads, and ensure proper planning of activities to minimize risk factors including sediment erosion. The environment, health and safety is the top priority within the company and is everyone's responsibility." Looking out from Snip's underground 440 portal.

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