The above-mentioned intercept was in an underground drill hole in a less densely drilled portion of the Upper Twin Zone and also intersected 5m at 8.71g/t.

CEO Walter Coles Jr said the latest results confirmed the high-grade nature of the deposit and the continuity of the veins.

The company will start Phase 2 underground drilling next month and surface exploration drilling in summer.

Skeena exercised its option over the previously mined project from Barrick Gold (CN:ABX) last year and the gold major invested C$1 million (US$0.8 million) at C80c per share in the junior a month ago.

Skeena has appointed Paul Geddes as new vice president of exploration to start in March and bring "a pragmatic approach to resource development" as the company focuses on Snip and Eskay Creek, another former producing mine acquired from Barrick.

Shares in Skeena lost C1c to 77c, capitalising it a little over $59 million (US$47 million).