Skeena’s Eskay Creek again ranked #1 precious metals project

Congratulations are again in order for Skeena Resources (TSX: SKE). Its 100%-owned Eskay Creek gold project in British Columbia has been ranked the #1 precious metals project in the world for the third year in a row. The rankings were assigned as part of Mining Journal’s 2024 Project Pipeline Handbook.

Randy Reichert, Skeena president and CEO, was delighted. He said, “We are very pleased with Eskay Creek’s consistent recognition as the world’s top precious metals project. Since acquiring full ownership of the property in 2020, we have made tremendous strides towards advancing the project from exploration into development. This recognition solidifies Eskay Creek’s reputation as one of the world’s premier mining projects.” 

Projects were assessed across six key pillars: economic, jurisdiction, confidence, financial ability, geology, and engineering. Eskay Creek’s total was 89 out of 100.

Skeena produced a definitive feasibility study for Eskay Creek in November 2023. Eskay Creek remains one of the highest-grade and lowest-cost open-pit precious metals projects in the world, with 4.6 million oz. of reserves at an average grade of 3.6 g/t gold equivalent.

The Eskay Creek mine was active from 1994 to 2008. It produced 3.3 million oz. of gold and 160 million oz. of silver from ore that averaged 45 g/t gold and 2,224 g/t silver. At the time it was the highest-grade gold mine in the world.

The measured and indicated resource is 50.1 million tonnes grading 2.6 g/t gold and 32.0 g/t silver, containing 5.6 million oz. gold and 101.4 million oz. of silver.

Mining will take place in an open pit, rather than from underground as it did previously. The mine will have a 12-year life, during which time 2.8 million oz. gold and 81.1 million oz. silver (3.9 million oz. gold equivalent) will be produced in concentrate. The all-in sustaining cost will be US$684 per oz. gold equivalent.

Skeena says the pre-production capital expenses will be $713 million, plus $9 million for expansion, $561 million for sustaining capital, and $176 for closure expenses. The mine has an after-tax net present value (discounted 5%) of $2 billion and an after-tax internal rate of return of 42.9%. Over the life of the mine, the after-tax free cash flow will be $3 billion.

More details are posted on www.SkeenaResources.com.