Name of the Project
Eskay Creek gold/silver project.

Location
Tahltan Territory, in the Golden Triangle of north-west British Columbia, Canada.

Project Owner/s
Precious metals developer Skeena Resources.

Project Description
A definitive feasibility study (DFS) has demonstrated a robust project with industry-leading economics for a conventional openpit mining and milling operation.

Openpit mining will follow down slope of the ridge where the deposit is located. The north pit will comprise ten phases, while the south pit will be developed as a single phase. 

The project will have a processing life of about 12 years producing 2.8-million ounces of gold, 3.94-million ounces of gold equivalent and 81.14-million ounces of silver over the life-of-mine.

The DFS outlines an average production profile of 455 000 gold equivalent ounces in the first five years of operation. In Years 1 to 5, three-million tonnes a year will be processed. A pebble crusher will be added in Year 3 to maintain production when harder ore is processed in Year 4.

An expansion will be completed in Year 5 to increase processing capacity to 3.5-million tonnes a year when harder and lower-grade ore is processed, starting in Year 6. Only minor upgrades will be required to the processing plant equipment list, as most of the major equipment items, such as the mills, are presized for this higher throughput and harder ore. Mill-motor footprints will be capable of having larger electrical motors installed at that time.

Run-of-mine material will be trucked from the openpits and either stockpiled or directly fed into the primary crusher.

Potential Job Creation
The project will create more than 800 direct jobs and potentially 2 000 jobs for outside service and contract organisations.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of C$3.11-billion and an internal rate of return of 53.1%, with a payback of 1.1 years.

Capital Expenditure
Preproduction capital is estimated at C$713-million, and expansion capital at C$9-million.

Planned Start/End Date
The project is expected to enter operation in 2027.

Latest Developments
Skeena Resources has collected $45-million of gold stream funding under its gold stream arrangement.

This is the second of five tranches under the previously announced $200-million gold stream.

The remaining three tranches will be drawn in settlements of $50-million each, subject to the satisfaction of certain customary conditions before March 31, 2026, to support continued development of project.

The company has reported continued advancement on numerous authorisations from the province of British Columbia to support ongoing activity at Eskay Creek.

Skeena says it has successfully advanced various preconstruction activities as part of the early works programme.

In June 2024, Skeena received approval for an amendment to the Mines Act permit M-197 from the province of British Columbia, which allowed for early works activities.

The approval of this permit was the first step required to facilitate the start of a technical sample quarry and land clearing to start.

During the 2024 season, from June to November, activities included access to the technical sample area and clearing of the area; advancing two pilot haul roads; advancing the infrastructure pad area; and the start of civil earthworks for the Volcano Creek substation to interconnect with Coast Mountain Hydro to supply future hydrosourced electricity to the project.

Engineering and procurement is progressing well and on budget, with the estimates outlined in the 2023 DFS, Skeena has said.

Most of the major mill equipment has been contracted. Long lead-time items, such as electrical components, have also been secured. Other critical contracts continue to advance including the selection of a mobile mining fleet supplier.

Skeen president and CEO Randy Reichert has said the company is encouraged by the supportive and constructive dialogue with the province of British Columbia, which helped facilitate early works activities in 2024. As a result, the company is progressing with its predevelopment plans and proactively derisking the project to stay on track for production in 2027. 

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Skeena Resources, tel +1 604 684 8725 or email info@skeenaresources.com.