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Skeena raises C$73.5M for Eskay Creek

Cash will fund early development at gold-silver mine project North of 60 Mining News - May 26, 2023

Skeena Resources Ltd. May 24 announced that is has raised C$73.5 million (US$53.9 million) to carry out early development activities at its Eskay Creek gold-silver mine project in Northern British Columbia.

A feasibility study completed last September details plans for an open pit mine at Eskay Creek that would produce 2.42 million ounces of gold and 66.7 million oz of silver from 29.9 million metric tons of proven and probable reserves averaging 2.99 grams per metric ton gold and 79 g/t silver.

At US$1,700/oz gold and US$19/oz silver, the operation detailed in the Eskay Creek feasibility study is expected to generate an after-tax net present value (5% discount) of US$1.1 billion (C$1.41 billion) and a 50.2% after-tax internal rate of return.

"The feasibility study confirms the robust economics of the world-class Eskay Creek Project originally shown in the prefeasibility study but with improved definition," said Skeena Resources President Randy Reichert.

To help fund early work key to development of the Eskay Creek Mine, Skeena raised C$73.5 million through the issuance of 10 million company shares at C$7.35 each.

"These funds strongly position Skeena with the proceeds being used to complete key development milestones at the Eskay Creek Project including an on-site assay lab, earthworks and detailed engineering," said Reichert. "We look forward to the work planned this summer as it represents a significant step in the advancement of Eskay Creek toward production."

Skeena envisions the completion of construction at Eskay Creek by the end of 2025 and commercial production at the North BC gold-silver mine early in 2026.

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Shane Lasley, Publisher

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Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.


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