Skeena completes robust feasibility study for Eskay Creek

Eskay Creek 2022 FS Highlights:

• After-tax net present value (NPV) (5%) of CAN$1.41 billion at a base case of US$1700 gold and US$19 silver.
• Robust economics with an after-tax internal rate of return (IRR) of 50.2% and an industry leading after-tax payback on pre-production capital expenditures of one year.
• High-grade open-pit averaging 3.87 g/t gold equivalent (AuEq) (2.99 g/t gold, 79 g/t silver) (diluted) with a strip ratio of 7.5:1.
• Years 1 – 5 average annual production of 431 000 AuEq ounces, places Eskay Creek as a tier one operation.
• Life of mine (LOM) production of 3.2 million AuEq oz from 2.4 million oz of gold and 66.7 million oz of silver.
• Estimated pre-production capital expenditures (CAPEX) of CAN$592 million, yielding a compelling after-tax NPV:CAPEX ratio of 2.4:1.
• LOM all-in sustaining cost (AISC) of US$652/oz AuEq recovered in concentrate.
• Proven and Probable open-pit mineral Reserves of 29.9 million t containing 2.87 million oz gold and 75.5 million oz silver (combined 3.85 million AuEq oz).
• A carbon intensity of 0.20 t CO₂e/oz AuEq produced, positioning Eskay Creek to be one of the lowest carbon intensity mines worldwide.

Randy Reichert, Skeena’s President, comments:

“The FS confirms the robust economics of the world-class Eskay Creek Project originally shown in the Pre-FS but with improved definition. The open-pit mineable, high-grade ore combined with the existing infrastructure at the Eskay Creek site and nearby hydropower provides for an extraordinary project that can be developed by Skeena. While the team continues to work on optimization of the project, my primary focus will now shift to advancement of the permitting process as we move Eskay Creek toward construction.”

Walter Coles, CEO, added:

“Eskay Creek is a truly unique deposit that provides excellent profit margins due to its existing infrastructure and very high open-pit grade. Even at US$1400 gold and US$13 silver prices, the project still generates an average annual after-tax cash flow of CAN$209 million with an after-tax IRR of 36% and a 1.5 year payback on initial capital.”

Read the article online at: https://www.globalminingreview.com/mining/13092022/skeena-completes-robust-feasibility-study-for-eskay-creek/