Skeena clears final permit for Eskay Creek mine restart

Skeena Gold & Silver (TSX: SKE) shares rose nearly 10% in pre-market trading Tuesday after the company secured its final regulatory approval to advance the Eskay Creek gold-silver project in British Columbia, Canada.

The miner received an Environmental Management Act permit from provincial authorities, completing the permitting process and clearing the way for commercial development. The approval was issued jointly with the Tahltan Central Government and follows the BC Mines Act permit granted on Jan. 27 as part of a coordinated application.

Mining operations at Eskay Creek are targeted to restart in the second quarter of 2027.

“We are deeply grateful to our employees, the Tahltan Nation and the regulatory authorities for their ongoing support throughout this process,” Skeena CEO Randy Reichert said in the statement. He added the company is now positioned to move toward construction and long-term value creation.

Eskay Creek, a former Barrick Mining asset in BC’s Golden Triangle, was once considered the world’s highest-grade gold mine. A 2023 feasibility study outlined an estimated 12-year mine life with average annual production of 320,000 oz. of gold-equivalent, including 455,000 oz. of gold over the first five years.

The project is expected to generate about 1,000 jobs during peak construction and more than 770 jobs at peak operations, with projected capital spending of C$713 million and approximately C$1.2 billion in provincial revenues.

Under the project’s environmental assessment certificate, substantial construction must begin by 2036.