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Newcrest buys land near Red Chris mine from Skeena

A view of the GJ property. Credit: Skeena Resources Ltd.

Australia-based Newcrest Mining has agreed to buy the GJ copper-gold property in British Columbia from Canadian junior Skeena Resources for C$7.5 million in cash. The transaction is expected to close by May 3.

The 43,500-hectare GJ property consists of 93 contiguous mineral claims situated about 30 km west of the Red Chris mine in the Golden Triangle of northwest British Columbia.

In April 2017, Skeena released a preliminary economic assessment (PEA) for the project, which outlined a 25-year mine life with a low initial capital expenditure of C$216 million, a pre-tax 8% net present value of C$546 million and a 27% internal rate of return.

Skeena previously said that it was seeking a partner to develop the asset to the prefeasibility stage. Following the transaction, Newcrest will assume all future payment obligations and royalties on the property.

Meanwhile, Skeena has also sold its wholly owned subsidiary, Sona Resources, including the Blackdome-Elizabeth property, to Tempus Resources for C$500,000 cash.

Skeena said these divestments will raise funds to advance its Eskay Creek gold project, a past-producing mine in northern British Columbia.