Skeena’s stock up after releasing Eskay Creek results
Skeena Resources (TSX: SKE.V) on Tuesday released infill results from its flagship Eskay Creek project in British Columbia’s Golden Triangle, with some intercepts returning above-resource grades.
Drill highlights include:
- 36.9 metres of 14.73 g/t gold-equivalent;
- 37.9 metres of 8.53 g/t gold-equivalent; and
- 18.5 metres of 9.02 g/t gold-equivalent.
Current resources for Eskay Creek stand at 13.5 million tonnes in the indicated category grading 6.1 g/t gold-equivalent for a total of 2.7 million oz. and an additional 13.9 million inferred tonnes at 2.9 g/t gold-equivalent for a total of 1.3 million oz. The majority of these resources are pit-constrained.
In November, the Vancouver-based miner published the results of a preliminary economic assessment (PEA) for Eskay. The mine would produce an average of 306,000 gold-equivalent oz. annually at all-in sustaining costs of $757 per oz. The associated net present value estimate, at a 5% discount rate, is C$638 million.
Eskay Creek produced 3.3 million oz. of gold and 160 million oz. of silver between 1994 and 2008.
At market close Tuesday, Skeena’s stock was up over 11%, with trading volume more than double the daily average. The company has a C$117 million market capitalization.
(A version of this article first appeared in the Canadian Mining Journal)