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High-grade hits continue at Eskay Creek

Skeena Resources (TSXV: SKE) has reported more high-grade hits in the final results from the drilling completed so far in its 2020 phase one programme at Eskay Creek in British Columbia’s Golden Triangle.
High-grade hits continue at Eskay Creek High-grade hits continue at Eskay Creek High-grade hits continue at Eskay Creek High-grade hits continue at Eskay Creek High-grade hits continue at Eskay Creek

Skeena Resources is working towards a PFS for Eskay Creek in BC

Staff reporter

Skeena reported an intercept of 0.83m at 753g/t gold and 445g/t silver, or 758.93g/t Au-eq, within a wider 22.5m at 33.82g/t Au-eq.

Another highlight from the 21B Zone included 24.55m at 6.09g/t Au-eq.

"The phase one infill drill programme at Eskay Creek continues to predictably confirm the grades and spatial limits of the resource model that was derived largely from the historical drilling database," the company said.

It's advancing the former Barrick Gold mine to prefeasibility after releasing a "robust" preliminary economic assessment in November, which outlined average annual production of 306,000oz Au-eq for initial capex of US$233 million, with an after-tax NPV5 of $491 million and IRR of 51%.

Skeena secured the option to acquire Eskay Creek from Barrick in December 2017, the same year it acquired the former Snip mine from Barrick.

It has cash on hand after raising C$33.3 million (US$23.6 million) in an upsized placement priced at $1.05-$1.115 in April, then receiving $7.5 million from Newcrest Mining (ASX: NCM) for its GJ copper-gold project last week.

Skeena is among the nominees for best explorer/developer in this year's annual Mining Journal Awards. 

Its share price trebled from 35c in July to $1.21 in February.

It closed up 6.9% to $1.08 yesterday, capitalising Skeena at $159 million (US$113 million).