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Drilling 'verifies modelling' at Skeena's Eskay Creek

Skeena Resources has reported more gold-equivalent intercepts from ongoing resource definition and exploration drilling at its Eskay Creek project in British Columbia.
Drilling 'verifies modelling' at Skeena's Eskay Creek Drilling 'verifies modelling' at Skeena's Eskay Creek Drilling 'verifies modelling' at Skeena's Eskay Creek Drilling 'verifies modelling' at Skeena's Eskay Creek Drilling 'verifies modelling' at Skeena's Eskay Creek

Skeena Resources is continuing drilling at Eskay Creek in British Columbia

Staff reporter

The company reported highlights including 42.8m at 3.8g/t gold-equivalent - or 1.73g/t gold and 155g/t silver - from infill drilling at the 22 Zone.

Skeena said the results demonstrated the phase one infill programme continued to "verify the expected grades, thickness and continuity of mineralisation modelled in the 22 Zone". 

It said 12 rigs were currently active in the phase two infill programme, focused on resource category conversions on open-pit constrained resources for a prefeasibility study.

The company is planning a breakout year in 2021 as it aims to bring the former Barrick Gold mine to a production decision.

It's now advertising for a mine/site manager at Eskay Creek.

A 2019 preliminary economic assessment had outlined initial capex of US$223 million, after-tax NPV5 of $491 million and IRR of 51%, for an 8.6-year mine producing an average annual 236,000 ounces of gold and 5.8 million ounces of silver, or 306,000oz gold-equivalent.

Skeena had raised C$46 million at $2.35 per share in November to advance its two projects in BC, Eskay Creek and Snip, another former Barrick mine.

Its shares (TSX: SKE), which graduated to the TSX in August, have ranged from C50c-$3.34 over the past year.

They closed down 0.35% yesterday to $2.83, capitalising it about $606.2 million (US$473 million).