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Skeena Delivers Robust Project Economics for Eskay Creek:

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douginil   Thursday, 11/07/19 08:30:14 AM
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Skeena Delivers Robust Project Economics for Eskay Creek: After-Tax NPV5% of C$638M, 51% IRR and 1.2 Year Payback

Vancouver, BC (November 07, 2019) Skeena Resources Limited (TSX.V: SKE, OTCQX: SKREF) (“Skeena” or the “Company”) is pleased to announce the initial Preliminary Economic Assessment (“PEA”) completed by Ausenco Engineering Canada Inc. (“Ausenco”), supported by SRK Consulting (Canada), and AGP Mining Consultants, for the Eskay Creek gold-silver project (“Eskay Creek” or the “Project”) located in the Golden Triangle of British Columbia.
Eskay Creek 2019 PEA Highlights:

- High-grade open-pit averaging 3.23 g/t Au, 78 g/t Ag (4.17 g/t AuEq) (diluted)
- After-tax NPV5% of C$638M (US$491M) and 51% IRR at US$1,325/oz Au and US$16/oz Ag
- After-tax payback period of 1.2 years
- Pre-production capital expenditures (CAPEX) of C$303M (US$233M)
- After-tax NPV:CAPEX Ratio of 2.1:1
- Life of mine (“LOM”) average annual production of 236,000 oz Au, 5,812,000 oz Ag (306,000 oz AuEq)
- LOM all-in sustaining costs (AISC) of C$983/oz (US$757/oz) AuEq recovered
- LOM cash costs of C$949/oz (US$731/oz) AuEq recovered
- 6,850 tonne per day (TPD) mill and flotation plant producing saleable concentrate

Skeena’s CEO, Walter Coles commented, “Eskay Creek was a remarkable discovery that became an extraordinary underground mine in 1994 and produced until 2008. This PEA demonstrates that Eskay Creek still has a bright future ahead, revitalized as an open-pit gold and silver mine, with the additional possibility for underground mining. The Project has the potential to produce an average of 306,000 gold-equivalent ounces per year with a diluted mill feed grade of 4.17 grams per tonne gold-equivalent. Also, as a brownfield site, Eskay Creek benefits from tremendous infrastructure installed by the previous operators. Finally, by creating a gold concentrate rather than doré, we are able to keep initial capital costs very low, at US$233 million, relative to the amount of precious metals produced; this also simplifies and reduces technical risks for the Project.”


Read more (lots of detail & data tables) at:
https://www.skeenaresources.com/news/skeena-delivers-robust-project-economics-for-eskay-creek-after-tax-npv5-of-ccad638m-51-irr-and-1-2-year-payback



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