(Kitco News) - Skeena Resources' Eskay Creek is well known for its high gold grades, said CEO and President Randy Reichert, but the planned future open-pit mine will also produce a significant amount of silver.
In July Kitco Mining toured the project, located in northwest B.C.
Eskay Creek is a high-grade volcanogenic massive sulphide deposit that was previously operated as an underground mine.
Rechert said he wants Eskay to be recognized for its silver endowment.
"In the future, we are looking at producing significant amounts of silver, over 7.5 million ounces per year," said Reichert. "It makes us one of the bigger silver producers in the area."
Skeena completed a definitive feasibility study in November 2023 on Eskay Creek showing reserves of 4.6 Moz AuEq at an average grade of 3.6 g/t AuEq, an after-tax NPV5% of C$2B, 43% IRR and a 1.2-year payback at US$1,800/oz Au and US$23/oz Ag.
Skeena touts its infrastructure. It is near a new 287 kV power line, as well as Highway 37.
Eskay Creek is a brownfields site. From 1994-2008, the mine produced 3.3 Moz of life-of-mine gold production at a 45 g/t LOM Au grade. Eskay's owners plan to reopen the mine as an open pit. The first five years of annual production is estimated at 450,000 AuEq oz.
There are base metals, too. The company said significant quantities of antimony, zinc and copper have been identified at Eskay Creek.
The company said it is funded. It closed a US$750 million financing package with Orion Resources Partners to advance Eskay.
