Eskay Creek NPV soars to C$2bn
Dual-listed Skeena Resources’ Eskay Creek project, in the Golden Triangle of British Columbia, is establishing itself as a gem among gold mining ventures, with executive chairperson Walter Coles heralding it as a “rare potential tier-one project”.
The newly released definitive feasibility study (DFS) for Eskay Creek puts the base case net present value (NPV), using a 5% discount, at C$2-billion and the internal rate of return (IRR) at 42.9%.
Preproduction capital expenditure is estimated at C$713-million. This represents a 20% increase on the 2022 feasibility study and is attributed to derisking, unanticipated changes and cost inflation.
The DFS base case uses a gold price of $1 800/oz and a silver price of $23/oz. At spot prices, Eskay Creek will have an NPV of C$2.3-billion and an IRR of 47.1%.
Skeena president and CEO Randy Reichert explained that the DFS achieved multiple breakthroughs in metallurgy and increased mineral reserves.
The project has proven and probable mineral reserves for openpit mining of 39.8-million tonnes, containing 3.3-million ounces of gold and 88-million ounces of silver.
In the first five years, the mine will produce 455 000 oz/y at 5.5 g/t gold-equivalent, generating free cashflow of C$474-million a year.
Coles stressed that Skeena believed there were additional opportunities to increase reserves and mine life.
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