Skeena Resources – Recapping the recent high grade results from Eskay
Already this year Skeena Resources (TSX.V: SKE, OTCQX: SKREF) has released high grade drill results from the Eskay Creek and Snip Projects.
Paul Geddies, VP of Exploration and Resource Development joins me for a recap of the results and a look ahead to what’s next. He shares how the Eskay results compare to historic drill holes and what it could mean for an updated resource.
Levels to watch for gold and GDX and comments on the recent Skeena drill results
Dave Erlfe joins me today to share some the levels he thinks gold and GDX will correct to through this current correction. We then look at the drill results released today by Skeena Resources (TSX.V: SKE, OTCQX: SKREF) from the Eskay Creek Project. As a developing story in the Golden Triangle could this be the next takeover in the area?
Kicking off today with Jeff Christian, Managing Partner at CPM Group. Jeff and I recap some of the recent news in terms of M&A and financings for PM companies. Then we focus on Jeff’s 2020 outlook for a wide range of metals. We chat gold and silver, base metals, battery metals, USD, and global economic thoughts.
Skeena Resources – Revisiting the recent bonanza grade drill result from the Snip Project
On December 18th Skeena Resources (TSX-V:SKE & OTCQX:SKREF) released a couple drill results from the Snip Project in the Golden Triangle in BC. Paul Geddies, Skeena’s VP of Exploration and Resource Development joins me to outline the strategy around the drilling of the 200 Footwall at Snip. We also compare the two drill holes, one of which intersected over 1,000g/t gold (1,131.91g/t gold to be exact) at a width of 1.5 meters and the other hole yielded 7.37g/t gold over 6.65 meters. To wrap up the discussion we look ahead to 2020 for the Eskay project and the balance between infill and exploration drilling.
If you have any further questions for the team at Skeena please email me at Fleck@kereport.com.
Skeena Resources – Drilling and Financing Updates For Both The Eskay and Snipp Properties
Walter Coles, President and CEO of Skeena Resources (TSX-V:SKE & OTCQX:SKREF) joins me for a comprehensive update on the drill program that is underway at the Eskay Creek Property. 4 drill rigs are now on site with a focus on infill drilling with also an exploration component. The increase in exploration drilling is a new development since the Company reported some good results in new areas. We also touch on the drill program at Snipp which is completed and assay results are pending.
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
Walter Coles, Skeena’s President and CEO joined me for a closer look at the PEA and to answer some of my questions and the questions that were emailed to me by all of you. We focus on the key financial numbers and some of the smaller points like strip ratio and decision to produce and ship a concentrate. We wrap up the interview discussing the options the Company is weighing for the other projects in its portfolio, Snip and GJ.
Please email me if you have any further questions for Walt. My email address is Fleck@kereport.com.
Skeena Resources – The recent drill result of 314g/t AuEq over 2.21 meters is more exploration than infill drilling
Skeena Resources (TSX-V:SKE & OTCQX:SKREF) announced a round of drill results from the Eskay Creek Project earlier this week that consisted of two types of results. A couple holes were drilled into the Rhyolite zone which will be used to upgrade the current resource from inferred to indicated, which the other drill holes came from the Lower Mudstone area that had not been tested before. See the image below to help understand the different levels.
Walter Coles, President and CEO of Skeena joined me to provide some more details on the drilling and clarify what can be considered infill and what is more exploration. We compare both the infill and exploration results to the known grade of the overall resource as well as get an update on the drill plans into next year. We also touch on the progress of the PEA and when to expect to see that study released.
If you have any follow up questions for Walter or I please email me at Fleck@kereport.com.
Auryn Resources – Updates on community access agreements and permitting in Peru and Committee Bay drill results
Over the past week I received a number of requests for an update from Auryn Resources. A lot of questions came in regarding the progress of the community access agreements and drill permits for the projects in Peru. Also the potential of an asset sale is still on a lot of investors minds.
Ivan Bebek, Executive Chairman at Auryn joined me to provide a full update on Peru and explain the difference between community access agreements and drill results. We also discuss the upcoming drill results at Committee Bay and the potential of an asset sale or a Company split.
Auryn Resources – Recapping The Bridge Loan and Looking Ahead To the Company Drivers In Q4
This morning Auryn Resources (TSX:AUG, NYSE:AUG) released news regarding a bridge loan for $6million to help fund the Company through next year. Auryn’s Executive Chairman Ivan Bebek joins me to provide some more information on where the funds from the bridge loan will be used and where the Company stands in terms of an asset sale. We also look ahead to Q4 and the catalysts which include permitting in Peru, drill results from Committee Bay and Homestake, and some other factors.
Please email me with any questions or comments you have for Ivan and his team. I can be reached at Fleck@kereport.com.
This summer while many investors were away for family vacation, gold made a major breakout through $1350 USD and into new multi-year highs as we highlighted. Now its only a stone's throw from $1600. Then only a short few weeks ago, silver followed gold breaking out of a major base. Now its above $19.
The Gold-Silver Ratio which hit a high above 90 to 1 this summer is now breaking down finally. That's a good sign for the small junior explorers that are closely correlated with silver. The juniors have been pretty much ignored since 2012. We could be just starting an inflow back into the junior miners. Prior rallies like 2003-2007 and 2009-2011 could signal a powerful reversal of the prior bear market trend.
Look at this chart of the gold stocks in relation to gold bullion. Its finally breaking out of downtrend after hitting a record low. Notice how the early investors in that bull market in 2000 made out.
News is beginning to hit the markets from some of our explorers. I have a few investments in the Golden Triangle in BC this season. This is where we have seen a lot of interest by the majors recently most notably Newmont in their recent investment in $GTT.V GT Gold which continues to hit great results but may be fairly valued at $110 million.
Another one which is just getting started is Libero Copper $LBC.V which should change its name and add gold as they just made a significant gold discovery today. Their Geologist and VP Exploration is Leo Hathaway who works with Ross Beatty at Lumina and has 25 years experience making numerous discoveries.
Leo was very instrumental in the early success of Lumina started in 2004 and now has over a $200 million market cap. Libero still has a market cap under $15 million but they are working on a project which looks almost identical to GT Gold early days in the Golden Triangle. Their Big Red Project looks very exciting especially after all the technical modeling work done by Leo and the team. They see some parts of the project with great potential and just raised $3.7 million to drill it.
Today Libero announced sampling results which confirm a new gold discovery. "5 contiguous 50 metre continuous rock chip samples returned intervals of 2.91 grams per tonne gold over 250 metres including 6.14 grams per tonne gold over 100 metres in two contiguous samples." Drilling this September could confirm another major Golden Triangle Discovery that hardly no one knows about yet. See the full news release by clicking here...
Libero will be presenting at MIF in Vancouver and Precious Metals Summit in Beaver Creek. Schedule a meeting by contacting them here: +1 604 638 2545 email@example.com
See my new interview with Libero $LBC.V VP Exploration Leo Hathaway by clicking here...
Author (Jeb Handwerger) owns shares in LBC.V and they are a featured sponsor company. Sponsors are website advertisers so that means I have been compensated and have a conflict of interest to help boost awareness of this story. The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Jeb Handwerger about any company, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. Author is not responsible under any circumstances for investment actions taken by the reader. Author has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Author is not directly employed by any company, group, organization, party or person. The shares of these companies are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed / registered financial advisors before making investment decisions. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. Author is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content.