Skeena Resources – A Look Into The PEA
Last week Skeena Resources (TSX.V:SKE & OTTQX:SKREF) released a much anticipated PEA on the Eskay Creek Project. Here are some of the key numbers outlined in the news release…
- 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
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.