Skeena Resources has started a preliminary feasibility study (PFS) for the Eskay Creek gold-silver project within the province\u2019s Golden Triangle area in British Columbia.<\/p>\n
\u201cThe PFS is the next step in the evolution of Eskay Creek, as we move this high-grade, open-pit project development and through to commercial production,\u201d Shane Williams, the company\u2019s COO, said in a release.<\/p>\n
As the work progresses, the company will remain focused on completing an extensive infill drilling campaign to upgrade existing inferred resources to the measured and indicated category.<\/p>\n Last year, the company released the results of a preliminary economic assessment, which proposed open pit producing precious metals concentrate sold to smelters<\/p>\n<\/blockquote>\n<\/figure>\n Last year, the company released the results of a preliminary economic assessment of Eskay Creek, which proposed open pit producing precious metals concentrate sold to smelters. <\/p>\n The mine would produce an average of 306,000 gold-equivalent oz. annually at all-in sustaining costs of $757 per oz. The associated net present value estimate, at a 5% discount rate, came in at C$638 million with a 51% internal rate of return. The mine would yield diluted head grades of 3.23 g\/t gold and 78 g\/t silver (4.17 g\/t gold-equivalent).<\/p>\n Based on the PEA results, Skeena has identified additional opportunities to optimize the value of the project. These include additional work to improve the metallurgy to produce a higher-value concentrate as well as geotechnical work for pit optimization studies.<\/p>\n Current open-pit resources for Eskay include 12.7 million indicated tonnes at 4.3 g\/t gold and 110 g\/t silver for a total of 1.7 million oz. of gold and 44.7 million oz. of silver. <\/p>\n Additional inferred resources include 14.4 million tonnes at 2.3 g\/t gold and 47 g\/t silver, containing a further 1.1 million gold oz. and 21.7 million silver oz. These are estimated using a 0.7 g\/t gold-equivalent cut-off. Resources in the underground classification feature 819,000 indicated tonnes grading 6.4 g\/t gold and 139 g\/t silver with an additional 295,000 inferred tonnes at 7.1 g\/t gold and 82 g\/t silver \u2013 these are derived using a 5 g\/t gold-equivalent cut-off.<\/p>\n Skeena has retained Ausenco Engineering Canada, SRK Consulting and AGP Mining Consultants to complete the study, which is expected to be complete by next summer.<\/p>\n Eskay Creek produced 3.3 million oz. of gold and 160 million oz. of silver between 1994 and 2008. Skeena also holds the exploration-stage, past-producing Snip gold property.<\/p>\n Skeena may exercise the option to acquire a 100% interest in Eskay Creek from Barrick by December \u2013 it would need to make a C$10 million payment and put up a bond; this total amount is capped at C$17.7 million. <\/p>\n Once this option is exercised, Skeena would enter the permitting process \u2013 environmental studies and community consultations have started.<\/p>\n\n