Name of the Project
Eskay Creek gold/silver project.

Location
In the Golden Triangle of British Columbia, Canada.

Project Owner/s
TSX-V-listed Skeen Resources.

Project Description
A preliminary economic assessment (PEA) completed in 2019 has clearly demonstrated that Eskay Creek has the potential to become an economically viable project.

The PEA envisages an openpit mine, with on-site treatment of the mined material by conventional milling and flotation to recover a gold/silver concentrate for provision to third-party smelters. The mine will be an owner-operated, standard truck-and-shovel openpit, with a leased mining fleet. No contributions from previously reported underground resources are incorporated into this study.

The processing capacity of 6 850 t/d will result in a production life span of 8.6 years. An additional 1.5 years of prestripping, stockpiling and mine access development is planned before the processing facility becomes fully operational in Year 1.

Life-of-mine average production is estimated at 236 000 oz/y of gold and 5.81-million ounces of silver or 306 000 oz/y gold equivalent.

The PEA leverages Eskay Creek’s extensive existing infrastructure, including all-weather access roads, previously permitted tailing storage facilities and proximity to the recently commissioned 195 MW hydroelectric facilities and linked power grid.

Pit-constrained indicated mineral resources at a 0.7 g/t gold equivalent cutoff are estimated at 12.65-million tonnes grading 5.8 g/t gold equivalent, 4.3 g/t gold and 110 g/t silver. Inferred mineral resources are estimated at 14.42-million tonnes grading 2.9 g/t gold equivalent, 2.3 g/t gold and 47 g/t silver.

Underground indicated mineral resources at a 5 g/t gold equivalent cutoff are estimated at 819 000 t grading 8.2 g/t gold equivalent, 6.4 g/t gold and 139 g/t silver. Inferred mineral resources are estimated at 295 000 t grading 8.2 g/t gold equivalent, 7.1 g/t gold and 82 g/t silver.

Currently, no contributions from previously reported underground resources are incorporated into this study.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of $491-million and an internal rate of return of 51%, with a payback of 1.2 years.

Capital Expenditure
Preproduction capital expenditures are estimated at $233-million.

Planned Start/End Date
Not stated.

Latest Developments
Skeena Resources has welcomed the historic consent-based decision-making agreement reached by the province of British Columbia and the Tahltan Central Government.

Through this agreement, the revitalisation of the past-producing Eskay Creek gold/silver project will be the first mining project to have permits authorised by an indigenous government.

The agreement outlines consent-based decision-making related to the environmental assessment of the Eskay Creek revitalisation project.

The shared intent is to create a model for sustainable mining and world-class environmental practices and standards.

“As an already developed mine site with existing road access, waste management facilities, nearby access to green power and robust economics, gaining consent from the Tahltan Nation on whose unceded land Eskay Creek is located, is a crucial step in an efficient approval process for the project. It also provides certainty of the Tahltan Nation’s legal authorisation to revitalise Eskay Creek,” Skeena senior VP of external affairs and sustainability Justin Himmelright has said.

Key Contracts, Suppliers and Consultants
Ausenco Engineering Canada; SRK Consulting; and AGP Mining Consultants (PEA and PFS).

Contact Details for Project Information
Skeen Resources, tel +1 604684 8725 or email info@skeenaresources.com.