Name of the Project
Eskay Creek gold/silver project.

Location
The project is located in the Golden Triangle of British Columbia, Canada.

Project Owner/s
Skeen Resources.

Project Description
A preliminary economic assessment (PEA) 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 of 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
None stated.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

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