Skeena raises $10.7 million for B.C. Golden Triangle projects

Skeena Resources Ltd. [SKE-TSXV, SKE-NASDAQ] said it has raised $10.7 million from a non-brokered private placement financing, and will use the proceeds to fund exploration activities in the Golden Triangle of British Columbia.

Skeena said the private placement consists of 1.26 million flow-through common shares priced at an average of $8.53 per share.

Skeena shares were unchanged Thursday at $6.81 and are currently trading in a 52-week range of $10.38 and $4.20.

Skeena is currently focused on revitalizing the Eskay Creek and Snip projects, two past-producing mines located in Tahltan territory in the Golden Triangle of northwestern B.C. In November, 2023, the company released a definitive feasibility study for the Eskay Creek.

The feasibility study is based on proven and probable mineral reserves for open-pit mining of 39.8 million tonnes containing 3.3 million ounces of gold and 88 million ounces of silver. That amounts to 4.6 million ounces of gold equivalent (AuEq).

The mine schedule plans for delivery of 39.8 million tonnes of mill fee grading 2.6 g/t gold and 68.7 g/t silver (3.6 g/t AuEq) over a 12-year mine-life.

In years one to 10, the study forsees average annual production of 370,000 ounces at 4.2 g/t AuEq and annual after-tax free cashflow of $365 million. The life of mine all-in-sustaining cost is expected to be US$684 per ounce of AuEq sold.

The estimated pre-production capital expenditure is pegged at $713 million.

“With our base case after-tax net present value surpassing $2.0 billion, Eskay Creek stands out as a rare potential Tier 1 gold mining project located in a politically stable jurisdiction,’’ said Skeena Executive Chairman Walter Coles.

“Excitingly, we see additional opportunities to increase reserves and mine life, while continuing to advance the project through permitting, project financing, construction and production in 2026,’’ he said.

Eskay Creek is planned as an open pit operation, using conventional mining equipment. Pit designs were developed for the north and south pit areas. The feasibility study outlines an average production profile of 455,000 AuEq in the first five years of operation.

Eskay Creek is projected to be one of the lowest greenhouse gas emission open-pit gold mines worldwide, emitting an average of 0.19 tonnes of C02e/oz AuEq produced. Several factors contribute to this low number, such as the high-grade nature of the deposit, and access to hydropower near the site.

In September, 2023, Skeena released an updated mineral resource estimate for the Snip gold project. The indicated resource now includes 823,000 ounces hosted within 2.74 million tonnes at an average grade of 9.35 g/t gold. Resources within the inferred category include 114,000 ounces hosted within 499,000 tonnes at an average grade of 7.20 g/t gold.

Skeena expects to release an engineering study with project economics in the first half of 2024 that will demonstrate the potential benefits of adding Snip mineralization to the Eskay Creek project as a satellite operation.