The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Mining Explorers 2022 - January 19, 2023
The camp at Eskay Creek, where Skeena is continuing to find near-surface gold mineralization that could bolster the already strong economics for a new era of mining at the BC project.
With the September completion of a feasibility study that details a very economically robust gold-silver mine at Eskay Creek, Skeena Resources Ltd. has focused its drilling on near-surface mineralization that could extend the life of this future mine in British Columbia's Golden Triangle.
Over the nine years of operations considered in the feasibility study, the open pit mine proposed for Eskay Creek would produce 2.42 million ounces of gold and 66.7 million oz of silver from 29.9 million metric tons of proven and probable reserves averaging 2.99 grams per metric ton gold and 79 g/t silver.
At US$1,700/oz gold and US$19/oz silver, the open pit mine detailed in the Eskay Creek feasibility study is expected to generate an after-tax net present value (5% discount) of US$1.1 billion (C$1.41 billion) and a 50.2% after-tax internal rate of return.
"The feasibility study confirms the robust economics of the world-class Eskay Creek Project originally shown in the prefeasibility study but with improved definition," said Skeena Resources President Randy Reichert.
As robust as the mine detailed in this study is, Skeena has identified near-surface extensions to the deposit that show promise for both improving the economics and extending the life of the envisioned mine.
At about the same time as the feasibility study results were released, Skeena reported initial results from a 55,652-meter drill program focused primarily on testing these growth opportunities surrounding the proposed open pit.
Skeena is particularly excited about the resource expansion potential at 21A West, an extension of the 21A Zone at the southwest end of the pit considered in the feasibility study.
The company discovered 21A West during its 2021 drilling; highlights include:
• 14.5 meters averaging 1.29 g/t gold and 36 g/t silver in hole SK-21-972.
• 11.7 meters averaging 1.77 g/t gold and 200 g/t silver in hole SK-21-983.
• 34 meters averaging 8.78 g/t gold and 13 g/t silver in hole SK-21-997.
The 2022 drilling at 21A West continued to tap high-grade gold at the southwest margins of the future Eskay Creek pit and shows the mineralization continues south.
Highlights from the 2022 drilling at 21A West include:
• 46.77 meters averaging 1.74 g/t gold and 1.7 g/t silver in hole SK-22-1028.
• 12.12 meters averaging 47.5 g/t gold and 73.4 g/t silver in hole SK-22-1093.
• 24 meters averaging 20.43 g/t gold and 175.2 g/t silver in hole SK-22-1122.
Skeena says the high-grade gold encountered in hole SK-22-1093 has extended the near-surface, rhyolite-hosted mineralization within an area of the intended pit that was previously modeled as waste rock.
"Due to the high precious metal grade required by previous operators, the rhyolite-hosted mineralization was never a focus for our predecessors and hence lacked systematic exploration," said Skeena Resource Senior Vice President of Exploration Paul Geddes.
The upgrade of this material that was considered waste to ore will likely add a boost to Eskay Creek Mine economics in an updated feasibility study due out later this year.
In addition to 21A West, the 2022 program tapped gold in expansion targets on the east flank of the proposed open pit; as well as at the 23 Zone discovery that extends south off the southeast side of the pit.
Highlights from 2022 drilling at 23 Zone and East Flank include:
• 31.3 meters averaging 1.66 g/t gold and 1.7 g/t silver in hole SK-22-988 (East Flank).
• 17.66 meters averaging 2.97 g/t gold and 3 g/t silver in hole SK-22-990 (East Flank).
• 21 meters averaging 2.27 g/t gold and 2.3 g/t silver in hole SK-22-1006 (23 Zone).
• 47.5 meters averaging 1.31 g/t gold and 1.3 g/t silver in hole SK-22-1008 (23 Zone).
• 27.68 meters averaging 1.85 g/t gold and 1.8 g/t silver in hole SK-22-1018 (East Flank).
"These exploration drill results demonstrate the potential for adding new, open pit mineralization in the near-term to Eskay Creek," said Reichert. "A mineral resource update will be completed following the 2022 drill program with the aim of upgrading at least a portion of the mineralization discovered in the 23 and 21A West Zones to the indicated category for use in an updated mine plan."
As Skeena focuses on advancing Eskay Creek through permitting and into development, Hochschild Mining is applying its underground gold mining expertise to begin a new era of mining at Snip.
In October 2021, Hochschild agreed to invest roughly C$100 million on exploration and development to earn a 60% joint venture interest in Skeena's Snip gold mine project.
Operated by Barrick Gold Corp. during the 1990s, the historic underground mine at Snip produced 1.1 million ounces of gold from 1.25 million metric tons of ore averaging 27.5 g/t gold.
Since acquiring Snip from Barrick, Skeena has invested roughly C$50 million on exploration and other work at the high-grade gold mine project.
According to a 2020 calculation, Snip hosts 539,000 metric tons of indicated resource averaging 14 g/t (244,000 oz) gold; and 942,000 metric tons of inferred resources averaging 13.3 g/t (402,000 oz) gold.
Hochschild is finalizing a prefeasibility study that will provide a first glimpse of the next era of mining at Snip. The company also said its drilling at this Northern BC gold mine project "has already delivered some encouraging intercepts."
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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