Skeena Gold & Silver (TSX: SKE) is reporting this morning that it has received the final permits required to restart mining operations at their flagship Eskay Creek project in British Columbia’s Golden Triangle.
The announcement follows the receipt of the Environmental Management Act permit, after receiving both the BC Mines Act Permit and the Environmental Assessment Certificate for the project in January. With the final permits in hand, Skeena has broadcasted that they expect mining operations to restart in the second quarter of 2027.
The Eskay Creek Project, found in northwestern British Columbia, is expected to produce 228,000 ounces of gold and 6.6 million ounces of silver annually over a 12 year life of mine at all in sustaining costs of just $300 an ounce net of silver credits. A 2023 feasibility study suggests the project has a net present value of C$5.4 billion on an after tax basis, alongside an IRR of 79% and a payback period of just 0.6 years.
The development of the project is set to occur over two phases, with the initial five years of mine life set to see an initial operational of 3.0 million tonnes per annum. The second phase will then see an expansion to 3.5 million tonnes per annum for the remaining life of mine.
“Receiving the final permits is a pivotal milestone for our team and a testament to years of rigorous planning, collaboration, and commitment to responsible development. [..] With this approval in hand, we are well-positioned to advance toward construction and long-term value creation for all stakeholders,” commented Randy Reichert, CEO of Skeena.
Skeena Gold & Silver last traded at $39.79 on the TSX.
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