Eskay Creek Feasibility Study: $659M Capex Over a 12-Year Mine Life
Skeena Gold & Silver Ltd.'s Eskay Creek in Canada, British Columbia (Tahltan Territory) has a Feasibility Study outlining initial capital of $659M. The mine plan runs 12 years at about 450000 oz AuEq per year.
Skeena Gold & Silver Ltd.'s Eskay Creek has reported Feasibility Study results for the gold & silver project in Canada, British Columbia (Tahltan Territory). It reflects Skeena Gold & Silver Ltd.'s (SKE.TO) latest disclosed economics for the asset.
Economics. Initial capital expenditure is estimated at $659M. All-in sustaining costs are pegged at 687 USD/oz AuEq. Economics are based on Base case: $1,800/oz Au & $23/oz Ag (2023 DFS).
Production and mine plan. The project envisions an open-pit operation. Life of mine is 12 years. Average annual production is approximately 450000 oz AuEq. Average head grade is 5.5 gpt AuEq (years 1-5); 4.2 gpt AuEq (years 1-10).
Resources and ownership. The company holds a 100% interest in the project. Royalties and streams: Remaining gold stream encumbrance following 2/3 buyback; additional royalties acquired after 2023 DFS.
These figures are extracted from Skeena Gold & Silver Ltd.'s technical disclosures and reflect the most recent Feasibility Study on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Proven | 28.0 Mt | 3.0 g/t Au, 80.9 g/t Ag, 4.1 g/t AuEq | 2.7 Moz Au, 72.7 Moz Ag, 3.7 Moz AuEq |
| Probable | 11.9 Mt | 1.8 g/t Au, 40.1 g/t Ag, 2.3 g/t AuEq | 0.7 Moz Au, 15.3 Moz Ag, 0.9 Moz AuEq |
| Proven & Probable | 39.8 Mt | 2.6 g/t Au, 68.7 g/t Ag, 3.6 g/t AuEq | 3.3 Moz Au, 88.0 Moz Ag, 4.6 Moz AuEq |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 27.8 Mt | 3.3 g/t Au, 87.9 g/t Ag, 4.6 g/t AuEq | 3.0 Moz Au, 78.6 Moz Ag, 4.1 Moz AuEq |
| Indicated | 22.3 Mt | 1.6 g/t Au, 32.0 g/t Ag, 2.1 g/t AuEq | 1.1 Moz Au, 22.9 Moz Ag, 1.5 Moz AuEq |
| Measured & Indicated | 50.1 Mt | 2.6 g/t Au, 63.0 g/t Ag, 3.4 g/t AuEq | 4.1 Moz Au, 101.4 Moz Ag, 5.5 Moz AuEq |
| Inferred | 0.65 Mt | 1.5 g/t Au, 32.4 g/t Ag, 1.9 g/t AuEq | 0.03 Moz Au, 0.7 Moz Ag, 0.04 Moz AuEq |
Our Analysis
A 43% pre-tax IRR places this project in the upper half of our tracked peer set, and it clears the practical financing hurdle for a single-asset junior by a wide margin. The 5% discount rate used for NPV reporting is at the low end of convention, which flatters the headline $2.00B figure; a more conservative rate would shrink that number materially. The 1.2-year payback is unusually fast, reducing execution risk during construction.
Capital intensity is low at 33% of NPV, so funding risk is manageable for the $659M initial capex. The NPV-to-market-cap ratio of roughly 0.5x cuts both ways: the market may not be pricing in the project's potential, or it may be discounting development risk in a remote British Columbia jurisdiction, permitting timelines, or commodity exposure. The study's $1,800/oz gold assumption sits well below the current $4,186.60/oz spot, implying significant upside to returns if prices hold. The single most important watch-item is permitting and community agreement with the Tahltan Nation, which will dictate timeline and social license.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.