Eskay Creek Feasibility Study: $659M Capex
Skeena Gold & Silver Ltd.'s Eskay Creek in Canada, British Columbia (Tahltan Territory) has a Feasibility Study outlining initial capital of $659M.
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 $659M. The study models a payback period of 1.2 years. All-in sustaining costs are pegged at 687 US$/oz AuEq. Economics are based on Base case pricing of $1,800/oz Au & $23/oz Ag (2023 DFS). Price deck analyses also using $4,300 Au/$63 Ag, $6,000 Au/$150 Ag, and Spot..
Production and mine plan. The project envisions an open-pit operation. Average annual production is approximately 450000 AuEq oz/yr (years 1-5); 370,000 AuEq oz/yr (years 1-10); 2027E production 347k oz AuEq. Average head grade is 5.5 gpt AuEq in years 1-5 & 4.2 gpt AuEq in years 1-10. Metallurgical recovery averages 83%.
Resources and ownership. The company holds a 100% interest in the project.
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 gpt Au, 80.9 gpt Ag, 4.1 gpt AuEq | 2.7 Moz Au, 72.7 Moz Ag, 3.7 Moz AuEq |
| Probable | 11.9 Mt | 1.8 gpt Au, 40.1 gpt Ag, 2.3 gpt AuEq | 0.7 Moz Au, 15.3 Moz Ag, 0.9 Moz AuEq |
| Proven & Probable | 39.8 Mt | 2.6 gpt Au, 68.7 gpt Ag, 3.6 gpt AuEq | 3.3 Moz Au, 88.0 Moz Ag, 4.6 Moz AuEq |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 27.8 Mt | 3.3 gpt Au, 87.9 gpt Ag, 4.6 gpt AuEq | 3.0 Moz Au, 78.6 Moz Ag, 4.1 Moz AuEq |
| Indicated | 22.3 Mt | 1.6 gpt Au, 32.0 gpt Ag, 2.1 gpt AuEq | 1.1 Moz Au, 22.9 Moz Ag, 1.5 Moz AuEq |
| Measured & Indicated | 50.1 Mt | 2.6 gpt Au, 63.0 gpt Ag, 3.4 gpt AuEq | 4.1 Moz Au, 101.4 Moz Ag, 5.5 Moz AuEq |
| Inferred | 0.65 Mt | 1.5 gpt Au, 32.4 gpt Ag, 1.9 gpt AuEq | 0.03 Moz Au, 0.7 Moz Ag, 0.04 Moz AuEq |
Our Analysis
- Initial capex
- $659M
costlier than 71% of 445 projects we track
- Payback
- 1.2yrs
slower than 13% of 281 projects we track
- Study price assumption
- Base case pricing of $1,800/oz Au & $23/oz Ag (2023 DFS). Price deck analyses also using $4,300 Au/$63 Ag, $6,000 Au/$150 Ag, and Spot.
- Spot gold today
- $4,510.00/oz
A 1.2-year payback places this asset in the top 13% of the 281 projects we track, a genuinely fast return that is not an outlier but a clear upper-quartile performer. That speed is the headline, and it comes with a feasibility-level estimate, the build-ready confidence band that carries the most analytical weight. The initial capex of $659M sits below 71% of the 445 tracked projects, but the sharper funding signal is the build cost at roughly 0.2x the company's US$4.19B market cap. A mid-cap can absorb this build without existential dilution, which is rare for a project of this scale and removes the most common reason such returns fail to materialize.
The jurisdiction does the rest of the work. British Columbia is a mining-friendly, stable environment, and the project is already in production, which de-risks the execution story considerably. The 2023 FS shows initial capex unchanged at +0% versus the prior filing, suggesting cost estimates have held firm rather than creeping upward, a meaningful signal of discipline. The study's base case of $1,800/oz Au and $23/oz Ag sits far below today's gold price of $4,510.00/oz, meaning the returns as published are built on conservative metal prices. The price deck extends to $6,000 Au and $150 Ag, but the base case alone is what an investor should underwrite.
The two-sided read is straightforward: the market cap relative to capex says financing is not the hurdle, and the jurisdiction says permitting and execution risk are manageable. The payback is fast enough that even a modest pullback in gold from current levels leaves the project comfortably profitable. The single question that decides whether this works is whether the company can scale production from its current level into the higher end of its own price deck without cost inflation eroding the margin, because the base case is already conservative and the upside is entirely a function of operational execution, not metal prices.
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.