Skeena Resources Nears 75% Completion at High-Grade Eskay Creek Gold Project

Key Points

• Eskay Creek construction is nearly 75% complete, with first ore targeted for the second quarter of next year. The project is expected to produce about 450,000 gold-equivalent ounces annually during its first five years at an average grade of 5.5 grams per ton.
• Skeena has secured key environmental and mining permits and completed a refinancing that reduced its cost of capital from roughly 12% to 8.5%. However, the project’s estimated capital cost rose approximately 20% to $659 million, partly because of inflation, water-management requirements and design changes.
• The company reports 4.6 million gold-equivalent ounces of reserves, with potential for significant growth. An updated technical report expected by the end of January will incorporate deeper pit designs, the SNIP underground asset and revised production and cash-flow estimates.

Skeena Resources NYSE: SKE said construction at its Eskay Creek gold-silver redevelopment project in British Columbia’s Golden Triangle is approaching the 75% completion mark, with the company targeting first ore in the second quarter of the coming year.

During a company presentation, Randy said Eskay Creek is expected to be a large-scale, high-grade open-pit operation, with average production of roughly 450,000 gold-equivalent ounces during its first five years. The company expects the mine to be among the world’s highest-grade open-pit gold operations, with an average grade of 5.5 grams per ton over that initial period.

“2026 is really a year of execution for us,” Randy said, citing permitting, financing and construction milestones completed or underway for the project.

Permitting, Financing and Project Costs

Skeena said it signed an impact benefit agreement with the Tahltan First Nation and a Declaration Act Section 7 agreement in January. It subsequently received its environmental assessment certificate and major Mines Act permits before the end of the first week of February, according to the presentation.

The company also completed a refinancing package in early April. Skeena refinanced an Orion package that included a $350 million U.S. senior secured loan and a $100 million cost-overrun facility, while also buying back two-thirds of an existing stream. The refinancing included a $750 million U.S. senior secured note.

Randy said the transaction reduced Skeena’s cost of capital from about 12% to approximately 8.5% and represented one of the first occasions in which a pre-production company used such a financing structure.

In late March, Skeena updated its capital estimate for the Eskay Creek redevelopment to approximately $659 million, about 20% above the estimate included in its definitive feasibility study. Randy attributed the increase partly to inflation, more stringent British Columbia water-management requirements and design changes intended to improve the project.

Potential Production Growth

The company currently reports 4.6 million gold-equivalent ounces in reserves at Eskay Creek, with about 80% classified as proven. Skeena expects reserves to grow “fairly significantly” over the next several months, Randy said.

Using updated metal prices applied to its nearly three-year-old feasibility study, Skeena estimated an after-tax net present value of roughly $5.5 billion for Eskay Creek. The company said it plans to publish an updated technical report by the end of January, including revised free-cash-flow and operating-cost figures.

The technical update is expected to incorporate steeper pit slopes intended to deepen the pit, as well as Skeena’s SNIP asset as a small underground operation. Skeena said it expects Eskay Creek ultimately to demonstrate a production run rate of about 400,000 ounces over a 10-year period.

• Average first-five-year output: about 450,000 gold-equivalent ounces annually.
• Average first-five-year grade: 5.5 grams per ton.
• Current reserves: 4.6 million gold-equivalent ounces.
• Expected initial ore stockpile before startup: about 250,000 tons.

Construction and Operational Readiness

Skeena said permanent power is nearing the site and is expected to be energized following final tie-ins toward the end of November. The company said the Volcano Creek substation has been completed, while poles have reached within about two kilometers of the site and transmission lines have been installed to within about five kilometers.

Mining began in 2024 and expanded in 2025, according to the presentation. Skeena said it expects to begin mining and stockpiling ore from the pit in the next week, focusing initially on rhyolite material. The company is transitioning from bulk waste mining toward selective ore-mining practices, including selective flitch mining with backhoe excavators and technology to guide dig lines.

Mechanical installation at the process plant is more than 90% complete, Randy said. Remaining major mechanical work includes the jaw crusher and filter press, while piping, electrical and instrumentation work continues. The planned processing circuit includes crushing, three stages of grinding, flotation, regrinding and cleaning to produce concentrate for sale to smelters, with China expected to be an initial destination.

Skeena said its first-phase water treatment plant has been completed and the second phase is nearing completion. The company is also completing a new employee camp located about 10 kilometers from the mine, while recruiting continues for operational positions. It said key personnel, including a general manager, mill manager, mine manager, maintenance staff and chief metallurgists, are already in place.

Metallurgy and Grade Confidence

Responding to an analyst question about geological modeling and grade estimates, Randy contrasted Eskay Creek with the Kupol deposit. He said Kupol contained substantial free gold, while Eskay Creek has almost no free gold and will not use a gravity circuit.

Instead, Eskay Creek’s gold is “super fine,” he said, requiring grinding to 10 microns for full liberation. Randy said historical production at Eskay Creek exceeded reserve-grade expectations over the mine’s operating history and said Skeena does not believe its top cuts are overly liberal.

The company plans additional metallurgical testing using samples representative of the first 12 months of mill feed to support the plant ramp-up and help operators prepare for expected ore characteristics.

About Skeena Resources (NYSE:SKE)

Skeena Resources Limited is a Canadian mineral exploration and development company focused on advancing precious-metals projects in British Columbia's Golden Triangle. The company's primary asset is the Eskay Creek gold-silver project, a past-producing mine that Skeena is working to redevelop as a modern open-pit operation.

Skeena's activities include exploration, resource evaluation, technical studies, permitting and project development. Eskay Creek contains gold and silver mineralization, and the company is evaluating the infrastructure and processing requirements needed to support a potential restart of the site.

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