Skeena raises $7M for exploration at Eskay Creek

Skeena continues to explore the former Eskay Creek mine, once the richest gold mine in the world. Credit: Skeena Resources.

Skeena Resources  (TSX: SKE; OTC: SKREF) says its offering of 346,364 flow-through shares priced at $20.21 each is fully subscribed, raising $7 million. The shares were taken up by Ausenco Engineering Canada, which has offices in Calgary, Alta., and Burnaby, B.C.

Skeena will use the proceeds of the offering for exploration expenses at its gold projects – Eskay Creek and Snip – in British Columbia’s Golden Triangle.

The past-producing Eskay Creek mine north of Stewart, B.C., has proven and probable reserves of 26.5 million tonnes grading 3.37 g/t gold and 94 g/t silver, containing 2.9 million oz. of gold and 80.2 million oz. of silver. The prefeasibility study completed earlier this year by Ausenco suggests an open pit mine could average 249,000 oz. of gold and 7.2 million oz. of silver annually over almost 10 years.

Total measured and indicated resources are 851,000 tonnes grading 5 g/t gold and 48.6 g/t silver, containing 137,000 oz. of gold and 1.3 million oz. of silver. The inferred resource is 429,000 tonnes grading 4.1 g/t gold and 57 g/t silver, containing 57,000 oz. of gold and 787,000 oz. of silver.

When in production from 1994 to 2008, Eskay Creek produced 3.3 million oz. of gold and 160 million oz. of silver. Average grades were 45 g/t gold and 2,224 g/t silver, making it the highest grade gold mine in the world.

The former Snip mine in the Liard mining district produced about 1 million oz. of gold from ore grading 27.5 g/t gold while it operated between 1991 and 1999. A July 2020 resource estimate includes 539,000 indicated tonnes grading 14 g/t gold for 244,000 contained oz. and 942,000 inferred tonnes grading 13.3 g/t gold for 402,0090 contained oz. Skeena has plans for resource expansion drilling, including the 200 Footwall corridor and other near-mine targets.

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