Skeena grows Snip, satellite for Eskay Creek
Skeena Resources has announced an updated resource estimate for the Snip gold project in the Golden Triangle of British Columbia, Canada.
The indicated resource is now 823,000oz grading 9.35gpt gold, growth of 237% since the 2020 resource, with another 114,000oz grading 7.1gpt in inferred resources.
The new resource incorporates an additional 307 drill holes for 46,268m, enhancements to the geological interpretation, resource estimation methods, long hole mining method parameters, and updated metallurgical process recoveries.
"The [engineering] study will demonstrate the potential benefits of adding Snip mineralisation to the Eskay Creek project as a satellite operation, likely including an increased mine life and improved concentrate payabilities at Eskay Creek," said Skeena resources chief executive Randy Reichert.
In March, Hochschild Mining terminated an option to earn 60% of Snip. Skeena delivered a maiden resource estimate for Snip in July 2020, which included 244,000oz of indicated resources and 402,000oz of inferred.
Skeena acquired Snip from Barrick Gold in July 2017, and the mine previously produced 1.1Moz at an average grade of 27.5gpt.
Skeena aims to produce 352,000ozpa of gold equivalent from Eskay Creek, with an initial capital cost estimated at C$592 million. The company is currently seeking to arrange finance for the development.
Shares in Skeena Resources are trading at C$6.56, valuing the company at C$578 million.
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