Skeena Resources

Website: www.skeenaresources.com
Primary ticker: TSXV:SKE
Stage of development: Exploration, Development
Commodity: Gold, Silver
Project to promote: Eskay Creek
Project location: Canada
Company presentation: Click here
Company video: Click here

Live financials

Cash: CAD$40M
Debt: Nil

Major shareholders:
Deutsche Balaton – 17%
Luxor Capital – 15%
Management Ownership – 5%

Skeena Resources Limited is a junior Canadian mining exploration company focused on developing prospective precious metal properties in the Golden Triangle of northwest British Columbia, Canada.

The Company’s primary activities are the exploration and development of the past-producing Eskay Creek mine, which contains a combined Indicated and Inferred 4Moz, 4.4 g/t gold-equivalent open-pit resource. The Company recently completed a Preliminary Economic Assessment (PEA) on Eskay Creek which highlights an after-tax NPV5% of C$638M, 51% IRR and a 1.2-year payback. Skeena is also exploring the past-producing Snip gold mine.

Management Profile

Walter Coles, CEO & President

Mr. Coles has served as CEO and President for several Toronto Venture Stock Exchange listed junior mining exploration and development companies, throughout the past seven years. He was previously an analyst for Cadence Investment Partners. Prior to that Mr. Coles worked for UBS Investment Bank in New York as a Senior Research Analyst in the bank’s High Yield Group. Mr. Coles holds a B.A. in Economics from the University of Richmond.


Kelly Earle, B. Sc. Geol., CPIR, Vice President, Communications

Ms. Earle is an Investor Relations professional and a geologist. She received her Bachelor of Science in Geology from the University of British Columbia and her Certified Professional Investor Relations designation from the Ivey School of Business at Western University.


What is your rationale for attending 121 Mining Investment?

To raise institutional investor awareness of Skeena’s high-grade, open-pit Eskay Creek project in northwest British Columbia.


What recent news would you like to highlight to investors attending?

Skeena released a PEA for Eskay Creek in November 2019 and is aggressively advancing towards the completion of a Pre-feasibility Study with a target to release in H1 2021. The highlights from the PEA include a combined Indicated and Inferred 4Moz, 4.4 g/t AuEq resource, an after-tax NPV5% of C638M, 51% IRR and a 1.2-year payback.

In addition, Skeena will continue to release drill results from both Eskay Creek and Snip throughout 2020.


What are your key goals for the next 3,6 and 12 months?

3 Months:

Continued drill results from Eskay Creek. A combined 30,000 metres of infill and exploration drilling is planned for 2020.

Sale of Skeena’s GJ Copper-Gold Porphyry property for C$7.5M

6 Months:

Drill results from Snip as Skeena plans to follow-up on the exploration success in the 200 Footwall from the 2019 drill program.

Graduation from the TSX Venture Exchange to the TXS Senior Exchange, planned for summer 2020.

12 Months:

Aggresively advance Eskay Creek with the target to release a Pre-feasibilty study in H1 2021.

Exercise the option to acquire 100%-interest in Eskay Creek from Barrick.


What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

British Columbia is viewed by some as a complicated mining jurisdiction due to relationships with the government and First Nations. In response to these concerns, the British Columbia Regional Mining Alliance (BC RMA) was formed. Skeena is a founding member of the BC RMA, a regional partnership between the government of British Columbia, Tahltan and Nisga’a First Nations governments and industry. This unique collaboration aims to promote BC mining and exploration opportunities internationally, with a focus on projects in the Golden Triangle of northwest BC.


What do you think makes your company such a compelling investment?

Eskay Creek and Snip are both world-class assets in a stable geo-political region that were high-grade past producing gold-silver mines. Eskay Creek was the highest-grade open-pit gold mine in the world when it was in production and it currently contains a combined Inferred and Indicated 4Moz at 4.4 g/t AuEq. With Skeena’s 2020 infill and exploration drill program the company sees a clear pathway to growing the resource at Eskay Creek to 5 million ounces.

Given the robust project economics, upside potential and high-grade at Eskay Creek, Skeena Resources is largely undervalued.

Analyst Insight – provided by Independent Investment Research

Skeena Resources is a TSX-V-listed junior Canadian mining exploration company, focused on developing prospective base and precious metal properties in the Golden Triangle region of northwest British Columbia, Canada. The company’s primary activities are the exploration and development of the past-producing Snip mine and the recently optioned Eskay Creek mine, both acquired from Barrick. In addition, the company has completed a Preliminary Economic Assessment on the GJ copper-gold porphyry project.

Skeena acquired a 100% interest in the past-producing Snip mine from Barrick Gold in July 2017. The property consists of one mining lease and four mineral tenures totalling approximately 1,932 hectares in the Liard Mining Division. The Snip mine produced approximately one million ounces of gold from 1991 until 1999 at an average gold grade of 27.5 g/t. The opportunity is to re-examine historic drill intercepts on the Snip property that might indicate mineralization that would be economic with the recent construction of nearby infrastructure and at today’s gold prices.

In December 2017, Skeena secured an option to acquire 100% interest in the Eskay Creek property from Barrick Gold. Discovered in 1988, the former Eskay Creek Mine was officially opened in 1994 and over its 14-year life produced approximately 3.3 million ounces of gold and 160 million ounces of silver at average grades of 45 g/t gold and 2,224 g/t silver – and was once the world’s highest-grade gold mine and fifth-largest silver mine by volume. A precious and base metal-rich VMS deposit, the Eskay mineralization has been the focus of considerable exploration activity dating back to 1932.

Skeena released a PEA for Eskay Creek in November 2019 and is aggressively advancing towards the completion of a Pre-feasibility Study with a target to release in H1 2021. The highlights from the recently-released PEA include a combined Indicated and Inferred 4Moz, 4.4 g/t AuEq resource, an after-tax NPV5% of C638M, 51% IRR and a 1.2-year payback. In addition, Skeena will continue to release drill results from both Eskay Creek and Snip throughout 2020.