An engineering contract for the Eskay Creek project has been awarded to Davy International, a member of the engineering division of Trafalgar House.
Situated north of Stewart, B.C., the gold/silver/base metal project is in the permitting phase, with project approval from provincial authorities expected early in 1994. A 360-tonne-per-day operation is proposed, with the mill to be built 37 km southeast of Houston.
The ore to be processed will be mined and crushed at the property, then trucked 560 km to the Houston site for milling. Since the ore contains various metals, the mill circuit will incorporate pressure oxidation, carbon-in-pulp, solvent extraction-electrowinning and Merrill-Crowe. Eskay Creek has a minable reserve of just over one million tonnes, projected to contain 2.2 million oz. gold and 100 million oz. silver. The reserves are refractory and contain other metals (lead, copper, zinc, antimony and mercury) that will either be recovered or stabilized before placement in the tailings impoundment.
Eskay Creek is owned equally by Prime Resources Group (VSE) and Stikine Resources. A unit of Homestake Mining (NYSE) has a 54% interest in the project through its interests in Prime and Stikine. Placer Dome (TSE) has an indirect interest in Eskay Creek through its 44% interest in Stikine.
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