Recently rebranded Skeena Gold & Silver (TSX: SKE; NYSE: SKE) is on the brink of transformation after navigating British Columbia’s lengthy and costly permitting process, a London event heard this month.
Development work on its flagship Eskay Creek gold-silver project near Stewart, in the province’s so-called Golden Triangle is underway, executive chairman Walter Coles told The Northern Miner’s International Metals Symposium on Dec. 2. But getting to this point took determination and deep pockets, Coles said.
“If I told you how much we’ve spent on permitting in B.C., it almost gives me a heart attack,” Coles told The Northern Miner’s podcast host Adrian Pocobelli in a fireside chat.
Despite the hurdles, Coles is confident. “The company’s about to transform into a massive cash flow machine,” he said.
The high-grade open-pit mine recently got the green light to proceed with a 10,000-tonne bulk sample and to build infrastructure. It should have all-in-sustaining costs of just US$500 per oz. gold. It positions Skeena as a standout player in the sector.
The project needs US$592 million in initial spending. It has an after-tax net present value of $3.6 billion and a 62% internal rate of return at spot prices. A US$750 million financing package completed earlier this year supports progress.
Watch below the full conversation:
JV videos are sponsored content in arrangement with The Northern Miner.
* A prior version of this article incorrectly stated the NPV as US$1.4 billion and the IRR at 50%, when these numbers are C$3.6 billion for the NPV and 62% for the project’s IRR.
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