Tahltan back Skeena’s Eskay Creek gold project in B.C.

The Tahltan Nation has voted to support the impact benefit agreement (IBA) ensuring significant financial participation in Skeena Gold & Silver’s (TSX, NYSE: SKE) Eskay Creek gold-silver project in British Columbia. 

The agreement outlines shared benefits such a job and business opportunities for Tahltan members and companies, Skeena said this week. The IBA also provides for training and education programs to enhance long-term capacity. Additionally, it includes funding for a Tahltan elders’ facility.

With the IBA approved, the Tahltan Central Government board of directors is to consider granting consent for the Eskay Creek project in January.

“We extend our sincere appreciation to the leadership of the Tahltan Central Government, Tahltan Band, and Iskut Band for trusting Skeena to advance Eskay Creek,” Skeena Executive Chairman Walter Coles said in a release. “This innovative agreement sets new industry standards for First Nation involvement in environmental protection and sharing of benefits from the project.” 

2027 start

Skeena Resources said this year that Eskay Creek, a former Barrick Mining (TSX: ABX; NYSE: B) property in B.C.’s Golden Triangle that was once regarded as the highest-grade gold mine in the world, could start in 2027. Orion Resource Partners is backing the project with a $750-million (C$ 1.03-billion) financing package.

Over an estimated 12-year life, the mine would produce 320,000 oz. of gold-equivalent annually, with the first five years at 455,000 oz. of gold, according to a 2023 feasibility study.

Eskay Creek has proven and probable reserves of 39.8 million tonnes grading 2.6 grams gold per tonne and 68.7 grams silver, the study showed. Contained ounces total 4.6 million gold and 88 million silver. Measured and indicated resources are 50.1 million tonnes at 2.6 grams gold and 63 grams silver for 4.1 million oz. gold and 101.4 million oz. silver.

Eskay Creek operated as an underground mine from 1994 to 2008, producing about 3.3 million oz. of gold and 160 million oz. of silver. Skeena acquired the project in 2020 and has since conducted extensive exploration and development work to bring the mine back into production as an open-pit operation.