Skeena Resources (SKE) 2025 Precious Metals Summit - Beaver Creek summary

Project history and asset overview

• Eskay Creek was previously the highest-grade gold mine globally, with historic grades of 45 g/t gold and over 2,000 g/t silver.

• The asset was placed on care and maintenance in 2008, with a high cutoff grade of 15 g/t at the time.

• Since 2017, the asset has been advanced with a focus on what remains below the historic cutoff.

• The project is now being reconceptualized as a large-scale open-pit operation.

• Expected annual production is 450,000 ounces of gold-equivalent metal, supported by robust grades.

Project economics and operational advantages

• Projected open-pit grade is 5.5 g/t gold-equivalent, triple the global average.

• Annual after-tax free cash flow is expected to be $1 billion for the first five years at current prices.

• The project benefits from a fully permitted tailings facility, saving CAD 150 million in CapEx.

• Access to hydroelectric power at CAD 0.06/kWh provides a significant cost advantage.

• 2023 DFS values the project NPV at CAD 5.5 billion at spot prices.

Permitting, partnerships, and community relations

• The project is located in Tahltan territory, with a collaborative relationship and a historic Section 7 agreement.

• Environmental assessment is in the final public engagement phase, concluding September 26.

• Permits, including the EA certificate and Major Mines Act permit, are expected in Q4 2024.

• The project is prioritized by the provincial government for fast-tracking due to its economic impact.