Image: Eskay Creek Project: Preliminary Economic Assessment

Minerals & Metals1 min read

Eskay Creek Project: Preliminary Economic Assessment

Location
Golden Triangle region of BC, 83km northwest of Stewart, BC Canada
Client
Skeena Resources
Timeframe
January 2019 – December 2019

Skeena Resources Limited engaged Ausenco to lead the development of a NI 43-101 compliant Preliminary Economic Assessment (PEA) for the Eskay Creek Project in British Columbia, Canada.

The Eskay Creek property was previously operated by Barrick and is located in the Golden Triangle of northwestern British Columbia, close to other existing mining operations and exploration projects in progress.

The PEA focused on identifying and delivering an innovative project concept and an efficient design to support robust project economic results that optimized shareholder value. Ausenco treats our client’s projects as if they were our own. Adopting this strict approach on Eskay Creek, we made informed decisions using economic modelling to assess sensitivities and select the optimal solutions, which will result in the best project outcomes.

Project Solutions and Approach

Ausenco and Skeena Resources worked collaboratively to shape, define and guide the project from a resource model to a robust and compliant 43-101 PEA Technical Report. The PEA captured collaboratively the effort across major disciplines to capitalize on synergies for field work programs and reduce the overall timeframe and anticipated costs.

The integrated approach allowed us to plan and schedule subsequent activities to support advancement through a PFS phase.

Outcomes and Achievements

  • Delivered significant shareholder value whereby confirming attractive economics with a C$638 million after-tax NPV, NPV/Capex ratio of 2.1:1, 51% IRR and 1.2 year payback assuming a gold/silver price of US$1,325/oz US$16/oz, respectively.
  • Produced a comprehensive PEA NI 43-101 Technical Report for publishing.
  • Provided a clear work plan for the project to advance the project into further project definition including resource development, metallurgical testwork, geotechnical program, and environmental permitting.
  • Collaborated successfully across all Ausenco business lines (M&M and Global Consulting) as well as our team of sub-consultants.