Skeena Resources is to commence a prefeasibility study (PFS) on its Eskay Creek gold-silver project in the Golden Triangle of northwest British Columbia, Canada.

The goal of the PFS is to de-risk Eskay Creek, while developing an appropriate execution strategy to ensure fast-tracked development towards commercial production, Skeena says.

Given the success of the team that developed the preliminary economic assessment (PEA) for Eskay Creek, Skeena says it will once again partner with Ausenco Engineering Canada, SRK Consulting, and AGP Mining Consultants to complete the PFS. The target completion date for the PFS is summer 2021.

This PEA envisaged a high-grade open-pit mine producing a life of mine average of 236,000 oz/y of gold and 5.81 Moz of at all-in sustaining costs (including by products) of $615/oz gold recovered. It would involve a 6,850 t/d mill and flotation plant producing a saleable concentrate.

Shane Williams, Skeena’s new Chief Operating Officer, said: “I am very excited to be joining the Skeena team at this transitional stage in the company’s history. The PFS is the next step in the evolution of Eskay Creek as we move this high-grade, open-pit project towards development and through to commercial production.”

A key work program as part of the development of the PFS will be an extensive infill drilling program to convert a large portion of the inferred resources into the measured and indicated category and following completion of the PFS, declare maiden reserves for Eskay Creek, Skeena said.

The company said: “Following the completion of the Eskay Creek PEA in 2019, several areas were identified that could be optimised and enhanced with further work. This includes optimising the metallurgy and the concentrate quality and to better optimise the flowsheet.

“Another focus area will be to gain a better understanding of the geotechnical characteristics in the open pit, which will allow for further pit optimisation studies. Preparations and planning for these work programs are ongoing.”

Subject to the agreement with Barrick, upon exercise of the option to acquire a 100%-interest in Eskay Creek, the company will enter the permitting process for the expanded Eskay Creek project, it said.

Skeena has already begun the environmental studies that are required for permitting and has initiated community engagement and consultation with Indigenous Nations.