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Skeena Resources secures major investment to kickstart projects in British Columbia Skeena Resources secures major investment to kickstart projects in British Columbia

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Investors are buzzing with excitement as a whopping $7.8 million has been injected into Skeena Resources to propel exploration endeavors in British Columbia. The news uplifted Skeena Resourcesโ€™ shares by 4.3%, skyrocketing to C$6.32 each by midday Tuesday and securing a market capitalization of C$561.9 million ($421.1m).

Adding even more fuel to Skeenaโ€™s fire, the company recently sealed a financing package worth a staggering C$81 million with Franco-Nevada to fuel the development of its prized Eskay Creek gold-silver project, home to what was once the highest-grade gold mine globally. The project boasts an after-tax net present value of a jaw-dropping C$2 billion, underlining its potential to become a Tier 1 gold mining project.

Peeking into the future, a November 2023 feasibility study for Eskay Creek outlined an operation spanning a decade, churning out an average annual production of 370,000 oz. of gold equivalent. This, matched with its enticing after-tax net present value (at a 5% discount), has industry pundits eager to witness the projectโ€™s evolution.

โ€œWith our base case after-tax NPV surpassing C$2 billion, Eskay Creek stands out as a rare potential Tier 1 gold mining project, located in a politically stable jurisdiction,โ€ enthused Skeenaโ€™s executive chairman Walter Coles in Tuesdayโ€™s release.

Never one to put all its eggs in one basket, Skeena also wields the mantle of owning the past-producing Snip mine, acquired from Barrick Gold in July 2017. Recently, an update to the mineral resource for the Snip project unveiled 823,000 indicated gold ounces hosted within 2.74 million tonnes at an average grade of 9.35 grams per tonne.

Peering into the distant horizon, Skeena is also conducting a grassroots regional assessment of its 100% owned KSP property, situated 24 km southwest of Eskay Creek. This property, procured through Skeenaโ€™s acquisition of QuestEx Gold & Copper last year, opened doors to an expansive 64,000 hectares of largely unexplored area.

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