27 Sept 2023resource reserve update● Neutral
SRK's NI 43-101 technical report supporting the September Snip resource estimate. No new figures beyond the 5 September announcement.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
5 Sept 2023resource reserve update▲ GoodMajor
Snip's indicated resource was restated at 823,000 ounces of gold at 9.35 g/t, up 579,000 ounces (237%) on the 2020 estimate, with 114,000 inferred ounces at 7.10 g/t. 307 infill holes drilled by Skeena and Hochschild in 2021-22 defined new zones, expanded veins and raised confidence in historical data; recovery assumptions rose to 96% from 90%.
20 June 2023resource reserve update▲ GoodMajor
An updated resource estimate lifted Eskay Creek's pit-constrained measured and indicated resource 8% to 5.59 million ounces gold-equivalent (50.1 million tonnes at 3.47 g/t AuEq, being 4.14 million ounces of gold at 2.57 g/t and 102.5 million ounces of silver at 63.63 g/t), with a further 0.35 million ounces underground for the 5.9 million ounce headline. The more important change is confidence: measured material rose 23% and is now 73% of the pit resource, up from 63%, and inferred material is down to 40,000 ounces. It absorbs 278 new holes and 67,885 metres of the 2021-22 drilling.
12 May 2023regulatory community update● Neutral
Skeena announced its Q1 2023 financial results (the figures themselves are in separate documents, not in this release) and published its ESG report for 2022. The release restates the September 2022 feasibility study at an after-tax NPV5% of C$1.4 billion, 50% IRR and 1-year payback at US$1,700/oz gold and US$19/oz silver; this predates the later 2023 study update. Nothing new on the project is reported.
5 Apr 2023material agreement termination● NeutralMajor
Hochschild walked away from its option to earn 60% of the Snip gold project, so Skeena takes back 100% and all of Hochschild's data since it declared its intent to earn in during October 2021. Hochschild had met the minimum spending requirement, meaning at least C$15 million went into Snip - a partner spending that much and then declining to proceed is as much a comment on Snip as regaining full ownership is a gain. Skeena says it will look at feeding Snip ore through the planned Eskay Creek mill.
22 Feb 2023drilling result▲ GoodMajor
The last of the 2022 holes: SK-22-1132 returned 18.18 g/t gold and 130.2 g/t silver over 9.26 metres 25 metres below surface in 21A West, 75 metres up-dip of SK-22-1031, and SK-22-1177 gave 14.90 g/t gold over 5.70 metres. The 23 Zone produced a silver-dominant hit in SK-22-1187 (0.95 g/t gold with 1,003.3 g/t silver over 6.42 metres), and three holes in the 21E Zone ran 2.78 to 4.96 g/t gold over 20 to 26 metres. Closes out the programme that rebuilt the case for a bigger resource.
3 Jan 2023asset acquisition disposition▲ GoodMajor
Skeena sold Franco-Nevada a 0.5% net smelter royalty on Eskay Creek for C$27 million cash plus C$1.5 million contingent, signed and closed on 30 December 2022, and Franco-Nevada's right of first refusal was cancelled. This is the same half-royalty Skeena bought back from Barrick three months earlier for C$17.5 million, so the round trip netted about C$9.5 million and left the royalty burden where it started.
6 Dec 2022drilling result▲ Good
The 22 Zone was extended to the southwest by SK-22-1112, which returned 1.86 g/t gold and 88.3 g/t silver (2.85 g/t AuEq) over 16.56 metres, and SK-22-1113 at 2.96 g/t AuEq over 9.90 metres. Both sit just outside the 2022 feasibility study pit shell, so they would need to be brought into a revised pit to count.
29 Nov 2022drilling result▲ Good
Two infill holes drilled from the same pad as SK-22-1090 confirmed continuity in the 23 Zone from surface: SK-22-1092 gave 0.92 g/t gold and 12.5 g/t silver (1.05 g/t AuEq) over 79.97 metres and SK-22-1089 0.86 g/t AuEq over 29.90 metres. Confirmation drilling in a known zone, at grades in line with what was already there.
23 Nov 2022other▼ BadMajor
The BC Supreme Court (Justice Iyer) dismissed Skeena's appeal of the Chief Gold Commissioner's decision in Richard Mill versus Skeena over the Albino waste storage facility, and Skeena said it intends to appeal. Skeena said the decision does not affect the economics, Resources or Reserves in its 2022 Eskay Creek Feasibility Study.
22 Nov 2022drilling result▲ GoodMajor
SK-22-1054 found a new body of rhyolite-hosted mineralisation 200 metres east of the 22 Zone in ground with no historical drilling at all, grading 1.79 g/t gold and 32.0 g/t silver (2.15 g/t AuEq) over 40.67 metres from 23 metres depth. It sits outside the pit-constrained resource, the grade is modest against 21A West, and the geometry is unknown - it is one hole, open in all directions.
17 Nov 2022drilling result▲ GoodMajor
Two more holes extended 21A West southwards inside the planned pit: SK-22-1131 returned 7.73 g/t gold and 16.8 g/t silver (7.91 g/t AuEq) over 17.20 metres starting 14 metres below surface, 35 metres from SK-22-1031, and SK-22-1103 a further 35 metres south gave 3.45 g/t AuEq over 21.80 metres and 5.46 g/t AuEq over 9.75 metres. All of it in material the 2022 study treated as waste.
8 Nov 2022drilling result▲ GoodMajor
SK-22-1122 returned 20.43 g/t gold and 175.2 g/t silver (22.38 g/t AuEq) over 24.00 metres, including half a metre at 80.20 g/t gold and 2,790 g/t silver, 15 metres below the 48 g/t hole SK-22-1093 and only 60 metres below surface inside the planned pit. A second hole, SK-22-1095, found new mineralisation below the pit at 5.51 g/t AuEq over 20.60 metres. Like the rest of 21A West, this ground was carried as barren waste in the current reserve.
1 Nov 2022drilling result▲ GoodMajor
The first deep hole ever drilled into the down-dip extension of the deposit found new rhyolite-hosted mineralisation 650 metres below the NEX Zone at 850 metres depth: SK-22-1081 returned 3.79 g/t gold and 59.4 g/t silver (4.46 g/t AuEq) over 32.19 metres, with narrow sub-intervals above 10 g/t AuEq. A single hole into a new area, opening the "Eskay Deeps" as an underground target rather than adding anything to the open pit.
25 Oct 2022drilling result▲ GoodMajor
Infill hole SK-22-1090 extended 23 Zone mineralisation to surface, grading 1.20 g/t AuEq over 96.02 metres, which could improve the future open-pit strip ratio. Exploratory holes SK-22-1071 (1.17 g/t AuEq over 109.82 metres) and SK-22-1069 (2.30 g/t AuEq over 26.50 metres) found new intersections in the 21A West Zone.
18 Oct 2022drilling result▲ GoodMajor
SK-22-1031 hit 2.21 g/t gold and 4.6 g/t silver (2.27 g/t AuEq) over 50.00 metres in the 21A West Zone, 75 metres along strike from the 48 g/t hole - ground the 2022 resource estimate and feasibility study had both modelled as barren waste rock because no one had ever drilled it. A separate hole, SK-22-1040, returned 0.79 g/t AuEq over 95.75 metres 500 metres south of the 23 Zone.
26 Sept 2022asset acquisition disposition▲ GoodMajor
Skeena paid Barrick C$17.5 million to buy back half of the 1.0% net smelter royalty granted when it acquired Eskay Creek, leaving Barrick with 0.5%. Franco-Nevada's right of first refusal over that repurchased half stays in place, subject to an auction Skeena must run before October 2023.
23 Sept 2022capital raising announcement● NeutralMajor
The bought deal closed at C$34.5 million after the underwriters took their over-allotment in full - 5,702,479 shares at C$6.05. The stated use of proceeds is to exercise the right to buy down Barrick's 0.5% net smelter royalty on Eskay Creek.
What it means for a shareholder
5.7m new shares at C$6.05 to raise about C$34.5m. That's 8.0% dilution: every existing holder's slice gets 8.0% smaller. If you held C$1,000 of shares (165 at the issue price), your slice goes from 0.000253% to 0.000232% of the company. To keep it you'd need 14 more shares - about C$85 at the issue price.
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21 Sept 2022resource reserve update● Neutral
An amended and restated version of the feasibility study technical report, replacing the report filed on 14 September. The notice to reader says it reflects housekeeping and clarifying amendments plus conforming changes to the qualified persons' certificates; the study results are unchanged.
19 Sept 2022capital raising announcement● NeutralMajor
A C$30 million bought deal, 4,958,678 shares at C$6.05 through a Raymond James-led syndicate with a 743,801-share over-allotment option. The price is worth noting against the C$21.00 Franco-Nevada paid for flow-through shares nine months earlier.
What it means for a shareholder
5.0m new shares at C$6.05 to raise about C$30.0m. That's 7.0% dilution: every existing holder's slice gets 7.0% smaller. If you held C$1,000 of shares (165 at the issue price), your slice goes from 0.000253% to 0.000235% of the company. To keep it you'd need 13 more shares - about C$79 at the issue price.
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15 Sept 2022resource reserve update● Neutral
Skeena filed the full NI 43-101 technical report behind the 8 September feasibility study. It contains no new information - the results were already announced.
8 Sept 2022resource reserve update▲ GoodMajor
The Eskay Creek feasibility study put after-tax net present value at C$1.41 billion (5% discount, US$1,700 gold and US$19 silver) with a 50.2% return and one-year payback on C$592 million of pre-production capital, from proven and probable open-pit reserves of 29.9 million tonnes containing 2.87 million ounces of gold and 75.5 million ounces of silver. It reports the pit at 3.87 g/t gold-equivalent diluted; the July 2021 prefeasibility study, on figures the company quotes in its own releases, showed a 4.57 g/t open-pit grade with the same C$1.4 billion value and a 56% return over a 1.4-year payback.
6 Sept 2022drilling result▲ GoodMajor
The first 2022 results delivered SK-22-1093 in the 21A West Zone: 47.50 g/t gold and 73.4 g/t silver (48.48 g/t AuEq) over 12.12 metres, more than five times the grade of the 2021 discovery hole SK-21-997 in the same zone, inside the intended open pit and 75 metres north of it. Broader, lower-grade intercepts came from the East Flank (3.01 g/t AuEq over 17.66 metres, 1.68 over 31.30 metres) and the 23 Zone (1.33 g/t AuEq over 47.50 metres).
6 June 2022regulatory community update▲ GoodMajor
Skeena welcomed an agreement between the BC government and the Tahltan Central Government under which Eskay Creek would be the first mine to have its permits authorised by an Indigenous government. The company says it gives greater certainty and a framework for the project's environmental assessment. It does not say any permit has been granted or give a timeline.
2 June 2022business combination▲ GoodMajor
The QuestEx deal closed on 1 June 2022 as structured: about C$18.7 million cash and 1.05 million Skeena shares to QuestEx holders, with Newmont paying about C$26 million for Heart Peaks, Castle, Moat, Coyote and North ROK. Skeena keeps KSP and Kingpin, the properties nearest Eskay Creek and Snip, and the cash cost was fully covered by the Newmont sale.
21 Apr 2022regulatory community update● Neutral
Skeena published its first ESG (environmental, social and governance) report, covering 2021. It highlights C$122 million invested in the BC economy in 2021, a new 3,526-hectare Tenh Dẕetle Conservancy created in Tahltan territory, and a projected low greenhouse gas intensity for Eskay Creek. No new financial, resource or project results are disclosed.
30 Mar 2022business combination▲ GoodMajor
Skeena agreed to buy QuestEx Gold & Copper for C$0.65 cash plus 0.0367 of a Skeena share per QuestEx share, about C$48.6 million or C$1.20 a share, and simultaneously agreed to on-sell five of QuestEx's properties to Newmont for about C$27 million - enough to cover the entire cash half of the price. Net of that, Skeena pays roughly C$15 million in its own shares and its Golden Triangle land package grows nearly sevenfold to 84,889 hectares, keeping the ground next to Eskay Creek and Snip.
24 Mar 2022capital raising announcement▲ GoodMajor
Barrick exercised the 2,812,500 warrants it received when it sold Eskay Creek to Skeena in October 2020, paying C$10.80 each for C$30.4 million of cash. The money funds a 60,000-metre 2022 drill programme - a skid-based start in April and eight helicopter-supported rigs from June - aimed at the new 21A West and 23 Zones and at the deep mudstone north of the old mine.
9 Mar 2022drilling result▲ GoodMajor
Hole SK-21-997 hit 8.78 g/t gold and 13 g/t silver (8.95 g/t AuEq) over 34.00 metres, 30 metres below surface and 60 metres west of the 21A pit-constrained resource. It lies inside the 2021 PFS pit outline but had been treated as waste there for lack of drilling, and became the 21A West Zone; SK-21-983 returned 4.44 g/t AuEq over 11.73 metres and SK-21-985 2.39 g/t AuEq over 11.50 metres.
26 Jan 2022drilling result▲ Good
A step-out hole, SK-21-971, extended the week-old 23 Zone 90 metres up-dip with 1.97 g/t gold and 3 g/t silver (2.00 g/t AuEq) over 40.50 metres; SK-21-963 gave 0.76 g/t AuEq over 52.00 metres and SK-21-973 3.05 g/t AuEq over 7.49 metres. Expansion of a known zone rather than a new find, and the zone remains open in all directions.