The Importance of the 21A ZoneWith drill results imminent, the existing Skeena investors are stoked about the possibility of exploration success and the addition of new ounces & increased grades at the Eskay Project. I too am hopeful that exploration will bear fruit. With that said, I want to highlight the importance of the 21A zone (and to a lesser extents the 21B and 21E zones) and its ability to transform this company into a legit gold miner.
We have all seen the PEA numbers by now, and are all gobsmacked by the high NPV and even better IRR at a $1325 gold base case (i.e. After-tax NPV 5% of $638M and IRR of 51%). What may surprise some of us is that the main reason for these numbers is mostly attributed to the mine plan exploiting this shallow high grade zone.
So it is for this reason, that drilling of these infill holes are so important to SKE and that exploiting this “low hanging fruit” will win the day for this company.
I would also like to stress that Paul Geddes could not contain himself in the July 15th Webinar when the core drilled in this zone was showing visible gold (for the first time).
“I actually just got back from the rigs about 15 minutes ago. We've got three rigs turning to, in the water tower zone, which we'll talk about here in a second, as well as in the 21A zone, where we actually just intersected...a rarity. We've got visible gold. So that's, that's quite exciting times to be here up at the site. So from our 2019 mineral resources, I think, I think, I want to emphasize what, what was talking about earlier. Right? We weren't really incentivized to do any exploration.”