Skeena Resources Ltd T.SKE

RE:Good article on SKE

[blue0987]

Taylor does not believe Skeena should increase Eskay's production profile, nor does he believe Skeena should increase their resources through exploration, thinking both would be too expensive, and would substantially dilute shareholders, my reply to him on Seeking Alpa that was taken down ....

Skeena strongly believes that the grade & size of the existing resources will improve to 5 million AuEq ounces at 5g/t as a result of simply infilling and drilling the 25m buffer, that several hundred thousand high-grade ounces can be added to the resource from the reduction in both a 3m SRK buffer around stopes that was applied to the existing resource, along with the 1m buffer between the proposed pit and old stopes, that Eskay's UG resource that currently contains 298koz @ 8.2g/t AuEq, can be added to the pittable ounces in having the pit pull down to the UG material level, that the Albino waste rock ore containing several hundred thousand of more high-grade ounces can be added to the resource, with plans in having 1 or 2 rigs deployed on Albino Lake these next couple months, finally, that Snip's ore with a current resource of 646koz @ 13.5g/t Au, can be used as a satellite feed, trucking high-grade ore over to Eskay for processing. All the above are extremely low cost effective ways in adding higher grade ounces to the resource, well over 2 million ounces when combined, and we haven't even mention near-mine step out exploration drilling.

 

The overall cost in increasing the annual throughput to produce higher production numbers is significantly minimized through the processing of higher grade material, along with the large amount of additional FCF that would be generated from Eskay's high margins, resulting in adding substantially to the bottom line, and shareholder value, that would largely over shadow any additional processing & exploration costs needed towards higher production numbers.