{"id":947943,"date":"2026-03-31T11:15:19","date_gmt":"2026-03-31T15:15:19","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/skeena-gold-silver-confirms-eskay-creek-reaches-49-completion-provides-project-update-initial-production-remains-on-schedule-for-q2-2027\/"},"modified":"2026-03-31T11:15:19","modified_gmt":"2026-03-31T15:15:19","slug":"skeena-gold-silver-confirms-eskay-creek-reaches-49-completion-provides-project-update-initial-production-remains-on-schedule-for-q2-2027","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/skeena-gold-silver-confirms-eskay-creek-reaches-49-completion-provides-project-update-initial-production-remains-on-schedule-for-q2-2027\/","title":{"rendered":"Skeena Gold & Silver Confirms Eskay Creek Reaches 49% Completion & Provides Project Update; Initial Production Remains on Schedule for Q2 2027"},"content":{"rendered":"
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VANCOUVER, British Columbia, March 31, 2026 (GLOBE NEWSWIRE) — Skeena Resources Limited (TSX: SKE, NYSE: SKE) (\u201cSkeena Gold & Silver\u201d, \u201cSkeena\u201d or the \u201cCompany\u201d) is pleased to provide an update on the advancement of its 100% owned Eskay Creek Gold-Silver Project (\u201cEskay\u201d or the \u201cProject\u201d) in Northwest British Columbia. Since commencing development activities in December 2024, the Company has achieved notable progress advancing Eskay Creek. As of February 28, 2026, the Project was 49% complete, with 66% of total project costs now contractually committed. Initial production at Eskay Creek remains on schedule, targeted for the second quarter of 2027 and commercial production expected in the third quarter.<\/p>\n

\n
\n Randy Reichert, President & Chief Executive Officer of Skeena, commented, <\/em>
\n <\/strong>
\n \u201c<\/em>
\n Our strategy of initiating development activities well ahead of final permit receipt has delivered meaningful value for our shareholders. By acting early, we reduced project timeline risk and minimized inflationary impacts across key scopes by securing procurement contracts earlier.<\/em>
\n \u00a0<\/em>
\n Having completed the permitting process and reaching the midway mark on construction, we felt it was important to provide a project update and show how far the project has advanced.\u201d <\/em>\n <\/p>\n

\n Updated Construction Cost Estimate<\/strong>
\n \n <\/p>\n

Following receipt of the Environmental Assessment Certificate (\u201cEA\u201d) and joint provincial permits (see\u00a0news release dated February 3, 2026<\/a>), Skeena completed a comprehensive review of the permit conditions and the Project\u2019s construction cost estimate. The Updated 2026 Construction Budget now incorporates final permit conditions, updated Impact Benefit Agreement (\u201cIBA\u201d) commitments, inflationary impacts, and learnings from early-stage construction, resulting in a more current and reliable estimate of the Project\u2019s overall cost requirements. All references to dollars ($) in this news release are in United States (\u201cUS\u201d) dollars.<\/p>\n

The project cost outlined in the 2023 Definitive Feasibility Study (\u201cDFS\u201d) was US$560 million1<\/sup>. The updated cost estimate for the Project is US$659 million2<\/sup>, both estimates are inclusive of approximately US$35 million in cost contingency. This represents an increase of US$99 million as compared to the 2023 DFS estimate.<\/p>\n

The revised estimate incorporates updated project scope, engineering refinement, permitting conditions, IBA commitments, and project sanction\/completion timing adjustments. The estimate also incorporates the use of leasing arrangements for portions of certain infrastructure, including the water treatment plant, high-voltage electrical infrastructure, and camp facilities, which have reduced the upfront construction cost requirements by approximately US$94 million.<\/p>\n

Comprehensive reviews undertaken by the Project team, together with independent third-party consultants, continue to support the development schedule. In tandem with the updated 2026 construction budget, the project remains on schedule, with initial production targeted for Q2 2027 followed by commercial production in the third quarter.<\/p>\n

Prior to receipt of final permits, and in anticipation of major construction activities, Skeena strategically advanced and de-risked the Project throughout 2024 and 2025. As a result, as of December 31, 2025, the Company had invested approximately US$305 million in development expenditures and meaningfully progressed key construction scopes. As of December 31, 2025, the remaining development expenditures required to achieve initial production are estimated at US$354 million (net of planned US$94 million leasing arrangements), representing peak construction spending in 2026 of approximately US$291 million, with the balance of US$63 million expected to be incurred in 2027 as the Project transitions into commissioning.<\/p>\n

Major construction highlights are summarized below, as of February 28, 2026.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n Area<\/strong>\n <\/td>\n\n Status<\/strong>\n <\/td>\n\n Progress as of February 28, 2026<\/strong>\n <\/td>\n<\/tr>\n
Process Plant Detailed Engineering<\/td>\nOn Schedule<\/td>\n92% complete and fully in support of construction activities; forecast to finish in April 2026.<\/td>\n<\/tr>\n
Procurement<\/td>\nOn Schedule<\/td>\n88% of costs committed, with fabrication and receipt of key equipment and materials fully in support of construction activities.<\/td>\n<\/tr>\n
Process Plant Construction<\/td>\nOn Schedule<\/td>\n46% complete, with the concentrator building and critical path concrete now complete. Mechanical installation has now commenced and is proceeding per schedule.<\/td>\n<\/tr>\n
Initial Large Mining Equipment<\/td>\nCompleted<\/td>\nMobilization and commissioning of initial large mining equipment to support larger scale mining in the open pit was completed in H1 2025.<\/td>\n<\/tr>\n
Open Pit Mining<\/td>\nOn Schedule<\/td>\nMining activities advanced in both 2024 and 2025 supporting pre-strip material movement for orebody access and production of material for construction purposes. Material mined to date totals 3 million tonnes.<\/td>\n<\/tr>\n
Electrical Infrastructure Construction<\/td>\nOn Schedule<\/td>\nProgressing per plan, with tap-in to the BC Hydro grid complete, earthworks and concrete complete at the Volcano Creek substation, and approximately 50% of the overhead power line to site complete.<\/td>\n<\/tr>\n
Water Treatment & Management Construction<\/td>\nOn Schedule<\/td>\nSignificant progress of water management infrastructure, including installation and dry commissioning complete for the Stage 1 Water Treatment Plant. Excavation of MRSA Water Collection Pond was completed late 2025.<\/td>\n<\/tr>\n
Permanent Camp Construction<\/td>\nOn Schedule<\/td>\nCleared and mass earthworks complete, with fabrication well advanced, utilities installation in progress, and full occupancy on track for July 2026.<\/td>\n<\/tr>\n
Tailings Facility Construction (\u201cTMSF\u201d)<\/td>\nOn Schedule<\/td>\nInitial haul road access to the tailings facility was completed in H2 2025 to support 2026 dam construction.<\/td>\n<\/tr>\n
Assay Lab Construction<\/td>\nCompleted<\/td>\nConstruction and commissioning of the on-site Assay Lab was completed in 2024. The Assay Lab has now been operating successfully on site for 2 years.<\/td>\n<\/tr>\n
Process Plant Pad Mass Earthworks<\/td>\nCompleted<\/td>\nCompleted late 2024.<\/td>\n<\/tr>\n
Access Road Bridge Replacements<\/td>\nCompleted<\/td>\nBoth required bridge replacements on the mine access road were completed in H1 2025.<\/td>\n<\/tr>\n<\/table>\n

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Below is a summary of the main items contributing to the increase in the updated project cost estimate:<\/p>\n