Net proceeds of the sale will be used mainly to fund exploration and development activities at Eskay Creek, which the company acquired from Barrick Gold in 2020.
The British Columbia-focused company feasibility study for Eskay Creek envisions an open pit operation with an annual production of 352,000 ounces of gold equivalent a year.
Average grades are pegged at 4.57 g/t gold-equivalent, while the after-tax net present value, at a 5% discount, is estimated at C$1.4 billion, with a 56% internal rate of return and a 1.4-year payback at $1,550/oz gold.
The past-producing Eskay Creek mine was the world’s highest-grade gold operation between 1994 and 2008.
