Skeena appealing gold commissioner’s “incomprehensible” call on Albino Lake, British Columbia

Skeena Resources Ltd. [SKE-TSXV; SKE-NASDAQ] has responded to the decision made by the chief gold commissioner on the materials in the Albino Lake storage facility at the 100%-owned past-producing Eskay Creek gold-silver project in the Golden Triangle region of northwestern British Columbia.

An individual holding a mineral claim on the lands that underlie Skeena’s Albino Lake storage facility applied to the chief gold commissioner on August 27, 2021 for a determination as to the ownership of the minerals in the materials deposited in the Albino Lake storage facility by the previous operators of the Eskay Creek mine.

The materials in question consist of tailings and minerals, containing sulphides and certain deleterious elements from the Eskay Creek mine, and are managed by Skeena under a Lands Act surface lease, and authorizations under the Mines Act and Environmental Management Act.

Notwithstanding Skeena’s continuing environmental obligations in respect of these materials, on February 7, 2022, the chief gold commissioner handed down a decision, determining that the individual, Richard Mills, owns all the materials in the Albino Lake storage facility.

Skeena believes that the chief gold commissioner’s decision is in error and intends to appeal the decision to the Supreme Court of British Columbia in accordance with the appeal provisions in the B.C. Mineral Tenure Act.

Walter Coles, president and CEO, commented: “It is incomprehensible to us that the chief gold commissioner of British Columbia would transfer ownership of materials that Skeena and, prior to that, Barrick, have actively managed and environmentally monitored for decades in the Albino Lake storage facility to an individual who staked barren mineral claims below the facility. We feel this sets a grave precedent for mineral exploration, development and environmental liability management in British Columbia. Skeena will utilize all legal avenues to remedy this situation within the B.C. court system and we have already begun the appeal process.”

Skeena Resources is focused on revitalizing the past-producing Eskay Creek gold-silver mine located in Tahltan territory of northwest British Columbia. The company released a prefeasibility study for Eskay Creek in July, 2021, which highlights an open-pit average grade of 4.57 g/t gold equivalent, an after-tax Net Present Value at a 5% discount of $1.4-billion, 56% Internal Rate of Return and a 1.4-year payback at US$1,550/oz gold. Skeena is currently completing both infill and exploration drilling to advance Eskay Creek to a full feasibility study in 2022.