Image Source: UnsplashSkeena Resources Ltd. (SKE) is a Canadian mining exploration and development company focused on revitalizing the Eskay Creek and Snip Projects, two past-producing mines located in Tahltan Territory in the Golden Triangle of northwest British Columbia, Canada, observes Peter Krauth, editor of Silver Stock Investor.A Definitive Feasibility Study was completed in November 2023 on their Eskay Creek Project. It holds high-grade, pit-constrained reserves of 4.6Moz of gold equivalent ounces. The mine will produce for 12 years, generating an average of 228,000 gold ounces and an impressive 6.6 million silver ounces annually.

Skeena Resources Ltd. (SKE) Chart
Thanks to a host of factors, including excellent geology, jurisdiction, and infrastructure, this is a very robust project. In fact, it’s so robust, it boasts a Net Present Value (NPV) of $1.6 billion, the payback is just 1.6 years, and the Internal Rate of Return (IRR) is a solid 37%.But that’s at $1,600 gold and $21 silver. If we instead use recent gold prices around $2,630 and silver at around $30, the payback is just 0.8 years, the IRR jumps to 62%, and the NPV is a superb $3.6 billion. Eskay Creek will generate an outstanding $726 million annually, after-tax, in the first five years.But here’s what has me particularly excited. Quality silver production is rare. Eskay’s Proven and Probable silver reserves are a whopping 88Moz. That’s in the top 10% of silver projects globally, and grades of 68.7 g/t silver puts this in the top 20% of open pit precious metals mines worldwide. The mine will produce a significant 9.5Moz of silver annually over the first five years, placing it in the top quartile of primary silver producers.There are a number of catalysts set to push Skeena’s shares higher over the next couple of years while it’s in the development phase. This company has about as bullish a profile for a silver-gold developer that you could want. Location, grade, infrastructure, financing, low-capex, high-return, and tons of brownfields and greenfields exploration upside.I think we could see Skeena shares gain 50% over the next 12 months.

About the Author
Peter Krauth is the author of the bestselling book The Great Silver Bull and publisher of the silver-focused investment newsletter Silver Stock Investor. Mr. Krauth has researched, written about, and invested in silver and resources for more than 20 years, using his extensive industry network to uncover outstanding opportunities. As a precious metals expert, he is a frequent guest contributor to webinars and financial websites such as Kitco and Forbes.More By This Author:Top Picks For 2025: MicroStrategy
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