Company Updates From Management – Tue 7 Jul, 2020

Skeena Resources – More information on the deal with Barrick and what comes next for Eskay Creek

Yesterday Skeena Resources (TSX-V:SKE & OTCQX:SKREF) announced a deal with Barrick Gold that eliminates Barrick’s back-in right for 51% of the Eskay Creek Property. This is major news for the Company that now can move Eskay forward through drilling and project de-risking.

Walter Coles, President and CEO of Skeena joins me to share some more details on this deal. We also discuss the exploration work that the Company has planned. There are some adjustment to the drill program now that this deal is signed.

If you have any followup questions for Walter please email me at Fleck@kereport.com.

Click here to visit the Skeena website and read over the news outlining the Barrick agreement.


Comments:
  1. On July 7, 2020 at 9:24 am,
    Excelsior says:

    $AR $ARNGF Argonaut Gold Inc. Announces C$110 Million Bought Deal Financing
    JULY 06, 2020

    “Argonaut intends to use the net proceeds of the Offering for the advancement of the Company’s Magino project”

    https://www.argonautgold.com/English/news-and-events/news-releases/news-releases-details/2020/Argonaut-Gold-Inc-Announces-C110-Million-Bought-Deal-Financing/default.aspx
    ______________________________________________________________________

    Magino #Development project will be their 4th mine.

    Proven and Probable $Gold = 2,137,000 ounces
    +
    Measured and Indicated $Gold = 4,197,000 ounces
    _________________________________________________
    Total $Gold = 6,334,000 ounces

    > Annual production 126,000 ounces; AISC $711

    • On July 7, 2020 at 9:37 am,
      Excelsior says:

      Argonaut Gold, with 3 current producing mines & 3 large development projects, (with Magino outlined above being one of those) is still only at a $462 Million market cap.

      This seems really low when you have advanced exploration companies like Skeena Resources featured above with no mines permitted/constructed/or producing with a Market Cap of $425 Million.

      ________________________________________

      We are seeing discounts like this in many of the producers where they’ve got large mines built, producing, and they are real companies producing real revenues, and there are companies just doing exploration work and drilling (some without even a resource estimate with larger market caps)

      dan oancea @dankogaion on Twitter 10:24 AM · Jul 2, 2020

      “Caught my eye.”

      $vgcx Victoria Gold declares commercial production. It has 3.3Moz gold in the ground. SP at $14.74. Market cap $908M.

      $gbr Great Bear Resources No production. No ozs in the ground but good drill results. Future mineral resource could go either way. SP at $18.70 & market cap at $936M.

      https://twitter.com/dankogaion/status/1278711209966006272

      • On July 7, 2020 at 9:47 am,
        Excelsior says:

        It takes so much capital, expertise, and years of work to get just 1 mine into production, like with Victoria Gold has done, so it really begs the question of whether some of these advanced explorers haven’t gotten way ahead of themselves, or conversely if the Gold producers are still way undervalued relative to the advanced explorers or developers.

        I get that all deposits are different and should be valued on their own merits, but were are seeing examples like this across the entire spectrum of mining companies.

        Are folks not considering the huge capital outlays these exploration and development companies will need to deploy, diluting down existing shareholders, or the years of permitting, social licensing and community outreach, permitting, and construction these companies would need to do successfully get their mines and mills built and into production?

        (USA) (USAS) Americas Gold & Silver has 4 producing mines at 3 producing mining complexes n 3 different countries, and a pipeline of exploration and development projects and is a legitimate Mid-Tier Precious Metals producer and has a market cap of $370 Million.

        Tudor Gold is advanced explorer in the Golden Triangle with no mines constructed and zero production with a larger Market Cap of $402 Million

        Does this make any logical sense?

        • On July 7, 2020 at 10:06 am,
          Excelsior says:

          A more condensed version of the questions above:

          > Are the Producers undervalued or are advanced Explorers getting a bit ahead of themselves?
          ________________________________________________________________________________

          (AR) Argonaut Gold, with 3 current producing mines & 3 large development projects
          *$462 Million market cap.

          (SKE) Skeena Resources developer with no mines permitted/constructed/or producing
          *$425 Million market cap
          __________________________________________________

          (VGCX) Victoria Gold in gold production w/ 3.3Moz gold in the ground.
          *$925 Million market cap

          (GBR) Great Bear Resources – no resource estimate or production, good drill results.
          * $888 Million market cap
          ____________________________________________________

          (USA) (USAS) Americas Gold & Silver 4 producing mines at 3 producing mining complexes n 3 different countries, and a pipeline of exploration and development projects and is a legitimate Mid-Tier Precious Metals producer:
          * $370 Million market cap

          (TUD) Tudor Gold is advanced explorer in the Golden Triangle with no mines constructed and zero production
          * $402 Million market cap

    • On July 7, 2020 at 9:53 am,
      Excelsior says:

      (VGCX) (VITFF) Victoria Gold’s Eagle Gold Mine Produces 13,828 Ounces of Gold in June

      by @nasdaq on 7 Jul 2020

      https://ceo.ca/@nasdaq/victoria-golds-eagle-gold-mine-produces-13828-ounces

  2. On July 7, 2020 at 9:28 am,
    Glenfidish says:

    Great news for Skeena!

    Gold action bullish!

    $1820-$1840 on target.. bulls have broken through once again. The wall of worry continues to work. Hope Gary has jumped in on this ride.

    Still 3-4 good weeks in my opinion. Monthly candle should look nice.

    Rinse and repeat

    Cheers glen

    • On July 7, 2020 at 10:04 am,
      OOTB Jerry says:

      Ditto………..

      • On July 7, 2020 at 10:07 am,
        OOTB Jerry says:

        HUI…..looking good……

        • On July 7, 2020 at 11:37 am,
          Excelsior says:

          I had posted this over at ceo earlier regarding the HUI in the last cycle versus this one:

          If one looks at where the $Gold #producers were trading back in 2011 when the yellow metal was last at these levels, then there is still quite a bit of catching up to to and it represents an interesting buying opportunity indeed.

          > #Chart showing $HUI Gold bugs index in relation to the $Gold price

          http://schrts.co/pWXKxIKT

          • On July 8, 2020 at 1:38 pm,
            OOTB Jerry says:

            Ex……..I was thinking the same thing…..a lot of catching up to do, and looks good to me….long term….

  3. On July 7, 2020 at 9:54 am,
    Excelsior says:

    (ANX) (ANXGF) Anaconda Mining Expands the Stog’er Tight Deposit, Intersecting 5.45 g/t Gold Over 20.0 Metres, 18.42 g/t Gold Over 5.0 Metres and 10.14 g/t Gold Over 7.0 Metres

    by @accesswire on 7 Jul 2020

    https://ceo.ca/@accesswire/anaconda-mining-expands-the-stoger-tight-deposit