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Posts tagged ‘Skeena Resources Ltd (SKE)’

Visual Capitalist: The re-awakening of the Golden Triangle

April 6th, 2017

by Jeff Desjardins | posted with permission of Visual Capitalist | April 6, 2017

The re-awakening of the Golden Triangle

 

Many years ago, a remote and mountainous region in northwestern British Columbia gained considerable attention as an emerging mineral district. With a rich mining history, one of the world’s largest silver mines (Eskay Creek, discovered in 1988) and million-ounce gold deposits, this area of incredible wealth became known as the Golden Triangle.

However, despite its obvious potential, the vast majority of land in this highly prospective region has been left mostly untouched by humans. A combination of factors, including low gold prices and a lack of infrastructure, led to the area lying dormant for decades.

Today, things are changing dramatically. The Golden Triangle is a new hotbed for mineral discovery, where over 130 million ounces of gold, 800 million ounces of silver and 40 billion pounds of copper have been found. The amazing part is that this is only scratching the surface of the region’s ultimate potential.

Skeena Resources TSXV:SKE and IDM Mining TSXV:IDM have generously helped put together the story on the re-awakening of the famed Golden Triangle.

The new gold rush

Why is the Golden Triangle at the centre of attention again? There are five main reasons:

1. New deposits found

The old adage is that the best place to find a new mine is near an existing one. Here are three major deposits in the Golden Triangle that have geologists and financiers buzzing:

KSM

Seabridge Gold’s (TSX:SEA) KSM project is the largest gold project in the world. In 2014 it received the green light from Canada’s federal government to go ahead. A porphyry-style deposit, it has reserves of 38.8 million ounces of gold, 10.2 billion pounds of copper and 183 million ounces of silver.

Red Chris

This $700-million copper and gold mine entered production in 2015. Owned by Imperial Metals TSX:III, it will be in production until 2043 based on current mine life estimates. In 2016 alone, it produced 83 million pounds of copper, 47,000 ounces of gold and 190,000 ounces of silver.

Valley of the Kings

The latest, and perhaps most interesting, discovery in the Golden Triangle is slotted to reach commercial production in 2017. The Valley of the Kings, unlike the above porphyry-style deposits, contains extremely high-grade gold. With 15.6 million tonnes grading 16.1 g/t gold, this deposit has some of the richest ore in the world.

2. New Infrastructure

In recent years, the Golden Triangle has received three massively important infrastructure upgrades:

  • Paving of the Stewart-Cassiar Highway (north from Smithers)

  • Opening of ocean port facilities for export of concentrate at Stewart

  • Completion of a $700-million high-voltage transmission line to bring power into the Golden Triangle

3. Declining snow cover

Glacial ice and snow have been retreating in many parts of the region, revealing rocks never seen before by human eyes. Especially in a mineral-rich region such as the Golden Triangle, this is a very exciting prospect for mineral geologists.

4. A new geological explanation

The Golden Triangle region has complex geology that had befuddled explorers for decades—but recent work has made the picture much clearer. Geologist Jeff Kyba has put forth the following theory: Geological contact between Triassic-age Stuhini rocks and Jurassic-age Hazelton rocks is the key marker for copper-gold mineralization.

Most of the Triangle’s copper-gold deposits, whether they are large-scale porphyry and intrusion-related, are found within two kilometres of this contact. It’s been named the Red Line, and this new interpretation of the region’s geology could contribute to B.C.’s next mega deposit.

5. Gold price recovery

Since the “sleepy” days of the Golden Triangle, gold prices have increased three times, even after adjusting for inflation. Combined with new infrastructure, exciting projects and world-class mineral potential, the Golden Triangle is awake again.

What’s happening today?

Today, the Golden Triangle is buzzing with activity.

  • The Red Chris mine is now in operation

  • Valley of the Kings is entering production in 2017

  • KSM, the world’s largest gold deposit, is nearing potential construction

  • Historic mines like the Snip Mine and Granduc are being explored using modern methods

  • New high-grade gold is being found. Red Mountain and the old Premier gold mine are the sites of some of these discoveries

  • Dozens of companies are on the ground performing all phases of exploration

Many types of mineral deposits are being tested for, including high-grade gold veins, large-scale porphyries and VMS (volcanogenic massive sulphide) deposits. The Golden Triangle is once again a centre of attention and it could be poised to become one of the world’s most prolific concentrations of mineral wealth.

Posted with permission of Visual Capitalist.

See an infographic about the Golden Triangle’s mining history.

Visual Capitalist: The history of British Columbia’s Golden Triangle

July 7th, 2016

posted with permission of Visual Capitalist | July 7, 2016

In a hidden corner of northwestern Canada lies some of the world’s most significant mineral potential. Billions of dollars of undiscovered gold, silver and copper still sit within an unexplored area that was once remote. However, only now can these world-class deposits be finally tapped. Skeena Resources TSXV:SKE has helped Visual Capitalist to put together the story of the famed Golden Triangle.

The history of the Golden Triangle

Even before Canada was officially a country, the area now known as the Golden Triangle was a hub for prospectors looking to strike it rich.

In 1861, Alexander “Buck” Choquette struck gold at the confluence of the Stikine and Anuk rivers, kickstarting the Stikine Gold Rush. More than 800 prospectors left Victoria to go to the Stikine in search of gold.

A few short years later, an even more significant rush would occur just to the north in the Cassiar region—it’s where British Columbia’s biggest ever gold nugget, weighing in at 73 ounces, would be found. The Atlin Gold Rush, an offshoot of the world-famous Klondike Gold Rush, would also occur just north of the Triangle.

The first discoveries

The companies that first worked in the Golden Triangle balanced its richness against the costs of its remote location.

Premier gold mine

The first big discovery in the Golden Triangle was at the Premier gold mine, which started operations in 1918. The company that first owned it, Premier Gold Mining Company, returned as much as 200% on the stock market between 1921 and 1923. At the time the Christian Science Monitor called it “one of the greatest silver and gold mines in the world.”

Snip mine

Discovered in 1964 by Cominco, the deposit stayed dormant until 1986, when it was drilled in a joint venture with Delaware Resources. Murray Pezim’s Prime Resources bought out Delaware after the stock ran from a dollar to $28 a share.

The high-grade Snip mine produced approximately one million ounces of gold from 1991 until 1999 at an average gold grade of 27.5 gams per tonne.

Eskay Creek

In 1988, after 109 drill holes, tiny exploration companies Stikine Resources and Calpine Resources finally hit the hole they needed at Eskay Creek with grades as high as 27.2 g/t and 30.2 g/t gold.

Eskay would go on to become Canada’s highest-grade gold mine and the world’s fifth-largest silver producer, with production well in excess of three million ounces of gold and 160 million ounces of silver.

Grades:

  • Gold: 49 g/t
  • Silver: 2,406 g/t
  • Lead: 3.2%
  • Zinc: 5.2%

By the time all was said and done, the stock price of Stikine Resources would go from $1 to $67, after it was bought by International Corona.

Why did these three rich mines shut down?

Despite the gold in the Triangle being extremely high grade, lower gold prices in the late ’90s made the economics challenging. Meanwhile, the lack of infrastructure in this remote area meant that power, labour and logistics costs were sky high.

Both of these things have changed today, and activity at the Golden Triangle is now fast and furious.

Gaining access to the Triangle

The Golden Triangle is a hot area for exploration again. This is for three main reasons: higher gold prices, new infrastructure and modern discoveries.

Higher gold prices

Average gold price (1999): $279 (adjusted for inflation: $398)
Average gold price (2016): $1,202

Gold prices are more than three times as high today, even after adjusting for inflation. Combined with the Golden Triangle’s high grades, this becomes even more attractive.

New infrastructure

Today, road access to the area is easier than ever and a new transmission line will dramatically reduce the cost of power for companies operating in the Triangle.

Recent improvements:

  • Completion of a $700-million high-voltage transmission line to the Golden Triangle. The Northwest Transmission Line goes 335 kilometres from Terrace to Bob Quinn Lake and north to the Red Chris mine

  • Paving of the Stewart-Cassiar highway north from Smithers (Highway 37)

  • Opening of ocean port facilities for export of concentrate in Stewart

  • Completion of a three-dam, 277 MW hydroelectric facility located 70 kilometres northwest of Stewart

Modern discoveries

The next gold rush at the Golden Triangle has already started. Just some of the new discoveries in the area include Seabridge Gold’s (TSX:SEA) KSM project, Pretium Resources’ (TSX:PVG) Valley of the Kings deposit and Imperial Metals’ (TSX:III) Red Chris mine.

Yet despite this track record of new discoveries and mines being built in the area, a B.C. government report estimates that only 0.0006% of the Golden Triangle has been mined to date.

Posted with permission of Visual Capitalist.