0001171843-26-002063
SEC filingSkeena Resources announced its Eskay Creek Project is 49% complete with initial production on schedule for Q2 2027, but updated construction costs increased 18% to US$659 million.
Skeena Resources provided a comprehensive update on its 100% owned Eskay Creek Gold-Silver Project, confirming that construction is advancing on schedule with 49% completion as of February 28, 2026. The company reaffirmed its timeline for initial production in the second quarter of 2027 and commercial production in the third quarter of 2027. The project has received its final permits, including the Environmental Assessment Certificate and joint provincial permits, allowing for full-scale construction activities.
The most significant disclosure is the updated 2026 Construction Budget of US$659 million, representing an 18% increase of US$99 million over the 2023 Definitive Feasibility Study estimate of US$560 million. Management attributed the cost escalation to several factors: general inflationary pressures on labor and materials; enhanced water treatment infrastructure required to meet British Columbia's updated water discharge standards, which are now among the strictest globally; optimization of the permanent camp location; operational design enhancements; and additional costs associated with Impact Benefit Agreement commitments. A schedule extension of approximately six months, previously disclosed in June 2024, was also incorporated into the revised estimate.
To mitigate upfront capital requirements, Skeena has implemented leasing arrangements for certain infrastructure components, including the water treatment plant, high-voltage electrical infrastructure, and camp facilities, reducing initial construction costs by approximately US$94 million. As of December 31, 2025, the company had invested US$305 million in development expenditures, with an estimated US$354 million remaining to achieve initial production. Peak construction spending of approximately US$291 million is expected in 2026, with the balance of US$63 million anticipated in 2027 during commissioning.
Construction progress across all major areas remains on schedule, with the process plant detailed engineering 92% complete and process plant construction 46% complete. The company has already mobilized initial large mining equipment and mined 3 million tonnes of material to support pre-strip activities and construction needs.