Walter Coles, CEO of Skeena Resources (SKE:TSX.V), talks gold and how this exploration company has made its third acquisition.
Skeena is a gold exploration company focused on the Golden Triangle of northwest BC. We’re led by our chairman, Mr. Ron Netolitzky, who is one of the most famous geologists in the world, famous for several discoveries in this area of BC.
We are a consolidator of assets in that particular area. And in the last 24 months we’ve made three acquisitions. Our strategy is to advance them, take them through to PEA pre-feasibility and then vend them to a gold developer.
Our most recent acquisition is called the Snip mine, which we acquired from Barrick in March of 2016. So you fast forward to today and the province has spent $800 million building out roads and electricity in that area. It shut down when gold was $266. Today gold is obviously much, much higher. And that’s why we think we can go back in and open this mine back up and create a very profitable new operation.
The other asset is called Spectrum. And it’s next to another deposit called GJ. So we combine them together and we call it Spectrum GJ. And these are both open-pittable large, lower grade gold deposits that have tremendous leverage to a rise in price of gold. We call them post discovery resources. So there is a gold deposit there, something that we think we can make much, much larger.