Eskay Creek Mine And Mill – A Continued Success

The Eskay Creek Mine, a high-grade gold and silver underground mine in northwestern British Columbia started operations in late 1994. For the first three years of operation, ore was crushed to minus 2 inch; blended to satisfy smelter terms and direct shipped to smelters in Japan and Canada. Before commencing the above operations, preliminary evaluations had indicated that an extremely complex metallurgical facility, requiring a large capital investment, would be required to recover the precious and other economic metals. Subsequently markets for raw ore were identified and underground mining and ore transportation operations, at a nominal production rate of 300 tonnes per day, were commenced. Exploration diamond drilling in 1995 and 1996 discovered additional lower grade mineralised zones, which are less economic or uneconomic as direct shipping ore. Test work demonstrated that these lower grade zones could be upgraded to marketable concentrates in a simple flotation mill. The mill was built in 1997 and has been in operation since late 1997. The mining rate now has increased to 400 tonnes per day including 250 tonnes per day of the direct shipping ore and 150tonnes per day of the mill ore. Prime Resources Group Inc. wholly owns the Eskay Creek Mine. Homestake Canada Inc. owns 50.6% of Prime’s shares and manages and operates the mine on Prime’s behalf. This paper discusses the mining and milling operations as well as ore shipment and smelter contracts' administration.