Versamet’s US$360m Eskay Creek gold stream: project economics for mine planners
Reviewed by Tom Sullivan

First reported on MINING.com
30 Second Briefing
Versamet Royalties has agreed a US$360 million cornerstone gold stream on Skeena Resources’ Eskay Creek open-pit redevelopment in British Columbia’s Golden Triangle, securing 3.5% of payable gold for life-of-mine with no caps, step-downs or buyback rights and paying 10% of spot for delivered ounces. Eskay Creek, 49% built and targeting first production in Q2 2027, has 50.1 million tonnes at 2.6 g/t Au and 63 g/t Ag, with a 2023 study projecting 455,000 gold-equivalent oz per year for the first five years. The stream, expected to yield Versamet over 10,000 oz Au annually initially and lift its Canadian exposure to ~50% by 2028, is funded via an expanded credit package including a US$250 million revolver and new US$150 million term facility.
Technical Brief
- Eskay Creek previously produced 3.3 Moz Au and 160 Moz Ag between 1994 and 2008 at high underground grades.
- 2023 feasibility defines 50.1 Mt at 2.6 g/t Au and 63 g/t Ag (4.1 Moz Au, 101.4 Moz Ag).
- Life-of-mine production in the study totals 2.8 Moz Au and over 81 Moz Ag across a 12‑year schedule.
- Versamet’s free cash flow yield of 9.7% is cited as highest among royalty and streaming peers.
Our Take
With Eskay Creek already 49% built and Skeena targeting first production in Q2 2027, this stream reduces development and schedule risk in Versamet’s book compared with earlier‑stage royalties that dominate many of the other gold‑tagged financings in our coverage.
Versamet’s plan to have roughly 50% of its portfolio exposure in Canada by 2028, supported by this British Columbia asset, suggests a deliberate reweighting away from higher‑risk regions that feature prominently in other recent gold and silver items in our database, such as Russia‑adjacent coal and Panama copper operations.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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