Skeena Resources Limited (NYSE: SKE) reported its Eskay Creek Gold-Silver Project in British Columbia reached 49% completion as of February 28, 2026, with 66% of total project costs contractually committed, according to a company statement.

The company updated its construction cost estimate to $659 million from the original $560 million outlined in its 2023 feasibility study, representing a $99 million increase. Both estimates include approximately $35 million in contingency costs.

The cost increase reflects general inflation, enhanced water management requirements due to updated British Columbia discharge standards, and operational design improvements including structural enhancements to the mill building and improved concentrate dewatering capacity.

Process plant construction stands at 46% complete with the concentrator building and concrete work finished. Process plant detailed engineering reached 92% completion and procurement achieved 88% of costs committed. The company completed mobilization of initial large mining equipment in the first half of 2025 and has mined 3 million tonnes of material to date.

Electrical infrastructure construction progressed with BC Hydro grid connection complete and approximately 50% of overhead power lines installed. Water treatment infrastructure advanced with Stage 1 Water Treatment Plant installation and dry commissioning complete.

Initial production remains targeted for the second quarter of 2027, with commercial production expected in the third quarter. As of December 31, 2025, the company invested approximately $305 million in development expenditures, with an estimated $354 million in remaining costs required to achieve initial production.

"Our strategy of initiating development activities well ahead of final permit receipt has delivered meaningful value for our shareholders," said Randy Reichert, President and CEO.

The company secured final environmental permits in February 2026 and incorporated leasing arrangements for water treatment, electrical infrastructure, and camp facilities, reducing upfront construction requirements by approximately $94 million.