Drill Results Including 5.1 Meters Grading 31.23 GPT Au and 138.1 GPT Ag and 4.1 Meters Grading 11.09 GPT Au and 44.2 GPT Ag Confirm Discovery of Two Precious Metal-Rich VMS Deposits for Eskay Mining
1
82 Richmond Street East
Toronto, ON M5C 1P1
T: 416 907 4020
W: eskaymining.com
NEWS RELEASE
FOR IMMEDIATE RELEASE: December 22, 2020
Drill Results Including 5.1 Meters Grading 31.23 GPT Au and 138.1
GPT Ag and 4.1 Meters Grading 11.09 GPT Au and 44.2 GPT Ag
Confirm Discovery of Two Precious Metal-Rich VMS Deposits for
Eskay Mining
Toronto, December 22, 2020 – Eskay Mining Corp. (“Eskay” or the “Company”) (TSX-V:ESK) (OTC-
PK: ESKYF) (Frankfurt: KN7; WKN: A0YDPM) is pleased to announce that it has confirmed discovery of
two precious metal-rich volcanogenic massive sulphide (“VMS”) deposits at the TV and Jeff targets on
joint venture ground held with Kirkland Lake Gold Ltd. (80% Eskay/20% Kirkland Lake Gold). Assays for 9
of 20 diamond drill holes (TV20-35, TV20-36, TV20-37, TV20-38, TV20-39, TV20-40, J20-31, J20-34 and
J20-37) completed between August and October, 2020 are discussed in this news release. Importantly, all
drill holes encountered significant Au and Ag intervals. Assays for the remaining 11 holes are expected
back by late January, 2021.
Highlights and Summary:
- All drill holes assayed to date display one or more significant intervals of precious metal-rich
VMS mineralization (Au eq = Au + Ag/72) with highlights including:
o TV:
TV20-35: 15.00 m grading 2.2 gpt Au eq and a second zone of 16.33 m grading 3.2 gpt
Au eq
TV20-36: 32.83 m grading 2.3 gpt Au eq including 1.5 m grading 17.3 gpt Au eq
TV20-37: 17.46 m grading 3.3 gpt Au eq including 4.2 m grading 7.9 gpt Au eq and a
second zone of 54.95 m grading 1 gpt Au eq
TV20-38: 20.53 m grading 2.4 gpt Au eq including 10.50 m grading 3.5 gpt Au eq
TV20-39: 40.74 m grading 1.8 gpt Au eq including 10.50 m grading 2.9 gpt Au eq
TV20-40: 29.92 m grading 3.5 gpt Au eq including 4.10 m grading 11.7 gpt Au eq and a
second zone of 65.27 m grading 1.6 gpt Au eq
o Jeff:
J20-31: 24.55 m grading 2.0 gpt Au eq
J20-34: 5.08 m grading 33.1 gpt Au eq including 1.59 meters grading 83.4 gpt Au eq
J20-37: 7.66 m grading 4.6 gpt Au eq
o Figures 1, 2 and 3 show plan views of drill holes completed at TV and Jeff, and Figures 4, 5, 6
and 7 provide cross sectional views of drill intercepts. True widths of mineralization vary
between 50-100% of reported intercept lengths.
2
82 Richmond Street East
Toronto, ON M5C 1P1
T: 416 907 4020
W: eskaymining.com
- The TV and Jeff targets are approximately 1.8 km apart. Right now, the Company is interpreting
these discoveries to be separate systems, but a recent SkyTEM geophysical survey suggests strong
continuity of stratigraphy along this segment of the east limb of the Eskay Anticline. Therefore, it is
conceivable that TV and Jeff are actually connected and part of a larger approximately 6 km long
corridor along which numerous electrically conductive anomalies occur.
- Mineralization encountered to date is predominantly of stratabound stockwork to massive
sulphide replacement style hosted by mudstone and peperite sills (intrusive rocks) within the Hazelton
Group, the same host rocks hosting the Eskay Creek Deposit approximately 13 km to the north.
Intercepts that Eskay Mining has encountered in its drill program are remarkably similar in grade,
thickness and style to those recently encountered in the Lower and Even Lower mudstone units drilled
by Skeena Resources.
- Both the TV and Jeff deposits are wide open along strike, down dip and up section. Key
prospective stratigraphy including the mudstone that is host to high grade mineralization at Eskay
Creek that is sandwiched between a footwall rhyolite and hanging wall basalt has yet to be drilled at TV
and Jeff. This unit is hypothesized to be a short distance up section from the current drill holes making
for a very intriguing untested target.
- Eskay Mining is particularly excited by the presence of local bonanza grades of Au and Ag
within recent drill intercepts suggesting the potential for discovery of high-grade mineralization similar
to that mined historically at Eskay Creek. Several holes yet to be assayed displayed local intervals of
silver rich minerals such as pyrargyrite and the native gold-silver alloy, electrum. Assays from these
holes are eagerly awaited.
- Eskay’s 2020 drill program is the first to be undertaken in this area since the early to mid-1990’s
when a few scattered holes were drilled at these targets. This was at a time when the geology of the
Eskay Creek deposit was not all that well understood. In July of this year, Eskay Mining’s team, led by
Dr. John DeDecker and Dr. Thomas Monecke of the Colorado School of Mines, confirmed that TV and
Jeff are indeed VMS systems similar to Eskay Creek and therefore designed the drill program to test
them as such, including systematic evaluation of the host stratigraphy.
- Interestingly, rock alteration associated with mineralization encountered to date is not as intense
as that seen at the Eskay Creek deposit. Eskay Mining thinks this is possibly because its recent drill
holes are situated in a distal part of the system. Therefore, there is good opportunity to vector in on the
more intensely altered and higher grade part of the system. As mentioned above, bonanza Au and Ag
grades encountered within some recent intercepts suggest potential for finding Eskay Creek type high-
grade mineralization nearby.
- These discoveries confirm the presence of new Eskay Creek type massive sulphide deposits
within the highly propsective Eskay graben, or geologic trough, that extends southward from the Eskay
Creek deposit. Approximtely 85% of this belt occurs within Eskay Mining’s tenure. In 2020, Eskay
Mining has identified numerous other VMS targets on its tenure. The Company plans an aggressive
+30,000 m drill program in 2021 to follow up on the TV and Jeff discoveries but to also test at least
another dozen high priority drill targets.
“We are delighted to confirm the discovery of two precious metal-rich VMS systems,” commented Dr.
Quinton Hennigh, director and technical advisor to Eskay Mining. “Once we saw that we had hit significant
mineralization in our first drill hole at TV, the goal of the remainder of the 2020 drill program came into
sharp focus, more aggressive drilling at the TV and nearby Jeff targets. It is remarkable that every hole
3
82 Richmond Street East
Toronto, ON M5C 1P1
T: 416 907 4020
W: eskaymining.com
assayed thus far reports one or more significant mineralized intercepts. We expect similar results from the
remaining eleven holes to be assayed. Although TV and Jeff are nearly 2 km apart, we see growing
evidence these systems are connected and lie within a 6 km long highly prospective corridor of electrically
conductive geophysical anomalies thought to be associated with sulphide mineralization. Given the large
analogue, Skeena’s Eskay Creek deposit, a few km to the north, we are very excited by the potential at
TV-Jeff. With approximately $15 million in the bank, we look forward to an aggressive drill program to
follow up on these exciting discoveries and test a multitude of additional high priority VMS targets.”
Table of Assays from the TV and Jeff Deposits:
Hole From (m) To (m) Length (m) Gold (gpt) Silver (gpt) Gold eq (gpt)
TV:
TV20-35 9.00 24.00 15.00 1.80 30.7 2.2
includes 9.00 18.00 9.00 2.33 33.9 2.8
188.85 205.18 16.33 1.12 149.8 3.2
includes 193.94 205.18 11.24 1.23 210.0 4.1 *
199.70 205.18 5.48 0.70 324.5 5.2 *
TV20-36 7.67 40.50 32.83 1.92 27.2 2.3
includes 20.90 31.00 10.10 4.17 40.2 4.7
includes 29.50 31.00 1.50 16.83 35.1 17.3
TV20-37 8.59 26.05 17.46 2.58 48.7 3.3
includes 14.48 24.00 9.52 3.86 63.4 4.7
includes 16.80 21.00 4.20 6.91 70.3 7.9
179.05 234.00 54.95 0.60 28.6 1.0
includes 198.82 201.00 2.18 0.62 193.1 3.3
TV20-38 7.51 28.04 20.53 2.01 30.5 2.4
includes 15.00 25.50 10.50 2.99 34.9 3.5
237.00 260.19 23.19 1.03 12.3 1.2
includes 244.50 255.00 10.50 1.39 15.3 1.6
TV20-39 3.00 43.74 40.74 1.39 28.4 1.8
includes 22.00 32.50 10.50 2.32 40.8 2.9
60.17 118.16 57.99 0.74 16.4 1.0
includes 98.50 117.72 19.22 1.22 8.9 1.3
TV20-40 3.08 33.00 29.92 3.18 25.7 3.5
includes 8.90 13.00 4.10 11.09 44.2 11.7
65.43 130.70 65.27 1.28 25.6 1.6
includes 101.53 128.50 26.97 1.82 28.7 2.2
Jeff:
4
82 Richmond Street East
Toronto, ON M5C 1P1
T: 416 907 4020
W: eskaymining.com
J20-31 29.25 53.80 24.55 1.54 31.3 2.0
includes 36.30 40.30 4.00 5.16 56.1 5.9
J20-34 37.92 43.00 5.08 31.23 138.1 33.1
includes 38.41 40.00 1.59 78.83 326.0 83.4
50.00 52.67 2.67 2.49 8.5 2.6
56.30 63.61 7.31 1.46 16.7 1.7
includes 56.30 58.60 2.30 2.67 12.8 2.8
74.62 77.12 2.50 1.63 1.7 1.7
102.95 105.00 2.05 3.05 0.5 3.1
J20-37 5.82 13.48 7.66 2.53 151.4 4.6
24.50 42.50 18.00 0.67 38.2 1.2
includes 29.12 39.50 10.38 0.97 48.7 1.6
Au eq (gpt) = Au (gpt) + Ag (gpt)/72
* Previously announced in a Company news release dated September 22, 2020
QA/QC, Methodology Statement:
Halved HQ drill core samples are submitted to ALS Geochemistry in North Vancouver, British Columbia
for preparation and analysis. ALS is accredited to the ISO/IEC 17025 standard for gold assays. All
analytical methods include quality control standards inserted at set frequencies. The entire sample
interval is crushed and homogenized, 250 g of the homogenized sample is pulped. All samples were
analyzed for gold, silver, mercury, and a suite of 48 major and trace elements. Analysis for gold is by fire
assay fusion followed by Inductively Coupled Plasma Atomic Emission Spectroscopy (ICP-AES) on 30 g
of pulp. Analysis for silver is by fire assay and gravimetric analysis on 30 g of pulp. Mercury is analyzed
using the trace Hg Inductively Coupled Plasma Mass Spectroscopy (ICP-MS) method. All other major and
trace elements are analyzed by four-acid digestion followed by ICP-MS.
Coordinates of Drill Holes Reported in the Table Above:
Hole ID UTM E UTM N Elevation Length Azimuth Dip
TV20-35 409515 6265883 775.0 273 327 56.4
TV20-36 409515 6265883 775.0 150 261.3 89.3
TV20-37 409515 6265883 775.0 300 322.2 56.8
TV20-38 409515 6265883 775.0 285 336.4 57.9
TV20-39 409515 6265883 775.0 148 90.6 62.1
TV20-40 409515 6265883 775.0 193 87.2 54.0
J20-31 409557 6267944 389.1 161 117.4 75.6
J20-34 409596 6267944 380.3 175 219.9 80.5
J20-37 409830 6267829 452.0 162 274.8 45.9
5
82 Richmond Street East
Toronto, ON M5C 1P1
T: 416 907 4020
W: eskaymining.com
Dr. Quinton Hennigh, P . Geo., the Company’s technical adviser, and a qualified person as defined by
National Instrument 43-101, has reviewed and approved the technical contents of this news release.
About Eskay Mining Corp:
Eskay Mining Corp (TSX-V:ESK) is a TSX Venture Exchange listed company, headquartered in Toronto,
Ontario. Eskay is an exploration company focused on the exploration and development of precious and
base metals along the Eskay rift in a highly prolific region of northwest British Columbia known as the
“Golden Triangle,” approximately 70km northwest of Stewart, BC. The Company currently holds mineral
tenures in this area comprised of 177 claims (130,000 acres).
All material information on the Company may be found on its website at www.eskaymining.com and on
SEDAR at www.sedar.com.
For further information, please contact:
Mac Balkam T: 416 907 4020
President & Chief Executive Officer E: [email protected]
6
82 Richmond Street East
Toronto, ON M5C 1P1
T: 416 907 4020
W: eskaymining.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Forward-Looking Statements: This Press Release contains forward-looking statements that involve
risks and uncertainties, which may cause actual results to differ materially from the statements made.
When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”,
“believe”, “estimate”, “expect” and similar expressions are intended to identify forward-looking statements.
Such statements reflect our current views with respect to future events and are subject to risks and
uncertainties. Many factors could cause our actual results to differ materially from the statements made,
including those factors discussed in filings made by us with the Canadian securities regulatory authorities.
Should one or more of these risks and uncertainties, such as actual results of current exploration
programs, the general risks associated with the mining industry, the price of gold and other metals,
currency and interest rate fluctuations, increased competition and general economic and market factors,
occur or should assumptions underlying the forward looking statements prove incorrect, actual results
may vary materially from those described herein as intended, planned, anticipated, or expected. We do
not intend and do not assume any obligation to update these forward-looking statements, except as
required by law. Shareholders are cautioned not to put undue reliance on such forward-looking
statements.
7
82 Richmond Street East
Toronto, ON M5C 1P1
T: 416 907 4020
W: eskaymining.com
(Figure 1: Plan view show the TV and Jeff area with location of drill holes. Please see figures below for more
detail.)
8
82 Richmond Street East
Toronto, ON M5C 1P1
T: 416 907 4020
W: eskaymining.com
(Figure 2: Plan view of the TV target area showing 2020 drill traces and assay flags.)