Eskay Announces that SSR Mining Inc. will Proceed with Second Year of SIB Option Agreement; Planning Underway for 2018 Exploration Drilling Program
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NEWS RELEASE
FOR IMMEDIATE RELEASE: JANUARY 22, 2018
Eskay Announces that SSR Mining Inc. will Proceed with Second Year of
SIB Option Agreement; Planning Underway for 2018 Exploration Drilling
Program
Toronto, January 22, 2018 – Eskay Mining Corp. (“Eskay” or the “Company”) (TSX-
V:ESK) (OTC-PK: ESKYF) (Frankfurt: KN7; WKN: A0YDPM) is pleased to announce
that SSR Mining Inc. (formerly Silver Standard Resources Inc.) (NASDAQ: SSRM)
(TSX: SSRM) (“SSRM”) has elected to proceed with the second year of a three year
option agreement with the Company on the SIB property. SSRM may earn an undivided
51% interest by spending an aggregate of $11.7 million in exploration expenditures over
the term of the agreement. SSRM may earn a further 9% undivided interest for an
aggregate 60% undivided interest by delivering either a preliminary economic
assessment or completing an aggregate of 23,000 meters of diamond drilling (see April
26th, 2017 news release). Eskay is also pleased to announce the final assay results
from the 2017 diamond drill program at the SIB property.
The 2017 drill program at the SIB property was designed to test for precious metals
enriched massive sulphide mineralization and prospective stratigraphy beneath the
Coulter Creek Thrust Fault (CCFT). The SIB property lies immediately south-southwest
along strike from Barrick Gold Corporation’s past-producing Eskay Creek Mine. Ten of
the twelve drillholes completed in 2017 targeted the footwall of the CCTF (Figure 1). All
holes intersected favourable Salmon River Formation rocks, which closely resemble
host rocks at the mine. Cross sections illustrating the interpreted geology of the CCTF
footwall, which were constructed from geological, geophysical and downhole structural
data, are shown in Figures 2, 3 and 4.
All of the 2017 drillholes targeting the CCTF footwall intersected alteration consistent
with footwall alteration in a volcanogenic massive sulphide (VMS) setting (variably
intense chlorite-sericite alteration); local sulphide-bearing veins were also intersected in
a number of holes. Assays from the 2017 drilling are suggestive of the presence of two
styles of mineralization: 1) disseminated sulphides hosting anomalous pathfinder
elements within carbonaceous mudstone; and 2) polymetallic sulphide veins, locally up
to 10 cm thick, consisting of pyrite, pyrrhotite, sphalerite, galena, +/- chalcopyrite and
arsenopyrite. The former style occurs in mudstone stratigraphically overlying rocks
correlative with the Eskay Creek Mine footwall rhyolite, and it has a similar geochemical
signature to mineralization observed along the fringes of stratiform ore bodies at the
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mine. The polymetallic veins are hosted within the Eskay-type footwall rhyolite. A list of
drillhole highlights from the 2017 drill program is given in Table 1.
In addition to intersecting encouraging mineralization and extensive alteration, the 2017
drill program greatly improved the Company’s geologic understanding of the CCTF and
its footwall. The surface location of the fault and its sub-surface geometry are now
constrained, and the drilling confirmed that the footwall stratigraphy bears strong
similarities with rocks hosting the Eskay Creek deposits. There also appears to be an
extensive area of altered Coulter Creek footwall rocks west and south of the area drilled
in 2017 that are reachable with the drill. Therefore, there remains potential for Eskay-
style discoveries at the SIB property, and target generation for the 2018 summer drill
program at the property is currently underway. It will systematically test the extensive
and favourable Eskay stratigraphy to the west and south of the 2017 drill area for
precious metals enriched VMS mineralization.
Table 1 – 2017 Drillhole Highlights
Hole From
(m)
To (m) Length
(m)
Au
(g/t)
Ag
(g/t)
Zn
(%)
Pb
(%)
As
(ppm)
Sb
(ppm)
Hg
(ppm)
EK17-142 891.30 894.30 3.00 0.47 0.5 - - 61 13 -
EK17-145 622.00 623.00 1.00 0.03 1.0 - - 1980 241 3.58
EK17-146 221.00 223.00 2.00 0.30 1.5 0.02 - 352 57 -
EK17-147 337.63 339.19 1.56 0.02 0.3 0.04 0.01 972 89 -
EK17-148 132.30 135.30 3.00 0.02 5.2 0.04 - 3040 61 -
EK17-149 321.30 324.30 3.00 0.01 2.8 0.08 - 581 171 1.2
EK17-149 390.38 396.38 6.00 0.01 3.7 0.20 0.04 202 5 N/A
Incl. 395.38 396.38 1.00 0.03 11.6 0.44 0.11 667 7 N/A
N/A – Not analyzed
Charles J. Greig, P . Geo., a member of the Company’s Advisory Team, is a Qualified
Person under the definition of National Instrument 43-101. Mr. Greig has reviewed and
approved the technical information in this press release.
For further information regarding the SIB property, see the Company’s Press Releases
of October 17, 2016, August 8, 2016, May 9, 2016 and January 23, 2013.
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82 Richmond Street East
Toronto, ON M5C 1P1
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W: eskaymining.com
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 in British Columbia in a
highly prolific, poly metallic area known as the Eskay Rift Belt located in the “Golden
Triangle”, 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]
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.
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82 Richmond Street East
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Figure 1: Overview map of 2017 drill program, showing geology and cross-section traces
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Figure 2: Interpreted E-W plane-projected geological cross-section of holes EK17-150 and EK17-152
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Figure 3: Interpreted E-W plane-projected geological cross-section of holes EK17-151and EK17-148
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82 Richmond Street East
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Figure 4: Interpreted E-W plane-projected geological cross-section of holes EK17-145 and EK17-143