Eskay Mining Concludes Drill Program at its Consolidated Eskay Precious Metal-Rich VMS Project: Discovers Massive Sulfide Atop the TV Deposit
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NEWS RELEASE
FOR IMMEDIATE RELEASE: October 13, 2021
Eskay Mining Concludes Drill Program at its Consolidated Eskay
Precious Metal-Rich VMS Project: Discovers Massive Sulfide Atop
the TV Deposit
Toronto, October 13, 2021 – Eskay Mining Corp. (“Eskay” or the “Company”) (TSXV:ESK) (OTCQX:
ESKYF) (Frankfurt:KN7)(WKN:A0YDPM) is pleased to announce that it has concluded its 2021 diamond
drill program at its 100% owned Consolidated Eskay precious metal project in the Golden Triangle, British
Columbia. Recent drilling encountered massive sulfide mineralization atop the TV volcanogenic massive
sulfide (“VMS”) system, demonstrates extensive sulfide mineralization occurs between the TV and Jeff
deposits, confirms that the highly prospective Upper Hazelton Group stratigraphy is present in close
proximity to the C10 VMS system, and establishes that the newly discovered Vermillion deposit
constitutes a major new VMS discovery for Eskay Mining. In addition, ground work at Scarlet Ridge
(formerly named New York; name recently changed to avoid confusion with another prospect in the area
with the same name ) confirms that area hosts extensive rhyolite-hosted VMS mineralization over a strike
length of at least 1.5 km.
These accomplishments were made in spite of the early arrival of snow storms beginning in mid
September. The Company completed approximately 23,500 meters in 98 holes, or 78% of the targeted
30,000 meter program. As announced by Eskay Mining in a Company news release dated September 16,
2021, assay turn around is expected to continue to be protracted due to an extremely active drill season in
the region as well as a chronic shortage of available labor, especially at sample preparation facilities.
Summary:
- Focused drilling at TV late in the season has led to the discovery of exhalative massive sulfide
mineralization at the top of what is now recognized as an extensive VMS stockwork feeder system.
Discovering such a horizon was one of the top goals of Eskay’s exploration team, having postulated
such a deposit should be present based upon observations of increasingly altered and silicified host
rocks high in this system. Massive sulfide intercepts were encountered in multiple holes (Figure 1).
Sulfide minerals include pyrite, sphalerite and various silver sulfosalt phases, and clastic textures are
common (Figure 2). Importantly, this newly discovered massive sulfide mineralization corresponds
closely to a discrete conductive SkyTEM anomaly. Below this newly discovered massive sulfide body,
multiple drill holes encountered long intercepts of intense stockwork feeder mineralization. This newly
discovered massive sulfide and stockwork feeder system remain open along strike and down dip. A
second, lower massive sulfide body discovered in 2020 was explored further in 2021, and is located at
a distinct older seafloor position than the upper massive sulfide body. These findings confirm that TV is
a stacked VMS deposit similar to those in the Noranda Camp, Quebec.
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- Although the planned drill program designed to bridge the TV and Jeff deposits was cut short due to
snow, one of the last drill holes completed this season, TV21-81, collared approximately 300 m north
of TV and 1,700 m south of Jeff, encountered an impressive 86 m (beginning at a down hole depth of
242 m) of replacement-style sulfide mineralization hosted by dacite breccia, similar to that observed at
both TV to the south and Jeff to the north (Figure 3). This discovery is important as it provides the first
evidence that the TV and Jeff VMS systems may be part of one larger mineralizing system.
Importantly, this newly discovered sulfide mineralization corresponds closely to another discrete
conductive SkyTEM anomaly, one of several occurring along strike between TV and Jeff.
- Late season drilling at C10 encountered Upper Hazelton Group stratigraphy consisting of the Willow
Ridge mafic unit and, importantly, the Eskay Rhyolite along with intervals of carbonaceous mudstone.
This drilling also confirms that these rocks, the host rocks for the Eskay Creek deposit situated
approximately 20 km to the north, occur on the east limb of the Eskay anticline. This is the first
confirmation that these critical host rocks are present in this region.
- Several drill holes completed at the newly identified Vermillion VMS target encountered intercepts of
several tens of meters of stockwork sulfide mineralization in highly chlorite-altered volcanic rocks
(Figure 4). Significant sphalerite, galena, and chalcopyrite are present indicating this system is
notably enriched in base metals. Arsenopyrite and silver sulfosalt minerals are observed in
outcropping massive sulfide mineralization. These long mineralized intercepts coupled with extensive
outcropping massive sulfide mineralization confirm that Vermillion represents a major new VMS
discovery for Eskay Mining.
- Several days of ground reconnaissance at Scarlet Ridge have confirmed discovery of a major new
VMS system within a cluster of very strong stream sediment BLEG Au anomalies. Stockwork to semi-
massive sulfide mineralization is hosted within extensive rhyolite sills occurring in carbonaceous
mudstone (Figure 5). Boundaries between rhyolite and mudstone are typically intermingled, a texture
referred to as peperitic, indicating a seafloor proximal setting where unconsolidated soft mud was
intruded by rhyolite sills. It is presumed that the VMS hydrothermal system exploited the same syn-
volcanic feeder structure that fed the rhyolite sills. Mineralization at the Eskay Creek deposit
approximately 7 km west of Scarlet Ridge is also closely associated with rhyolite sills.
With completion of drilling, Eskay has delivered a total of nearly 250 batches of core samples to the
laboratory. Assay turn around is expected to continue to be protracted due to an extremely active drill
season in the region as well as a chronic shortage of available labor, especially at sample preparation
facilities.
“Eskay’s exploration team led by Dr. John DeDecker has accomplished a long list of goals this season,”
commented Quinton Hennigh, director and technical advisor to the Company. “Discovery of massive
sulfide mineralization atop the TV VMS system and sulfide mineralization in between TV and Jeff are a
great way to end the drill season. On top of this, recent drilling has confirmed that Upper Hazelton Group
stratigraphy, like that at the Eskay Creek deposit nearly 20 km to the north, is in close proximity to the C10
VMS deposit. Drilling also demonstrates that the newly discovered Vermillion deposit constitutes a major
new VMS discovery for Eskay Mining. Last but not least, reconnaissance ground work confirms that
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Scarlet Ridge hosts an extensive VMS mineralization system associated with rhyolite intrusions over a
strike length of at least 1.5 km. We are delighted with this season’s accomplishments and look forward to
seeing assays from drilling, rock chip sampling and soils programs.”
Dr. Quinton Hennigh, P . Geo., a Director of the Company and its technical adviser, 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]
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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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(Figure 1: Core from approximately 38-48 m in hole TV21-78 showing massive sulfide mineralization and
associated silicified mudstone. This is one of several holes that encountered exhalative and clastic
massive sulfide atop the TV VMS system.)
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(Figure 2: Close up images of massive sulfide core from hole TV21-78. Sulfides include pyrite, sphalerite
and silver sulfosalts including pyrargyrite. Clastic textures are common, with the space between pyrite
clasts infilled by pyrrhotite, chalcopyrite, sphalerite, and pyrargyrite.)
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(Figure 3: Core from hole TV21-81, drilled approximately 300 m north of TV, showing replacement-style
sulfide mineralization in dacite breccia. Such mineralization is observed at both TV, to the south, and Jeff,
to the north. Eskay is hopeful that this mineralization will ultimately prove to connect the TV and Jeff
systems.)
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(Figure 4: Left top and bottom, stockwork feeder sulfide mineralization displaying sphalerite and
chalcopyrite in chlorite-altered volcanic rocks encountered in drilling at Vermillion. Right, a polished slab
from outcropping mineralization displaying massive sphalerite, galena, arsenopyrite, pyrite and silver
sulfosalt minerals.)