Eskay Mining Confirms New Precious Metal-Rich VMS System at Scarlet Knob- Tarn Lake at Similar Stratigraphic Position to the Eskay Creek Deposit
1
82 Richmond Street East
Toronto, ON M5C 1P1
T: 416 907 4020
W: eskaymining.com
NEWS RELEASE
FOR IMMEDIATE RELEASE: January 18, 2023
Eskay Mining Confirms New Precious Metal-Rich VMS System at Scarlet Knob-
Tarn Lake at Similar Stratigraphic Position to the Eskay Creek Deposit
Toronto, January 18, 2023 – Eskay Mining Corp. (“Eskay” or the “Company”) (TSX-V:ESK)
(OTCQX: ESKYF) (Frankfurt:KN7)(WKN:A0YDPM) is pleased to announce it has confirmed the
presence of a precious metal-rich volcanogenic massive sulfide (“VMS”) mineralized system at Tarn
Lake-Scarlet Knob in the northeastern part of its 100% controlled Consolidated Eskay Property in the
Golden Triangle, British Columbia.
Highlights
- During the 2022 exploration campaign, Eskay Mining’s geologic team confirmed the presence of a
major new precious metal-rich VMS mineralized system at Scarlet Knob-Tarn Lake.
- A spot rock chip sample collected at the Scarlet Knob VMS target on the eastern margin of Bruce
Glacier has yielded 56.9 g/t Au and 154 g/t Ag. This sample displays sulfide mineralogy and textures
indicative of a VMS origin and, importantly, is hosted by a stratigraphic unit that hosts the main Eskay
Creek deposit located approximately 7km to the west.
- Additional spot rock chip samples collected by Eskay’s exploration team at Scarlet Knob and Tarn
Lake in 2022 as well as recently identified legacy sample data confirms the presence of robust Au-
and Ag-rich VMS mineralization along a northeast trending zone approximately 500m long. Gold
grades of these other samples range from less than 0.1 g/t up to 56.6 g/t and silver grades range from
less than 1 g/t up to 142 g/t.
- A spot rock chip sample collected along the western margin of Bruce Glacier at Tarn Lake yielded 9.2
g/t Au and 9.3 g/t Ag. Its visual appearance and mineralogy are nearly identical to that of the high-
grade sample collected approximately 800m to the east at Scarlet Knob.
- Additional spot rock chip samples collected by Eskay’s exploration team at Tarn Lake in 2022 as well
as recently identified legacy sample data confirms the presence of significant Au- and Ag-rich VMS
mineralization over an area approximately 300m across. Gold grades of these other samples range
from less than 0.1 g/t up to 7.8 g/t and silver grades range from less than 1 g/t up to 174 g/t.
- Preliminary results from the first ever drill holes completed at Tarn Lake include 4.10 g/t Au and 98.30
g/t Ag (5.39 g/t Au Eq) over 5.43m within 2.47 g/t Au and 72.20 g/t Ag (3.42 g/t Au Eq) over
11.34m within 0.80 g/t Au and 22.97 g/t Ag (1.10 g/t Au Eq) over 41.41m in hole TN22-10 providing
drill confirmation of a significant new VMS discovery.
- Eskay Mining’s geologic team think that mineralization at Tarn Lake and Scarlet Knob potentially
connect under the rapidly receding terminus of Bruce Glacier. Previously reported BLEG (stream
sediment) geochemical anomalism displayed by several samples in this region may be derived in part
from the Scarlet Knob-Tarn Lake VMS system.
2
82 Richmond Street East
Toronto, ON M5C 1P1
T: 416 907 4020
W: eskaymining.com
- Given the Scarlet Knob-Tarn Lake VMS system shares strong similarities to the Eskay Creek deposit,
Eskay Mining is planning to conduct first ever drilling at Scarlet Knob as well as aggressive follow up
drilling at Tarn Lake in 2023.
"A major focus of Eskay Mining’s 2022 exploration program was identifying new precious metal-rich VMS
mineralization in underexplored areas of the large Consolidated Eskay Property,” commented Dr. John
DeDecker, VP of Exploration for Eskay Mining Corp. "At Scarlet Knob-Tarn Lake, our team has confirmed
the presence of a second major trend of Au- and Ag-rich VMS mineralization at the northern end of the
Eastern anticline which runs parallel to the Eskay anticline that hosts the world class Eskay Creek deposit
located approximately seven km to the west. Our rock chip samples from this area, some of which
returned bonanza gold grades, display a similar appearance to mineralization at Eskay Creek.
Importantly, the host rock at Scarlet Knob-Tarn Lake is the Eskay rhyolite, the same stratigraphic host unit
at Eskay Creek. Preliminary results from our maiden drill program at Tarn Lake confirm the discovery of a
significant zone of Au- and Ag-rich VMS mineralization. We are particularly excited about the potential
connectivity between Tarn Lake and Scarlet Knob. We are planning maiden drilling at Scarlet Knob and
aggressive follow up drilling at Tarn Lake in 2023."
“Over the past three years, our geological team has made extraordinary progress toward our mission of
discovering new high-grade VMS deposits across the Consolidated Eskay Property”, commented Mac
Balkam, CEO of Eskay Mining. “Our large property has the right geology to host deposits comparable to
the original Eskay Creek Mine, and we all know that VMS deposits typically occur in clusters. Our team’s
2022 work in the Scarlet Ridge-Tarn Lake trend, 7 Kilometers due east of the original mine, shows very
encouraging gold and silver results from both rock chip samples and drill core. A rock chip sample from
Scarlet Knob returned 56.9 g/t gold and 154 g/t silver, has an appearance similar to high-grade
mineralization at Eskay Creek and is hosted by the same rock units as those at Eskay Creek. When
plotted with legacy results including a 56.6 g/t gold and 32 g/t silver sample, a 500m long high-grade trend
is now evident, with additional samples ranging from 1-10 g/t Au extending a further 900 m to the
northeast. Straight across Bruce Glacier and 800m to the west, rock chip samples have defined a 300m
wide zone of gold- and silver-rich VMS mineralization. We were able to get a few widely spaced holes in
this target before the end of season and were able to confirm this discovery with solid drill results. There
are compelling signs that Scarlet Knob and Tarn Lake connect under the toe of Bruce Glacier. I am
delighted that our 2022 results validate our thesis that Eskay Consolidated has multiple precious metal-
rich VMS targets with potential like that of the original mine. The Eskay team is very excited about
conducting follow up work at Scarlet Knob-Tarn Lake as well as at TV-Hexagon-Mercury and SIB-Lulu.
The stage is set for an exciting 2023 exploration program."
Tarn Lake and Scarlet Knob
During the 2022 exploration campaign, a 300m wide zone of Au- and Ag-rich VMS mineralization was
discovered by Eskay Mining’s geologic team at Tarn Lake (Figure 1). The highest-grade spot rock chip
sample, collected along the western margin of Bruce Glacier, yielded 9.2 g/t Au and 9.3 g/t Ag (Figure 2).
Additional spot rock chip samples collected at Tarn Lake in 2022 as well as recently identified legacy
sample data bear gold grades ranging from less than 0.1 g/t up to 7.8 g/t and silver grades ranging from
less than 1 g/t up to 174 g/t.
3
82 Richmond Street East
Toronto, ON M5C 1P1
T: 416 907 4020
W: eskaymining.com
Near the end of the 2022 diamond drill program, Eskay Mining’s geologic team completed the first ever
drilling at Tarn Lake, a series of widely spaced holes targeting areas underneath the location from which
promising surface samples had recently been collected (Figure 3). Preliminary results from the first ever
drill holes completed at Tarn Lake include:
- 4.10 g/t Au and 98.30 g/t Ag (5.39 g/t Au Eq) over 5.43m within 2.47 g/t Au and 72.20 g/t Ag
(3.42 g/t Au Eq) over 11.34m within 0.80 g/t Au and 22.97 g/t Ag (1.10 g/t Au Eq) over 41.41m in
hole TN22-10, and
- 3.96 g/t Au and 11.86 g/t Ag (4.12 g/t Au Eq) over 1.91m within 1.90 g/t Au and 7.94 g/t Ag (2.00
g/t Au Eq) over 6.95m in hole TN22-12.
A summary of significant preliminary assays from Tarn Lake is presented in a table below. Remaining
assays from Tarn Lake drill holes will be reported once they have returned from the lab.
Mineralization at Tarn Lake is associated with sets of east-west trending andesite dikes, interpreted to
represent VMS syn-volcanic feeder structures, and occurs as sub-seafloor sulfide replacement of
favorable stratigraphic horizons (Figures 4 and 5). It is hosted by the Eskay rhyolite, one of the primary
host rocks at the Eskay Creek mine. Assay results show that both the semi-massive and disseminated
sulfide mineralization are Au- and Ag-bearing, an encouraging sign indicating that precious metal
mineralization may be more extensive in this area.
Spot rock chip sampling at Scarlet Knob in 2022 yielded a notable high-grade sample grading 56.9 g/t Au
and 154 g/t Ag. Additional spot rock chip samples collected by Eskay’s exploration team as well as
recently identified legacy sample data bear gold grades ranging from less than 0.1 g/t up to 56.6 g/t and
silver grades range from less than 1 g/t up to 142 g/t. These collectively define a northeast trending zone
approximately 500m long.
Rock chip samples from Scarlet Knob, on the eastern flank of Bruce Glacier, bear a strong resemblance
to those collected at Tarn Lake, on the western side, some 800m distant (Figures 6 and 7). Like Tarn
Lake, mineralization at Scarlet Knob is hosted by the Eskay rhyolite. Eskay Mining’s geologic team thinks
there is a likelihood that VMS mineralization connects between these two areas underneath the toe of the
rapidly receding Bruce Glacier. Further exploration will focus on establishing connectivity along this ~1 km
long east-west corridor. Ability to drill through ice in this area is being examined.
Scarlet Ridge and Scarlet Valley
In 2022, Eskay Mining’s geologic team identified zones of stockwork and replacement-style VMS
mineralization at Scarlet Ridge and Scarlet Valley. Mineralization is associated with east-west trending
andesite dikes interpreted to be syn-volcanic VMS feeder structures. Surface sampling and diamond
drilling were conducted at both locations, both techniques yielding anomalous gold and silver grades
(Figures 8, 9 and 10). Significant drill results are summarized in a table below.
4
82 Richmond Street East
Toronto, ON M5C 1P1
T: 416 907 4020
W: eskaymining.com
Eskay Mining’s geologic team views the hydrothermal alteration and anomalous precious metal
concentrations at Scarlet Ridge and Scarlet Valley to be distal components of the VMS system centered
around Scarlet Knob-Tarn Lake. Therefore, emphasis will be placed on follow up exploration around the
latter location in 2023. SkyTEM data indicates the presence of a significant conductive feature
immediately southwest of Tarn Lake in need of field follow up examination (Figure 11).
2022 Exploration Program
The fundamental goal of the 2022 exploration program was to identify new precious metal-rich VMS
deposits across the Consolidated Eskay Project through early-stage work including mapping and
geochemical sampling, and more advanced work including widely spaced drilling. During the 2022
exploration season, Eskay Mining successfully completed 29,500m of diamond drilling along the TV-Jeff
corridor and along the Scarlet Ridge-Tarn Lake trend.
Drill results discussed in this news release come from holes drilled along the Scarlet Ridge-Tarn Lake
trend. Significant assays from fifteen drill holes that are part of this release are tabulated in a table below.
Holes with no significant results are not listed in this table.
Further analytical data is expected back over the next few weeks. This includes assays from additional
drill holes drilled along the Scarlet Ridge-Tarn Lake trend, holes drilled at the TV deposit and analyses
from substantial numbers of soil, surface rock chip, and infill BLEG samples from across the project.
These will be presented to the market as they become available.
Au Eq and Ag Eq Calculations and True Width:
Note on use of Au eq (Au eq=Au+Ag/76) and Ag eq (Ag eq=Au*76+Ag): Mineralization at the TV and Jeff
deposits displays similar characteristics and mineralogy to the Eskay Creek deposit and therefore for Au
eq, and Au:Ag, a ratio of 76:1 is used and Au eq and Ag eq values are deemed to be reasonable based
on assumed gold recovery (84.2%) and silver recovery (87.3%) as reported in the Eskay Creek Project NI
43-101 Technical Report and Prefeasibility Study, British Columbia, Canada, Effective Date: 22 July,
2021, Prepared for: Skeena Resources Ltd., Prepared by: Absence Engineering Canada Inc.
True widths of reported intercepts are not fully understood at this time but given the moderately dipping
tabular nature of these deposits and the steep angle of drilling, Eskay geologists estimate true widths
represent approximately 70-90% of the reported drill intercept lengths.
QA/QC, Methodology Statement:
Halved HQ drill core samples are submitted to ALS Geochemistry in Terrace, 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
5
82 Richmond Street East
Toronto, ON M5C 1P1
T: 416 907 4020
W: eskaymining.com
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.
Historical rock chip sample data is sourced from Assessment Report AR19675 by Granges dated
February 7, 1990. Eskay Mining is unable to fully verify this data, and it should be treated as such by the
reader.
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,” 70km northwest of Stewart, BC. The Company currently holds mineral tenures in this
area comprised of 177 claims (52,600 hectares).
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,
6
82 Richmond Street East
Toronto, ON M5C 1P1
T: 416 907 4020
W: eskaymining.com
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
Table of significant Au and Ag results from holes drilled at Tarn Lake (TN), Scarlet Valley (SV), and
Scarlet Ridge (SR)
Hole From (m) To (m)
Length
(m) Au (gpt) Ag (gpt)
AuEq
(gpt)
AgEq
(gpt)
TN22-06 127.64 131.00 3.36 1.83 1.64 1.85 140.57
TN22-10 74.05 115.46 41.41 0.80 22.97 1.10 83.62
including 91.00 102.34 11.34 2.47 72.20 3.42 259.92
including 94.00 99.43 5.43 4.10 98.30 5.39 409.97
TN22-12 100.75 107.70 6.95 1.90 7.94 2.00 151.96
including 103.00 104.91 1.91 3.96 11.86 4.12 312.82
SV22-02 27.60 29.95 2.35 0.12 95.79 1.38 104.60
SV22-03 169.00 172.00 3.00 0.86 46.00 1.46 111.06
SV22-04 7.96 10.10 2.14 0.39 48.08 1.02 77.56
SV22-05 89.04 94.02 4.98 0.25 77.05 1.26 95.83
SR22-01 19.26 21.21 1.95 1.56 2.60 1.59 121.01
Au Eq and Ag Eq values have all been adjusted to the silver-to-gold ratio of 76:1 for this news release.
Table of Drill Hole Locations and Orientations
Hole ID
Easting
(m)
Northing
(m)
Elevation
(m) Azimuth Dip
Total
Depth
(m)
TN22-3 415165 6273652 1444 100 50 116
TN22-6 415102 6273575 1470 135 55 162
TN22-10 415102 6273575 1470 60 55 255
TN22-12 415102 6273575 1470 55 70 160
SV22-1 416219 6278880 1306 270 45 800
SV22-2 416219 6274880 1306 - 90 202
SV22-3 416360 6274870 1359 270 45 279
SV22-4 416219 6274880 1306 315 45 219
SV22-5 416219 6278880 1306 100 45 201
SV22-6 416360 6274870 1359 - 90 200
SV22-7 416500 6274862 1419 270 45 350
SR22-1 417404 6275866 1103 130 45 800
SR22-2 417404 6275866 1103 100 55 344
SR22-3 417404 6275866 1103 270 45 500
8
82 Richmond Street East
Toronto, ON M5C 1P1
T: 416 907 4020
W: eskaymining.com
SR22-4 417551 6275798 1035 270 45 434
Table of select spot rock chip samples from Tarn Lake and Scarlet Knob collected in 2022.
Sample ID easting northing Au gpt Ag gpt AuEq gpt AgEq gpt
202209065006A 416074 6273562 56.9 154 58.9 4476.4
202208080010A 415262 6273654 9.2 9.3 9.3 706.8
202208164006A 415234 6273661 7.8 65.1 8.6 653.6
202207195002A 416118 6273787 3.4 27.1 3.8 288.8
202207195001C 416164 6273742 3.1 11.9 3.3 250.8
202208264003A 415158 6273503 3 5.7 3.1 235.6
202209045003A 416112 6273986 2.7 15.7 2.9 220.4
202208264004A 415184 6273518 2.2 91 3.4 258.4
202208164002A 415188 6273653 1 174 3.2 243.2
202207301010A 416251 6273685 0.8 3.8 0.9 68.4
202209063010A 416149 6273751 0.6 1.8 0.6 45.6
202207301001A 416136 6273543 0.5 1.9 0.5 38
202208161003A 415151 6273614 0.5 11.3 0.6 45.6
202207300004A 416551 6274147 0.5 4.5 0.5 38
202207301003A 416146 6273613 0.4 1 0.4 30.4
202207301009A 416236 6273665 0.4 1.2 0.4 30.4
202208164005B 415200 6273659 0.4 11.9 0.5 38
202208085007A 415260 6273657 0.3 3.9 0.4 30.4
202208100001A 415003 6273619 0.3 3.8 0.3 22.8
202209045008A 416006 6273753 0.3 3.4 0.3 22.8
202208080009A 415261 6273650 0.3 15.5 0.5 38
202208161004A 415146 6273616 0.3 7.5 0.3 22.8
202207195003B 416144 6273816 0.2 8.3 0.3 22.8
202207304003A 416155 6273560 0.2 1.9 0.3 22.8
202207303004A 416516 6274105 0.2 0.6 0.2 15.2
Au Eq and Ag Eq values have all been adjusted to the silver-to-gold ratio of 76:1 for this news release.