Eskay Mining Corp. Reports on 2018 Exploration on the SIB Property, Northwest B.C.—Drilling Intercepts Broad Zones of Gold Mineralization - Potential Remains High
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NEWS RELEASE
FOR IMMEDIATE RELEASE: DECEMBER 7, 2018
Eskay Mining Corp. Reports on 2018 Exploration on the SIB Property, Northwest
B.C.—Drilling Intercepts Broad Zones of Gold Mineralization - Potential Remains
High
Toronto, December 7 , 2018 - Eskay Mining Corp. (“Eskay” or the “Company”)
(TSX-V:ESK) (OTC -PK: ESKYF) (Frankfurt: KN7; WKN: A0YDPM) is pleased to
report the latest assay results and preliminary interpretations from the 2018 SIB
property drill campaign . One highlight is that b road intervals of encouraging
Volcanogenic Massive Sulphide ( VMS) feeder-style mineralization were intercepted in
two holes collared in the hangingwall of the Coulter Creek Thrust Fault (CCTF; figs 1-4).
One of the holes, EK18-160, intersected 61.9 g/t gold and 8.9 g/t silver over 1.0 m
within a 109.25 m interval grading 0.24 g/t gold, 3.6 g/t silver, 0.15% lead and
0.18% zinc, excluding the above-mentioned high-grade zone. Another hole, EK18-158,
located 2.5 km south of EK18 -160, cut several zones of gold mineralization, including
an 11.93 m interval of elevated precious and base metals that included a 1.0 m interval
of 2.81 g/t gold, 2.7 g/t silver, 0.10% lead and 0.11% zinc , and a 73.4 m interval
grading 0.34 g/t gold.
Within the footwall of the CCTF, hole EK18-157 intersected sporadic gold mineralization
over a 48 m wide zone (not fully sampled) which yielded anomalous gold geochemistry
where sampled, and which graded up to 0.61 g/t Au. In this hole, the gold mineralization
is hosted within rhyolite that is indistinguishable texturally and geochemically from that
at the Eskay Creek mine, only 6 km distant to the north. Also of note is that hole EK18-
157 represents the southwestern-most exten t of drilling in the CCTF footwall. This
suggests to the Company that exploration potential beneath Bowser Lake Group cover
rocks in the footwall of the fault does indeed exist in this area , where favourable Eskay
Rift stratigraphy remains untested, open to the south, and is well within reach of
diamond drills. See Table 1 for drill highlights.
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Table 1: 2018 SIB Property Drilling Highlights
Hole Depth
From (m)
Depth To
(m)
Length
(m) Au g/t Ag g/t Zn ppm Pb ppm
EK18-160 142.40 251.65 109.25 0.80 3.6 1833 1490
including 169.06 170.32 1.26 0.14 49.2 48800 36800
201.97 203.10 1.13 1.85 20.0 28400 16650
203.10 204.10 1.00 61.90 8.5 122 89
EK18-158 78.92 90.85 11.93 0.57 1.0 346 157
including 80.92 81.92 1.00 2.81 2.7 1125 1045
EK18-158 425.40 499.00 73.60 0.34 1.0 209 108
EK18-157 614.20 617.20 3.00 0.15 <0.5 90 16
EK18-157 619.20 620.20 1.00 0.61 <0.5 122 19
The 2018 drill campaign, fully funded by SSR Mining Inc. (“SSR Mining”), was designed
to test for precious metals enriched VMS mineralization primarily in the footwall of the
CCTF. The 2018 drill program consisted of 11 holes, including extension s of EK17-150
and -151 drilled in 2017 (See Table 2). Drilling reaffirmed our asse rtion that potential
remains in the both hangingwall and footwall of the CCTF, and it expanded our
understanding of the geometry of Eskay Creek -equivalent stratigraphy in the CCTF
footwall. (See Figure 1). The Company is thankful to SSR Mining for its participation in
exploration at SIB, and it looks forward to continuing that exploration by leveraging the
knowledge and understanding gained in the programs funded by SSR Mining. Eskay is
grateful to be able to maintain its 80 percent ownership share in the property along with
minority partner Kirkland Lake Gold.
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Table 2: 2018 Drill Collar Details
Hole Name
UTM
NAD83
Easting
UTM
NAD83
Northing
Elevation (m) Length (m) Azimuth Dip
EK18-150X* 407563 6274156 960.98 452.30 100 -80
EK18-153* 408130 6274353 1139.06 592.05 293 -65
EK18-151X* 407420 6274024 954.59 375.00 110 -70
EK18-155* 407190 6274071 1005.70 1037.49 113 -53
EK18-154* 408424 6274903 1143.87 696.30 293 -70
EK18-156* 407545 6270945 795.00 1084.20 100 -75
EK18-157 407065 6273338 970.00 677.20 95 -54
EK18-158 408021 6273462 1103.00 939.55 264 -68
EK18-159* 407065 6273338 970.00 1266.30 95 -88
EK18-160 409232 6275687 1173.00 939.00 305 -54
EK18-161* 407065 6273338 970.00 1068.30 95 -70
*No significant results to report
Details of Drilling: Hangingwall of the Coulter Creek Thrust Fault
Four holes were collared and drilled east to west in the hangingwall block of the CCTF
(Figure 1) .Two of the holes (EK18 -158 and EK18 -160), located 2.5 km apart ,
intersected broad zones of semi -massive pyrite, chalcopyrite, galena and sphalerite
veins within silicified volcanic rocks of the Betty Creek formation (See Figures 2 and 3
for cross-sections, and Table 1 above for results).
EK18-160, in the Northern SIB enclave block , returned the highest gold grade s of
discordant, VMS “feeder-style” mineralization ever drilled on the SIB property . Areas
up-stratigraphy have been explored by wide-spaced shallow drilling but remain untested
for up to 200 m up-dip, and for approximately 850 m along strike (total length of the
enclave claim block); this represents an area that is open for further exploration drilling.
EK18-158 encountered several broad zones of anomalous gold mineralization in the
hangingwall of the CCTF, including a 73.6 m wide intercept within silicified intermediate
to felsic volcanic rocks that returned 0.34 g/t gold. EK08-134, located about 150 m north
of EK18-158, encountered similar alteration and mineralization at the same stratigraphic
level and returned 2.19 g/t gold over 20.20 m. We interpret th ese mineralized zones to
represent VMS feeder systems, which remain largely untested in areas up-stratigraphy
and along strike; it represents another highly prospective target.
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Details of Drilling : Footwall of the Coulter Creek Thrust Fault —A New Geologic
Interpretation Yielding Exciting Drill Targets in Eskay -Equivalent Salmon River
Formation Stratigraphy
Six drill holes were collared in the footwall of the CCTF in 2018, and similar to the 10
holes drilled in the same area in the 2017 SIB program, typically drilled blind through as
much as 450 meters of Bowser Lake Group cover rocks. In the geology beneath the
cover, the holes revealed complex relationship s among basaltic pillowed flows and
rhyolite flows and flow-domes of the Salmon River formation . These relationships are in
part manifest as abrupt along-strike thickness changes (e.g., cross-section shown in
Figure 4) that are interpreted to represent significant syn-volcanic tectonism coincident
with active subsea volcanism. S uch apparently active extensional faulting and
microbasin development in a sea-floor environment is considered essential to the
formation and preserv ation of massive sulfide deposits. This is particularly significant
given that the host rocks are essentially indistinguishable geochemically and
lithologically from the distinctive rocks which host the orebodies at the Eskay Creek
mine. Importantly, given our new understanding of the geology, the steeply easterly
dipping lithological contact between basalt and rhyolite , which hosts the orebodies at
the Eskay Creek deposit, remains untested to the south.
The southernmost hole drilled during the 2018 SIB program (EK18-157) intersected a
48 m wide zone (between 614.2 and 662.2 m ) of intermittent intervals containing
elevated gold within silicified tuffaceous and flow -banded rhyolite. It is the Company’s
view that significant exploration potential remains in the CCTF footwall , particularly
southward from the area drilled in 2017 and 2018, from which it is now inferred that the
prospective rhyolite package appears to be thickening . The favourable Eskay
stratigraphy remains open and untested to the south, well within reach of diamond
drilling.
CEO Mac Balkam commented: “The 2017 and 2018 drilling programs led to the
development of a new and well-constrained view of the Eskay rift geology in the footwall
of the CCTF . This work has led to significant refinements in the search for prospective
precious metals-enriched VMS horizons at the rhyolite-basalt contact, which hosts the
truly world class orebod ies mined at Eskay Creek. Drilling has outlined a thickening
rhyolite package stepping south and west, and the prospective Eskay-like stratigraphy,
which bears a remarkable resemblance to that at the Eskay mine, is primed for further
exploration to the south . Due to our improved understanding of the complex geology,
we are in a better position to make a significant discovery on the SIB Property.”
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In summary, the 2018 drilling season at SIB was a success. It confirmed that the highly
prospective conceptual stratigraphic target existed within the footwall of the CCTF, was
reachable with the diamond drill and was mineralized . In addition, in discovering new
gold mineralization within the hangingwall of the CCTF, the Company has shown that
even the northern part of the SIB property retains its excellent exploration potential.
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 22, 2018. For
further information regarding Eskay’s prospects and showings at the Corey property,
see the Company’s corporate presentation entitled “April 2018 Property Review and
Targeting”.
All geochemical samples were delivered directly to ALS Global’s analytical facility in
Terrace, B.C. for preparation, and subsequent precious metal and multi -element
analysis in their North Vancouver laboratory. ALS Global in North Vancouver, British
Columbia, Canada, is a facility certified as ISO 9001:2008 and accredited to ISO / IEC
17025:2005 from the Standards Council of Canada.
Charles J. Greig, P. Geo., a member of the Company’s Advisory Team, is a Qualified
Person under the definition of National Instru ment 43-101. Mr. Greig has reviewed and
approved the technical information in this press 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 c ompany 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 futu re 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. Sh ould 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 competi tion 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 in tend 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: Plan view Map of 2018 SIB property Drilling, and Exploration Highlights
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Figure 2: Cross-section of EK18-160 and historical holes, with Au results and major lithologies