Eskay Mining Discovers Multiple New VMS Systems across its Consolidated Eskay VMS Project, Golden Triangle British Columbia
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NEWS RELEASE
FOR IMMEDIATE RELEASE: July 7, 2022
Eskay Mining Discovers Multiple New VMS Systems across its
Consolidated Eskay VMS Project, Golden Triangle British Columbia
Toronto, July 7, 2022 – Eskay Mining Corp. (“Eskay” or the “Company”) (TSX-V:ESK) (OTCQX:
ESKYF) (Frankfurt:KN7)(WKN:A0YDPM) is pleased to announce discovery of multiple new
volcanogenic massive sulfide (“VMS”) deposits across its 100% controlled Consolidated Eskay project,
British Columbia. To date, the Company has completed 5,370 m of diamond core drilling in 13 holes,
approximately 18% of the 30,000 m planned meters to be drilled in 2022. Drill production is currently on
target to reach this aggressive goal.
“By pushing for an early start to the 2022 Exploration Program we have been able to meet one of our
major objectives, showing that the TV-Jeff VMS system extends well to the north of Jeff. Our targeting
criteria built over the past two years continues to yield mineralized intercepts,” commented Dr. John
DeDecker, Eskay Mining’s VP of Exploration. “Not only does the TV-Jeff VMS system appear to
encompass a minimum 5 km-trend of VMS mineralization, we have also confirmed that Scarlet Ridge is
host to a separate VMS system of similar size. We look forward to testing the full strike length of both of
these VMS systems with aggressive drilling and Anaconda-style mapping programs in 2022. It amazes
me that every day in the field we are delineating extensive VMS systems outcropping at surface. This
leaves me wondering what other deposits have gone unrecognized across the property. Our expert team
has done a great job making new discoveries over the past few weeks, and we are excited by the
potential of them making yet more discoveries across our large property over the next several months."
“The 2022 exploration campaign at the Consolidated Eskay project is by far the most aggressive program
ever conducted on the property,” commented Dr. Quinton Hennigh, director and technical advisor to
Eskay Mining. Our team is doing a remarkable job making new discoveries, a step needed to grow this
remarkable story. We suspected the TV-Jeff VMS system was much larger, and now we have proof from
recent drilling at Jeff North. In just one month, our field crews have more fully assessed the potential at
Scarlet Ridge, and now have strong evidence the system here is of equal magnitude to that at TV-Jeff.
Mineralization appears to be hosted by the same rocks found at Eskay Creek 7 km to the west. Excelsior
South also displays similar stratigraphy and mineralization to the Eskay Creek deposit. We are delighted
with progress made to date, but we have four more months in this season during which we expect more
discoveries to be made.”
Summary of Discoveries Made at Jeff North
• Drilling and geological mapping confirms that the greater TV-Jeff VMS system extends 1.5 km north of
Jeff (Figures 1 and 2). A significant zone of intensely silicified peperitic basalt, dacite, and andesite hosts
stockwork and semi-massive sulfide mineralization at Jeff North. This zone is evident at the surface as a
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topographic ridge, and in drill core, it is characterized by hydrothermal breccia with abundant silica
alteration and sulfide mineralization (Figures 3-5).
• Sulfide mineralization is hosted by peperitic basalt, dacite, and andesite occurring in mineralized
horizons that correspond to those at Jeff 1.5 km to the south (Figure 2) indicating that VMS hydrothermal
systems were active over a 5 km-strike length from TV to Jeff North, and likely beyond.
• Investigations of drill core with handheld XRF units indicate presence of strong pathfinder element
associations (Ag, As, Sb, and Hg) in some areas displaying sulfide mineralization.
• Systematic soil sampling northwards of Jeff North has been completed, and includes a large SkyTEM
anomaly of similar size and shape to those corresponding with VMS at TV, Jeff, and Jeff North discovered
during the 2021 program. The results of the soil sampling program will indicate how much further north
the TV-Jeff VMS system extends. So far, each large conductive SkyTEM anomaly investigated
corresponds with VMS mineralization observed at surface. There are several more SkyTEM anomalies
left to investigate this season, and these are the highest priority of Eskay’s 2022 drill program.
• Geological Mapping conducted in 2022, led by Drs. Ben M. Frieman and Jesse Hill, has yielded the
first lithological map consistent with drill core observations. This work has shown the importance of
integrating drilling and mapping data sets and has yielded a new understanding of the distribution of the
lower Hazelton Group volcanic rocks in the Eskay anticline region. For example, in addition to the
volcanic-hydrothermal systems identified at TV, Jeff, and Jeff North, new observations suggest that
mineralized volcanic rocks may occur across-strike to the west as well as within structurally juxtaposed,
but correlative, rocks to the east of this area, a wholly new location identified as prospective.
Scarlet Ridge
• Two extensive VMS feeder zones have been discovered at Scarlet Ridge, the Southern and Northern
Feeder Zones. These feeder zones are marked by intense hydrothermal alteration, ubiquitous stockwork
and replacement-style sulfide mineralization, and intensely gossanous red, orange, and yellow surficial
staining of the peperitic dacite and rhyolite host rocks. The Southern Feeder Zone has been the focus of
early season investigations and will be further tested by drilling in 2022 (Figures 6-8).
• Scarlet Ridge is located 7 km east of the Eskay Creek deposit and occurs in a similar geologic setting
to this exceptional high-grade VMS deposit.
• Field investigations of stockwork sulfides from the Southern Feeder Zone using handheld XRF units
indicate presence of strong pathfinder element (Ag, As, Sb, and Hg) anomalism. These pathfinder results
are consistent with rock chip samples collected in the area during the early 1990's and the 2021 program
(see Eskay’s March 21, 2022 news release for more information), in which samples also yielded strongly
anomalous Au assays ranging from 0.14-2.49 g/t.
• Scarlet Ridge displays all the hallmarks of a large VMS system, with multiple feeder zones connected
with at least three horizons exhibiting subseafloor replacement style mineralization, each of which
extends along strike for hundreds of meters (Figures 6-8). It is especially encouraging that these horizons
are correlative with the same units that host the Eskay Creek deposit (Figure 9) Pathfinder element
associations suggest the potential for precious metal endowment.
• Preparations are underway to begin drilling the feeder zones at Scarlet Ridge starting in mid-July
(Figure 10).
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Excelsior South
• Preliminary field visits followed up on strong Au BLEG results from 2020 and strong pathfinder element
anomalies evident in soil transects from 2021.
• Peperitic rhyolite was discovered at Excelsior South, in rocks previously mapped as the Bowser Lake
Group. Investigations with a handheld XRF confirm that this rhyolite is indeed of the same composition as
the Eskay rhyolite, host to the world-class Eskay Creek VMS deposit.
• A 100 m grid soil sampling program has just been completed at Excelsior South. Analyses from these
soil samples are expected back in a few weeks. Subject to promising results, a limited exploratory drill
program will be conducted at Excelsior South in 2022.
To date, Eskay Mining has completed 5,370 m of diamond core drilling in 13 holes, approximately 18% of
planned meters to be drilled in 2022. Thus far, drilling has occurred around the area called Jeff North. The
Company will soon be drilling at Scarlet Ridge as well as testing other targets along the greater TV-Jeff
corridor. At present, drill production is on track to reach Eskay’s aggressive goal of 30,000 m.
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.
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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. Drill holes at Jeff North completed as of date of this release. Silver assays from soil samples
from 2021, and the SkyTEM conductivity map from 2020 are shown, and have proven to be reliable
vectors towards VMS mineralization during the 2022 program thus far.
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(Figure 2. Preliminary geologic map of Jeff and Jeff North based on 2022 field work by the mapping team,
and drilling from 2020-2022. Drilling at Jeff North has been focused on a 1 km trend of intensely silicified
peperitic basalt identified during mapping, and has confirmed the presence of extensive VMS
mineralization associated with the silicified basalt.)
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(Figure 3. Semi-massive replacement-style sulfide mineralization hosted by an intensely silicified
vesicular basalt. The intensity of replacement-style mineralization and hydrothermal alteration is
consistent with a location proximal to a VMS feeder structure. Handheld XRF analyses show consistently
high pathfinder elements (As, Sb, and Hg) within sulfide mineralization in this drill hole.)
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(Figure 4. Polymetallic sulfide mineralization hosted by intensely silicified mudstone. Sulfide minerals
present include pyrite, pyrrhotite, sphalerite, and galena, with XRF-indicated Ag-bearing tetrahedrite.
Tetrahedrite is commonly associated with microscopic electrum in drill core from the 2020 and 2021 drill
programs.)