Eskay Mining Discovers Two New Large VMS Systems at its Consolidated Eskay Project
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NEWS RELEASE
FOR IMMEDIATE RELEASE: September 16, 2021
Eskay Mining Discovers Two New Large VMS Systems at its
Consolidated Eskay Project
Toronto, September 16, 2021 – Eskay Mining Corp. (“Eskay” or the “Company”) (TSXV:ESK)
(OTCQX: ESKYF) (Frankfurt:KN7)(WKN:A0YDPM) is pleased to announce that its exploration team has
discovered two new potentially large volcanogenic massive sulphide (“VMS”) systems on its 100% owned
Consolidated Eskay precious metal project in the Golden Triangle, British Columbia. The Company is also
pleased to announce that its 2021 diamond drill program is steadily advancing with approximately 19,000
m of a minimum 30,000 m planned program now complete. 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:
- Recent field reconnaissance of SkyTEM and stream sediment (“BLEG”) anomalies has led to the
discovery of two new large VMS systems, New York and Vermilion, by Eskay Mining’s geologic team
led by Dr. John DeDecker, with technical advice provided by a research team at Colorado School of
Mines led by Dr. Thomas Monecke.
- The newly discovered New York VMS system is situated at the north end of the Eastern Anticline
approximately 7 km east of the Eskay Creek mine (Figure 1). BLEG samples collected here in 2020
are strongly anomalous in gold and arsenic and moderately anomalous in silver and antimony. A
SkyTEM survey conducted in 2021 identified a notable conductive anomaly directly coincident with
this geochemical anomaly. Recent ground truthing has led to discovery of a 2.5 km long zone of
stratigraphically controlled sulphide mineralization of clear VMS affinity. Mineralization is hosted by
rhyolite breccias and mudstone, andesite is also present. Although older geologic maps have
incorrectly identified rock units on the Eastern anticline, Eskay’s team sees compelling evidence that
Eastern anticline stratigraphy is strikingly similar to that of the Eskay Creek deposit therefore making
this a very high priority target. Eskay plans to undertake prospecting, mapping and soil sampling over
this area to better define drill targets.
- Vermilion is a newly discovered outcropping VMS deposit situated about 2 km east of Eskay’s C10
target and 1 km southwest of the Spearhead VMS deposit. Although rocks in this area display thermal
metamorphism, probably associated with late intrusives in the region, Eskay’s team is confident that
host rocks of Vermilion and Spearhead belong to the Hazelton Group and share similarities to
stratigraphy at Eskay Creek. Results from the 2020 BLEG survey show that the drainage basins that
host these VMS systems display strongly anomalous gold, silver, and pathfinder elements. Massive
sulphide observed at Vermilion displays chalcopyrite, sphalerite and galena suggesting the origin of
this VMS system may be from higher temperature fluids. Because this area falls within the C10 drill
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permit, and because of the compelling nature of this target, Eskay Mining is drilling a few holes to test
the Vermilion target.
- To date, approximately 19,000 m of diamond drilling, in approximately 86 holes, has been completed
representing 63% of the minimum 30,000 planned meters. Eskay believes it will be able to complete
over 30,000 meters of drilling this year.
- To date, drilling has focused on the TV, Jeff and C10 precious metal rich VMS targets. Drilling over the
next few weeks will target SkyTEM anomalies suspected to be new occurrences and extensions of
sulphide mineralization proximal to these three targets. A summary of observations from drilling to date
include:
o The vast majority of holes completed at both TV and Jeff display intervals of mineralization
visually similar to mineralized intercepts encountered in drill holes completed in 2020.
o Recent holes completed at TV have encountered long intervals of sulphide stockwork (Figure
2) along the southern part of this system indicating it remains open to the south and downdip to
the east.
o Eskay’s team takes a strong view that sulphide mineralization at TV and Jeff formed during a
somewhat earlier period of seafloor volcanic quiescence than that which formed higher in the
section at Eskay Creek.
o Holes drilled upsection at Jeff display indications of alteration and sulphide mineralization
suggesting the VMS system continues into the uppermost Hazelton Group rocks.
o Several holes recently completed at C10 have encountered significant sulphide mineralization
(Figure 3). Eskay’s team is confident that host rocks at C10 are the same units hosting TV and
Jeff some 8 km further north. In short, precious metal mineralization at C10 formed at the same
time as that at TV and Jeff. Considering the extensive amount of gold anomalism in BLEG
samples from this region, this opens up the possibility that this “seafloor break” has
considerable exploration opportunity remaining.
- Eskay has delivered nearly 200 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.
“Discovery of the new large New York and Vermilion VMS systems illustrates the strong potential of the
Consolidated Eskay property to deliver further VMS discoveries,” commented Quinton Hennigh, director
and technical advisor to the Company. “New York, just seven km east of Eskay Creek, appears to be a
geologic analogue to that famous deposit displaying similar stratigraphy and styles of mineralization. It will
be exciting to see results from recently initiated surface sampling and mapping being conducted over this
target. Vermilion is an outcropping VMS deposit, and we are already preparing to drill multiple holes into
this new discovery. Our 2021 drill program is progressing well with approximately 19,000 m of our
minimum 30,000 m drill program now complete. We are seeing very promising sulphide mineralization in
core from most drill holes thus far. Both the TV and Jeff deposits have increased in size and C10 is now
delivering similar intervals of mineralization in what appears to be the same host rocks as TV and Jeff
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some 8 km to the north. The remainder of the drill season will be dedicated to aggressive testing of new
drill targets. In the meantime, we patiently await assays.”
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: Plan maps showing the locations of newly discovered New York and Vermilion VMS targets on
Eskay’s 100% controlled Consolidated Eskay precious metal-rich VMS project. The property-wide SkyTEM
survey map is on the left and the 2020 BLEG survey map is on the right.)
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(Figure 2: Examples of sulfide stockwork mineralization recently encountered in diamond drill holes completed
at the TV target. Such mineralization forms within 200 meters of the seafloor indicating that TV is situated at a
quiescent stratigraphic break, one in which VMS deposits would be expected to occur.)
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(Figure 3: Examples of sulfide mineralization recently encountered in diamond drill holes completed at the C10
target. Although rocks in this area display thermal metamorphism, Eskay’s team believes this is effectively the
same style of mineralization occurring at TV and Jeff some 8 km to the north.)