Eskay Mining Expands the TV-Jeff Precious Metal-Rich VMS System and Demonstrates Its Connectivity with the Eskay Creek System on the Western Limb of the Eskay Anticline
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NEWS RELEASE
FOR IMMEDIATE RELEASE: December 15, 2022
Eskay Mining Expands the TV-Jeff Precious Metal-Rich VMS
System and Demonstrates Its Connectivity with the Eskay Creek
System on the Western Limb of the Eskay Anticline
Toronto, December 15, 2022 – Eskay Mining Corp. (“Eskay” or the “Company”) (TSX-V:ESK)
(OTCQX: ESKYF) (Frankfurt:KN7)(WKN:A0YDPM) is pleased to announce it has expanded the TV-Jeff
precious metal-rich volcanogenic massive sulfide (“VMS”) mineralized corridor with new discoveries north
of the Jeff deposit and in proximity to the TV deposit. Recent data analysis also points to a link between
the TV-Jeff system on the east side of the Eskay Anticline with the Eskay Creek-SIB-Lulu system on the
west. Assays from the Scarlet Ridge, Scarlet Valley, Scarlet Knob and Tarn Lake are awaited from the
laboratory.
Highlights:
- The first assays to return from holes completed in areas in proximity to the TV deposit have yielded
strong results including:
o 3.36 gpt Au and 109.50 gpt Au (4.76 gpt Au eq) over 2.00m within 1.14 gpt Au and 30.58 gpt
Ag (1.53 gpt Au eq) over 30.56m in hole TV22-97
o 1.03 gpt Au and 173.12 gpt Ag (3.25 gpt Au eq) over 5.65m within 1.28 gpt Au and 87.92 gpt
Ag (2.41 gpt Au eq) over 14.95m in hole TV22-109.
- Wide-spaced drilling approximately 800m north of Jeff encountered a new zone of mineralization that
yields high-grade Au-Ag results, some within longer intervals of lower grade mineralization. Results
include:
o 15.44 gpt Au and 28.20 gpt Ag (15.80 gpt Au eq) over 1.59m within 1.06 gpt Au and 2.24 gpt
Ag (1.09 gpt Au eq) over 43.96m in hole J22-89
o 8.50 gpt Au and 11.88 gpt Ag (8.65 gpt Au eq) over 1.75m in hole J22-97
o 10.75 gpt Au and 31.00 gpt Ag (11.15 gpt Au eq) over 0.60m within 1.03 gpt Au and 6.20 gpt
Ag (1.11 gpt Au eq) over 7.85m in hole J22-98.
- VMS mineralization along the TV-Jeff corridor, hosted by Lower Hazleton Group volcanic rocks, is now
confirmed over a strike length of 3.1 km.
- Eskay’s geologic team has recently gathered strong evidence pointing to a physical connection
between the TV-Jeff VMS system on the east side of the Eskay Anticline with the Eskay Creek-SIB-
Lulu system on the west thus opening up considerable opportunity for further exploration discoveries.
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Summary of Exploration along the TV-Jeff VMS Corridor:
Eskay Mining’s 2022 diamond drilling program predominantly focused on exploring new areas deemed
favorable for discovering precious metal-rich VMS deposits across its Consolidated Eskay property.
Widely spaced fences of drill holes, approximately 300m apart, tested a corridor of prospective ground
extending 1.3 km north of the Jeff deposit, and multiple holes tested prospective areas in proximity to the
TV deposit. In both areas, significant mineralization was encountered (significant mineralized drill
intercepts as well as drill hole coordinate data are summarized in tables presented at the end of this new
release).
The first assays from a series of drill holes completed in proximity to TV have yielded significant intercepts
of Au-Ag mineralization including 3.36 gpt Au and 109.50 gpt Au (4.76 gpt Au eq) over 2.00m within 1.14
gpt Au and 30.58 gpt Ag (1.53 gpt Au eq) over 30.56m in hole TV22-97 and 1.03 gpt Au and 173.12 gpt
Ag (3.25 gpt Au eq) over 5.65m within 1.28 gpt Au and 87.92 gpt Ag (2.41 gpt Au eq) over 14.95m in
hole TV22-109 (Figure 1).
Hole TV22-97 intercepted stockwork sulfide mineralization 25 m north of hole TV21-54 drilled last year.
Assays are still pending for additional drill holes that encountered sulfide-bearing stockwork in areas
further north from TV22-97. Multiple holes, most awaiting assaying, encountered the Upper Massive
Sulfide Zone discovered at TV in late 2021 in an area up to 100m north from the discovery hole, TV21-78,
thus confirming that massive sulfides cap most of the 180 m strike length of the stockwork feeder at TV.
TV22-109 is currently the only hole with complete assays from this zone (Figure 2).
In an area approximately 800m north of Jeff, three widely spaced drill holes encountered significant Au
and Ag values including 15.44 gpt Au and 28.20 gpt Ag (15.80 gpt Au eq) over 1.59m within 1.06 gpt
Au and 2.24 gpt Ag (1.09 gpt Au eq) over 43.96m in hole J22-89, 8.50 gpt Au and 11.88 gpt Ag (8.65
gpt Au eq) over 1.75m in hole J22-97 and 10.75 gpt Au and 31.00 gpt Ag (11.15 gpt Au eq) over 0.60m
within 1.03 gpt Au and 6.20 gpt Ag (1.11 gpt Au eq) over 7.85m in hole J22-98 (Figure 3). Given the wide
spaced nature of these drill holes, the Company sees significant potential to expand this new discovery
along strike to the north, south and down dip.
Several drill holes located immediately adjacent to Jeff and up to approximately 600m north display
intervals of appreciable base metal-rich VMS mineralization (Figures 4 and 5). Eskay geologists interpret
this mineralization as a higher temperature part of overall VMS system based on the abundance of
chalcopyrite and sphalerite (Figures 6 and 7). Results include 3.45% Zn, 0.25% Pb and 0.22% Cu over
2.20m in hole J22-112, 1.37% Cu over 4.16m in hole J22-118 and 2.43% Zn, 0.76% Pb and 0.34% Cu
over 2.10m in hole J22-122. Such high base metal values are not common in the Eskay Creek district,
and Eskay’s geologic team is assessing the full significance of these results.
Connecting East and West Limbs of the Eskay Anticline:
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Drilling, geological mapping, and soil sampling along the eastern limb of the Eskay anticline suggests that
precious metal-rich VMS mineralization along the TV-Jeff corridor may extend further to the north towards
the Betty Creek Formation (Lower Hazelton Group)-hosted Hexagon-Mercury thus forming a connection
with the western limb which hosts the Eskay Creek, SIB and Lulu deposits (Figures 8-10). This concept is
supported by a trend of historic anomalous Au-bearing rock chip samples coincident with a zone of
conductivity seen in SkyTEM data that projects from Jeff North towards Hexagon-Mercury. Historic drilling
at Hexagon-Mercury intercepted Betty Creek Formation (Lower Hazelton Group)-hosted sulfide
mineralization with grades up to 8.08 g/t Au over 2 m in drill hole 03-127 (Heritage Explorations Limited,
Eskay Project Assessment Report 2002-2003 Volumes 1-4). Upon reviewing numerous outcrops in this
area in 2022, Eskay Mining’s geologic team considers the ground between Jeff North and Hexagon-
Mercury to be highly prospective for additional VMS mineralization and intends to conduct extensive field
work in this under-explored area in 2023. In preparation, two helipads were constructed between Jeff
North and Hexagon-Mercury during the latter part of the 2022 program to provide access to this rugged
area.
In addition to the potential connection between the east and west limbs of the Eskay Anticline at Hexigon-
Mercury, analyses from soil sampling in 2022 now defines strong Ag- and Au-in-soil anomalism
connecting the eastern and western limbs at Excelsior (Figures 8 and 9). This geochemical anomalism
was observed to be associated with Eskay Rhyolite breccia (Upper Hazelton Group) on the western limb
of the Eskay Anticline making this occurrence similar to Lulu situated approximately 7 km further north
(Figure 9). Eskay Mining’s geologic team feel confident that Excelsior and underexplored ground to the
north and west could prove to be yet another VMS discovery and intends to drill in this area in 2023.
"Our 2022 program has shown that TV and Jeff are components of a larger trend of VMS mineralization
extending at least 3.5 km along strike along the eastern flank of the Eskay anticline." commented John
DeDecker, VP of Exploration for Eskay Mining Corp. "VMS mineralization continues at least 1.3 km north
of the Jeff deposit, some of which is polymetallic in character. Precious metal grades are strongly
anomalous in three holes completed in an area approximately 800m north of Jeff representing discovery
of a new precious metal-bearing VMS system called Jeff North which displays significant room to grow.
Drilling at TV has expanded the zone of massive sulfide mineralization discovered in 2021 northwards by
nearly 100 m. More assays from this exciting area have yet to return. With our “boots-on-the-ground”
approach to exploration, we are now seeing a clear picture emerge where long trends of VMS
mineralization along both the eastern and western limbs of the Eskay anticline are geologically connected
to the world-class Eskay Creek Mine. We are eager to expand our exploration work into these new areas
in 2023. In the meantime, we anxiously await assays from maiden drilling in the Scarlet Valley-Tarn Lake
area where several new VMS occurrences were drill tested in 2022."
“Our 2022 Exploration Program advanced our goal of finding new VMS discoveries, commented Mac
Balkam, CEO and director of Eskay Mining. “We firmly believe in the potential of the Consolidated Eskay
project to deliver new discoveries similar to the high-grade Eskay Creek deposit. Beginning in 2020, we
set about focusing on identifying new precious metal-rich VMS systems, a style of mineral deposit
customarily found in district scale clusters. Our geologic team has advanced the goal by making several
new discoveries along the TV-Jeff corridor on the eastern limb of the Eskay Anticline. But now, they see
compelling evidence that TV-Jeff connects with SIB-Lulu located on the western limb of the anticline
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across a geologic bridge at Hexagon-Mercury. They also see exciting potential in other areas along the
western limb of the Eskay Anticline such as at Excelsior, 7 km south of Lulu. In short, these
advancements in the understanding of the project suggest our discoveries tie together all the way back to
Skeena’s 21 zone, part of the Eskay Creek deposit. We are very eager to see results come in from the
Scarlet Ridge-Tarn Lake area to see if we have made more discoveries there. We clearly already see a
lot of new VMS targets in need of follow up work in 2023.”
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 such as mapping and
geochemical sampling, and more advanced work including systematic widely spaced drilling. Much of the
focus was on defining the extent of VMS systems along the eastern and western limbs of the Eskay
anticline. 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 TV-Jeff corridor, especially
north of the Jeff deposit. Significant assays from the forty-two drill holes that are part of this release are
tabulated in the three tables below at the bottom of this release. Holes with no significant results are not
listed in these tables.
Considerable analytical data is expected back over the next few months. This includes assays from drill
holes at Scarlet Ridge, Scarlet Valley and Tarn Lake as well as analyses from substantial numbers of soil,
surface rock chip, and infill BLEG samples. 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/78) and Ag eq (Ag eq=Au*78+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 78:1 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:
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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
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.
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,
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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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Table of Significant Au and Ag Results from Holes Drilled in Areas South of the TV Deposit
Hole
From
(m) To (m) Length (m) Au (gpt) Ag (gpt)
Au eq
(gpt)
Ag eq
(gpt)
TV22-88 133.30 135.00 1.70 2.07 2.07 2.10 163.53
TV22-97 95.44 126.00 30.56 1.14 30.58 1.53 119.50
including 114.00 116.00 2.00 3.36 109.50 4.76 371.58
TV22-99 88.72 103.34 14.62 0.95 16.70 1.16 90.80
TV22-109 50.05 65.00 14.95 1.28 87.92 2.41 187.76
including 57.58 63.23 5.65 1.03 173.12 3.25 253.46
Au eq and Ag eq values have all been adjusted to the silver-to-gold ratio of 78:1 for this news release.
Table Summarizing Significant Au and Ag Results from Holes Drilled in Areas North of the Jeff
Deposit
Hole
From
(m) To (m) Length (m) Au (gpt) Ag (gpt)
Au eq
(gpt)
Ag eq
(gpt)
J22-89 227.04 271.00 43.96 1.06 2.24 1.09 84.92
including 227.04 228.63 1.59 15.44 28.20 15.80 1232.52
J22-94 118.20 122.00 3.80 1.09 4.58 1.15 89.60
including 121.00 122.00 1.00 3.32 10.00 3.45 268.96
J22-97 24.00 25.75 1.75 8.50 11.88 8.65 674.88
250.00 254.10 4.10 0.78 2.09 0.81 62.93
J22-98 35.65 43.50 7.85 1.03 6.20 1.11 86.54
including 35.65 36.25 0.60 10.75 31.00 11.15 869.50
J22-112 42.31 44.31 2.00 0.91 14.00 1.08 84.59
J22-113 42.00 43.80 1.80 1.93 34.78 2.38 185.32
J22-115 105.92 112.25 6.33 0.71 3.86 0.76 59.24
J22-117 311.80 313.50 1.70 1.64 10.15 1.77 138.07
329.40 334.25 4.85 0.41 42.23 0.95 74.21
J22-118 228.30 232.46 4.16 0.16 49.43 0.79 61.91
J22-122 132.15 133.40 1.25 0.71 59.00 1.47 114.38
Au eq and Ag eq values have all been adjusted to the silver-to-gold ratio of 78:1 for this news release.
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Table Summarizing Significant Base Metal Results from Holes Drilled in Areas North of the Jeff
Deposit
Hole From (m) To (m) Length (m) Zn (%) Pb (%) Cu (%)
J22-104 161.00 185.30 24.30 0.77 - -
including 171.57 182.76 11.19 1.06 - -
J22-109 118.50 132.95 14.45 0.61 - -
J22-112 132.80 135.00 2.20 3.45 0.25 0.22
J22-117 149.98 153.00 3.02 0.85 0.71 0.30
329.40 330.80 1.40 1.52 1.32 -
J22-118 164.80 165.80 1.00 2.07 3.37 -
228.30 232.46 4.16 - - 1.37
234.50 238.40 3.90 0.73 - -
J22-120 149.15 155.00 5.85 0.65 - -
J22-122 117.68 135.50 17.82 0.77 - -
132.15 133.40 1.25 - - 1.08
172.00 174.10 2.10 2.43 0.76 0.34
Table of Drill Hole Locations and Orientations
Hole_ID Easting (m) Northing (m) Elevation (m) Azimuth Dip Total Depth (m)
J22-89 410021 6268908 428 270 60 601
J22-90 410131 6268693 484 270 45 691
J22-91 410021 6268908 428 - 90 382
J22-92 410131 6268693 484 - 90 359
J22-93 410051 6269137 415 270 45 345
J22-94 409816 6268745 416 270 45 294
J22-97 409799 6268911 357 270 45 298
J22-98 409799 6268911 357 - 90 385
J22-100 409799 6268911 357 315 50 333
J22-101 410344 6269179 356 - 90 535
J22-102 409990 6269350 360 - 90 355
J22-104 409748 6268460 426 - 90 359
J22-105 410051 6269137 415 245 60 395