Toronto, January 19, 2018 – Eskay Mining Corp. (“Eskay” or the “Company”) (TSXV: ESK) (OTC-PK: ESKYF) (Frankfurt: KN7; WKN: A0YDPM) is pleased to announce
its plans for 2018 fieldwork, largely based on:
1) an update by nickel expert Peter Lightfoot on its Red Lightning zone, along with a subsequent re-evaluation of previously-collected stream sediment geochemical data from the immediate vicinity;
2) the identification through recent mapping of a Brucejack-style conceptual exploration target on its North Mitchell block; and
3) the initiation of an exploration-focused review of historical data from Eskay Mining’s entire land package outside of the SIB property. Reference is made to the Company’s website at www.eskaymining.com for more maps and information on the Company’s 130,000 acre landholdings in the Golden Triangle of B.C.
Red Lightning Review
Immediately after the field season, highly-regarded geologist and magmatic Ni-Cu sulphide system expert Dr. Peter Lightfoot was contracted by the Company to carry out a review of previous work on Eskay Mining’s Red Lightning zone magmatic Ni-Cu-Co occurrence (Figure 1). Dr. Lightfoot, who was recently involved closely in Garibaldi Resources’ recognition and exploration of the potential at the nearby E&L Ni-Cu-PGEAu-Ag massive sulphide occurrence (20 km northwest), has confirmed that the mineralization at Red Lightning is indeed that of a magmatic nickel-copper sulphide system. And while the grades intersected to date are sub-economic (20.4 m at 0.79% Cu, 0.42% Ni and 0.08% Co, including 10 m at 1.03% Cu, 0.55% Ni and 0.10% Co [estimated true thicknesses of 10.8 m and 5.3 m, respectively]), the Ni-Cu system remains prospective.
The prospectivity evident at Red Lightning and nearby is also evident from a review of previous work in the belt by the Company. This work, which included stream sediment sampling and airborne geophysics, strongly suggests that Red Lightning should be viewed as just one small part of what is likely a much larger, 15 km long, relatively underexplored belt that likely includes other mafic-ultramafic bodies. The belt is outlined by anomalous Ni-Cu stream sediment geochemistry and airborne magnetic highs that may well run from the Red Lightning zone along a northwest trend toward Garibaldi’s Ni-Cu prospects and the E&L Zone (Figures 2 and 3). It is clear from the figures and this data that the Red Lightning-E&L trend warrants follow-up exploration work focusing on Ni-Cu-PGE mineralization.
Brucejack-Style Conceptual Target on the North Mitchell Block
The Company’s North Mitchell Block consists of six tenures comprising 1446 hectares that lies in “Elephant Country,” less than 2 km east-southeast of Seabridge Gold’s porphyry Au-Cu deposit, Iron Cap, and a similar distance across the Mitchell glacier from Pretium’s Snowfield gold deposit (Figure 4). Recent mapping of the property has confirmed that the same stratigraphic units which host many of the occurrences on Pretium’s Brucejack property track across and are preserved at North Mitchell. This is significant because many of the occurrences at Brucejack, which are aligned along a NNE trend that runs from south of the Valley of the Kings (Brucejack deposit) north at least as far as the Snowfield deposit, occur at, or near, a similar stratigraphic level within
the Early Jurassic section. Along that trend, intrusive and host stratified rocks below that stratigraphic level are commonly much more altered than the rocks above. This is particularly so near discordant structures (faults) which cut the host rocks and appear to have acted as controls for mineralization and alteration along the trend, but commonly at high angles to it. As has been shown at Brucejack, these faults also appear to have acted as basin-bounding extensional structures during deposition of the Early Jurassic volcanic and associated clastic rocks. In the Sulphurets Camp, these discordant structures may also have been reactivated and locally inverted much later, during contractional deformation associated with development of Skeena fold belt in mid-
Cretaceous time. Examples of such inverted structures in the Camp probably include the Sulphurets and Mitchell thrust faults, as well as folds at various scales, including the Valley of Kings syncline along the Brucejack trend, and folds and faults running subparallel to the trends of the Sulphurets and Mitchell thrusts.
On the North Mitchell Block (Figures 1 and 4) direct evidence for the presence of a mineralizing system is restricted to locally pervasive quartz-sericite-pyrite (qsp) alteration at lower stratigraphic levels and locally associated veining that to date has only returned anomalous gold grades. Our mapping, however, has revealed good evidence on the property for the existence of a possible inverted Early Jurassic structure, and this structure is coincident with the most intense alteration. The structure is manifest as a (faulted) mid-Cretaceous fold with a northeasterly trending axial plane across which a gently to moderately northerly-dipping sequence of relatively thin but distinctive volcanic strata on the northwest correlates well with similar but steeply southeastly-dipping to slightly overturned strata on the east that appear to be part of a much thicker sequence than their correlatives to the west. The change in stratigraphic thickness of coeval strata across this strongly southeast-vergent structure may therefore mark the presence of an inverted syn-depositional Early Jurassic structure. Given its association with common qsp alteration of lower Hazelton Group rocks, and given its general spatial association with both the Brucejack trend and with the northeast trend marked by the Au-rich Cu porphyries at Kerr, Sulphurets, Mitchell, and Iron Cap on Seabridge’s property (a trend which includes the emerging Au and Au-Cu systems still farther northeast on Tudor Gold’s Treaty Creek property), this conceptual but blind target at North Mitchell is truly compelling.
The Company is considering a number of approaches to help refine targets for drilling at North Mitchell, including a Magnetotelluric Survey and further geologic mapping.
Exploration-Focused Review of Historical Data
In late 2017 The Company also initiated a detailed review of all historical data collected from its extensive land package, which includes occurrences such as Red Lightning.
This review, which differs from previous compilations in its more detailed scope, is intended to help focus field-based follow-up that will generate specific drill targets. That fieldwork will build on fieldwork undertaken in 2016 (See October 17, 2016 news release) and will likely consist of geological mapping, prospecting, geochemical sampling and local ground geophysical surveying, with drilling to follow, either later on in the 2018 field season, or in 2019. The compilation is being undertaken by geologists Andrew Mitchell, Neil Prowse, and Arron Albano, under the supervision of Charlie Greig of C.J. Greig & Associates Ltd., all of whom are familiar with the area and who were closely involved in the 2017 SIB property exploration program that was funded by SSR Mining Inc.
Charles J. Greig, P. Geo., a member of the Company’s Advisory Team, is a Qualified Person under the definition of National Instrument 43-101. Mr. Greig has reviewed and approved the technical information in this press release.
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 23, 2013.