C:ESK Eskay Mining Corp. Identifies VTEM Conductors and Coincident Cu-Ni Geochemical Anomalies Near Claim Boundaries with Garibaldi and Metallis

Eskay Mining Corp. Identifies VTEM Conductors and Coincident Cu-Ni Geochemical Anomalies Near Claim Boundaries with Garibaldi and Metallis

Toronto, Ontario (FSCwire) – Eskay Mining Corp. (“Eskay” or the “Company”) (TSX-V:ESK) (OTC-PK: ESKYF) (Frankfurt: KN7; WKN: A0YDPM) is pleased to release the results of an extensive (136 km2) VTEM survey on its Corey property, along its boundary with properties to the west held by Garibaldi Resources and Metallis Resources. The survey also covered Eskay’s Red Lightning Ni-Cu trend in the same area (see News Release dated June 12, 2018). Three distinct VTEM anomalies deemed worthy of immediate follow-up were identified. The “White Whale anomaly” occurs along strike of Garibaldi Resources’ E&L occur rence and VTEM Anomaly A.  The “Cascade anomaly” is adjacent to Metallis Resources’ Thunder North zone, which is coincident with a series of easterly trending gossans that continue onto the Company’s ground.  The Sweet Virginia anomaly occurs along the Red Lightning Ni-Cu trend, within the Company’s 100% owned ground (Figures 1 and 2).
Preliminary fieldwork has been carried out at all VTEM conductors.  The area surrounding the White Whale anomaly is steep and partially covered with ice, but samples of talus fines returned highly anomalous Cu values ranging from 291 to 571 ppm, and a grab sample from an argillite horizon containing disseminated pyrite and chalcopyrite returned 0.55% Cu.  Prospecting and stream sediment sampling along creeks draining the Cascade anomaly returned valu es of up to 351 ppm nickel, and a sample of float collected from a large boulder from within the most consistently anomalous drainage returned 817 ppm copper and 270 ppm Ni (Figure 2).  The boulder appears to have fallen from the bluffs above, which could not be accessed from the drainage.  Soil geochemical sampling at the Sweet Virginia anomaly outlined a northwest trending geochemical anomaly which yielded gold and silver values ranging up to 182 ppb and 7.4 ppm, respectively, with copper and zinc support.
The Company’s President and CEO, Mac Balkam, commented: “The results of the VTEM survey and our preliminary fieldwork are very encouraging, particularly along the western border of the claims, where only limited previous work had been undertaken.  We look forward to following-up these targets shortly, once the final VTEM data is processed and fully interpreted, and to completing further fieldwork to fully define drill-ready targets”.
A total of 78 soil, 29 silt and 9 rock samples were delivered to ALS Global’s preparation facility in Terrace BC for precious metal and multi-element analysis. 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 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 22, 2018. For further information regarding Eskay Mining Corp.’s prospects and showings at the Corey property, see the Company’s corporate presentation entitled “April 2018 Property Review and Targeting”.
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 in British Columbia in a highly prolific, poly metallic area known as the Eskay Rift Belt located in the “Golden Triangle”, 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 4605
President & Chief Executive Officer
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.

Press Release July 2018

This press release indicates the start of SIB work plus illustrates a feature which appeared on the geophysical survey completed earlier this season. This anomaly is located approximately 2 KM south-west of our drill hole number south of the SIB LULU zone. SSRM are planning to review the surface area and then drill the anomaly this season.  Combined with the current drilling plans for SIB the work will enhance the search for Eskay Creek Two.
Our previously announced VTEM geophysical survey is complete and undergoing analysis of the data.  We have had ten days of geological teams on the ground following up certain early leads on the Western Areas beside Garabaldi (GGI-TSX-V) and Metalis (MTS-TSX-V). Data will be released as it becomes available.
Click here for Press Release
Mac Balkam, CEO
Eskay Mining Corp

Drilling Begins for Eskay-style Precious Metals Targets at Eskay Mining Corp.’s SIB Property

Toronto, July 11, 2018 – Eskay Mining Corp. (“Eskay” or the “Company”) (TSX-V:ESK) (OTC-PK: ESKYF) (Frankfurt: KN7; WKN: A0YDPM) is pleased to announce that diamond
drilling is underway on its 4,400 hectare SIB property in northwestern British Columbia, Canada. The 7,000 to 9,000 meter drill program is the second of a planned three season program in
which SSR Mining Inc. has committed to spend $4.0 million this season (for further information on the option agreement with SSR, see the Company’s Press Release dated April 26, 2017) .

The 2018 SIB property drill campaign will further test prospective volcanic rocks that were successfully intersected beneath the Coulter Creek Thrust Fault (CCFT) in last season’s program (see the Company’s Press Release dated August 2, 2017 and January 22, 2018). These rocks bear strong similarities to host rocks to the world-class precious metals enriched VMS deposits mined between 1994 and 2008 at the nearby Eskay Creek mine, which lies less than 7 km along trend to the north. They also host encouraging alteration and local mineralization and appear to extend to the west and south of the 2017 drill holes, at depths which are within reach of diamond drills (see the Company’s Press Release dated January 22, 2018). Potential for Eskay-style discoveries on the SIB property therefore remains high, and the area will be systematically drill-tested this season by widely-spaced drill holes.

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.

Eskay Mining Corp Commences VTEM Airborne survey and Closes Non-Brokered Private Placement

Toronto, June 12, 2018 – Eskay Mining Corp. (“Eskay” or the “Company”) (TSX-V:ESK) (OTC-PK: ESKYF) (Frankfurt: KN7; WKN: A0YDPM) wishes to announce that, after delays
relating to weather conditions and equipment issues, its deep-imaging VTEM airborne geophysical survey on its Corey Property, referred to in its press release dated May 11, 2018, will be proceeding.

The Company also wishes to announce that it has closed the final tranche of its non-brokered private placement offering with the sale of 200,000 working capital units (“WC Unit”) at a price
of $0.25 per WC Unit for proceeds of $50,000. The securities issued are subject to a statutory four month hold period expiring on October 8, 2018. Each WC Unit comprises one (1) common
share of the Company and one (1) common share purchase warrant (a “WC Warrant”). Each WC Warrant entitles the holder to acquire one (1) common share at a price of $0.40 until the
earlier of (i) June 7, 2020; and (ii) in the event that the closing price of the common shares on the TSX Venture Exchange is at least $0.60 for ten (10) consecutive trading days, and the 10th
trading day (the “Final Trading Day”) is at least four (4) months from the Closing, the date which is thirty (30) days from the Final Trading Day.

Eskay Mining Corp Announces First Closing of Non-Brokered Private Placement

Toronto, June 4, 2018 – Eskay Mining Corp. (“Eskay” or the “Company”) (TSX-V:ESK) (OTC-PK: ESKYF) (Frankfurt: KN7; WKN: A0YDPM) wishes to announce that, further to its
press release dated May 11, 2018, it has closed the first tranche of its non-brokered private placement offering with the sale of 784,000 flow-through units (the “FT Units”) of the Company
at a price of $0.30 per FT Unit for $235,200 and 690,000 working capital units (“WC Unit”) at a price of $0.25 per WC Unit for $172,500 for aggregate gross proceeds of $407,700 (the
“Offering”). Eligible finders were paid cash finders’ fees of $4,500.

Each FT Unit comprises one (1) common share of the Company and one-half (½) of one (1) common share purchase warrant. Each full warrant (a “Warrant”) entitles the holder to acquire
one (1) common share at a price of $0.40 until the earlier of (i) June 1, 2020 (the “Closing”); and (ii) in the event that the closing price of the common shares on the TSX Venture Exchange is at
least $0.60 for ten (10) consecutive trading days, and the 10th trading day (the “Final Trading Day”) is at least four (4) months from the Closing, the date which is thirty (30) days from the
Final Trading Day (the “Trigger Date”).

Each WC Unit comprises one (1) common share of the Company and one (1) common share purchase warrant (a “WC Warrant”). Each WC Warrant entitles the holder to acquire one (1)
common share at a price of $0.40 until the earlier of (i) June 1, 2020; and (ii) the Trigger Date.

All securities issued pursuant to the Offering are subject to a statutory four month hold period expiring on October 2, 2018.

Eskay Mining Corp Announces Non-Brokered Private Placement and 2018 Exploration Plans

Targeting Nickel and Gold Along Border with Garibaldi Resources

Toronto, May 11, 2018 – Eskay Mining Corp. (“Eskay” or the “Company”) (TSX-V:ESK) (OTC-PK: ESKYF) (Frankfurt: KN7; WKN: A0YDPM) wishes to announce that it is commencing a private placement offering of up to 2,000,000 flow-through units (the “FT Units”) of the Company at a price of $0.30 per FT Unit for up to $600,000 and up to 2,000,000 working
capital units (“WC Unit”) at a price of $0.25 per WC Unit for up to $500,000 (the “Offering”) to fund its 2018 exploration.

Eskay is also pleased to announce the 2018 exploration plans for its Corey property, in NW BC’s famed Golden Triangle. At the conclusion of an extensive data review and reinterpretation, a highly effective and flexible exploration plan has been developed, with
contingencies for various outcomes at several stages.

The 2018 work will focus on the westernmost part of the Corey property, in a largely unexplored belt adjacent to Garibaldi Resources’ E & L nickel discovery (see attached figure). At its
southern end, this belt encompasses the Company’s Red Lightning prospect, in which drilling has returned up to 0.55% Ni over 10 m from magmatic sulphides hosted by mafic intrusive
rocks.

In the same area, a belt of quartz-sericite-pyrite altered volcanic rocks is coincident with an extensive Au-in-soil geochemical anomaly and a number of encouraging broad and locally highgrade
drill intercepts (e.g. 99.4 g/t Au over 1.5 m) and chip samples of up to 51.9 g/t gold. This is the partially-explored gold-rich C10-GFJ trend, within which a portion of the trend, bracketed
by some of the most encouraging drill and surface sampling results, remains untested.

Exploration will begin with a deep-imaging VTEM airborne geophysical survey, which has been employed to great effect by Garibaldi Resources. The survey will be flown over the length of the
prospective belt, encompassing our virtually unexplored western border next to Garibaldi Resources and Metallis Resources, and extending southeast over the Red Lighting Ni-Cu
Trend. An extensive ground-based field program will follow, consisting of prospecting, rock, soil, and stream sediment sampling, along with reconnaissance mapping. The work on the ground
will help to identify drill targets.

Each FT Unit comprises one (1) common share of the Company and one-half (½) of one (1) common share purchase warrant. Each full warrant (a “Warrant”) entitles the holder to acquire
one (1) common share at a price of $0.40 until the earlier of (i) two (2) years from closing of the Offering (the “Closing”); and (ii) in the event that the closing price of the common shares on the
TSX Venture Exchange is at least $0.60 for ten (10) consecutive trading days, and the 10th trading day (the “Final Trading Day”) is at least four (4) months from the Closing, the date
which is thirty (30) days from the Final Trading Day (the “Trigger Date”).

Each WC Unit comprises one (1) common share of the Company and one (1) common share purchase warrant (a “WC Warrant”). Each WC Warrant entitles the holder to acquire one (1)
common share at a price of $0.40 until the earlier of (i) two (2) years from the Closing; and the Trigger Date.

All securities issued pursuant to the Offering are subject to a statutory four month hold period and regulatory approval.

A Communication Agreement with the Tahltan First Nation is now in place, and Camp permitting is well underway. Overall, the outlined 2018 plans will leave us well poised for a highly effective
2019 season, with excellent drill targets based on solid geological, geochemical and geophysical data.

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 about Eskay Mining Corp. and detailed information about the above mentioned prospects, please see our corporate presentation titled “April 2018 Property Review
& Targeting” at http://eskaymining.com/files/Eskay-Mining-Corp-April-2018-Presentation-Final.pdf.

April 2018 Corporate Presentation

A Golden Opportunity in the Heart of British Columbia’s Golden Triangle

A review and integration of Eskay Mining Corp’s extensive and diverse dataset, with a focus on driving future exploration

 

Eskay Mining provides update on Big Red Au-Cu-Mo-Ag System, Southwestern Extension of the Sulphurets Camp Porphyry Au-Cu Trend

Toronto, April 16, 2018 – Eskay Mining Corp. (“Eskay” or the “Company”) (TSXV: ESK) (OTC-PK: ESKYF) (Frankfurt: KN7; WKN: A0YDPM) is pleased to announce an update to its ongoing targeting efforts for the 2018 exploration season. Further to its March 5, 2018 news release highlighting interpretations and exploration strategies for the Red Lightning and TV-Jeff zones (see http://eskaymining.com/index.php/category/news-releases), a review is presented herein of another high priority prospect, the Big Red zone porphyry Au-Cu-Mo-Ag target (Figure 1). As part of an ongoing exploration-focused review of data from the Company’s Eskay-Sulphurets Camp properties, exploration strategies are outlined below to advance this early- to mid-stage prospect.

Figure 1: Eskay Mining Corp.’s property with highlighted exploration targets (red stars), and
nearby mines and exploration plays.

 

Big Red Zone
While the Big Red zone has been known for some time as an exploration target, it was largely ice- and snow-covered until recently, and its true potential as a large-scale porphyry-style target only emerged during the present review. In the early 2010’s, retreating ice on the southeast flank of Unuk Finger revealed a deep red gossan that extends for over 1 km north-south and across several drainages. Prospecting in and around the gossan over the intervening years has returned highly anomalous Cu, Au, Ag and Mo values, with 61 grab samples averaging 0.11% Cu, 0.058 g/t Au, 1.8 g/t Ag and 0.035% Mo (Figure 2). In particular, a cluster of three intensely quartzsericite- pyrite (QSP) altered samples collected from a gossanous knoll near the northern end of the trend averaged 0.27% Cu, 0.090 g/t Au and 4.3 g/t Ag, with the best sample yielding 0.68% Cu, 0.124 g/t Au and 6.2 g/t Ag.

Figure 2: Aerial image of Big Red Zone, with rock and stream sediment samples highlighting Cu
values.

Limited geological data has been collected from the Big Red zone, but work in 2016 by the Company, along with regional mapping in the early 1990’s by the Mineral Deposit Research Unit at the University of British Columbia indicates that the Big Red zone occurs near the eastern contact of the Tertiary Lee Brant pluton, which intrudes Upper Triassic to Lower Jurassic stratified rocks (Figure 3). Previous work by the Company has also identified a smaller northerly elongate intrusive body of unknown age in this area, as is shown in fig. 3.

Figure 3: Geology of the Big Red zone (after Lewis et al, 2003) showing Cu anomalous grab
samples.

In 2006, an airborne geophysical survey (EM and magnetics) was flown by the Company along the trend which included Big Red, and it outlined a near-surface conductivity (EM) anomaly within an area of low total magnetic intensity that coincides directly with the anomalous surface samples (Figures 4, 5). This represents an excellent exploration target, with the magnetic low possibly explained by magnetite-destructive QSP alteration associated with an underlying porphyry system. Another expression of such a system may be the nearby northerly-trending intrusion of uncertain age. The EM response is interpreted to be the result of a conductive, sulfide-mineralized vein stockwork present at surface and may be an indication that the veins and sulphide system are continuous to depth. Surface samples collected from the Big Red zone indicate that host rocks are largely volcanic, which likely rules out the possibility that the EM anomaly is a result of conductive, graphitic sedimentary rocks.

Figure 4: Big Red zone with rock samples and EM (ZOff) conductivity anomalies (pink = high,
blue = Low).

Figure 5: Big Red zone with rock samples and Total Magnetic Intensity (pink = high, blue =
low).

One feature that is particularly notable about the Big Red porphyry system is that it lies directly along trend to the southwest from the nearby, world-class Au-Cu-Mo-Ag porphyry deposits in
the Sulphurets Camp, which are all associated with Early Jurassic intrusive rocks. Also of interest is the fact that several grab samples from the Big Red zone yielded highly anomalous tungsten values (five samples ranging between 1190 to 4790 ppm). While tungsten is not a significant component of the mineralization in the other Sulphurets Camp porphyry deposits, it does appear to be associated with Early Jurassic intrusive rocks farther to the south, near Hyder, where the Texas Creek pluton hosts scheelite-bearing veins that are cut by younger Tertiary intrusive rocks similar in age to the Lee Brant pluton (see https://pubs.usgs.gov/bul/1024f/report.pdf).

Work planned for this season at Big Red includes additional detailed geological mapping, with a focus on delineating zones of mineralization and alteration. This should provide an improved
framework for understanding and interpreting the nature and distribution of porphyry-style mineralization. It should also help to place the mineralization within the context of what is clearly becoming a well-established regional southwest-northeast trend of Au-rich porphyry centers, from Copper Belle on the northeast, south-southwesterly through Iron Cap, Mitchell-Snowfield, Sulphurets, Kerr, and now, perhaps, to Big Red (fig. 1). In addition to geological mapping, an IP survey over the known EM anomaly has been recommended and is being planned to help outline zones of chargeability and to provide increased confidence in targeting drilling. 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 Eskay Mining Corp.’s prospects and showings, see the Company’s corporate presentation titled “January 2018 Prospects Overview”.

 

Update on ongoing geological review

 Toronto, March 5, 2018 – Eskay Mining Corp. (“Eskay” or the “Company”) (TSX-V:ESK) (OTC-PK: ESKYF) (Frankfurt: KN7; WKN: A0YDPM) is pleased to provide an update on planning for the 2018 season and beyond.  Following on our previous News Release announcing plans for the 2018 field season (see www.eskaymining.com/index.php/2018/01/19/eskay-mining-corp-announces-2018-plans/), a comprehensive geology-focused data review undertaken by our consultants has distilled high-priority targets from the extensive dataset which exists for Eskay Mining Corp.’s Eskay-Sulphurets camp properties in the Golden Triangle of NW BC.

Figure 1: Eskay Mining Corp.’s property with highlighted exploration targets

 

Planning is ongoing on the Company’s SIB Property, which is under option to SSR Mining, and exploration targets on the remainder of Eskay Mining Corp 13000 km2 land package have so far been divided into four main areas: 1) the Red Lightning Ni-Cu-Co trend, 2) the TV-Jeff zone, 3) the Big Red zone, and 4) the North Mitchell block (Figure 1). A review of new interpretations and proposed exploration strategies for the Red Lightning Trend and the TV-Jeff zone are presented herein, with Big Red and North Mitchell exploration strategies to follow in a future release. A more detailed property overview may be found in the January 2018 Corporate Presentation, which is available for download at www.eskaymining.com/index.php/investors/presentations/.

 

Red Lightning Ni-Cu-Co Trend

The Red Lighting zone is located in the southeastern part of Eskay Mining Corp.’s land package, approximately 7 km southeast of the confluence of the Unuk River with Sulphurets Creek.  In 2007-2008, the Company drilled a number of holes into medium- to coarse-grained mafic intrusive rocks hosting magmatic Ni-Cu sulphides, intersecting 20.4 m of net-textured and massive sulphide that graded 0.79% copper, 0.42% nickel, 0.08% cobalt, 0.01 g/t platinum, 0.1 g/t palladium and 0.8 g/t gold, including a 10 m wide zone of semi-massive to massive sulphide grading 1.03% copper, 0.55% nickel, 0.1% cobalt, 0.16 g/t platinum, 0.15 g/t palladium and 1.1 g/t gold (estimated true thicknesses of 10.8 and 5.3 m, respectfully).  From the Red Lightning occurrence, a nearly 15 km long trend of Ni-Cu-Co-Ag stream sediment anomalies is coincident with a linear airborne magnetic high that appears to trend directly northwest toward Garibaldi Resources Ltd’s E&L nickel-copper-PGE occurrence (Figure 2). Given the coincidence of the stream sediment geochemical and geophysical anomalies, the trend is considered to be highly prospective for Ni-Cu-Co-PGE mineralization emplaced along the western margin of the “Eskay Rift” (Figure 3).  The plan going forward is to test this hypothesis with prospecting, reconnaissance mapping, and stream sediment and soil geochemical sampling along the Red Lightning trend.

Figure 2: Anomalous nickel in stream sediment samples along the Red Lightning Trend

 

Figure 3: Total Magnetic Intensity (TMI) with anomalous Ni-in-silt trend and proposed area of exploration.

TV-Jeff Zone:

 The TV and Jeff zones lie approximately 9 km south of Barrick Gold Corp’s Eskay Creek Mine.  The area overlies Eskay Rift stratigraphy, which includes Salmon River formation mafic and felsic volcanic and associated sedimentary rocks, which are capped by younger Bowser Lake Group sedimentary rocks (Figure 4).  Mineralization at the TV and Jeff zones is hosted by rocks of the Salmon River formation on the western limb of a regional scale syncline (the TV syncline) that trends north from the TV Zone and arcs east of the Jeff Zone.  Mineralization at both zones includes gold- and silver-bearing vein networks and stratiform mudstone-hosted sulphides that are similar in character and mineralogy to mineralization at the Eskay Creek VMS deposit.  The mineralized zones along the TV-Jeff trend contain drill hole intersections that include 47.14 g/t Au and 348 g/t Ag over 4.00 m at Jeff and 1.79 g/t Au and 32 g/t Ag over 34.46 m at TV (for all drill hole highlights, please visit: www.eskaymining.com/index.php/investors/presentations/).  Drilling was carried out at the Jeff Zone in 1991, while the TV Zone was drill-tested in the mid-1990’s, with a single southern step-out hole in 2005—no follow-up work has been undertaken since. With recent improvements to infrastructure in the region (e.g., commissioning of the Brucejack mine and establishment of grid power via the Northwest Transmission line and Forrest Kerr run-of-flow power project) and with Seabridge Gold planning to construct a road within 2 km of the property, re-visiting and re-interpreting the exploration potential of the TV and Jeff zones is imperative.

Geological re-interpretation of the exploration potential at the TV and Jeff zones was initiated by digitizing historical geology maps and integrating the digitized maps with digitally-captured drill logs from the TV Zone to create a 3D geologic model.  The new model constrains the geometry of stratiform-style gold mineralization to a common plane which strikes 280° and dips 50° to the north.  Within this plane, mineralization appears to follow a sigmoidal trace that plunges to the northwest (see Figure 5).  From this new interpretation, it is clear that mineralization remains open to the north, down-dip within the mineralized plane.

Mineralization at the Jeff Zone is more difficult to trace, perhaps due to the presence of local faults in the area. Styles of mineralization, however, are very similar to those at the TV zone, and given their relative proximity, and given the presence between the zones of soil geochemical anomalies (both gold and pathfinder elements such as As, Sb, and Hg) that appear to parallel the stratigraphic trend along the western limb of the TV syncline, it is reasonable to infer that they were sourced from the same mineralizing system, and likely an exhalative one.

In order to further test the TV-Jeff trend, it is recommended that additional geological mapping should be undertaken, in particular along the western limb of the TV syncline.  Exploration should also focus on expanding the known extent of mineralization at the TV zone to the north and at depth, with the goal of finding a more extensive and(or) concentrated deposit of feeder-sourced, gold-bearing exhalative mineralization.  To that end, a deep-looking, high resolution EM survey (e.g., HeliSAM) is recommended to be flown across the TV-Jeff trend and the TV syncline, to help identify any conductive Eskay-style mineralization within the host Salmon River formation rocks.

Figure 4: Geological interpretation based on Kenrich Mining’s 1995 mapping of the TV Zone, and sparse outcrops mapped by Heritage Exploration in 2002 over both zones. In this interpretation, the TV Syncline trends north from the TV and arcs to the east of the Jeff Zone.

 

Figure 5: 3D model of TV Zone stratiform mineralization. Area within blue polygons contains a length weighted average of > 1 g/t Au.

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. For further information regarding Eskay Mining Corp.’s prospects and showings, see the Company’s corporate presentation titled “January 2018 Prospects Overview”.

 

 

 

Eskay Announces that SSR Mining Inc. will Proceed with Second Year of SIB Option Agreement

Toronto, January 22, 2018 – Eskay Mining Corp. (“Eskay” or the “Company”) (TSXV:ESK) (OTC-PK: ESKYF) (Frankfurt: KN7; WKN: A0YDPM) is pleased to announce that SSR Mining Inc. (formerly Silver Standard Resources Inc.) (NASDAQ: SSRM) (TSX: SSRM) (“SSRM”) has elected to proceed with the second year of a three year option agreement with the Company on the SIB property. SSRM may earn an undivided 51% interest by spending an aggregate of $11.7 million in exploration expenditures over the term of the agreement. SSRM may earn a further 9% undivided interest for an aggregate 60% undivided interest by delivering either a preliminary economic assessment or completing an aggregate of 23,000 meters of diamond drilling (see April 26th, 2017 news release). Eskay is also pleased to announce the final assay results from the 2017 diamond drill program at the SIB property.

The 2017 drill program at the SIB property was designed to test for precious metals enriched massive sulphide mineralization and prospective stratigraphy beneath the Coulter Creek Thrust Fault (CCFT). The SIB property lies immediately south-southwest along strike from Barrick Gold Corporation’s past-producing Eskay Creek Mine. Ten of the twelve drillholes completed in 2017 targeted the footwall of the CCTF (Figure 1). All holes intersected favourable Salmon River Formation rocks, which closely resemble host rocks at the mine. Cross sections illustrating the interpreted geology of the CCTF footwall, which were constructed from geological, geophysical and downhole structural data, are shown in Figures 2, 3 and 4.

All of the 2017 drillholes targeting the CCTF footwall intersected alteration consistent with footwall alteration in a volcanogenic massive sulphide (VMS) setting (variably intense chlorite-sericite alteration); local sulphide-bearing veins were also intersected in a number of holes. Assays from the 2017 drilling are suggestive of the presence of two styles of mineralization: 1) disseminated sulphides hosting anomalous pathfinder elements within carbonaceous mudstone; and 2) polymetallic sulphide veins, locally up to 10 cm thick, consisting of pyrite, pyrrhotite, sphalerite, galena, +/- chalcopyrite and arsenopyrite. The former style occurs in mudstone stratigraphically overlying rocks correlative with the Eskay Creek Mine footwall rhyolite, and it has a similar geochemical
signature to mineralization observed along the fringes of stratiform ore bodies at the mine. The polymetallic veins are hosted within the Eskay-type footwall rhyolite. A list of drillhole highlights from the 2017 drill program is given in Table 1.

In addition to intersecting encouraging mineralization and extensive alteration, the 2017 drill program greatly improved the Company’s geologic understanding of the CCTF and its footwall. The surface location of the fault and its sub-surface geometry are now constrained, and the drilling confirmed that the footwall stratigraphy bears strong similarities with rocks hosting the Eskay Creek deposits. There also appears to be an extensive area of altered Coulter Creek footwall rocks west and south of the area drilled in 2017 that are reachable with the drill. Therefore, there remains potential for Eskaystyle discoveries at the SIB property, and target generation for the 2018 summer drill program at the property is currently underway. It will systematically test the extensive
and favourable Eskay stratigraphy to the west and south of the 2017 drill area for precious metals enriched VMS mineralization.

Table 1 – 2017 Drillhole Highlights
Hole                  From (m)        To (m)        Length(m)        Au (g/t)        Ag(g/t)          Zn(%)           Pb(%)          As(ppm)         Sb(ppm)         Hg(ppm)
EK17-142            891.30            894.30        3.00                   0.47               0.5                  –                      –                    61                     13                     –
EK17-145            622.00            623.00        1.00                   0.03               1.0                  –                      –                   1980                241                  3.58
EK17-146            221.00            223.00        2.00                   0.30               1.5               0.02                  –                    352                   57                      –
EK17-147            337.63             339.19         1.56                   0.02               0.3               0.04               0.01               972                    89                      –
EK17-148           132.30              135.30         3.00                  0.02              5.2                0.04                –                    3040                  61                      –
EK17-149           321.30              324.30        3.00                  0.01               2.8                0.08               –                     581                   171 1.2
EK17-149           390.38             396.38        6.00                  0.01               3.7                 0.20              0.04               202                      5                    N/A
Incl.                    395.38             396.38         1.00                  0.03              11.6                0.44               0.11                667                      7                      N/A
N/A – Not analyzed

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.