Eskay Mining Corp. (“Eskay” or the “Company”) (TSX-V:ESK) is pleased to announce that diamond drilling at its 4,400 hectare SIB property in northwestern British Columbia, Canada, is now underway. This season’s drill campaign is part of a three year program in which Silver Standard Resources Inc. (“Silver Standard”) has committed to spend $3.7 million in the first year, and in which a total of between 6,000 and 9,000 meters of drilling is expected to be drilled using two drill rigs (for further information on the option to Silver Standard, see the Company’s Press Release dated April 26, 2017).
The SIB property drilling will target highly prospective precious metals-enriched VMS-style mineralization south along trend from Barrick’s Eskay Creek mine, which was the world’s richest volcanogenic massive sulphide (VMS) deposit in terms of precious metals grades–it produced 3.3 million ounces of gold and 159 million ounces of silver from 2.18 million tonnes of ore between 1994 and 2008, as previously reported by Barrick Gold Corporation. 1 The mineralization and resources previously reported for the Eskay Creek Mine are not necessarily indicative of the mineralization, if any, hosted on the Company’s property. The 2017 drill campaign’s relatively deep holes (average approximately 900 meters) will target Eskay-style mineralization beneath the Lulu zone, which in previous and generally shallow drilling returned intercepts ranging up to 14.4 g/t gold and 1,060 g/t silver across 14.3 meters, and 10.8 g/t gold and 766 g/t silver across 24.8 meters 2, 3. These high-grade intersections were of stratiform, Eskay-style sulphide-sulphosalt bearing mudstone occurring in close association with Eskay Creek rhyolite. Limited deep drilling by the Company in 2008 and 2010 indicate that similar volcanic and volcano-sedimentary host rocks, including the geochemically distinctive Eskay rhyolite, occur at depth beneath the Lulu zone, in the footwall of the Coulter Creek thrust fault, which truncates the Lulu zone at depth. Results from the Company’s deep drilling conducted in 2008 included an intersection of 25.2 meters at a grade of 2.13 g/t gold, 4.0 g/t silver, 0.174% zinc and 0.124% lead. 4 at 488 meters depth in the footwall to the thrust. The footwall stratigraphy, however, remains incompletely tested along what is a nearly 4 kilometer long trend, and this trend is the primary target of the program.
Eskay and Silver Standard plan to systematically drill-test the prospective volcanic package beneath the Coulter Creek fault by drilling widely-spaced, deeper holes from surface. This work will be supported by down-hole geophysics to detect proximal mineralization and by lithogeochemical sampling to map the distinctive alteration patterns common to VMS deposits.
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.
1. BC Geological Survey MINFILE Database (http://minfile.gov.bc.ca/Summary.aspx?minfilno=104B++008).
2. McGuigan, P. J. (2002) Technical Report on the Eskay Properties of Heritage Explorations Ltd. And Glenfred Holdings Inc.
3. Rebagliati, C. M. et al (1991) Diamond Drill Report on the Sib 1-16, 20-39 and Polo 1-13 Claims.
4. McKinley, S. D. (2008) 2008 Exploration on the Eskay Property.