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Drilling Commences at Eskay’s SIB Property

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.

Footnotes:
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.

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).
We seek Safe Harbor.
© 2017 Canjex Publishing Ltd.

Eskay Mining Corp (C:ESK)

Eskay Mining options out 60% of SIB to Silver Standard

ESKAY SIGNS AGREEMENT WITH SILVER STANDARD TO OPTION UP TO A 60% INTEREST IN PART OF SIB PROPERTY

Eskay Mining Corp., further to its press release dated Feb. 13, 2017, has signed an option agreement with Silver Standard Resources Inc. pursuant to which Silver Standard may acquire up to a 60-per-cent undivided interest in part of Eskay’s SIB property, located in northwestern British Columbia, Canada.

Highlights:
• Underexplored, high grade gold-silver base metal target in a prolific district.
• Numerous gold-silver occurrences over 4 kilometers, within the same volcanic rocks that host the precious metal enriched volcanogenic massive sulphide (“PME-VMS”) deposits mined at the Eskay Creek mine.
• Historic drill results at the Lulu zone on the SIB project include 14.3 meters at a grade of 14.4 g/t gold and 1060 g/t silver, and 24.8 meters at a grade of 10.8 g/t gold and 766 g/t silver. 1, 2
• Potential at depth for PME-VMS deposits below a regional, gently easterly-dipping fault confirmed by previous drilling, which intersected prospective volcanic rocks with encouraging gold-silver grades.
• Historic drill results from a footwall setting include 25.4 meters at a grade of 2.12 g/t gold, 4.0 g/t silver, 0.17% zinc and 0.13% lead at 488 meters depth, 30 meters below the fault. 3 • Silver Standard has an in-house technical expertise to optimize Mineral Resources discovery potential.

Carl Edmunds, Chief Geologist at Silver Standard said, “The SIB project is a very exciting exploration target in Northern Canada due to its higher grade drill results, the fact that these types of PME-VMS deposits often occur in clusters and this property is 4 kilometers along strike from the prolific Eskay Creek mine, which produced over 3 million ounces of gold and nearly 160 million ounces of silver between 1994 and 2008. 4 Previous work from the 1990’s discovered PME-VMS at the Lulu zone, on SIB, near surface, and later attempts for further exploration were hindered by the presence of a fault potentially displacing the extension to mineralization. Subsequent work by Eskay Mining discovered the extension of the Lulu and Eskay Creek host felsic volcanic rocks below this fault, opening a large area for exploration by drilling. At Silver Standard, we remain disciplined with our greenfields exploration activities and this agreement demonstrates we are ready to act when an extraordinary opportunity arises.”

Summary Terms of the Agreement
The SIB project comprises a land package of approximately 4,400 hectares land package containing 30 mining claims. The project forms a small part of Eskay’s property, which is jointly controlled by Eskay Mining and St Andrew Goldfields Ltd. (“St Andrew”), a wholly-owned subsidiary of Kirkland Lake Gold Ltd., who hold an 80% and 20% undivided interest, respectively. Under the terms of the Agreement, Silver Standard will explore the SIB project during a three-year option period. To earn a 51% undivided interest in the SIB project from Eskay Mining, Silver Standard is required to complete a $300,000 private placement (the “Private Placement”) in the Company, and spend an aggregate of $11.7 million in exploration expenditures over the three years, including $3.7 million in the first year and $4 million in each of the following two years of the option period, subject to certain gold price thresholds in each option year. Once a 51% undivided interest is earned, Silver Standard can either proceed to form a joint venture with Eskay Mining and St Andrew to advance the project, or exercise a second option to earn a further 9% undivided interest for an aggregate of 60% undivided interest by either delivering a preliminary economic assessment or completing 23,000 meters of diamond drilling (including any drilling completed in order to exercise the first option) on the SIB project. The details of the option were announced by the Company in its news release dated February 13, 2017. After completing the private placement and spending a minimum of $3.7 million, Silver Standard can terminate the Agreement at any time.
The Private Placement has been completed with the issuance of 1,290,322 common shares of the Company at a price of $0.2325 per share. The securities issued are subject to a hold period expiring on August 26, 2017.

About the SIB Project
The SIB project is located 4 kilometers south-southwest from Barrick Gold Corporation’s (“Barrick”) past-producing Eskay Creek mine, which was one of Canada’s richest precious metals mines, with total production of 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. 4 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 gold-silver deposits at Eskay Creek occur either in rhyolite or within overlying sedimentary mudstone rocks. Hydrothermal fluids related to the rhyolite are integral in the formation of the deposits. The only other occurrence of VMS in the district is at the Lulu zone on the SIB project, and that mineralization has characteristics similar to Eskay Creek. At the Lulu zone, which is part of the SIB project, mudstone hosts a small PME-VMS deposit occurring within a rhyolite flow that is displaced by the Coulter Creek fault 100 meters down dip. As reported by the Company, a number of drillholes completed in 2002, 2008 and 2010, over an area of 350 meters by 200 meters, explored below this structure for the extension of the package and confirmed that felsic volcanic rocks, similar to those that host the Lulu and Eskay Creek deposits, are present between 400 meters and 500 meters below surface. Encouragingly, the volcanic rocks are mineralized with polymetallic stockwork veining returning in one drillhole 25.2 meters at a grade of 2.13 g/t gold, 4.0 g/t silver, 0.174% zinc and 0.124% lead. 3
The SIB project was extensively explored to shallow depths during the 1990’s. While the fault offset nature of the Lulu mineralization was recognized at that time, it was the Company’s drilling programs in 2002, 2008 and 2010 that defined the potential for a deposit similar to Eskay Creek, located somewhere below the fault. 3 Silver Standard plans to systematically explore the prospective volcanic package beneath the fault by drilling widely-spaced, deeper holes from surface. This work will be supported by down-hole geophysics to detect proximal PME-VMS and by litho-geochemistry to map the distinctive alteration patterns common to volcanogenic massive sulphide deposits.

Next Steps
Eskay Mining has completed the permitting process allowing helicopter-supported diamond drilling. Silver Standard has budgeted $3.7 million in 2017 for a drill program to complete 6,000 meters to 9,000 meters of drilling with two drill rigs. Silver Standard expects to begin mobilization in early June 2017 or as soon as weather conditions permit.

Qualified Person
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 companies press releases of October 17, 2016, August 8, 2016, May 9, 2016 and January 23, 2013.

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).
We seek Safe Harbor.
© 2017 Canjex Publishing Ltd.

Eskay Mining Corp (C:ESK)
Shares Issued 107,384,542
Last Close 4/25/2017 $0.35

Eskay announces acceleration of warrant expiry date

ESKAY ANNOUNCES ACCELERATION OF WARRANT EXPIRY DATE

Eskay Mining Corp. (“Eskay” or the “Company”) (TSX-V:ESK) wishes to announce that, further to its Press Release dated May 5, 2016, the WC Warrants issued pursuant to the private placement which closed on May 4, 2016 expire April 13, 2017, if unexercised by that date, as a result of the fact that the Company’s common shares have closed at a price of at least $0.30 for twenty (20) consecutive trading days.

Eskay proceeds with LOI with Silver Standard to option up to a 60% interest in part of SIB property

Mr. Mac Balkam reports:
ESKAY PROCEEDS WITH LOI WITH SILVER STANDARD TO OPTION UP TO A 60% INTEREST IN PART OF SIB PROPERTY

Further to its press release dated Jan. 26, 2017, St Andrew Goldfields Ltd., a wholly owned subsidiary of Kirkland Lake Gold Ltd., which holds a 20-per-cent undivided interest the SIB property, has waived its right of first refusal and Eskay Mining Corp. will proceed to negotiate the terms of a formal agreement for the option of up to a 60-per-cent undivided interest in part of the SIB property to Silver Standard Resources Inc., the senior mining company referred to in the Jan. 26, 2017, press release.

The part of the SIB Property subject to the Option consists of 30 mining claims representing approximately 4823 ha or approximately 10% of the SIB Property land package (the “Optioned Property”). Eskay holds an 80% undivided interest in the SIB Property pursuant to a joint venture agreement (the “JVAgr”) with St Andrew. The remainder of the SIB Property will remain subject to the terms of the JVAgr between Eskay and St Andrew.

The Optionee can earn a 51% undivided interest in the Optioned Property by completing a $300,000 private placement into Eskay at $0.20 per share, subject to the rules of the TSX Venture Exchange (“TSXV”), and expending $11.7 million on the Optioned Property over three years ($3.7 million in the first year and $4 million in each of the second and third years of the Option). In the event that the price of gold does not meet certain thresholds in any option year, the Optionee has the right to reduce minimum expenditures to $2 million in such option year and the term of the Option will be extended for a further year, subject to the requirement by the Optionee to spend at least $10 million in the first three years of the Option (in accordance with the terms of the JVAgr). Once a 51% undivided interest is earned, the Optionee can either proceed to form a joint venture (with the Optionee holding 51%, Eskay holding 29% and St Andrew holding 20% (assuming they contribute their pro rata share of expenditures on the Optioned Property)) or exercise a second option to earn a further 9% undivided interest in the Optioned Property for an aggregate 60% undivided interest (with the Optionee holding 60%, Eskay holding 20% and St Andrew holding 20% (assuming they contribute their pro rata share of expenditures on the Optioned Property)) by either delivering a Preliminary Economic Assessment or completing 23,000 m of diamond drilling on the Optioned Property. Eskay has a carried interest during the Option term but St Andrew must either contribute its pro rata share of expenditures or be diluted. If St Andrew is diluted to a 10% or less interest in the Optioned Property, it will be converted to a holder of a 2% net smelter returns royalty in the Optioned Property. Once a joint venture is formed, Eskay will be carried (the “Eskay Financing”) for any joint venture expenditures in respect of the Optioned Property it would otherwise be required to make until the earlier of a production decision by the Technical Committee or an aggregate of $10 million in expenditures has been made on its behalf (for example, if Eskay held a 20% undivided interest in the Optioned Property on the formation of the joint venture, it would not be required to fund its 20% undivided interest until an aggregate of a further $50 million had been spent on the Optioned Property). The Eskay Financing, with interest, is repayable by Eskay out of 100% of Eskay’s free cash flow from production of the Optioned Property.

The Option is subject to a number of conditions including certain technical amendments being made to the JVAgr, the grant of certain rights of first refusal to the Optionee, the execution of a formal Option Agreement, TSXV approval and such other conditions as are usual for a transaction of this nature.

For further information regarding the SIB Property, see the companies press releases of October 17, 2016, August 8, 2016, May 9, 2016 and January 23, 2013.

About Eskay Mining Corp:
Eskay Mining Corp (TSX VENTURE: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).

© 2017 Canjex Publishing Ltd.

Eskay signs LOI to option up to 60% in part of SIB

Mr. Mac Balkam reports:
ESKAY SIGNS LOI TO OPTION UP TO A 60% INTEREST IN PART OF SIB PROPERTY

Eskay Mining Corp. has signed a letter of intent with a senior mining company to option up to a 60-per-cent undivided interest in part of the SIB property. The part of the SIB property subject to the option consists of 30 mining claims representing approximately 4,823 hectares or approximately 10 per cent of the SIB property land package. Eskay holds an 80-per-cent undivided interest in the SIB property pursuant to a joint venture agreement with St. Andrew Goldfields Ltd., a wholly owned subsidiary of Kirkland Lake Gold Ltd., which holds a 20-per-cent undivided interest. The remainder of the SIB property will remain subject to the terms of the joint venture agreement between Eskay and St. Andrew. Pursuant to the terms of the joint venture agreement, St. Andrew has a right of first refusal for 21 calendar days to option the optioned property on the same terms as the LOI, failing which, Eskay will proceed to option the optioned property to the optionee.

The optionee can earn a 51-per-cent undivided interest in the optioned property by completing a $300,000 private placement into Eskay at 20 cents per share, subject to the rules of the TSX Venture Exchange, and expending $11.7-million on the optioned property over three years ($3.7-million in the first year and $4-million in each of the second and third years of the option). In the event that the price of gold does not meet certain thresholds in any option year, the optionee has the right to reduce minimum expenditures to $2-million in such option year and the term of the option will be extended for a further year, subject to the requirement by the optionee to spend at least $10-million in the first three years of the option (in accordance with the terms of the joint venture agreement). Once a 51-per-cent undivided interest is earned, the optionee can either proceed to form a joint venture (with the optionee holding 51 per cent, Eskay holding 29 per cent and St. Andrew holding 20 per cent (assuming it contributes its pro rata share of expenditures on the optioned property)) or exercise a second option to earn a further 9-per-cent undivided interest in the optioned property for an aggregate 60-per-cent undivided interest (with the optionee holding 60 per cent, Eskay holding 20 per cent and St. Andrew holding 20 per cent (assuming it contributes its pro rata share of expenditures on the optioned property)) by either delivering a preliminary economic assessment or completing 23,000 metres of diamond drilling on the optioned property. Eskay has a carried interest during the option term but St. Andrew must either contribute its pro rata share of expenditures or be diluted. If St. Andrew is diluted to a 10-per-cent-or-less interest in the optioned property, it will be converted to a holder of a 2-per-cent net smelter return royalty in the optioned property. Once a joint venture is formed, Eskay will be carried for any joint venture expenditures in respect of the optioned property it would otherwise be required to make until the earlier of a production decision by the technical committee or an aggregate of $10-million in expenditures has been made on its behalf (for example, if Eskay held a 20-per-cent undivided interest in the optioned property on the formation of the joint venture, it would not be required to finance its 20-per-cent undivided interest until an aggregate of a further $50-million had been spent on the optioned property). The Eskay financing, with interest, is repayable by Eskay out of 100 per cent of Eskay’s free cash flow from production of the optioned property.

The option is subject to a number of conditions including St. Andrew waiving its right of first refusal, certain technical amendments being made to the joint venture agreement, the grant of certain rights of first refusal to the optionee, the execution of a formal option agreement, TSX Venture Exchange approval and such other conditions as are usual for a transaction of this nature.

For further information regarding the SIB property, see the company’s press releases of Oct. 17, 2016, Aug. 8, 2016, May 9, 2016, and Jan. 23, 2013.

© 2017 Canjex Publishing Ltd. All rights reserved.