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Eskay Mining Reports on 2016 Fieldwork in the “Golden Triangle”

Toronto, October 17, 2016 – Eskay Mining Corp. (“Eskay” or the “Company”) (TSX-V:ESK) is pleased to report on the results of the 2016 exploration program announced in the Company`s August 8, 2016 press release.  Eskay holds a very large (55,000 hectares) land position in a key part of the “Golden Triangle” of northwestern British Columbia. Eskay’s holdings, part of which are held in a joint venture (80% Eskay) (the “ESK-JV Claims”), consist of three separate blocks of claims (see figure below). The largest block stretches in a broad concave-east arc from the area of the past-producing Eskay Creek Mine on the north, southward down the west side of Seabridge Gold’s resource-rich KSM property (nearly 50 million ounces gold, 14 billion pounds Cu, and 250 million ounces Ag in Measured and Indicated Resource categories (0.54 g/t Au, 0.21% Cu, and 2.7 g/t Ag in approx. 2.9 billion tonnes. Source: Seabridge Gold Inc. website)) in the Sulphurets mining camp. The other holdings include the North Mitchell block (1200 hectares), which lies north of Pretivm Resources’ Brucejack-Snowfield property (nearly 35 million ounces gold and 120 million ounces silver in the Measured and Indicated Resource categories (Brucejack, VOK:  17.2 g/t Au and 15.0 g/t Ag in 16.4 million tonnes; West zone: 5.85 g/t Au and 267 g/t Ag in 4.9 million tones. Snowfield: 0.59 g/t Au, 0.10% Cu, and 1.72 g/t Ag in approx. 1.37 billion tones. Source: Pretivm Resources Inc. website)) and immediately east of Seabridge’s Fe Cap Au-Cu deposit (see figure).  The mineralization and resources hosted on the above properties are not necessarily indicative of the mineralization, if any, hosted on the Company’s properties.  The final piece of Eskay’s land-holdings, the New Eskay tenure (570 hectares), lies to the west of the northern end of the main property.

Proposed Drill Program Permitted

Eskay is pleased to announce that a plan is in place to systematically drill-test the highly prospective stratigraphy on its SIB Project, which lies immediately south-southwest along trend from the past-producing and very high value Eskay Creek mine (see figure below).  Permits are now in place for this proposed program, which would involve systematic deep drilling to target the southerly part of the Eskay trend, where stratiform-style high-grade Au-Ag mineralization was intersected in previous drilling.

Highlights of Fieldwork

On the southernmost part of the Corey Property, the 2016 fieldwork and sampling strongly suggests that rocks similar in age, lithology, and alteration to those hosting the Eskay Creek deposit not only underlie parts of Eskay’s 100% owned Corey block on the southwestern part of the property, as was previously known, but also underlie most of the area to the east and southeast of there, toward the Frank Mackie icefield, which has been regarded previously as being underlain by older rocks.  Very encouraging results were returned by preliminary soil and rock geochemical sampling in that area, east of Ted Morris glacier, including two strings of soil geochemical samples across 400 to 500 meters which all yield anomalous precious metals values, along with very strongly anomalous “pathfinder” elements such as As, Sb, Cu, Pb, Mo and Zn, which are characteristic of “Eskay-style” mineralization.

The North Mitchell block of Eskay’s ESK-JV Claims was mapped in 2016 and a number of rock and soil geochemical samples were also collected from this area. The block, which abuts the northern end of Pretivm’s Brucejack-Snowfield property and which lies immediately east of Seabridge Gold Inc.’s Fe Cap deposit, lies along a highly altered and very well-mineralized trend that links the Treaty Creek area on the northweast with the Kerr deposit on the southwest (see figure). In addition to Kerr, this trend encompasses Seabridge’s Sulphurets, Mitchell and Fe Cap deposits, and Pretivm’s Snowfield deposit.  At Treaty Creek, Tudor Gold Corp. recently announced results documenting impressively broad gold intersections in drilling.  Stratified rocks on the North Mitchell block are also very similar to those on the Brucejack property.  The style and intensity of quartz-sericite-pyrite alteration affecting latite flows and fragmental rocks outcropping at lower elevations along the margin of the Mitchell glacier on the south part of the block is similar to that associated with mineral deposits throughout the Sulphurets camp.  With the knowledge that this part of the stratigraphy plays a role in localizing alteration and mineralization on the Brucejack property, with the proximity of this block to the Fe Cap and Snowfield deposits, and with the fact that sampling of the altered rocks returned elevated gold values (up to 295 ppb Au), Eskay Mining is greatly encouraged by the results, observations, and interpretations in its field program.

Another focus for fieldwork was the Big Red area near the south end of the Eskay holdings, west of Ted Morris Creek. There, approximately 25 grab samples from very common quartz veins hosted in biotite-hornfelsed and variably quartz-sericite-pyrite altered volcaniclastic rocks consistently yielded very highly anomalous copper, molybdenum and tungsten values, with locally anomalous silver and gold. The geochemical signature, the extent of alteration and the density of veining all suggest that the area warrants follow-up exploration.

Future Plans

Permitting has been completed for a large-scale deep drilling program at the SIB, and Eskay plans to raise the money to drill this exploration target in 2017.  The other areas discussed above will also be the focus for work aimed at developing drill targets. On the North Mitchell block, the focus will be on an MT or deep-looking 3D Induced Polarization survey to help target mineralizing systems on Eskay’s North Mitchell block, north of Brucejack and east of Fe Cap.  On the southernmost Eskay tenures, north to the latitude of Sulphurets Creek and including much of the Corey property, further late-season reconnaissance prospecting, geochemical surveys, and mapping will be undertaken to better evaluate the potential for Eskay Creek-style mineralization in the Middle Jurassic felsic submarine volcanic stratigraphy; at the same time, vein-type mineralization in the Big Red area will be further assessed for its depth potential.

Eskay Mining Corp. maintains strict QA/QC protocols for all aspects of its exploration programs. This includes the systematic insertion of blanks and standards into each sample batch. Rock and soil samples were collected in individually labeled plastic and kraft paper bags respectively, and were shipped by transport and/or Greyhound bus in sealed woven plastic bags (rice bags) to ALS Minerals laboratory facilities in either Terrace or North Vancouver for processing. Analyses were performed in the ALS Minerals laboratory in Vancouver.  All samples reported in this release were assayed using certified and industry-standard assay techniques for gold, and multi-element geochemical packages for other elements and for over-limits. Au was analyzed by 30 to 50 gram fire assay with an atomic absorption finish, and other elements were analyzed by multi-element ICP, following multi-acid digestion.

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.

 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 4020

President & Chief Executive Officer                                                                        E:  macbalkam@aol.com

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.

 

This is a story of a Golden Triangle...

In a hidden corner of Northwestern Canada lies some of the world’s most significant mineral potential.

Billions of dollars of gold, silver and copper sit within an unexplored area that was one remote. Only recently have these world-class deposits become accessible for exploration and mining.

This is a story of a Golden Triangle…

NW Transmission Line approved – Explorers rejoice

Today the Association for Mineral Exploration BC (AME BC) joined the Northwest Power Line Coalition in celebrating the federal environmental approval of the Northwest Transmission Line project. This federal approval supports the decision taken by the BC Environmental Assessment Office to grant BC Hydro an environmental assessment certificate for the proposed $404 million, 344-kilometre transmission line project from the existing Skeena substation south of Terrace to a new substation near Bob Quinn Lake along Highway 37 in northwest British Columbia.

“We thank the federal government for their leadership in approving this line, which represents the start of a new era for the mineral exploration and development sector, and all communities, in northwest British Columbia,” said Gavin C. Dirom, President & CEO of AME BC. “We also again acknowledge the hard work of Prime Minister Stephen Harper and elected officials and staff in federal, provincial and local governments; First Nations; and Northwest Power Line Coalition members for their advocacy and support of the Northwest Transmission Line,” stated Dirom.

The Northwest Transmission Line is a fundamental infrastructure project that will be the gateway to the Golden Triangle. There are over 935 mineral occurrences identified in the region that could benefit from the transmission line, of which 67 have been documented in the resource category. In 2010, the provincial government identified 25 major exploration projects and proposed mine development in the corridor, and a 2008 study identified $15 billion in investment and 10,700 potential jobs resulting from the power line.

“The investment and job creation from this transmission line will support regional economic development as well as provide important tax revenue for health, education, and other important services,” concluded Dirom.

More information is available online at www.highway37.com. The federal announcement is at http://www.ceaa-acee.gc.ca/050/details-eng.cfm?evaluation=51726.

Power Grid for Golden Triangle

The British Columbia Provincial Government in conjunction with the Federal Government of Canada, has recently approved the construction of a 200-mile high-voltage power line into the GOLDEN TRIANGLE. Funded in part by the Canadian Government, this line will deliver much needed, affordable electricity to the communities of northern British Columbia (communities, which at the moment, rely on expensive diesel-powered generation).

 

Golden Triangle Today

The Vancouver Sun

Division of Canwest Publishing Inc.
Northwest gold explorers discovering reasons to be bullish

By Scott Simpson

Its unofficial name among British Columbia prospectors and mining entrepreneurs is the Golden Triangle.

Soon, it appears, the global mining community will be adopting that nickname in recognition of vast mineral wealth that new and recent discoveries suggest is available in northwest B.C.

A world-class copper-gold-silver property, Galore Creek is awaiting only a resolution of economic issues pertaining to development of a flagship mine in the northwest. Galore partners Teck Mining and NovaGold are expected to make an announcement in 2010.

Work could begin on a second potential mine, Imperial Metals’ Red Chris, next year pending a decisionin the Supreme Court of Canada on a petition by environmental groups seeking a ruling that the project, which already has provincial approval, also needs a full federal review. That ruling is anticipated early next year.

If the environmentalists lose, Red Chris is a go — and additional drilling results on nearby property suggest that the permitted mine, although relatively large, may be considerably smaller than the vast and rich copper-gold deposit on adjacent land that is also held by Imperial.

Drill core samples from at least two other northwest projects in early stages of development, Seabridge Gold’s Kerr-Sulphurets-Mitchell (KSM) project and Silver Standard Resources’ Snowfield-Bruce lake project, are also suggestive of exceptional deposits.

Silver Standard president and CEO Bob Quartermain said in an interview this week that one of the drill core samples collected this summer at Snowfield contained the highest-grade gold and silver mineralization he’d personally seen in his 33-year career as a mining geologist.

“At the start of the year, they had an estimated four million ounces of indicated gold resources in the main Snowfield zone, and about 14 million ounces of inferred resources,” Quartermain said. “We drilled over 40,000 metres of drill core up there [in 2009] and we did that from middle of June through middle of October. We had in excess of 80 people working at our sites, at seven drills and as a result of that we increased our measured and indicated resources on the project almost five-fold.

“We are now sitting on 23.8 million ounces of measured and indicated [gold] resources, and 14.9 million ounces of inferred. But more importantly, we had some pretty high-grade hits. At one hole we hit probably the highest grade gold I’ve seen in my career, for any project I’ve worked on personally — and I’ve been in the business since 1976.

“One of our holes hit massive visible gold that ran at assayed 16.9 kilograms of gold and eight kilograms of silver over one metre and a half.”

Meanwhile, Seabridge president and CEO Rudi Fronk saw the value of his company’s shares double this month from $11 to $22 after he told a Bloomberg News reporter that the company’s KSM copper-gold deposit — purchased for $200,000 from Placer Dome in 2000 — is far too large for the junior miner to develop by itself.

“When we bought it there were two known zones, the Kerr zone and the Sulphurets zone, which are the K and the S in KSM,” Fronk said in an interview. “Known resources were about 3.4 million ounces of gold and about 2.7 billion pounds of copper.”

The real discovery came after Seabridge began drilling in earnest two years ago at the Mitchell zone.

“At Mitchell, we are now at just about 40 million ounces of gold and over five billion pounds of copper. It’s the largest gold deposit ever found in Canada.

“The next big step for us is completing the preliminary feasibility study. At that point in time you’ve done enough engineering to quantify reserves. We will have that study done by March of 2010.”

There are precedents.

Snip Mine and Eskay Creek, two of the richest mines in B.C.’s history, were northwest discoveries.

There are other intriguing projects as well — B.C.’s geological survey database says there are 935 documented mineral occurrences in the Triangle, and ranks 67 in the “resource” category.

Both the federal and provincial governments have been awakening to the opportunities in the area, recognizing that development cannot proceed without major infrastructure, particularly a connection to the BC Hydro electricity grid.

The province last year committed $250 million to a high-voltage transmission line to service mining activity in the northwest along what is known as the Highway 37 route.

The federal government dramatically signaled its support when Prime Minister Stephen Harper announced at a meeting in Washington with President Barack Obama on Sept. 16 that Ottawa was kicking in $130 million for the transmission project.

“I don’t want to overemphasize it, but [the companies] are putting money into the ground there. They are drilling, and either they are making further discoveries or adding value to their resource,” said Gavin Dirom, president and CEO of the Association for Mineral Exploration BC. “It’s quite remarkable, and I don’t think that’s going to be changing anytime soon. But you’ve really got to demonstrate to the sector, to investors, to the government, that you are making a discovery, that you are serious, and that you are committed to building that mine. That is the best measure of success.”

Pierre Gratton, president and CEO of the Mining Association of B.C., noted that recent drill results announced for the Deep East zone outside the designated footprint of Red Chris suggest that the additional deposit, regardless of the outcome of the Supreme Court decision, is too large to ignore.

Last week, Imperial Metals reported mineral content in its final drill results from its 2009 Deep East program ran as high as 4.12 per cent copper and 8.83 grams of gold per tonne. Even the lowest concentration found at 10 Deep East drill sites, 0.82 per cent, would be ample to sustain a major new mine if they are consistent across the property.

“They have uncovered incredible results that are really positioning this, not just as a decent mine but as a pretty top-class copper mine, a multi-generational copper mine,” Gratton said in an interview.

“The results are significant in terms of what it means for porphyry deposits generally in North America. It’s changing the way people are looking at porphyry deposits here in B.C. So it’s actually huge news. We all hope [Imperial] wins in the court, but this is now a project that they will go back and do the federal environmental assessment for, if it’s required. This is going to get built.”

Steve Robertson, exploration manager for Imperial Metals, echoed those comments. He noted that the Deep Zone findings need to be mapped out through further exploration, and sit outside the area of the proposed Red Chris Mine.

But he said the results could change the way that mining companies think about opportunities in B.C.

“People had traditionally thought of British Columbia porphyry deposits as being modest in size and low in grade. This is making it appear Red Chris will be neither modest in size nor low in grade,” Robertson said. “It really is changing the goalposts for what we think is achievable for mineralization in B.C.”

Minister of State for Mining Randy Hawes expects the Highway 37 project, which is now in the process of a provincial environmental assessment, will give the region an additional spark beyond the buzz that companies like Imperial Metals are creating with Red Chris.

“We can’t go out and stir up the stock market, but this is happening on a regular basis right now, particularly up in the northwest. There is a huge amount of activity, and I really do believe the Highway 37 announcement has spurred this tremendously.”

ssimpson@vancouversun.com

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