CEO Note to Shareholders and interested parties
2013 has been an interesting year in the mining exploration business. To state that it was a difficult year or so would be an understatement. Various studies have stated that up to 50% of junior explorers will disappear or change focus to some other marketable product in the near future. As CEO, I state categorically, your company has a world class project in a safe country; we are going to remain a mining exploration company. Management has confidence in our position and projects going forward. Our land positions are in good standing until 2021, so we have lots of time to work through the issues.
Two big events this year that affected Eskay Mining were the lack of interest in the total precious metal complex and therefore the lack of funding in our area. The second, in my opinion, has been the misinformation in the public domain about our neighboring project run by Pretium Resources. Obviously, Eskay Mining’s success is tied to the potential progress of both Pretium Resources PVG-T and Seabridge Gold SEA-T. The other neighbors in our area are sidelined by legal disputes among partners, which are a shame for both parties, at least in my opinion.
I encourage you to review our latest Corporate Presentation of August 2013 on our web site, (Eskaymining.com). This was prepared by James Rogers, PGeo, who was formerly the Chief Geologist at the original Eskay Creek Mine for ten years. Jim knows the area and the rocks. Unfortunately, at this stage, we cannot raise the funds required to proof up our theories or what needs to be worked on to create shareholder value. Management refuses to dilute us into oblivion with cheap shares at this time. Management does not live off the shareholders and has large skin in this game, so, shareholders come first, or to quote a line from Ford Motor Company, they are” Job One”.
You may rightfully ask us, what your plan is going forward. Well, obviously we need to obtain a large Joint Venture on a portion or all of our ground. A second possibility would be a potential merger with a corporate entity that has technical help as well as the cash to move forward. Naturally, any type of merger would have to benefit both parties to be workable. We can’t say when or if the metals market or interest in junior explorers will improve. Hope is not a great investing concept I’m told, so we won’t hope, we will deal with the facts going forward.
I encourage shareholders to watch the progress of both neighbors’ projects. As a reality check, your company has 95 million shares trading around five cents, so the market capitalization is approximately $4.5 Million Canadian Dollars. Not much market value for 130,000 acres beside the old Eskay Creek mine which was at the time the 2nd richest deposit in North America and the 5th largest silver producer in the world. Then we border so many millions of ounces of gold in the deposits of our neighbors. Nobody can dispute we are in the right neighborhood.
One resource letter writer even refers to North West BC as the richest metal area on the planet. He could well be right, time will tell. There are a multitude of gold projects in unfriendly places in the world, so our position should be worth more attention from investors going forward. We have several geological anomalies which remain to be tested. In effect, one of our problems is too many projects within one property package. Few companies have our interesting problems. In 2016, the plan calls for Pretium to place their Valley of the Kings deposit into production. Pretium’s recent press release indicates over eleven million ounces of gold at a grade in excess of 16 grams per tonne. Once in production, the infrastructure will become much better in our area. As well, we expect their success to focus attention in North West British Columbia area.
Your management will continue to move forward. We have regulatory expenses to keep the company in good standing but little other expenses. We will continue to pursue the goal of shareholder enhancement going forward. Our shareholder lists include a vast majority of the outstanding shares aligned with management, so we do not anticipate an unrealistically low ball bid would be successful in the future. Obviously, Management has no control over bids that could come to surface, but our intent is to listen to our shareholder base in the event a bid comes to the table.
Eskay Management wishes all of our shareholders a Happy Holiday season and looks forward to 2014 becoming a much more exciting time for our investors. Thank you for your support and interest in the company.
Mac Balkam, CEO
Eskay Mining Corp