Drilling Program Yields Early Successes

New Targets Increase the Potential for New Discoveries

Sale of Mining Claims Enhances Financial Flexibility

Thoughts on the 2023 Drilling Program

Mark Reichman

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Basic Materials

Metals & Mining

Eskay Mining Corp

Drilling Program Yields Early Successes 
 
Eskay Mining is focused on the exploration and development of precious metal volcanogenic massive sulfide (VMS) targets along the Eskay rift in a region of northwest British Columbia known as the Golden Triangle. The companyâ€™s Eskay Gold Project encompasses 52,600 hectares, or 26 square kilometers, of highly prospective property within proximity to several world class gold deposits, including the adjacent past-producing Eskay Creek Mine, a high-grade gold-silver rich VMS deposit. The Eskay Creek Mine produced, over a 14-year life, approximately 3.3 million ounces of gold and 160 million ounces of silver at average grades of 45 grams of gold per tonne and 2,224 grams of silver per tonne. Figure 1 illustrates Eskay Mining&#8217;s land holdings associated with its project.&nbsp;
Figure 1: Consolidated Eskay Gold Project
 
<img decoding="async" src="https://www.noblelinx.com/x/research/images/reports/ESKYF-08312023a.JPG" style="width: 500px;height: 615px;float: none" /> 
 
Source: Eskay Mining Corp.
Initial Drilling Feedback is Promising. 
 
 At the Cumberland target, which is roughly five kilometers south of the TV deposit and situated on the eastern limb of the Eskay Anticline, five drill holes have been completed with each intersecting stock work and massive sulfide mineralization over core lengths of approximately 25 to 85 meters. Based on spot XRF analyses, the intercepts are rich in silver, copper, lead, zinc, arsenic, antimony, and tellurium. Gold analysis by XRF is generally unreliable. Cumberlandâ€™s stratigraphic position is believed to be in the Upper Hazelton Group of volcanic rocks at a level similar to the Eskay Creek deposit located approximately 20 kilometers north. Eskay has one additional hole planned at Cumberland.
Scarlet Knob-Bruce Glacier is in an area where rock chip sampling returned several gold and silver-bearing assays, including one that graded 56 grams of gold per tonne. To date, four drill holes have tested the westward dipping succession of volcanic rocks in search of the paleo-sea floor position of the VMS system. All four holes encountered significant intervals of 20 to 50 meters of intense stockwork mineralization. Spot XRF analyses indicate the stockwork mineralization contains high levels of silver, copper, lead, zinc, arsenic, and antimony. Mineralization is believed to be hosted in the lower part of the Hazelton Formation. Additional drilling will be done in an area approximately 200 meters north of holes recently drilled near a newly discovered outcrop of base-metal-rich VMS mineralization. 
At Tarn Lake, three holes drilled encountered sulfide mineralization ranging from 30 to 130 meters in length. Spot XRF analyses indicate the stockwork mineralization contains high levels of silver, copper, lead, zinc, arsenic, and antimony. The mineralization is thought to be hosted by volcanic rocks in the lower part of the Hazelton Formation near a paleo-sea floor position much like Scarlet-Knob-Bruce Glacier to the east. One additional hole will be drilled at Tarn Lake this year.
Drilling targets at Hexagon-Mercury, situated on the western flank of the Eskay Anticline approximately 9 kilometers south of the Eskay Creek mine, has been informed by geophysical anomalies interpreted by Mr. Riaz Mirza of Simcoe Geoscience. The first of two drill holes completed to date yielded an intercept of over 100 meters of appreciable stockwork sulfide mineralization hosted by volcanic rock thought to be part of the lower Hazelton Group. Spot XRF analyses indicate the stockwork is moderately to strongly anomalous in arsenic and other pathfinder elements. Eskay Mining is contemplating following up with additional drilling this season.
The last target to be drill tested this season is Storie Creek, an undrilled area that is 3.5 kilometers south-southeast of the Eskay Creek Mine. Extensive gossanous outcrops of Upper Hazelton Formation rocks were discovered along the eastern side of Storie Creek over a strike length of at least 4 kilometers. Eskay identified two areas where high silver-in-soil values occur, an indication that the Storie Creek gossanous outcrops are likely associated with mineralization. Two drill holes are planned and will commence shortly at Storie Creek.
Figure 2: Corridor Extending from the Eskay Creek Mine to Scarlet Knob
<img decoding="async" src="https://www.noblelinx.com/x/research/images/reports/ESKYF-08312023b.JPG" style="width: 525px;height: 152px;float: none" />
Source: Eskay Mining Corp.
Figure 2 is a geologic interpretation of the corridor extending from the Eskay Creek mine to Scarlet Knob. At Eskay Creek, mineralization occurs in and around three horizons which were all at one time sea floor positions, including the Contact Mudstone, Lower Mudstone, and Even Lower Mudstone belonging to the Hazelton Group. Storie Creek and the region extending two kilometers to the northwest offer strong potential to host these same three stratigraphic horizons making Storie Creek a highly prospective target. At Tarn Lake, Bruce Glacier, and Scarlet Knob, the lowest sea floor position is the focus of exploration.&nbsp;&nbsp;
One hole completed at TV South did not encounter significant mineralization. Subsequent field discoveries of sulfide rich outcrops in nearby areas suggest this hole was drilled in an unfavorable orientation and that further exploration work is warranted. Two drill holes completed at the Maroon Cliffs target did not encounter appreciable mineralization.
Capital Structure and Liquidity
As of May 31, Eskay Mining reported cash and cash equivalents in the amount of C$2.3 million. In July, Eskay sold five mining claims to Skeena Resources Limited (TSX: SKE, NYSE: SKE) for C$4 million in cash. Initial consideration of C$2 million was paid to Eskay upon closing with an additional C$1 million payable on October 31, 2023, and a final C$1 million payment due on December 31, 2023.

Eskay Mining Corp (ESKYF)

Drilling Program Yields Early Successes

Fundamental Analysis:

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Drilling Program Yields Early Successes (ESKYF)

New Targets Increase the Potential for New Discoveries (ESKYF)

Sale of Mining Claims Enhances Financial Flexibility (ESKYF)

Thoughts on the 2023 Drilling Program (ESKYF)

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