Thursday, February 4, 2021

Eskay Mining - Blue Blue Skies [TSXV:ESK][OTC:ESKYF]

Eskay Mining put out the following news release on February 2nd, 2021 and I have compressed it to highlight certain portions of it. Full release can be viewed at https://eskaymining.com/news/news-releases/eskay-mining-drills-35-5-m-grading-9-50-gpt-au-and-2134/

Eskay Mining Corp.is pleased to announce that it has received all assays from 20 drill holes completed during its maiden diamond drill program at two precious metal-rich volcanogenic massive sulphide (“VMS”) deposits, Jeff and TV, on joint venture ground held with Kirkland Lake Gold Ltd. (80% Eskay/20% Kirkland Lake Gold). Assays include 35.5 m grading 9.50 gpt Au and 70.0 gpt Ag including 9.25 m grading 32.17 gpt Au and 93.2 gpt Ag in hole J20-33 at Jeff.
    • Jeff
      • J20-39: 50.36 m grading 1.8 gpt Au eq including 14.12 m grading 4.2 gpt Au eq
      • J20-37: 7.66 m grading 4.9 gpt Au eq*
      • J20-34: 5.08 m grading 33.4 gpt Au eq including 1.59 meters grading 83.8 gpt Au eq*
      • J20-33: 35.5 m grading 10.6 gpt Au eq including 9.25 m grading 33.6 gpt Au eq including 3.00 m grading 82.8 gpt Au eq
      • J20-31: 24.55 m grading 2.0 gpt Au eq*
    • TV:
      • TV20-44: 24.54 m grading 1.5 gpt Au eq
      • TV20-40: 29.92 m grading 3.5 gpt Au eq including 4.10 m grading 11.7 gpt Au eq and a second zone of 65.27 m grading 1.7 gpt Au eq*
      • TV20-39: 40.74 m grading 1.8 gpt Au eq including 10.50 m grading 2.9 gpt Au eq*
      • TV20-38: 20.53 m grading 2.5 gpt Au eq including 10.50 m grading 3.5 gpt Au eq*
      • TV20-37: 17.46 m grading 3.3 gpt Au eq including 4.2 m grading 8.0 gpt Au eq and a second zone of 54.95 m grading 1.0 gpt Au eq*
      • TV20-36: 32.83 m grading 2.3 gpt Au eq including 1.5 m grading 17.4 gpt Au eq*
      • TV20-35: 15.00 m grading 2.3 gpt Au eq and a second zone of 16.33 m grading 3.4 gpt Au eq*

  • High-grade Au-Ag mineralization encountered in holes J20-33 and J20-34 is interpreted to represent possible feeder mineralization for an exhalative Eskay Creek type system, possibly situated somewhat higher up the stratigraphic section in close vicinity to the drill hole locations.

  • TV and Jeff targets are approximately 1.8 km apart. TV and Jeff may well be geologically connected and part of a larger approximately 6 km long corridor along which numerous electrically conductive anomalies occur.

  • Mineralization encountered to date ... same host rocks hosting the Eskay Creek Deposit approximately 13 km to the north. 

  • Both the TV and Jeff deposits are wide open along strike, down dip and up section.

  • Eskay’s 2020 drill program is the first to be undertaken in this area since the early to mid-1990’s when a few scattered holes were drilled at these targets. This was at a time when the geology of the Eskay Creek deposit was not all that well understood. 

  • These discoveries confirm the presence of new Eskay Creek type massive sulphide deposits .The Company plans an aggressive +30,000 m drill program in 2021 to follow up on the TV and Jeff discoveries and to also test at least another dozen high priority drill targets.

Quinton Hennigh presented a Leapfrog 3D model today in Crescat Capital's presentation, and the excitement is evident. Captured a few highlights but it's best, if you are interested, to watch the entire section starting at 42 minutes.


Some highlights from Quinton's presentation:

1) SkyTem data - shows rocks that are conductive and maybe related to sluphides. Looks like the mouth of a crocodile (East and West side of anticline, in purple), the 'teeth' are interpreted to be to be VMS feeder zones. Two 'crocodile teeth' drilled (TV and Jeff) in 2020.

2) What has been drilled thus far is a very small portion of the footprint. It's wide open at depth. Mineralization can go on deeper (much deeper perhaps)

 Not closed off at all, below is a 3D Figure of Jeff. The 35m intercept in the Feb 2 news release, is likely to continue down dip (see red arrows) - has not been delineated in any way (no drilling yet).

3) All the intercepts found thus far at Jeff (from #2) are in the feeder zone (conical shaped). As you work up the hill, Quinton theorizes that the VMS system will be hiding under the Bowser Lake rocks.

Jeff: Need to put a drill up on the ridge (Purple area) and drill holes down, and we may find a preserved VMS system underneath the cap.

Even the feeder zone is high grade... what could be down dip?

4) Same thing at TV - wide open and dipping into the ground. All the white circles are targets and likely areas of sulphides.

5) Tons of targets with sulphides shown from the VTEM.

Following is undrilled but Quinton believes this is also a feeder zone (same shape/signature as TV + JEFF)


6) 6KM+ of potential. Will do SkyTem further south and Quinton believes the trend will continue to targets such as C10.

7) More data in a week or two. Really cool stuff to talk about in a week or two. 85% of the perspective ground for Eskay style. It will be a belt on the west and east side. The east side appears to be the mothership. Very pronounced feeder zones.
 
Junior exploration is very risky - I remind you to read the disclaimer.

Hope you enjoyed the article - please let me know if you have any feedback/comments. 

 

My previous content on Eskay Mining:

1. July 2020: Eskay Mining: Compelling Junior Explorecos [TSXV:ESK][OTC:ESKYF] 

2. July 2020: Interview with Mac Balkam: https://www.youtube.com/watch?v=90Z5JTezqcw
 


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Disclaimer:
The author is not a registered investment advisor, currently has a long position in this stock. The author has not been paid by anyone to write this article. All facts are to be checked by the reader. For more information go to EskayMining.com and read the company’s profile and  official documents on www.sedar.com, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.