Eskay Mining Completes Productive TV-Jeff Diamond Drill Campaign in which Most Drill Holes Encountered VMS Mineralization

Rhea-AI Summary

Eskay Mining Corp. announced the successful completion of a diamond drill campaign totaling 4,335.55 meters across 20 holes at its TV-Jeff VMS target on joint venture ground with Kirkland Lake Gold. The drilling revealed significant VMS mineralization, including silver-bearing minerals like pyrargyrite and electrum, indicating potential for valuable precious metals. Recent geophysical surveys suggest a larger VMS system than previously thought. The results are promising for further exploration, as the company plans to expand its drilling efforts in the next season.

Positive

• Successful completion of diamond drill campaign totaling 4,335.55 meters in 20 holes.
• Most drill holes encountered VMS styles of mineralization.
• Presence of silver-bearing minerals like pyrargyrite and electrum indicates potential for significant precious metals.
• Geophysical surveys suggest TV-Jeff may represent a much larger VMS system.
• Plans for follow-up exploration of at least seven other potential VMS systems.

Negative

• None.

TORONTO, ON / ACCESSWIRE / October 16, 2020 / Eskay Mining Corp. ("Eskay" or the "Company") (TSXV:ESK)(OTCQB:ESKYF)(Frankfurt:KN7)(WKN: A0YDPM) is pleased to announce that it has completed a highly successful diamond drill campaign encompassing 4,335.55 m in 20 holes at its TV-Jeff precious metal-bearing volcanogenic massive sulphide ("VMS") target on joint venture ground held with Kirkland Lake Gold Ltd. (80% Eskay/20% Kirkland Lake Gold). Nearly all drill holes encountered VMS styles of mineralization including bedded massive sulphide, stockwork feeder and/or sub-seafloor sulphide replacement. Importantly, some holes encountered silver-bearing sulphide minerals such as pyrargyrite and a natural gold-silver alloy called electrum, a promising indication of potential for appreciable precious metals in some mineralized intercepts.

Core logging, cutting and sampling of recently completed holes will be finished shortly at which point all samples will be delivered to the assay laboratory. Due to chronic assay backlogs, Eskay Mining has selected priority samples from many holes to be assayed first.

Highlights:

• The 2020 drill program encompassed 4,335.55 m in 20 holes, 11 at TV and 9 at Jeff. The TV and Jeff targets, situated approximately 1.5 km apart, have traditionally been viewed as independent VMS systems, but data from recent Skytem, magnetotelluric and induced polarization geophysical surveys conducted by the Company show very strong evidence these prospects are likely part of a single larger VMS system, one with a footprint extending for perhaps 3-4 km from north to south. If so, this means this is potentially a much larger VMS system when compared to others in the region.

• Nearly all drill holes at both TV and Jeff encountered VMS styles of mineralization including bedded massive sulphide, stockwork feeder and/or sub-seafloor sulphide replacement (Figures 1-3). Historic drilling at these targets dates to nearly 25 years ago and did not adequately test the style and orientation of the VMS system as now interpreted. Eskay Mining's recently completed drill holes were oriented to generate much more appropriate geologic and geometric data.

• Sulphide mineralization in all holes is hosted by a sequence of mudstones and volcaniclastic rocks. Eskay Mining speculates that this sequence of host rocks is similar to those reported by Skeena Resources in recent deep drill holes under their Eskay Creek VMS system. Skeena Resources has discovered multiple levels of mudstone and mineralization at depth at Eskay Creek.

• Late in this season's drill program, Eskay Mining began to offset early mineralized intercepts at Jeff. Subsequent holes encountered mineralization displaying silver-bearing sulphide minerals such as pyrargyrite and a natural gold-silver alloy called electrum, a promising indication of potential for appreciable precious metals in some mineralized intercepts (Figures 4 and 5). Forthcoming assays will help evaluate this potential further.

• Interestingly, mineralized intercepts with precious metal mineralogy were encountered in holes testing the highest stratigraphic position within the mineralized sequence that was tested during this program. This suggests further mineralization may be discovered yet higher within the stratigraphy than previously thought. Therefore, Eskay Mining views the TV-Jeff system as being open along strike to the north and south, down dip to the east and up section higher in the stratigraphy. TV-Jeff is a very large VMS system with robust potential for growth.

• In addition to promising drilling at TV-Jeff, Eskay has now reviewed airborne and ground-based geophysical data that was generated over broad parts of its 526 sq km property during the summer field program. At least seven other potential VMS systems are evident in this data and will be the subject of follow up exploration during the 2021 field season.

"We are very happy with our overall meterage and numerous VMS intercepts encountered in our 2020 diamond drill program at TV-Jeff," commented Dr. Quinton Hennigh, director and technical advisor to Eskay Mining. "To pull off this much drilling this late in the season is a testament to the very strong team we have in place here at Eskay Mining. We see a very large VMS system at TV-Jeff, and the presence of visible pyrargyrite and electrum in some of our latest holes is a very promising indication the system may bear appreciable precious metals. We can now readily see many immediate areas where we need to expand drilling next season. Our geophysics indicates TV-Jeff is much bigger than previously thought, and importantly, there are at least seven other high priority VMS targets emerging across the property. We have all the reason in the world to expect a very busy follow up season next year. In the meantime, we eagerly await assays from the 2020 drill program."

Dr. Quinton Hennigh, P. Geo., a director of the Company and its technical adviser, and a qualified person as defined by National Instrument 43-101, has reviewed and approved the technical contents of this news 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 along the Eskay rift in a highly prolific region of northwest British Columbia known as the "Golden Triangle," approximately 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
President & Chief Executive Officer
T: 416 907 4020
E: Mac@eskaymining.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.

(Figure 1: Example of bedded massive sulfides encountered in recent drilling at TV-Jeff.)

(Figure 2: Example of stockwork feeder encountered in recent drilling at TV-Jeff.)

(Figure 3: Example of sub-sea floor sulphide replacement encountered in recent drilling at TV-Jeff.)

(Figure 4: Example of pyrargyrite, red, encountered in a mineralized intercept at Jeff.)

(Figure 5: Close-up of pyrargyrite, red, and electrum, light yellow, encountered in a mineralized intercept at Jeff. An unknown silver mineral, gray, is also present.)

SOURCE: Eskay Mining Corp.

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FAQ

What were the results of Eskay Mining's recent drill campaign at the TV-Jeff site?

Eskay Mining's drill campaign at the TV-Jeff site revealed significant VMS mineralization, including silver-bearing minerals like pyrargyrite and electrum, suggesting potential for valuable precious metals.

How many meters were drilled in Eskay Mining's 2020 diamond drill campaign?

The 2020 diamond drill campaign totaled 4,335.55 meters across 20 holes.

What indications did Eskay Mining find during the drilling campaign?

Nearly all drilled holes encountered VMS styles of mineralization, confirming the presence of a promising VMS system at TV-Jeff.

What are the future plans for Eskay Mining following the drill results?

Eskay Mining plans to expand drilling efforts in the next season and explore at least seven other potential VMS systems identified through geophysical surveys.

What is the significance of the silver-bearing minerals found in the drill holes?

The discovery of silver-bearing minerals like pyrargyrite and electrum points to a potential for appreciable quantities of precious metals in the mineralization.