NEWS - SSR Mining Proceeds with Second Year of SIB Option Monday, January 22, 2018 - 8:00 AM EST
Eskay Announces that SSR Mining Inc. will Proceed with Second Year of SIB Option Agreement; Planning Underway for 2018 Exploration Drilling Program
Toronto, Ontario (FSCwire) - Eskay Mining Corp. (“Eskay” or the “Company”) (TSX-V:ESK) (OTC-PK: ESKYF) (Frankfurt: KN7; WKN: A0YDPM) is pleased to announce that SSR Mining Inc. (formerly Silver Standard Resources Inc.) (NASDAQ: SSRM) (TSX: SSRM) (“SSRM”) has elected to proceed with the second year of a three year option agreement with the Company on the SIB property. SSRM may earn an undivided 51% interest by spending an aggregate of $11.7 million in exploration expenditures over the term of the agreement. SSRM may earn a further 9% undivided interest for an aggregate 60% undivided interest by delivering either a preliminary economic assessment or completing an aggregate of 23,000 meters of diamond drilling (see April 26th, 2017 news release). Eskay is also pleased to announce the final assay results from the 2017 diamond drill program at the SIB property.
The 2017 drill program at the SIB property was designed to test for precious metals enriched massive sulphide mineralization and prospective stratigraphy beneath the Coulter Creek Thrust Fault (CCFT). The SIB property lies immediately south-southwest along strike from Barrick Gold Corporation’s past-producing Eskay Creek Mine. Ten of the twelve drillholes completed in 2017 targeted the footwall of the CCTF (Figure 1). All holes intersected favourable Salmon River Formation rocks, which closely resemble host rocks at the mine. Cross sections illustrating the interpreted geology of the CCTF footwall, which were constructed from geological, geophysical and downhole structural data, are shown in Figures 2, 3 and 4.
with footwall alteration in a volcanogenic massive sulphide (VMS) setting (variably intense chlorite-sericite alteration); local sulphide-bearing veins were also intersected in a number of holes. Assays from the 2017 drilling are suggestive of the presence of two styles of mineralization: 1) disseminated sulphides hosting anomalous pathfinder elements within carbonaceous mudstone; and 2) polymetallic sulphide veins, locally up to 10 cm thick, consisting of pyrite, pyrrhotite, sphalerite, galena, +/- chalcopyrite and arsenopyrite. The former style occurs in mudstone stratigraphically overlying rocks correlative with the Eskay Creek Mine footwall rhyolite, and it has a similar geochemical signature to mineralization observed along the fringes of stratiform ore bodies at the mine. The polymetallic veins are hosted within the Eskay-type footwall rhyolite. A list of drillhole highlights from the 2017 drill program is given in Table 1.
In addition to intersecting encouraging mineralization and extensive alteration, the 2017 drill program greatly improved the Company’s geologic understanding of the CCTF and its footwall. The surface location of the fault and its sub-surface geometry are now constrained, and the drilling confirmed that the footwall stratigraphy bears strong similarities with rocks hosting the Eskay Creek deposits. There also appears to be an extensive area of altered Coulter Creek footwall rocks west and south of the area drilled in 2017 that are reachable with the drill. Therefore, there remains potential for Eskay-style discoveries at the SIB property, and target generation for the 2018 summer drill program at the property is currently underway. It will systematically test the extensive and favourable Eskay stratigraphy to the west and south of the 2017 drill area for precious metals enriched VMS mineralization.
Table 1 – 2017 Drillhole Highlights
| Hole | From (m) | To (m) | Length (m) | Au (g/t) | Ag (g/t) | Zn (%) | Pb (%) | As (ppm) | Sb (ppm) | Hg (ppm) |
| EK17-142 | 891.30 | 894.30 | 3.00 | 0.47 | 0.5 | - | - | 61 | 13 | - |
| EK17-145 | 622.00 | 623.00 | 1.00 | 0.03 | 1.0 | - | - | 1980 | 241 | 3.58 |
| EK17-146 | 221.00 | 223.00 | 2.00 | 0.30 | 1.5 | 0.02 | - | 352 | 57 | - |
| EK17-147 | 337.63 | 339.19 | 1.56 | 0.02 | 0.3 | 0.04 | 0.01 | 972 | 89 | - |
| EK17-148 | 132.30 | 135.30 | 3.00 | 0.02 | 5.2 | 0.04 | - | 3040 | 61 | - |
| EK17-149 | 321.30 | 324.30 | 3.00 | 0.01 | 2.8 | 0.08 | - | 581 | 171 | 1.2 |
| EK17-149 | 390.38 | 396.38 | 6.00 | 0.01 | 3.7 | 0.20 | 0.04 | 202 | 5 | N/A |
| Incl. | 395.38 | 396.38 | 1.00 | 0.03 | 11.6 | 0.44 | 0.11 | 667 | 7 | N/A |
N/A – Not analyzed
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.
For further information regarding the SIB property, see the Company’s Press Releases of October 17, 2016, August 8, 2016, May 9, 2016 and January 23, 2013.
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:
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.
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Figure 1: Overview map of 2017 drill program, showing geology and cross-section traces
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Figure 2: Interpreted E-W plane-projected geological cross-section of holes EK17-150 and EK17-152
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Figure 3: Interpreted E-W plane-projected geological cross-section of holes EK17-151and EK17-148
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Figure 4: Interpreted E-W plane-projected geological cross-section of holes EK17-145 and EK17
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public://news_release_pdf/eskay01222018.pdf