SIB Property Drill Program - Preliminary Results

TORONTO - Eskay Mining Corp. reported the completion of a 9,336 m, 12 hole diamond drill program on its SIB property.  The 2017 drill campaign was completed by SSR Mining to satisfy its commitment to spend $3.7 million over the first year of the option. The property under option to SSR Mining represents approximately 9% of the Company’s land package in the Golden Triangle in British Columbia.

The deprogram was designed to test for precious metals enriched massive sulphide mineralization and prospective lithologies beneath the Coulter Creek Thrust Fault (CCTF), immediately south-southwest along strike from Barrick Gold Corporation’s past-producing Eskay Creek mine.  The CCTF is a north-south trending, east dipping structure that separates Eskay rhyolite and interbedded sedimentary rocks of the Salmon River Formation to the east, from Bowser Lake Group sedimentary rocks to the west.  Ten drill holes targeted CCTF footwall rocks, while two holes targeted a potential northern extension of known mineralization in the CCTF hanging wall (LULU Zone).  Holes testing the CCTF footwall were drilled on 100-250 m centers over a strike length of approximately 1 km on a north-south trend.  Hanging wall holes were drilled off a single pad approximately 150 m to the northeast of the LULU Zone.  Bore-Hole-Transient-Electro-Magnetic (BHTEM), IP, magnetic and optical televiewer surveys were performed upon the completion of drill holes.

All of the 2017 diamond drill holes targeting the CCTF footwall intersected Salmon River Formation stratigraphy that bears strong lithologic similarities to those found on the Eskay Creek mine property, down-section from Bowser Lake Group sedimentary rocks.  Chlorite-sericite alteration consistent with volcanogenic massive sulphide (VMS) footwall alteration was also present in every hole drilled, and local sulphide-bearing veining was intersected in a number of holes.  The assays to date, although low grade, do show mineralizing systems are present.  Once the remaining 50% of the assays are received and the geophysical data is analyzed, targeting for next year’s drill program will be completed. Final results are expected midway through the fourth quarter of 2017.  Preliminary BHTEM interpretation has outlined a number of weak off-hole conductors, all located to the west of the drill holes by 25-100 meters. These are likely hosted by prospective rhyolitic or basaltic rocks of the Salmon River Formation. 

Current work is focused on finalizing geological interpretations, integrating the geochemical and geophysical data with the geology, and incorporating structural information from the optical televiewer downhole survey with the other data.  The ultimate goal is to generate a 3D geological model of the drill area, and beyond, for continued targeting.  Geochemical samples have been submitted to ALS Canada Ltd. Results for the remainder of the program are expected midway through the fourth quarter, 2017.