Eskay to Commence Exploration in Golden Triangle With Proceeds From Non-Brokered Private Placement - Seite 2

In recent years, deep drilling by Seabridge (KSM property: Kerr, Sulphurets, Mitchell and Iron Cap Cu-Au deposits) and Pretivm (Brucejack property: Valley of Kings and Snowfield deposits) has delineated truly world-class orebodies. The orebodies are slightly older than at Eskay and occur in different geological settings. These differences necessitate a somewhat different approach to exploration, and in light of this, and in light of significant recent glacial retreat in the area, Eskay is re-evaluating its known mineral occurrences, and is revisiting the parts of the properties which border the big deposits of its neighbours. Eskay's known occurrences include those west of KSM, such as C10, where drilling in 2005 returned 99.4 g/t gold over 1.5 meters, GFJ, where prospecting has returned grab samples up to 94.5 g/t gold and 175 g/t Ag, and TM, where prospecting has returned grab samples up to 173.4 g/t Au and 204 g/t Ag.

At Eskay Mining's SIB Project, the Company is planning to advance a deep-drilling program to further test for Eskay Mine-style mineralization at depth. Shortly after the discovery of the Eskay Creek deposit, Eskay-style Au-Ag-Zn-Pb-Cu rich stratiform sulphides were discovered on the SIB property. This included a drill intersection of 14.3 meters of 14.4 g/t gold and 1059.8 g/t silver. The work led to follow-up drill campaigns at the SIB along the "Eskay trend," in which a considerable number of relatively shallow diamond drill holes, and a small number of deeper ones, led to the interpretation that the distinctive rocks crucial to the Eskay Creek mine geologic model, were faulted off at depth across the Coulter Creek thrust fault. Subsequent drilling by Eskay in 2008 and 2010 showed, however, that the offset on the thrust is not great, and that stratified rocks in its footwall are similar to those in its hangingwall and they are also similar to those at the Eskay Creek mine. These include distinctive tholeiitic submarine rhyolitic volcanic rocks (the "Eskay rhyolite") which appear to represent a crucial component of ore controls at the mine. While the drilling in 2008 and 2010 did not intersect Eskay Mine-style high-grade stratiform mineralization, the drilling did intersect lower-grade mineralization with highly anomalous "Eskay-like" metal signatures (Au, Ag, Zn, Pb, As and Sb). Furthermore, the drilling tested only a very limited part of the stratigraphic section, across a very limited strike length. As a consequence, the SIB Project represents an attractive exploration target, with the very real upside being discovery of a deposit similar to that of the Eskay Creek Mine. Following completion of this program, the Company plans to systematically drill-test the approximately five kilometers of untested strike length with hole depths up to 1200 meters.